Promotion Planning and cannibalization

[yadagiri]

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

[alok_jaiswal · Accepted solution]

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 group  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

[yadagiri · Accepted solution]

Hi Alok,

Thanks for the replay..Can you please let me know the steps for promotion planning by using cannibalization.

Thanks in advance

Regard

Yadagiri

[alok_jaiswal · Accepted solution]

Hi Yadagiri,

Following would be high level process-

• Define the key figure assignment and the product planning level for your promotions via

Advanced Planning and Optimization → Demand Planning → Planning → Promotion → Settings → Maintain Promotion Key Figures.

• Create a cannibalization group - Advanced Planning and Optimization → Demand Planning → Planning → Promotion → Settings → Maintain Cannibalization Group.
• In Interactive planning book - create and save an absolute promotion
• Assign the promotion object using Multiple assignment.

Hope it helps.

Regards,

Alok

[alok_jaiswal · Accepted solution]

Hi Yadagiri,

If your issue is resolved - please follow -

Regards,

Alok