SAP Trade Promotion Management: RKT Workshop - TPM Overview

SAP Trade Promotion Management
RKT Workshop – TPM Overview
(CRM 4.0 / SEM 3.5)

TPM Core Consulting
Team
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Participants
Prerequisites:
Interest in Trade Promotion Management
Experience of SAP systems (CRM / R/3)
Preferred:
Experience of SAP systems (SEM/BW / APO)
Knowledge of Consumer Products industry
Target Group:
Consultants
Pre-Sales Consultants / Solution Engineers
Duration: 2 days
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Course Objectives
After this course you will be able to:

Understand the Business Process Trade Promotion Management
Drivers
Benefits
Terminology
5 Step Process
Understand Trade Promotion Management using SAP and use of the

Marketing Calendar and Planner with respect to
Top Down Sales Planning
Promotion Planning (pre-evaluation, deals etc.)
Offline Planning
Introduction in Demand Planning
Sell-in and Negotiation
Execution (sales orders and survey capture)
Post Evaluation
Understand the interaction with Consumer Activities
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Workshop Agenda
Unit 1 Business Process Unit 6 Promotion Planning

Offline
Unit 2 Trade Promotion Unit 7 Interface to Demand
Management Planning
Unit 3 Top Down Sales Unit 8 Sell-in, Execution and
Planning Validation
Unit 4 Promotion Planning Unit 9 Post Evaluation
Online
Unit 5 Deal Master Unit 10 Consumer Activities
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Unit 1 - Business Process
(CRM 4.0 / SEM 3.5)
TPM Core Consulting
Team
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Workshop Agenda

Offline
Management Planning
Planning Validation
Online
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Unit Content
Unit Content: Unit 1 - Business Process
Drivers
Benefit
Terminology
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Unit Objectives
Unit Objectives: Unit 1 - Business Process
After this unit you will …
... be able to explain the business drivers behind the process
... be able to explain the business benefits behind the process
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Typical Cost Structure of a CPG Company
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Consumer Products companies spend large amounts on marketing

The largest line item is Cost of Goods sold: The production, for example of cookies, means to produce in
detail or buy: flavors, and plastic wrap. Production is one of the highest costs.
To spend 25% of the annual revenue for Marketing activities is a remarkable amount and that is why CPG
companies now start to work on establishing a means to have better control of what the benefits are of this
investment.
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Make Sure You Understand the Distinction!
Retail Consumer
CP-INDUSTRY
Marketing Activities
Consumer Activities
Trade Promotions
Consumer Promotions Media Campaigns
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The two major goals of a CPG company’s marketing activities are on one hand, to increase brand equity,
brand awareness, and market share, and on the other hand sales volume of the manufactured products. All
marketing activities are embedded into a company-wide, global marketing strategy that is implemented
using three types of marketing events: Trade Promotions, Consumer Promotions and Media Campaigns.
We combine Consumer Promotions and Media Campaigns with the term ‚Consumer Activities‘. E.g. TV
adverts, magazine ads, coupon drops, in-store sampling
Trade Promotions are always directed through the retail channel, i.e. through the trade. These promotions
take the form of discounts offered to the retailer or fees for placing the goods at the end of an aisle or at the
point of Sale (POS)
This scenario focuses on the direct route to the retailer. No wholesalers are included.
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Typical Cost Structure of a CPG Company
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In the last fifteen years TPM has steadily increased from 5% to 17% (in some markets) as the market
stabilized and retailers gained leverage
4% are spent on consumer promotions: this amount of money is spent, for example, on coupons and
sampling.
5% of the annual sales revenue is spent on advertising
17 %, on average, is spent on trade promotions: this could be, e.g. discounts, buy two pay one, …
Some CPG companies spends are even higher ( e.g. bottlers who are doing the production and
distribution)
In some countries it is, however lower (for example in Asia)
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Examples of Promotions
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An End Aisle
A Free Standing Display
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Implications of Inefficient and Ineffective TPM Solutions
Only 16% of Trade Promotions Are Profitable 1
91% of Manufacturers Feel TPM $’S Are Inefficient 2
85% of Manufacturers Feel They Are Ineffective 2
81% of Manufacturers Feel They Get Poor Value 2
Manufacturers Estimate That 30% of TPM Dollars Go Straight to the

Retailers’ Bottom Line 3
TPM Related Activities Account for 25% - 30% of a Salesperson's and

Brand Manager’s Time 4
Manufacturers wrote off deductions equal to 8.5%

of their revenue in 2000 5
1 Economist, 2 Progressive Grocer, 3 Ac Nielsen Supermarket Business, 4 Buzzel at Wharton, 5 Cannondale 2002 study
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Business Benefit
Reduced time due to all the information being available in one place
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TPM Basic Questions
How are the funds being spent?
What is the most
?
effective use of the
funds? What is the return
on investment?
What uplift are we

getting? Which programs
provide the greatest
value?
Which customers perform the best?
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SAP designed its solution in order to answer the above questions
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Critical Obstacles Associated with TPM
•Critical Issues with TPM

Lack of visibility into trade programs
Inability to capture all associated costs
Inability to analyze true ROI
Major trade spending surprises
Monies “left on table” for fear of overspending
Deductions due to inaccurate invoices
Inaccurate forecasts due to lack of SCM

integration
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Disconnected solutions, and therefore enterprise users and partners, result in a number of artificial/real
challenges that make conducting the business process less than optimal.
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Stakeholder Objectives and Requirements
Role Business Objective Business Issues
Sustain revenue growth Heavy competition
Increase return on assets Inconsistent alignment of resources
C-Level
Reduce working capital Inventory too high and in wrong
Predictable Results places or out-of-stock
Increase market share Disjointed messaging and poor

VP Marketing Increase operating margin channel management
Introduce new items Functional “silo” behavior product
Improve brand equity life-cycle management not connected
Inaccurate volume & spend forecasts

Deliver sales volume budget
VP Sales Large customers with leverage
Reduce cost to sales ratio
Difficulty capturing and assigning all
Improve customer profitability
customer related costs
Reduce AR balances Lack of visibility to liabilities

VP Finance Accurate & timely fin. reports Inaccurate customer P&L’s
Improve profit margins Inability to resolve deductions
Inaccurate account level forecasting

VP Operations Reduce inventory
Excessive safety stock requirements
Reduce shipping costs
Out-of-stocks and returns
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Stakeholder Objectives and Requirements
Role Business Objective Business Issues
Increase market share
Lack of visibility into trade spending
Increase operating margin
Brand Manager Reliance upon trade and sales
Introduce new items
management to execute trade spending
Improve brand equity
Manage and assign trade Difficulty efficiently allocating spending

