Get Started with Funds for Promotions
Learning Objectives
After completing this unit, you’ll be able to:
- Explain the basics of fund management.
- Identify different types of funds.
The Fund Maestros
Meet Gustavo De Luca, the hardworking key account manager (KAM) at Alpine Group. He manages the sales and promotions for Alpine Group products at the Northern Trail Outfitters (NTO) stores, a nationwide retail chain in the USA. Gustavo also manages the day-to-day retail activities that his team of field sales reps performs to ensure sales optimization and promotional compliance.
Gustavo keeps a close eye on NTO’s target sales volume for various brands and products. Lately, sales have slumped, so he decides to take action. To increase sales, he must plan and launch promotions at national and regional levels.
Gustavo is well aware that promotions don’t come for free. Manufacturers like Alpine Group invest heavily in trade promotional activities. So, Gustavo finds it important to establish a workable budget for NTO. He contacts Carol Lee, Alpine Group’s finance manager, to secure a budget for his promotions.
Carol is responsible for managing funds and invoices, allocating budget, and resolving deductions at Alpine Group.
Carol supports Gustavo in creating funds and distributing the trade promotion budget. Carol also works with Gustavo and his team to make any updates to the budget and monitor the expenditure throughout the year. She ensures that they reach their financial targets by the end of the fiscal period.
After Carol approves the funds, Gustavo plans and negotiates trade promotions with retailers. He also works with Carol to make necessary changes to the budget as and when needed.
In this module, follow Gustavo as he explores fund types and their uses, uses funds to streamline promotions, and creates new funds for NTO.
Fund Management
A fund holds money that forms the promotion budget for a product or brand. Funds come in various shapes and sizes, each serving a distinct purpose in the execution of trade promotions.
Fund management is a core process in Salesforce Trade Promotion Management with Consumer Goods (CG) Cloud. Managing funds involves setting them up and linking them to individual promotions. It also entails transferring money to or from different funds.
Manufacturers set up trade budgets in many ways, for many different purposes. Every manufacturer determines the budget they allocate to support annual trade promotional activities. They capture this budget within a fund and then use it for trade promotion planning.
Fund management allows KAM Gustavo to:
- Use the funds that Finance Manager Carol creates.
- Define product rates for an account using rate-based funding.
- Review the budgets for multiple funds on a consolidated checkbook dashboard.
Types of Funds
Gustavo is curious to learn about the different types of funds available in CG Cloud. He discovers that there are two basic types of funds that he can use to determine the budget for promotional activities. Click each item to learn about the fund types.
After determining the funds to use, Gustavo can create them within Salesforce Trade Promotion Management and use them for promotional activities. For NTO stores, he rents out extra store spaces for promoted products or sets the discount during promotion.
What’s Next
In this unit, Gustavo explored the basics of fund management and the different types of funds available in CG Cloud. In the next unit, follow him as he links funds, transfers funds, and calculates rate-based funds.
Resources
- Salesforce Help: Track Your Spending with Fund Management
- Trailhead: Trade Promotion Management in Consumer Goods Cloud