Different cases and scenarios

Promotion cannibalizing normal sales for one or more items (item was not in promotion from M3)

In this case, the scenario is for a promotion specific label or packaging. Add a promotion line for the items and specify budget quantity and amount (if used) - for example, -300 for a negative 300.

Promotion cannibalizing normal % of sales for item (already part of the promotion)

In this case, the scenario is one promotion line for item P with budget quantity of 1000.

If the cannibalization ratio is 1 and related item is empty or none, the computation will be:

Budget quantity * cannibalization ratio * - cannibalization percentage

For example, 1000 * 1 * -15% = -150. This means that the value assigned will be 850 : 1000 (which is the budget quantity) minus 150.

Cannibalizing normal sales for ONE related item with new pack-size

In this case, the scenario is promoting specific pack-combination. Item P is a pack combination of 6xA (6-pack). Assume that the promotion budget quantity is 1000 of item P (=6000 of item A), cannibalization percentage of normal sales of item A by 30%, the cannibalization ratio is 6, and the related item is item P.

In DMP there will be two promotion lines:

One promotion line for item P with budget quantity of 1000 (with optional budget amount of 2500)
One promotion line for item A

The budget quantity to assign for item A is calculated as follows:

Item P budget quantity * cannibalization ratio * cannibalization percentage.

Given the scenario, the budget quantity will be -1800 (computing -1000 * 6 * 30%).

Assign logic for item P is normal.

Cannibalizing normal sales for MULTIPLE related items (pack combination)

In this case, the scenario is promoting specifc pack-combination. Item P is a pack combination of 1xA + 2xB +3xC. Assume that the promotion budget quantity is 1000 of item P, cannibalization percentage of normal sales is 25% of item A, 15% of item B, and 20% of item C.

In DMP there will be four promotion lines:

One promotion line for item P with budget quantity of 1000 (and optional budget amount of 2500)
One promotion line for item A, cannibalization percentage of 25, cannibalization ratio of 1, and related item P
One promotion line for item B, cannibalization percentage of 15, cannibalization ratio of 2, and related item P
One promotion line for item C, cannibalization percentage of 20, cannibalization ratio of 3, and related item P

The budget quantity to assign for item A is calculated from as follows:

Budget quantity of item P * cannibalization ratio * cannibalization percentage

In the example, the budget quantities for each item will be:

For item A, the budget quantity will be -250 (-1000*1*25%)
For item B, the budget quantity will be -300 (-1000*2*15%)
For item C, the budget quantity will be -600 (-1000*3*20%)

Assign logic for item P is normal.