Trade spending effectively down to objective level
Marketing Deliver trade planning structure Lack of visibility into trade promotions
Manager Drive profitable incremental Unable to identify most profitable
volume promotions and customers
Deliver volume & allocated spend Multiple and redundant data entry points
Account Provide accurate product forecast Can not ensure accurate information gets
Manager to operations into customers’ systems
Reduce unauthorized deductions Wasted administrative time
Field Sales Provide effective coverage Unable to identify issues until in store
and/or Broker Ensure merchandising activity is Account information is untimely and often
Representative executed inaccurate
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The TPM Business Challenge
Trade expenses not being utilized for greatest impact
Sales volume forecasting not based on historical fact
Budgets, both volume, and spending are assigned with little

bottom-up input
Inaccurate volume forecast leading to multiple production and

supply problems
Deductions balances growing
Lack of remote field sales planning restricts account managers'

flexibility and mobility
Too much time spent planning and loading numbers
The complete TPM process is not systematically integrated
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Solution Benefits of Closed Loop TPM
BENEFITS I:
Seamless transfer of information from user to user
Ability to associate documents with planning activities
Standard and custom reporting delivered to users
Cross brand and class of trade functionality
Connected planning and execution (front-end to back-end

integration) for order entry and clean invoicing
Single source of sales planning data: volume and trade spend
Automate processes, shortening time required to make

decisions
Support multiple planning and payment „status“ changes

during the process
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Solution Benefits of Closed Loop TPM
BENEFITS II:
Both remote and online sales planning function
Improved promotion vol. impact forecasting aimed at making

better spending decisions
Support top-down and bottom-up planning/two meeting for

reconciliation
Connect sales planning to demand planning, improve inventory

management and reduce out-of-stocks at retail
Closed loop support of payment authoriz., payment and

deduction reconciliation
Support collaborative transfer of promotion planning, pricing

information to business partners via private exchange
Support “best practices“ development and sharing to improve

overall process execution
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Unit Summary
Now you are able to …
… understand the business drivers and benefits
… recognize the importance of the Consumer Products business

process Trade Promotion Management
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Unit 2 - TPM
(CRM 4.0 / SEM 3.5)
TPM Core Consulting
Team
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Workshop Agenda

Offline
Management Planning
Planning Validation
Online
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Unit Content
Unit Content: Unit 2 – Trade Promotion Management
CRM 4.0 Introduction
Components and Data Flow
Scenario Background: 5 Step Process
Roles
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Unit Objectives
Unit Objectives: Unit 2 - Trade Promotion Management
... be able to understand the TPM process in terms of the mySAP

Business Suite
... be able to understand the different components used
… understand which roles are involved
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Customer-Centric E-Business with mySAP CRM
The Solution is Complete

Rich Functionality and Supporting Capabilities
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Today’s complex customer problems require a deployable CRM solution that can directly address specific
challenges regardless of where or when they occur in the cycle of interacting with, selling to and servicing
an organization’s customers.
mySAP CRM blends deep functional capabilities in the core areas of Marketing, Sales and Service with
award-winning Analytics that are directly embedded into the primary interaction channels with which
organizations engage their customers.
All of this enables the closed loop interaction cycle, underlined mySAP CRM‘s unique value propositions.
mySAP CRM is built on an open, reliable, secure and scalable technology platform
The strong and complete services offering of SAP helps to quickly implement mySAP CRM and supports
the ongoing optimization of the solution environment.
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Marketing in CRM 4.0
Campaign Automation New

Marketing optimization and refinement
Real time analytics (Intelligence connector)
External list management
Trade promotion management
Supply chain integration
Marketing calendar
Marketing planning
Enhanced R/3 integration
Leads in the channels
Segmentation
Catalog and shop maintenance (e-commerce)
Personalized mails Enhanced
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In CRM 4.0 - Marketing a lot of new functionality was developed

Trade Promotion Management enables Consumer Packaged Companies to plan, execute and analyze their
Marketing Activities
Trade Promotion Management will use
the Marketing Calendar as single point of entry
Supply Chain integration to exactly plan for their marketing activities
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CRM 4.0 Marketing and Trade Promotion Management
•Trade Promotion Management

Usage of standard Marketing functionality
Marketing Calendar
Marketing Planner
Segmentation of Business Partners
External List Management
Functionality for Trade Promotions

Split Screen in the Marketing Calendar
Usage of the objects

Trade Promotion
Dealmaster
Trade Promotion Management for MSA
Supply Chain Integration

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CRM 4.0 Marketing
Trade Promotion Management

Marketing Calendar
Marketing Planner
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Access the Marketing Planning and Campaign Management to access

the Marketing Calendar
the Marketing Planner
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CRM 4.0 Marketing
Trade Promotion Management

Segmentation of Business Partners
External List Management
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Access the Segmentation of Business Partners to

use the Segment Builder
Access the External List Management to
work with consumer data delivered by Data providers
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CRM 4.0 Marketing and Trade Promotion Management
•Marketing Plan
Create your Marketing Plan
Marketing Plan Elements
Campaigns
Trade Promotions
Create your Deal Hierarchy
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The Marketing Planner can be used to

create a company wide consolidated marketing plan
plan and structure all marketing events and activities throughout the year for various
departments
maintain details for
- Consumer activities: Media Campaigns and Consumer Promotions
- Trade Promotions
create a deal hierarchy, deals and trade promotions based on the deals
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System Landscape TPM
CRM 4.0 Nov 2003
CRM Mobile 4.0 Nov 2003

Sales
SEM 3.5 May
2003
BW 3.20 April 2003
(3.3)
APO 4.0 June 2003
R/3 Enterprise May 2003

Extension 2.0
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CRM 4.0 is required as the object Trade Promotion in the Marketing Plann
SEM 3.5 is required to create Trade Promotions and plan budgets
BW 3.2 is required because the content is not available in previous releases
APO 4.0 is required for the transfer of the baseline (APO->CRM) and the Uplift (CRM->APO)
R/3 4.6C with Plug-in 2003.1 would also be possible but enterprise is preferred
EP 5 is required for the browser based display
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Data Flow: Prerequisites
master data
CRM master data R/3
4.0
campaign determination,
Create and save pricing procedure
Trade Promotion SD
(Marketing Planner)
master data master data
SEM/BW
0BPARTNER 0CUSTOMER
0CRM_PROD 0MATERIAL
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The objects 0BPARTNER, 0CRM_PROD are examples, many others are required
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Data Flow: Key Figures
SD
rd R/3
CRM R eco
on
4.0 iti CO-PA:
Marketing Planner: nd
Co Condition Type
Key Figure
Condition Type Value Field
Transfer Structure:
Value Field BW InfoObject
SEM/
BW Planning: Actuals:
Key Figure is Key Figure is
BW InfoObject BW InfoObject
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When planning for a trade promotion in CRM, key figures are translated into condition types. These
conditions are then transferred to SD in R/3.
Condition types are mapped to value fields in (Controlling – Profitability Analysis) CO-PA.
Value fields are mapped to key figures in the transfer rules in BW.
In this way, plan and actual data can be compared.
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Data Flow: Creating a Trade Promotion
WBS element
CRM PS R/3
4.0
campaign, pricing conditions,
rebate agreements, campaign
Create and save determination records
Trade Promotion SD
(Marketing Planner)
master data
CO-PA
plan data actual data

