Configuring the Trade Spend Feature

• Trade spends are the money invested by the CPG companies in trade promotions with retailers to drive their product sales.
• These spends can be in the form of immediate discounts or rebates or marketing incentives and can be applied for a shorter or longer duration.
• Typical examples of a trade spend:
  • Temporary price reduction: on-invoice or immediate discounts and off-invoice discounts or rebates.
  • Display
  • Feature
  • Buy one get one (BOGO)

• Adopt and streamline retailer-specific strategies
  • Different retailers have unique promotional needs, pricing structures, and customer demographics.
  • A custom trade spend capability allows manufacturers to design targeted promotions that align with each retailer’s business model.
• Budget compliance and governance
  • Custom trade spend creation ensures alignment with internal budget constraints and approval workflows.
  • Avoids unnecessary or unprofitable discounts that might violate corporate pricing policies.
• Optimized revenue and margin management.
  • Ensures that trade spend investments drive revenue growth without eroding profitability.
  • Provides visibility into incremental sales uplift and ROI per trade spend event.

A subset of available trade spends (>=1) can be assigned to a specific promotion type. Once the KAM creates a promotion of that specific promotion type, only those trade spends applied are available to select. This helps streamline the planning process and implement any retailer or promotion specific strategies

One trade spends is always linked to at least one adapter that provides a link to an SAP S4/HANA instance where the trade spend will be executed through a condition contract.

However, multiple trade spends can be linked to a single adapter – this means the execution system for all those trade spends are the same

Duration

• Short term
• Long term
• Miscellaneous (lumpsum, and so on)

Pricing Rules

• Payment type
• Pricing method
• Execution configuration attributes (CC type, process variant, and so on)

Link to an Execution System

Through SAP Revenue Growth Management adapters