What is promotion planning in SAP SCM-APO-FCS - Demand Planning?

SAP Term: promotion planning

• Component: SCM-APO-FCS

• Component Name: Demand Planning

• Description: Set of functions that allow the planner to project the impact on demand of coupons, free-standing inserts, TV advertisements, price discounts, competitor promotions, Internet advertising, and other kinds of promotions. Promotion-driven sales uplift is generated on top of a baseline forecast.

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• Key Concepts: 
  Promotion planning is a component of SAP's Supply Chain Management (SCM) Advanced Planner and Optimizer (APO) Forecasting and Replenishment (FCS) Demand Planning module. It is used to plan and manage promotional activities, such as discounts, special offers, and other marketing campaigns. It helps companies to optimize their promotional activities by providing insights into the expected demand for products during a promotion. 
  
  How to use it: 
  Promotion planning can be used to create and manage promotional activities. It allows users to define the parameters of a promotion, such as the duration, discounts, and special offers. It also provides insights into the expected demand for products during a promotion. This helps companies to optimize their promotional activities by understanding the expected demand for products during a promotion. 
  
  Tips & Tricks: 
  When using promotion planning, it is important to consider the impact of promotions on other areas of the business. For example, promotions may affect inventory levels, customer service levels, and pricing strategies. Additionally, it is important to consider the impact of promotions on customer loyalty and brand recognition. 
  
  Related Information: 
  Promotion planning is closely related to other components of SAP's SCM-APO-FCS Demand Planning module, such as forecasting and replenishment. Additionally, it is related to other components of SAP's SCM-APO suite, such as inventory optimization and supply chain analytics.