(volume, revenue, costs)
For InfoObject 0CRM_MKTELM
SEM/
BW copy actual data by SEM function
(including hierarchy derivation) Actual InfoCube
Plan/Actual InfoCube
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Work Breakdown Structures (WBS) are created in Project Systems (PS). This is optional but allow all
costs of a trade promotion to be captured.
Master data is pushed to BW when a trade promotion is created
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Data Flow: Demand Planning Integration
CRM APO R/3

4.0 uplift
Total forecast
(incremental SD
Create and save sales
volume)
Demand Planning
Trade Promotion
(Marketing Planner) Baseline forecast CO-PA
baseline baseline
plan data actual data
(for display) (copy via SEM
function)
SEM/
BW copy actual data by SEM function
(including hierarchy derivation)
Plan/Actual InfoCube Actual InfoCube
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Historical data is used to create a baseline in Advanced Planner and Optimizer (APO)
This is available to the user when creating trade promotions which is very useful to help create accurate
trade promotions. This is a large business benefit to CP companies.
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TPM: Major Process Steps
Headquarter Planning
Pre & Post Consensus Plan (One Number Plan)
Evaluation & Top Down, Bottom Up, Middle Out
Analysis Sales Budgeting, Volume, Revenue,
Profitability, Spending Planning
Key Performance
Indicator Reporting Deal Creation – Products, Customers,
Timing, Spending Rules
Integration from
Syndicated Data
Providers
Plan vs. Actual
Tracking of Funds Field Account Planning
& Volume
Pre-analysis of Prior Events
Event Planning: Volume and
Spending Forecasts
Sales Planning: Total Volume
Sales Forecasting
Retail Execution,
Validation & Settlement
Pricing Conditions Connected to Order
Entry Resulting in Accurate Invoicing Sell-in & Negotiation
Ability to Capture In-store Fact-based Proposal Generation
Observations for Sales Rep Execution Promotion Driven Demand
All Data Sent Up-stream for Analysis Planning Integrated to Supply
Chain Planning
Flexible Contract Management
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A 5 Step closed loop process was created to describe how the process is carried out in many CP companies. Not all companies
follow this model completely and there is no defined ‘best practice’
Consistent Volume and Spending Objectives for the Entire Organization
Provide HQ Planned Deals and Promotions to Field Organization
Consensus Plan (One Number Plan) Top Down, Bottom Up, Middle Out
Sales Budgeting, Volume, Revenue, Profitability, Spending Planning
Deal Creation – Products, Customers, Timing, Spending Rules
Field Account Planning
Comprehensive Planning Tool for the Account TeamVolume and Quantity Based What–if Planning
Online and Offline Capabilities Pre-analysis of Prior Events
Event Planning: Volume and Spending Forecasts Sales Planning: Total Volume Sales Forecasting
Sell-in & Negotiation
Fact-based Presentation Materials Flexible Tool to Capture and Communicate Changes Driven by Customers
Fact-based Proposal Generation Promotion Driven Demand Planning Integrated to Supply Chain Planning
Retail Execution, Validation & Settlement
Pricing Conditions Connected to Order Entry Accurate Invoicing
All Data Sent Up-stream for Analysis Accurate Assignment of Pricing Conditions to Customer Orders
Capture Observations of Account Performance Payments to Retailers via Release of Funds by Account Manager
Ability to Capture In-store Observations for Sales Rep
Pre & Post Evaluation & Analysis
Key Performance Indicator Reporting Integration from Syndicated Data Providers
Plan vs. Actual Tracking of Funds & Volume Apply Factual Learning to Future Plans
Provide Visibility to Current State of Affairs Provide Each User With Unique and Relevant Fact-based Information
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SAP TPM Delivers Business Value
Pre & Post
Potential Real-World Problem Consensus Plan (One Number Plan)
Evaluation & to establish annual budgets by
HQ attempts Top Down, Bottom Up, Middle Out
Analysis
channel and division Sales Budgeting, Volume, Revenue,
Key Performance
When they distribute their initial figures to
their direct reports, they are sometimes met
Integration fromresistance or “negotiating”
with stiff
Syndicated Data
Their direct reports challenge the figures
Providers
based upon different historical data
Plan vs. Actual
Tracking
Theof Funds can break down, take longer
process Field Account Planning
& Volume
than it should, breed discontent and Pre-analysis of Prior Events
damage morale
SAP Solution Spending Forecasts
One integrated system where all roles are Sales Planning: Total Volume
working from the same data sources and Sales Forecasting
Retail Execution,
“one version of the truth” would prevent
this occurrence
Chain Planning
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Consensus Planning: Top-down and Bottom-up

Division
Channel
Product
Sales Planning: Targets and Budgets
Revenue and Unit Volume
Profit Contribution
Trade Funds
Creation and dissemination of Deal Structure
Calendar paradigm for reviewing, creating editing
Baseline forecast determination via SCM APO
Maintain multiple versions of plans
Attach and transfer strategy documents to field
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Analysis Potential Real-World Problem Sales Budgeting, Volume, Revenue,
HQ wants to reduce the original planning Profitability, Spending Planning
Key Performance
budget from $1Billion to $800 Million.
Integration fromThe change message goes out, but the field
Syndicated Data works on a separate system and does not
Providers
update the cut-backs everywhere
Plan vs. Actual
They can not even tell what commitments
& Volume have already been made to the customers
It becomes a “wait and see”, “cross your
fingers exercise to determine what is spent
Spending Forecasts
SAP Solution Sales Planning: Total Volume
Sales Forecasting
Retail Execution,
One integrated system with one set of data
and real time visibility prevents this
breakdown from occurring
Chain Planning
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Pre-analysis of historical performance

