| Impacting the Forecast with Planned
Promotions are widely used to stimulate additional demand for a product or service. Sales demand patterns for promoted products can take on very wide swings in the data. Prior to an announced promotional campaign, the demand for a product might fall below expected levels due to the drop in demand as consumers anticipate the advantage of a promotional price. The promotional blip resulting from the demand for the product during the promoted period and the pull-ahead for demand that would have been there eventually. After the close of a promotional campaign, demand might drop again below normal levels for a short period as the forward buy dissipates and demand returns to normal patterns. These patterns differ across promotions as to type, intensity and duration.
As part of the statistical baseline forecasting process, PEER Planner takes into account the impact of scheduled promotions and automatically incorporates the effect into future promoted periods. The effect of a promotion takes on several stages over and above the normal pattern of demand. Adjustments for off-invoice and special substitution type promotions are handled in the system prior to running the Batch Forecaster. Promotion impacts are automatically compensated for with user-supplied promotion calendar. How this works will be shown for weekly forecasts, but monthly forecasts are similar:
Promotion Management The PrePrice and BonusPak promotions involve the substitution or replacement of one SKU
number for another.
The PrePrice and BonusPak promotions involve the substitution or replacement of one SKU number for another.