Different cases and scenarios

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

This scenario applies to a promotion-specific label or packaging. Add a promotion line for the items, and specify the budget quantity and amount if applicable. For example, -300 for a negative 300.

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

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

If the cannibalization ratio is 1 and the related item is empty, the computation is:

Budget quantity * cannibalization ratio * – cannibalization percentage

For example, 1000 * 1 * –15% = –150. Therefore, the assigned value is 850 : 1000 (the budget quantity) minus 150.

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

In this case, the scenario promotes a specific pack-combination. Item P is a pack-combination of six units of item A (6-pack).

Assume these conditions:

  • Promotion budget quantity is 1000 of item P (equal to 6000 of item A)
  • Cannibalization percentage of normal sales of item A by 30%
  • Cannibalization ratio is 6
  • Related item is item P

In DMP, you create two promotion lines:

  • One promotion line for item P with a budget quantity of 1000 and an optional budget amount of 2500
  • One promotion line for item A

Calculate the budget quantity for item A as follows:

Item P budget quantity * cannibalization ratio * cannibalization percentage.

Given the scenario, the budget quantity is -1800 (computed as -1000 * 6 * 30%).

You must assign logic for item P as normal.

Cannibalizing normal sales for MULTIPLE related items (pack combination)

This scenario promotes a specific pack combination. Item P consists of 1xA + 2xB +3xC. Assume that the promotion budget quantity is 1000 of item P. The cannibalization percentage of normal sales is 25% for item A, 15% for item B, and 20% for item C.

In DMP, there are 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

Calculate the budget quantity for item A as follows:

Budget quantity of item P * cannibalization ratio * cannibalization percentage

In the example, the budget quantities for each item is:

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

You must assign logic for item P as normal.