Download master data and planning packages
What-if scenario planning
On-line and off-line creation of trade promotions
Pre-populated volumes
Multiple merchandising tactics
Multiple payment methods
Upload promotion plan to on-line system
Approval routing via workflow
TPM BW reports
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Potential Real-World Problem
Evaluation
Sales Management& is expected to report the Top Down, Bottom Up, Middle Out
current
Analysisliability of all TPM event spending in Sales Budgeting, Volume, Revenue,
their geography Profitability, Spending Planning
Key Performance
Sales Manager
Indicator figures that there are 1,500
Reporting Deal Creation – Products, Customers,
events in the field comprised of multiple Timing, Spending Rules
Integration from
Syndicated Data dollar amounts, all over
tactics and small
100 independent spreadsheets
Providers
Plan
Salesvs.Manager
Actual realizes there is no way to
Tracking
accuratelyof Funds
account for the existing status of Field Account Planning
& Volume
all these dollars in the time allowed Pre-analysis of Prior Events
CFO puts tremendous pressure on Sales Event Planning: Volume and
Manager for accurate information in order Spending Forecasts
to comply with FASB requirements Sales Planning: Total Volume
Sales Forecasting
Retail Execution,
SAP Solution
One integrated system with real time
visibility
Pricing makes
Conditions this exercise
Connected a one minute
to Order
Entrydrill and prevents
Resulting anyone
in Accurate in the field from
Invoicing Sell-in & Negotiation
having
Ability to stop
to Capture what they would otherwise
In-store Fact-based Proposal Generation
be doing,for
Observations namely
Sales selling
Rep Execution Promotion Driven Demand
Chain Planning
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Potential Real-World Problem Headquarter Planning
Brand Management has cut their consumer promotion budget based on poor
year-to-date sales performance vs. plan
They eliminate a few Free Standing Insert (FSI) coupon drops,
Profitability, andPlanning
Spending sampling
Key Performance
Indicator Reportingprograms but fail to notify the sales force of the change
Deal Creation – Products, Customers,
Timing,
The sales reps proceed to secure display support onSpending Rules that this
the assumption
Integration from
Syndicated Data consumer marketing support will be there
Providers
The displays are built in the stores, but the product doesn’t sell as expected
Plan vs. Actual because the consumer pull never materializes
& Volume The sales force now faces some very unhappy customer store managers and
Pre-analysis
have lost much credibility. They cease selling consumer supportof in
Prior
theEvents
future
One integrated system with real-time updates that link consumer
Sales Planning:support to
Total Volume
trade promotion management prevents this problemSalesfromForecasting
ever occurring
Retail Execution,
Chain Planning
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Conduct fact-based presentations to customers

Prepare standard charts & graphs for presentation
Standard materials to support merchandising
Assess incremental risk and opportunity
Manage status changes
Automatically generate pricing condition records
Update condition records to R/3 via CRM
Update volume forecasts to APO via BW
Provide promotion contract for acceptance
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Key Performance
Integration from
Syndicated Data
Providers
Plan vs. Actual
& Volume
Spending Forecasts
Sales Forecasting
Retail Execution,
Chain Planning
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Now here you can see the whole process as a closed loop business process.
It covers the pre-evaluation phase,
The head-quarter sales and promotion planning. This is the top-down phase.
Then the field, the key account manager for example does the bottom-up planning and the sell-in to the
retail account. He is in charge of the negotiations regarding the promotion, including the time frame and
the conditions. This is the bottom up planning.
After closing the deal with the retailer, the integrated and automated process runs, we call it the retail
execution
This step involves a field sales rep. going into a retail store that is participating in the promotion and using
a survey to check that the agreement is being upheld, e.g. the goods are where they are supposed to be on
the shelves at the agreed price.
Of course the validation (also called conformance) of the event has to be done by the field force.
This step involves a field sales rep. going into a retail store that is participating in the promotion and
using a survey to check that the agreement is being upheld, e.g. the goods are where they are supposed
to be on the shelves at the agreed price.
At the end, they would like to know what is the outcome of this promotion. How high is the generated
revenue, the cost and profit ?
This fully automated process is not yet offered by any software provider today.
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Potential Real-World Problem Headquarter Planning
Pre &Retailer
Post Buyer has agreed to allow Star Cookies Brand displays
Consensus Plan
in all (One ‘A’
of their Number Plan)
and ‘B’ size
Evaluation & week 43
stores during Top Down, Bottom Up, Middle Out
Account Manager communicates information to field andProfitability,
submits forecast
Spending Planning
Key Performance
Demand
Indicator Planners secure volume to be delivered just in time
Reporting Deal Creation –43
for week Products, Customers,
Integration from
Retailer Buyer calls Account Manager during week 40 and informs him there is a change;
Syndicated Data
Spring Fresh will have to run week 42
Providers
Account
Plan vs. Actual Manager must revise forecast, change the pricing condition records and
communicate
Tracking of Funds the change to all sales reps who have stores for that retail account
& Volume
Promotion runs week 42, but displays are empty due to the product not arriving
Pre-analysis in time.
of Prior EventsIt
finally shows up a week late and gets refused. Deductions then ensue due to invoice errors
Sales Planning:
One integrated system connected to R/3 and APO would have automatically Total Volume
handled all the
changes with one click and drag of the mouse Sales Forecasting
Retail Execution,
Validation & Settlement Sell-in & Negotiation
Pricing Conditions Connected to Order Fact-based Proposal Generation
Entry Resulting in Accurate Invoicing
Promotion Driven Demand
Ability to Capture In-store Planning Integrated to Supply
Observations for Sales Rep Execution Chain Planning
All Data Sent Up-stream for Analysis Flexible Contract Management
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Contact and Activity Management

Manage account merchandising plans
Stores to visit
Programs to pre-sell
Field sales rep’s capture store outlet information
All data sent upstream for analysis
Account Manager authorizes payments
Settlement via robust rebate functionality
Funds posted to general ledger accounts
Full suite of standard reports and analytics
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Evaluation & Potential Real-World Problem
Top Down, Bottom Up, Middle Out
Analysis Retail Buyer agreed Sales Budgeting,
to mandate Volume,
displays in allRevenue,
100
Profitability,
stores for a fee of $2,000 per storeSpending Planning
Key Performance
Account Manager then communicated
Timing, this
Spending Rules
Integration from authorization to field sales force
Syndicated Data
Providers Sales Reps went out and sold displays to 85 of the 100
Plan vs. Actual stores with the Retail Buyer’s mandate
Tracking of Funds Typically, an Account ManagerField
hasAccount
tremendous Planning
& Volume
difficulty tracking display compliance
Pre-analysisacross
of Priorstores,
Events
and has difficulty proving that they received less
compliance then what was promised for lower payment
Spending Forecasts
SAP Solution Sales Planning: Total Volume
Sales Forecasting
Retail Execution, TPM connected Mobile Sales allows the Account
Validation & Settlement Manager to send a survey to all reps with those retail
stores to verify whether or not a display was obtained
Entry Resulting in Accurate Invoicing Sell-in &
This information Negotiation
would then allow the Account Manger
Ability to Capture In-store to inform the BuyerProposal
Fact-based of actual compliance being lower
Generation
Observations for Sales Rep Execution than 100%, thus saving the company $30,000
Chain Planning
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Contact and Activity Management

