Promotion Management Case Study

Case

Promotion is used as a price intermediary to cope with increasing regional competition and to create demand. When trying to increase sales with promotion, the cost of the sale must be taken into account. Cosmetics retailer ACME has scheduled the following promotions for Valentine's Day, February 14th.

• A gift of the same product to everyone who buys products from the Schwarzkopf brand.
• Buy one of Nivea branded creams and get the second one with 50% discount.
• 25% discount on nail care products.
• Buying two Henkel liquid cleaning products, the third one for 1 USD.
• 30% discount on Head&Shoulder branded shampoos and additionally 2 USD worth of cash points for each shampoo.
• If you buy 2.5 kg of Ariel powder detergent, 500 gr olive oil soap is free.
• 25 USD shopping voucher for a total purchase of 250 USD.
• Special Covid Mask for New York store, buy two and get one free.
• 20-piece make-up bag with 40% discount for Young Card holders.
• 5% discount for online orders every morning between 10:00 - 11:00.

Transactions

Preliminary Transactions

1. Make brand definitions.
2. Make supplier definitions.
3. Create your products and stocks.
4. Create price lists.
5. Organize price lists according to branch offices or internet branch.
6. Create contact types.
7. Connect member types by creating loyalty cards and types.

Main Transactions

1. Define promotion.
2. Check the prices and costs of products.
3. Include vendor support, Rebate and Back End Rebate plans.
   

Post-Transactions

1. Check the sales.
2. Monitor the availability of purchase orders.
3. Issue supplier progress invoices.
4. Perform promotional analysis.

You can do study, training, developmental testing and learning activities on your own through the example case above.