One of the major differences between an online store and a real store is that pricing & discounting in real stores are based on the MRP of the product while on the website it is based on the discounted web price of the product.
Now a brand might want to create MRP promotions because of following reasons:
- Campaigns based on MRP amounts tend to be more attractive to users as they show higher discounts to prospective customers.
- Consistency of experience between the online & offline journeys in terms of promotions applicable on the two platforms.
Here, we will go through the basic catalog and cart promotion's configuration settings.
Cart Promotion - Configuration Settings
Users can create conditions based on the MRP values of single or sum of all items in the cart.
- You can configure conditions on the Total MRP value of the cart. For example, Total MRP is Equal/not equal/lesser than/greater than/lesser than equal to/greater than equal to a value applicable to the promotion.
- You can also configure conditions on the MRP Amount of individual products. For example, apply the discount if any item in the cart has an “MRP Amount” equal/not equal/lesser than/greater than/lesser than equal/greater than equal, to the XX amount.
Here, users can configure discounts calculation logic based on "Product MRP Price" values.
- Users will be able to configure flat/percentage discounts on MRP values.
- However, the discount application logic for MRP based promotions is a bit different; refer to section Discount application logic below on how these discounts are applied.
Here, users can define which products should be configured while applying the Discount calculation logic. You can define those products on the basis of "MRP Price Range".
For example, you can apply a discount on any item if it has an “MRP Price” between XX & YY amount.
Discount Application Logic
Discount calculation logic of MRP based discounts works a bit differently vis-a-vis web price based discounts. The core philosophy of the difference in logic being users have already seen the discounted web price on the category & product pages & any discounts applied post that should always reduce the payable amount for the end user.
- Final discount amounts on the basis of MRP amounts are calculated & then compared with the discounts shown on the listing & product pages, that is, MRP -Web price.
- If the discount calculated on the product is greater than the original discount shown to the users (MRP - Web price); then the discount is considered valid & applied to the MRP value of the product.
- If the discount calculated is smaller than the original discount shown to the users (MRP - Web price); then the discount is considered invalid & the user continues to get the original discount shown to him/her on product pages.
2. This net discount (difference of the two discounts discussed above) is then proportionately distributed among the items.
3. For the next set of promotions to be applied on the cart (case of Sequential promotion); the new discounted values are considered as the new MRP values.
Following example will explain the calculation logic of MRP based discounts.
If a customer gets a discount of 10% on shirts in an online store, he must expect the same with an offline store as well and vice versa. A 10% discount on a product with web price 800 & MRP 1000 is invalid but a 30% discount is valid.
Cart page calculations - Making them MRP based
For template changes refer to this document.