Manage account merchandising plans
Stores to visit
Programs to pre-sell
Field sales rep’s capture store outlet information
All data sent upstream for analysis
Account Manager authorizes payments
Settlement via robust rebate functionality
Funds posted to general ledger accounts
Full suite of standard reports and analytics
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Key Performance
Integration from
Syndicated Data
Providers
Plan vs. Actual
& Volume
Spending Forecasts
Sales Forecasting
Retail Execution,
Chain Planning
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“True” customer P&L reporting

Exception and alert reporting
Sales management cock-pit
Integration of syndicated data
KPI reporting for high level analysis
Funds tracking by status & hierarchy
Multiple plan versions compared to actual
Full suite of standard reports
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Analysis Potential Real-World Problem
Sales Budgeting, Volume, Revenue,
Key Performance Account Manager settles payment for a promotion and
Indicator Reporting Deal Creation
releases payment not realizing – Products,
that the customer Customers,
has
Integration from already deducted for the event
Syndicated Data
Providers Accounts Receivable Clerk sees a deduction, but is
unaware of a promotion for that amount. They then
Plan vs. Actual
Tracking of Funds gather as much information as possible and forward it
Field Account
to the Account Manager for resolution Planning
and clearance
& Volume
Unfortunately the deduction came in on a separate
Event Planning:
invoice and did not contain enough Volume
information and
for the
Spending Forecasts
Account Manager to resolve it. They return it to the
Accounts Receivable Clerk forSales Planning:
further Total Volume
processing
Sales Forecasting
Retail Execution, The paperwork nightmare continues until the company
Validation & Settlement finally writes off the liability
Pricing Conditions Connected to Order SAP Solution
Full visibility via Portals for the Account Manager and
Fact-based Proposal Generation
Ability to Capture In-store
Observations for Sales Rep Execution the Accounts Receivable Clerk could have prevented the
Promotion
Account Manager Driven
from Demand the payment for what
authorizing
had already been deducted
Chain Planning
© SAP AG 2003
© SAP AG 46
Potential Real-World Problem
Analysis CEO launches a new “Best
SalesPractices”
Budgeting,initiative
Volume, across
Revenue,
the organization Profitability, Spending Planning
Key Performance
Indicator Reporting Deal Creation
The Trade Marketing Manager – Products,
is expected Customers,
to report upon
Integration from which TPM events wereTiming, Spending Rules
most successful in terms of
Syndicated Data ROI, volume lift and absolute profitability. They are also
Providers expected to report on which customers are most
Plan vs. Actual profitable including TPM expense, cost of sales and cost
Tracking of Funds of service. These results are expected to enable Planning
Field Account the
& Volume sharing of Best Practices across the organization
It becomes an exercise in futility. After countless hours
trying to assemble the available data, reconcile
Spending Forecasts
discrepancies and project unavailable data, the TPM
Director delivers the report Sales Planning: Total Volume
Sales Forecasting
Retail Execution, The CEO asks a few questions and quickly recognizes
Validation & Settlement that the information is not reliable
SAP SolutionSell-in & Negotiation
Entry Resulting in Accurate Invoicing
Ability to Capture In-store SAP’s closed-loop,
Fact-based connected system captures all
Proposal Generation
Observations for Sales Rep Execution relevant data in a real-time mode and supports all the
All Data Sent Up-stream for Analysis
necessaryPlanning
cost components
Integrated for easy reporting via BW
to Supply
Chain Planning
© SAP AG 2003
© SAP AG 47
TPM: Roles Involved
Pre & Post VP’s of Finance, Sales
Evaluation & Marketing, Trade Marketing
Analysis
Region Sales and Trade
VP’s of Finance, Sales Marketing Managers
Marketing, Trade
Marketing
Region Sales and
Trade Marketing
Managers
Account Managers
Account Managers
Retail Execution,
Account Managers Sell-in & Negotiation
Sales Reps for in-store activity Account Managers
Account Receivable Clerks for
deductions
© SAP AG 2003
There are many roles involved with the process Trade Promotion Management. This makes it a
collaborative effort and the coordination of all the participants is challenging.
Other roles that could be involved include:
Demand Planner – checks that production can create the right goods at the right time
Financial Planner – checks that the financial goals of the promotion fit within the company’s rules
Brand Manager – checks that the brand is positioned in order to gain high market share
© SAP AG 48
Unit Summary
… understand the TPM process in terms of the mySAP Business

Suite and understand the business drivers and benefits
… recognize the different components used in the process
… understand the 5 step closed loop process
… understand which roles are involved
© SAP AG 2003
© SAP AG 49

Unit 3 – Top Down Sales Planning
(CRM 4.0 / SEM 3.5)
TPM Core Consulting
Team
© SAP AG 50
Workshop Agenda

Offline
Management Planning
Planning Validation
Online
© SAP AG 2003
© SAP AG 51
Unit Content
Unit Content: Unit 3 – Top Down Sales Planning
Roles
Details of the SEM Sales and Promotion Planning
© SAP AG 2003
© SAP AG 52
Unit Objectives
Unit Objectives: Unit 3 – Top Down Sales Planning
... be able to understand the connection between the sales

planning and promotion planning
... be able to understand how CP companies could plan their sales

and marketing activities
… appreciate the flexibility of the planning tool
© SAP AG 2003
© SAP AG 53
A Closed-loop Business Process
Headquarter:
Strategic Sales & Promotion
PRE- Planning
Evaluation&
Analysis
POST-
Field Planning
Retail
Execution
&
Validation
Customer Sell-In
&
Negotiation
© SAP AG 2003
Headquarter: Strategic Sales & Promotion Planning

The strategic planning group sets the company‘s goals and distributes them through the organization based
on any business rules
The Trade Marketing Manager receives his targets, processes them and passes them on
© SAP AG 54
Sales Planning Data flow (Example)
Strategic Planning Group (Jack Wagner)

