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Case Study

Smart Retail through Market Basket Analysis

Mohamed Minhaj, Associate Professor - Systems, SDMIMD, Mysore
Market Basket Analysis, Association Rule Mining, Recommender Systems, Retail Analytics, Smart Retail

Abstract:The case is about a home décor retail outlet operating in a southern city of India. The outlet offers hundreds of products related to home décorssuch as Mattresses, Carpets, Screens, Light Fittings, Perfumery items, and Show Pieces. The wide range of products and competitive prices coupled with quality customer services,have helped Shaanzto retain its position in the fray of home décor business. Besides having a bar-code based automated billing process, Shaanz has implemented Loyalty Cards System. With the Loyalty Card Program, the customers are offered benefits such as discounts and coupons. The store started accumulating a massive amount of data after implementing the automated billing and loyalty card system. However, the store was in "Data-rich and information poor" state. While the billing data was being used for accounting and inventory related analysis, the store was not getting benefitted in any way with the data generated by the ineffectual loyalty program.
The owner of the store, who firmly believes in the value of data, decided to employ Market Basket Analysis to get business insights from the trove of unexploited data lying in the store. The case endeavours to present the approach adopted by the retail store in operationalizing the Market Basket Analysis to get useful insights for proving better customer services and thereby boosting the sales volume.


Learning Objectives:
The primary objective of the case is to demonstrate how analytical methods such as Market Basket Analysis can help retailers in getting actionable insights for devising strategies to improve customer services. The other learning objectives include :

  • Understand the challenges involved in collecting and selecting the data required for any form of analytics.
  • To get familiar with different approaches/algorithms that are used for association rule mining or in other words, to uncover associations between items purchased together.
  • Learn different metrics related to association rules for identifying the most relevant association rules.

  • Pub Date:
    20 Nov 2020
  • Source:
    Shaanz
  • Discipline:
    Consumer Behavior,Marketing Research,Supply Chain Management,Services Marketing
  • Product#:
    1537
  • Keywords:
    Market Basket Analysis, Association Rule Mining, Recommender Systems, Retail Analytics, Smart Retail
  • Length:
    Pdf : 4 page(s) ,

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