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Promotion Planning and cannibalization

Dear Experts,

We are going for the Promotion Planning with cannibalization. Please suggest what questions can be put during the requirement gathering.

and what factors to be considered.

Thanks in advance

Warm Regards

Yadagiri

Former Member replied

Hi Yadagiri,

As you would be knowing cannibalization group will have both positive and negative impact on sales of products.

1. So,while defining cannibalization groupĀ  identify the products which are similar in nature and can be grouped under single cannibalization group


2. In the cannibalization group, update the factors accordingly - Example - Reduction in sales of 5 piece for FG01 and 10 pieces for FG02 for additional sales of 5 pieces for product FG03 - where all FG01, FG02 and FG03 are related products part of one cannibalization group


3. Please note you can run cannibalization only for absolute promotions

4. While defining the promotion, select the "Check Cannibalization Group" and accordingly define the periods for which promotion needs to be run.

Hope it helps.

Regards,

Alok

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