Plan at Country level
Top down to Product Category
Plan Approved Plan
Trade Marketing Manager (Mike Monroe) Brand Manager (Jenny Smith)

Plan at Country, Product Category Plan at Country, Brand level
Top down to Channel, Customer Top down to Channel
Plan Approved Plan Plan Approved Plan
Approved Plan -
will appear as Account Manager (Sam Fisher)
the Target for Plan at Product Category, Customer
the receiver of
Top down to Region
the budget i.e.
the role below Plan Approved Plan
© SAP AG 2003
The Strategic Planning Group set the goals for the entire company. These goals include the sales volume
that must be achieved but also the budgets that are available. These values are combined in a Contribution
Scheme allowing profit planning.
© SAP AG 55
Distribution along the Customer Hierarchy
Manufacturer
USA
Mass merchant Cash & Carry Supermarket chains
Rema Emma‘s Shop Joe‘s Stores Jim‘s Mart Everything at Al‘s Intermarket
North South North South North South North South North South North South
Emma's Emma's Joe's Joe's Everything Everything Inter- Inter-

Rema Store Rema Store Jim's Mart Jim's Mart
Shop Shop Store Store At Al´s At Al´s Market Market
1006 1012 1026 1030
1066 1070 1106 1112 1206 1212 1086 1090
Emma's Emma's Joe's Joe's Everything Everything Inter- Inter-

Rema Store Rema Store Jim's Mart Jim's Mart
Shop Shop Store Store At Al´s At Al´s Market Market
1008 1014 1028 1032
1068 1072 1108 1114 1208 1214 1088 1092
Rema Store Rema Store Emma's Emma's Joe's Joe's Everything Everything Inter- Inter-
Shop Shop Jim's Mart Jim's Mart Market Market
1010 1016 Store Store At Al´s At Al´s
1074 1076 1034 1036 1094 1096
1110 1116 1210 1216
Rema Store
USA Country Rema Customer 1006
Outlet
Mass merchant Channel South Region
© SAP AG 2003
Budgets and Goals are distributed down the Customer Hierarchy

This is an example for a Customer Hierarchy that was created in R/3 and used in CRM. CRM hierarchies
could also be used.
© SAP AG 56
Distribution along the Product Hierarchy
Product
Sweets & Snacks
Category
Product
Sub-Category Sweets Cookies Chocolate
Product Bonbons Fudge Fancy Premium Dark Chocolates Milk Chocolates

Group
Star Chocolate Cookies - CPT_ST_001

Products
Star Almond Cookies – CPT_ST_002
Planning is conducted at Product Star Cinnamon Cookies – CPT_ST_003

Category Level
Star Mint Cookies – CPT_ST_004
Star Cream Cookies – CPT_ST_005
© SAP AG 2003
Budgets and Goals are distributed down the Product Hierarchy

The Product Hierarchy used can be the R/3 product hierarchy (R3PRODHIER) or other Hierarchies
© SAP AG 57
Sales Planning
Role
Product
Category
being
Planned
Planning
Folders
© SAP AG 2003
Sales Planning can be very complex and a simple example is shown here in to explain the functionality
The demo shows the planning for just one category, Sweets and Snacks, this is shown in the work list on
the left hand side
The details are on the right hand side
The contribution Margin can be seen but can be freely definable.
On the Tab Overall Plan 2004, the columns represent
Actual 2002: the historical sales volume from 2002 resulting from Sales Orders received into R/3 and
the values extracted to BW
YTD 2003: the historical sales volume for 2003 up to September (the starting point of the demo
scenario) resulting from Sales Orders received into R/3 and the values extracted to BW
Forecast 2004: is the expected volume for 2004; it is an extrapolation of 2002 and 2003 (weighted
average)
Target 2004: this is the planned value that the boss has fixed. For Mike Monroe the Trade Marketing
Manager, these figures come from the Strategic Planning Group.
Increase: a column to enter increase percentages (need to scroll right)
Plan 2004: the amount that the processor is working on and will pass on to the levels below
Plan %: the incremental values as a record
Approved Plan: the amount that the processor has passed on
Field Plan: the amount that the levels below have planned and approved
The user can easily compare the plan that he has approved and the amounts that the field has approved.
© SAP AG 58
Sales Planning
Product
Category
being
Planned
Planning
Folders
© SAP AG 2003
The values from the Overall Plan 2004 Tab have been disaggregated to the accounts and the values can be
seen on the tab: Revenue 2004 – Accounts
the values extracted to BW (not shown on screenshot)
scenario) resulting from Sales Orders received into R/3 and the values extracted to BW (not shown on
screenshot)
average)
Manager, these figures come from the Strategic Planning Group.
Increase: a column to enter increase percentages
Plan 2004: the amount that the processor is working on and will pass on to the levels below.
$8,000,000 has been planned for Rema HQ
Field Plan: the amount that the levels below have planned and approved
The user can easily compare the plan that he has approved and the amounts that the field has approved.
© SAP AG 59
Sales Planning
Role
Customer
and Product
Category
being
Planned
Planning
Folders
© SAP AG 2003
On the Tab Overall Plan 2004, the columns represent

the values extracted to BW
scenario) resulting from Sales Orders received into R/3 and the values extracted to BW
average)
Target 2004: this is the planned value that the boss has fixed. For Sam Fisher the Account Manager,
these figures come from Mike Monroe, the Trade Marketing Manager.
© SAP AG 60
Sales Planning
Customer
and Product
Category
being
Planned
Planning
Folders
© SAP AG 2003
The values from the Overall Plan 2004 Tab have been disaggregated to the accounts and the values can be
seen on the tab: Revenue 2004 – Accounts
the values extracted to BW (not shown on screenshot)
scenario) resulting from Sales Orders received into R/3 and the values extracted to BW (not shown on
screenshot)
average, not shown on screenshot)
Manager, these figures come from the Strategic Planning Group (not shown on screenshot).
APO Baseline: the amount of goods that would be sold to the customer Rema of the category Sweets
and Snacks. This figure is calculated in APO and transferred to SEM/BW
Baseline Adjustment: the Baseline can be adjusted as required
Uplift: this is an aggregation of all the uplifts in all the trade promotions that have been created in the
CRM system for Rema and Sweets and Snacks
Current Plan: the sum of the previous 3 columns
Target less Plan: the difference between the target and the plan. A negative number means that there is
a shortfall. More promotions could be required to fill this.
© SAP AG 61
Unit Summary
… understand the Headquarter planning portion of the TPM

process
… appreciate the complexity of the planning process
© SAP AG 2003
© SAP AG 62

