System and method for using sales patterns with markdown profiles

• US 8,219,444 B2
• Filed: 09/01/2004
• Issued: 07/10/2012
• Est. Priority Date: 03/08/2004
• Status: Active Grant

• Current Assignee: SAP SE
• Original Assignee: SAP AG (SAP SE)
• Inventors: Busch, Hergen, Fotteler, Christine, Züerl, Ruediger
• Primary Examiner(s): Loftis, Johnna
• Assistant Examiner(s): Santiago, Luis
• Application Number:
  US10/931,936
• Publication Number:
  US 20050197887A1
• Time in Patent Office: 2,869 Days
• Field of Search: 705/14.1
• US Class Current: 705/14.1
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• CPC Class Codes: G06Q 30/0206 Price or cost determination based on market factors
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates

Abstract

A system, method and program product are provided for planning sales of one or more products or services. The method comprises selecting a markdown profile associated with the one or more products or services, selecting a sales pattern associated with the markdown profile, and distributing sales of the one or more products or services using the markdown profile and sales pattern.

Claims

1. Machine-readable media for planning sales of products using an automated process, the machine-readable media comprising program code stored therein executable by one or more processors to perform the automated process, the automated process comprising:

selecting by the one or more processors based on the program code a first markdown profile associated with the products of a particular type, the products of the particular type comprising a first product and a second product, the first markdown profile comprising a plurality of posting periods, a plurality of target sales quota ranges each corresponding to one of the posting periods, and a plurality of actual sales quota ranges, the plurality of target sales quota ranges relating to a product life cycle, wherein the first markdown profile further comprises a proposed markdown for at least some intersecting pairs of actual sales quota ranges and posting periods;

selecting by the one or more processors based on the program code a second markdown profile for the first product;

assigning by the one or more processors based on the program code the first markdown profile associated with the products of particular type to the second product based on a specific markdown profile not being selected for the second product;

selecting by the one or more processors based on the program code a first sales pattern associated with the first markdown profile from a plurality of sales patterns associated with the first markdown profile, wherein the first sales pattern comprises a plurality of planned sales quota ranges, wherein each planned sales quota range in the plurality of planned sales quota ranges corresponding to a posting period from the plurality of posting periods, wherein the first sales pattern further comprises a planned markdown for each posting period in the plurality of posting periods, wherein each planned markdown is determined based on the first markdown profile and a planned sales quota range;

selecting by the one or more processors based on the program code a second sales pattern associated with the second markdown profile from a plurality of sales patterns associated with the second markdown profile;

determining a first product available markdown budget by adding a first product planned markdown budget to a first product cumulative markdown budget, and subtracting an exhausted markdown budget, wherein the first product planned markdown budget being a budget for markdowns for the first product for a current posting period, the first product cumulative markdown budget being a budget amount remaining for the first product from a previous posting period, and the exhausted markdown budget being a total amount of markdown applied for the first product during the current period;

determining that a first product markdown cost does not exceed the first product available markdown budget by more than a first tolerance and adjusting a first product price by the first product markdown cost;

determining whether a second markdown cost exceeds a second markdown budget by more than a second tolerance and upon determining that the second markdown cost exceeds a sum of the second markdown budget and the second tolerance, determining a second product price adjustment by dividing a second product available budget by a quantity of the second product, and adjusting a second product price by the second product price adjustment;

distributing sales quantities of the first product using the first markdown profile and the first sales pattern; and

distributing sales quantities of the second product using the second markdown profile and the second sales pattern.

2. The machine-readable media of claim 1, wherein the sales quantities are manually entered in the first sales pattern and the second sales pattern at a timely aggregated level.

3. The machine-readable media of claim 2, wherein the timely aggregated level is one of a season and a rollout period.

4. The machine-readable media of claim 1, wherein the distributing step includes estimating price reductions for the first product and the second product based on the first markdown profile, the second markdown profile, and the planned sales quota range from a previous posting period.

5. The machine-readable media of claim 4, further comprising transferring a markdown to a next posting period if a markdown results from the planned sales quota range and the markdown profile from a current posting period.

6. The machine-readable media of claim 1, wherein the distributing step comprises simulating planned sales quantities by multiplying one or more planned sales quota percentages obtained from the first sales pattern and the second sales pattern by a total quantity of the one or more products and simulating planned sales prices by multiplying one or more resulting planned markdown percentages obtained from the first sales pattern and the second sales pattern by an original price of the one or more products.

7. A system for planning sales of products, the system comprising machine-readable media comprising program code stored therein executable by one or more processors, comprising:

one or more processors configured to select a first markdown profile associated with the products of a particular type, the products of the particular type comprising a first product and a second product, the first markdown profile comprising a plurality of posting periods, a plurality of target sales quota ranges each corresponding to one of the posting periods, and a plurality of actual sales quota ranges, the plurality of target sales quota ranges relating to a product life cycle, wherein the first markdown profile further comprises a proposed markdown for at least some intersecting pairs of actual sales quota ranges and posting periods;

the one or more processors configured to select a second markdown profile for the first product;

the one or more processors configured to assign the first markdown profile associated with the products of particular type to the second product based on a specific markdown profile not being selected for the second product;

the one or more processors configured to select a first sales pattern associated with the first markdown profile from a plurality of sales patterns associated with the first markdown profile, wherein the first sales pattern comprises a plurality of planned sales quota ranges, wherein each planned sales quota range in the plurality of planned sales quota ranges corresponding to a posting period from the plurality of posting periods, wherein the first sales pattern further comprises a planned markdown for each posting period in the plurality of posting periods, wherein each planned markdown is determined based on the first markdown profile and a planned sales quota range;