Unit 4 – Promotion Planning Online
(CRM 4.0 / SEM 3.5)
TPM Core Consulting
Team
© SAP AG 63
Workshop Agenda

Offline
Management Planning
Planning Validation
Online
© SAP AG 2003
© SAP AG 64
Unit Content
Unit Content: Unit 4 – Promotion Planning On-line
Roles
Navigation through the Marketing Calendar
Promotion Planning in the Marketing Planner
Deal Master
© SAP AG 2003
© SAP AG 65
Unit Objectives
Unit Objectives: Unit 4 – Promotion Planning On-line
... be able to navigate around the Marketing Calendar
... be able to create Trade Promotions
© SAP AG 2003
© SAP AG 66
A Closed-loop Business Process
Headquarter:
Strategic Sales & Promotion
PRE- Planning
Evaluation&
Analysis
POST-
Field Planning
Retail
Execution
&
Validation
Customer Sell-In
&
Negotiation
© SAP AG 2003
Field Planning
The account manager has received his goals and budgets and now wishes to create trade promotions
© SAP AG 67
Calendar Usage
The Account Manager is viewing the promotions that concern him
Query – which promotions appear on the calendar
View – how are they displayed
Time Scales
Additional Time Periods
Legend
Split Screen to show related consumer events
© SAP AG 2003
© SAP AG 68
Event Planning
Set a promotion overview

Single point of entry for promotion maintenance
Trade Promotions AND Consumer Activities (soft and hard links)
© SAP AG 2003
We use the promotion calendar as a single point of entry for all data relating to trade promotions or
consumer activities
It is also helpful to get an overview for all promotional events
Trade promotions and consumer events can be moved or the time periods extended/reduced
Different keys (legends) are available; showing campaign type or status in different colors
Time scales are flexible (quarter, monthly, weekly ...)
Navigation tree on the left is personally configurable (product hierarchy, customer hierarchy, brand,
product groups, promotion ...)
Zoom-in/zoom-out
Hard and soft-links between trade promotions and media campaigns can be seen
Comprehensive print options
Personalized queries that dictate what is shown on the calendar (e.g. show me all trade promotions that I
have created, show me all promotions for customer ‘x‘ ...)
The split screen is extremely valuable to the CP company as it helps them avoid conflicts with competing
events. Users are able to see events planned by other that may affect them.
© SAP AG 69
Event Planning
List overview of events

Mass change functionality
© SAP AG 2003
A mass change functionality is available for both Trade Promotions and Consumer list view
A year’s promotions can be copied in one block
The table is configurable to show the columns that are required
© SAP AG 70
Calendar in the People Centric UI
© SAP AG 2003
In a portal the calendar has the same functionality but there are a few differences:
Queries are created in the marketing planner
© SAP AG 71
Marketing Planner
There are different options to access the Marketing Planner:
PCUI:
Choose the Marketing Calendar as single point of entry and call the
Marketing Planner by marking a single trade promotion and choose
´Details´ from the context menu (or create a new trade promotion and
maintain the details)
Go to the Marketing Planner directly and choose a trade promotion
from the list or use the search functionality in the navigation area
SAPGUI:
Choose the Marketing Calendar as single point of entry and call the
Marketing Planner by a double-click on the promotion to view the
details (or create a new trade promotion)
Go to the Marketing Planner directly and choose an existing trade
promotion or use the search functionality in the navigation area
© SAP AG 2003
© SAP AG 72
Promotion Planning
In mySAP CRM 4.0 it is possible to create trade promotions in the

Marketing Planner
Navigation
Details
© SAP AG 2003
PCUI showing Trade Promotions in the Marketing Planner

Trade Promotion is a new object in the Marketing Planner
© SAP AG 73
Trade Promotion Details in SAPUI
Header
Navigation
Details
Favorites
© SAP AG 2003
SAPUI showing Trade Promotions in the Marketing Planner
© SAP AG 74
Marketing Planner
Creating a Trade Promotion: the detail tabs of the promotion can be

viewed:
Basic Data
Texts
Attachments
Channel
Target Groups
Products
Trade Spends
Conditions
Agreements
Allocations
Partner
Analysis
Administration
© SAP AG 2003
The detail tabs provide the necessary structure to view the information for the trade promotion:
Basic Data: shows all the important data, that partially are mandatory. Some of the elements are control
functions, such as Planning Profile Group, Action profile
Text: Additional texts can be maintained to add information
Attachments: Documents can be attached, e.g. presentation needed when visiting the customer
Channel: The communication medium is needed when an activity is created in the background
Target Groups: A target group is needed to create an activity in the background
Products: The assignment of products and product group is maintained here
Trade Spends: The fixed and variable trade spends and the uplift figures will maintained by using the
SEM Inplace
Conditions: The condition records can be seen in detail
Agreements: Agreements and their details are visible (in SAPUI this is located via the menus)
Allocations: products can be distributed to stores according to rules
Partner: Additional partners can be maintained for the partner functions used
Analysis: Reports for a single trade promotion are available here
Administration: Transfer status, and user information can be found here
© SAP AG 75
Unit Summary
… view trade promotions in the Marketing Calendar
… create Trade Promotions in CRM 4.0 (SAPUI)
© SAP AG 2003
© SAP AG 76

Unit 5 – Deal Master
(CRM 4.0 / SEM 3.5)
TPM Core Consulting
Team
© SAP AG 77
Workshop Agenda

Offline
Management Planning
Planning Validation
Online
© SAP AG 2003
© SAP AG 78
Unit Content
Unit Content: Unit 5 – Deal Master
Business Background
System Demonstration
© SAP AG 2003
© SAP AG 79
Unit Objectives
Unit Objectives: Unit 5 – Deal Master
... be able to understand Deals
... be able to create Deals in CRM 4.0
© SAP AG 2003
© SAP AG 80
Deal Master – General Information
The Deal Master’s main objective is to create template Trade

Promotions (Deals) to be distributed to Account Managers.
Account Managers in CRM Mobile or CRM Enterprise will use

Deals as guidelines to create their Trade Promotions for their
respective accounts.
The Deal and its associated Trade Promotions can be viewed in a

calendar control.
From the creation of Deals to their execution, an ongoing

communication between the Trade Marketing Manager (CRM
Enterprise) and the Account Managers (CRM Mobile) must be
supported in an easy to use and secured environment.
Deals can be created and maintained only in CRM Enterprise. The

Deal Master will be supported by SAPGUI and PC UI.
© SAP AG 2003
The Deal Master application will allow the Trade Marketing Managers involved in Trade Promotion Management to
set up and maintain Deals. Deal Master operates in CRM Enterprise.
The Deal Master’s main objective is to create Trade Promotions templates (Deals) to be distributed to Account
Managers. Deals can be created and maintained only in CRM Enterprise. It is a way of distributing brand strategies
through the organization, i.e. the field knows (is forced to know) what the HQ wants in the way of promotional
activity.
Account Managers in CRM Mobile will use the Deals created in CRM Enterprise as guidelines to create Trade
Promotions for their respective accounts. The Deal Master templates may be used as well for generating Trade
Promotions in the Marketing Planner in CRM Enterprise.
From the creation of a Deal to its execution, an ongoing communication between the Trade Marketing Manager and
the Account Managers must be supported in a easy to use and secured environment. We must provide the ability to
communicate the Deals between CRM Enterprise and CRM Mobile.
Account Managers could accept the planning suggestions of their Trade Marketing Manager in the proposed Deal
when creating a Trade Promotion. Account Managers can also modify a Trade Promotion created from a Deal.
(Note: during its lifespan a Deal cannot be modified at the Account manager level). A Trade Promotion can be
slightly different from its parent Deal but must stay within the functional limits stated by the Deal (dates, trade
spends, product hierarchy, budget, etc.).
The Trade Promotion and its events that are created in CRM Mobile will be sent to the CRM Server to be approved
by the Trade Marketing Manager in CRM Enterprise. This plan approval releases the Account Manager’s next step,
which is the selling and negotiating of the Trade Promotions with his customers. Upon acceptance of the Trade
Promotions by the customer, the Account Manager will change its status to Released. The release action will trigger
the generation of Conditions (if this is set up in customizing) and the data will be sent to R/3 Financials for G/L
reporting and management of payments/balances.
The Deal and Trade Promotion planning information is stored and retrieved from BW server.
© SAP AG 81
Deal Master
CRM Online
Marketing Marketing
Planner Calendar
Deal
Deal
Deal
Planning Master
Master
SEM/BW Data
Deal Trade
Master promotions
data Trade
Deals promotions
Trades
CRM Middleware
CRM Mobile
© SAP AG 2003
In CRM Online, the deals are created and maintained. The planning information for trade spends is stored
in BW.
In CRM Mobile, the deals are used as a template for the creation of trade promotions. The deal planning
information is retrieved from BW.
Pricing information is communicated via SEM/BW. When approving a trade promotion, the pricing
conditions are generated and re-transferred to CRM Mobile.
© SAP AG 82
Deal Hierarchy
Sales hierarchy
Walmart
Zellers
Region North Region South

Region North Region South
District 1 District 2 District 3 District 4 District 1 District 2 District 3 District 4
Promotion Promotion Promotion Promotion Promotion Promotion
© SAP AG 2003
A Deal is created at a higher level in the customer hierarchy

The Deal is distributed down through the hierarchy so that each BP receives a deal
Planning data (trade spends) is defined in the deal and is distributed down through the hierarchy, but
you also have the possibility to plan the figures for each deal on a lower hierarchy node independently
From each of the deals, a promotion can be created
Changes on a higher level are cascaded down through the hierarchy
© SAP AG 83
Generate a Trade Promotion from a Deal
Any Deal can be used as a template to generate a Trade Promotion. The ID

is suggested but can be overwritten and the description should be input by
the user. The following data is copied from the Deal to the TP:
Customer hierarchy node (can be changed by the user but must be a node or a
BP under the Deal Customer hierarchy node)
Basic data (campaign code and action profile are blank in the new trade
promotion)
Dates
Texts
Documents
Channels
Segments
Products
Product Catalog
Planning Data
Trade Spends
Partners
© SAP AG 2003
© SAP AG 84
Unit Summary
… understand what Deals are used for
… create Deals in CRM 4.0 (SAPUI)
© SAP AG 2003
© SAP AG 85

SAP Trade Promotion Management: RKT Workshop - TPM Overview

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SAP Trade Promotion Management: RKT Workshop - TPM Overview

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SAP Trade Promotion Management

RKT Workshop – TPM Overview

(CRM 4.0 / SEM 3.5)

Interest in Trade Promotion Management

Experience of SAP systems (CRM / R/3)

Experience of SAP systems (SEM/BW / APO)

Knowledge of Consumer Products industry

Pre-Sales Consultants / Solution Engineers

After this course you will be able to:

Understand Trade Promotion Management using SAP and use of the

Understand the interaction with Consumer Activities

Unit 1 Business Process Unit 6 Promotion Planning

RKT Workshop – TPM Overview

Unit 1 Business Process Unit 6 Promotion Planning

Unit Content: Unit 1 - Business Process

Unit Objectives: Unit 1 - Business Process

After this unit you will …

... be able to explain the business drivers behind the process

... be able to explain the business benefits behind the process

Consumer Products companies spend large amounts on marketing

Only 16% of Trade Promotions Are Profitable 1

91% of Manufacturers Feel TPM $’S Are Inefficient 2

85% of Manufacturers Feel They Are Ineffective 2

81% of Manufacturers Feel They Get Poor Value 2

Manufacturers Estimate That 30% of TPM Dollars Go Straight to the

TPM Related Activities Account for 25% - 30% of a Salesperson's and

Manufacturers wrote off deductions equal to 8.5%

How are the funds being spent?

What is the most

What uplift are we

Which customers perform the best?

SAP designed its solution in order to answer the above questions

•Critical Issues with TPM

Inability to capture all associated costs

Inability to analyze true ROI

Major trade spending surprises

Monies “left on table” for fear of overspending

Deductions due to inaccurate invoices

Inaccurate forecasts due to lack of SCM

Increase market share Disjointed messaging and poor

Inaccurate volume & spend forecasts

Reduce AR balances Lack of visibility to liabilities

Inaccurate account level forecasting

Manage and assign trade Difficulty efficiently allocating spending

Trade expenses not being utilized for greatest impact

Sales volume forecasting not based on historical fact

Budgets, both volume, and spending are assigned with little

Inaccurate volume forecast leading to multiple production and

Deductions balances growing

Lack of remote field sales planning restricts account managers'

Too much time spent planning and loading numbers

The complete TPM process is not systematically integrated

Ability to associate documents with planning activities

Standard and custom reporting delivered to users

Cross brand and class of trade functionality

Connected planning and execution (front-end to back-end

Single source of sales planning data: volume and trade spend

Automate processes, shortening time required to make

Support multiple planning and payment „status“ changes

Improved promotion vol. impact forecasting aimed at making

Support top-down and bottom-up planning/two meeting for

Connect sales planning to demand planning, improve inventory

Closed loop support of payment authoriz., payment and