the one or more processors configured to select a second sales pattern associated with the second markdown profile from a plurality of sales patterns associated with the second markdown profile;

the one or more processors configured to determine a first product available markdown budget by adding a first product planned markdown budget to a first product cumulative markdown budget, and subtracting an exhausted markdown budget, wherein the first product planned markdown budget being a budget for markdowns for the first product for a current period, the first product cumulative markdown budget being a budget amount remaining for the first product from a previous period, and the exhausted markdown budget being a total amount of markdown applied for the first product during the current period;

the one or more processors configured to determine that a first product markdown cost does not exceed the first product available markdown budget by more than a first tolerance and adjusting a first product price by the first product markdown cost;

the one or more processors configured to determine whether a second markdown cost exceeds a second markdown budget by more than a second tolerance and upon determining that the second markdown cost exceeds a sum of the second markdown budget and the second tolerance, determining a second product price adjustment by dividing a second product available budget by a quantity of the second product, and adjusting a second product price by the second product price adjustment;

the one or more processors configured to distribute sales quantities of the first product using the first markdown profile and the first sales pattern; and

the one or more processors configured to distribute sales quantities of the second product using the second markdown profile and the second sales pattern.

8. The system of claim 7, wherein the one or more processors is configured to receive the sales quantities in the first sales pattern and the second sales pattern at a timely aggregated level.

9. The system of claim 8, wherein the timely aggregated level is one of a season and a rollout period.

10. The system of claim 7, wherein the one or more processors is configured to estimate price reductions for the first product and the second product based on the first markdown profile, the second markdown profile, and the planned sales ratios from a previous posting period.

11. The system of claim 10, wherein the one or more processors is configured to transfer a markdown to a next posting period if a markdown results from the planned sales ratio and the markdown profile from a current posting period.

12. The system of claim 7, wherein the one or more processors is configured to simulate planned sales quantities by multiplying one or more planned sales quota percentages obtained from the first sales pattern and the second sales pattern by a total quantity of the one or more products or services and to simulate planned sales prices by multiplying one or more resulting planned markdown percentages obtained from the first sales pattern and the second sales pattern by an original price of the one or more products.

13. A program product for planning sales of products, the program product comprising machine-readable code for causing, when executed, one or more machines to perform the following method steps:

selecting by a processor a first markdown profile associated with the products of a particular type, the products of the particular type comprising a first product and a second product, the markdown profile comprising a plurality of posting periods, a plurality of target sales quota ranges each corresponding to one of the posting periods, and a plurality of actual sales quota ranges, the plurality of target sales quota ranges relating to a product life cycle, wherein the first markdown profile further comprises a proposed markdown for at least some intersecting pairs of actual sales quota ranges and posting periods;

selecting by the processor a second markdown profile for the first product;

assigning by the processor the first markdown profile associated with the products of particular type to the second product based on a specific markdown profile not being selected for the second product;

selecting by the processor a first sales pattern associated with the second markdown profile from a plurality of sales patterns associated with the first markdown profile, wherein the first sales pattern comprises a plurality of planned sales quota ranges, wherein each planned sales quota range in the plurality of planned sales quota ranges corresponding to a posting period from the plurality of posting periods, wherein the first sales pattern further comprises a planned markdown for each posting period in the plurality of posting periods, wherein each planned markdown is determined based on the first markdown profile and a planned sales quota range;

selecting by the processor a second sales pattern associated with the first markdown profile from a plurality of sales patterns associated with the second markdown profile;

determining a first product available markdown budget by adding a first product planned markdown budget to a first product cumulative markdown budget, and subtracting an exhausted markdown budget, wherein the first product planned markdown budget being a budget for markdowns of the first product for a current period, the first product cumulative markdown budget being a budget amount remaining for the first product from a previous period, and the exhausted markdown budget being a total amount of markdown applied for the first product during the current period;

determining that a first product markdown cost does not exceed the first product available markdown budget by more than a first tolerance and adjusting a first product price by the first product markdown cost;

determining whether a second markdown cost exceeds a second markdown budget by more than a second tolerance and upon determining that the second markdown cost exceeds a sum of the second markdown budget and the second tolerance, determining a second product price adjustment by dividing a second product available budget by a quantity of the second product, and adjusting a second product price by the second product price adjustment;

distributing sales quantities of the first product using the first markdown profile and the first sales pattern; and

distributing sales quantities of the second product using the second markdown profile and the second sales pattern.

14. The program product of claim 13, wherein the sales quantities are manually entered in the sales pattern at a timely aggregated level.

15. The program product of claim 14, wherein the timely aggregated level is one of a season and a rollout period.

16. The program product of claim 13, wherein the distributing step includes estimating price reductions for the first product and the second product based on the first markdown profile, the second markdown profile, and the planned sales ratios from a previous posting period.

17. The program product of claim 16, further comprising transferring a markdown to a next posting period if a markdown results from the planned sales ratio and the markdown profile from a current posting period.

18. The program product of claim 13, wherein the distributing step comprises simulating planned sales quantities by multiplying one or more planned sales quota percentages obtained from the first sales pattern and the second sales pattern by a total quantity of the one or more products and simulating planned sales prices by multiplying one or more resulting planned markdown percentages obtained from the first sales pattern and the second sales pattern by an original price of the one or more products.