Market basket analysis for largest retail chain
Overview
Our client, one of the largest food and grocery retail chain, operates its stores under two formats; Supermarket & Hypermarket.
Client wanted to understand product affinities and have a clear visibility on customer preferences to enable targeted campaigns among different categories.
- Hypermarket
- Supermarkets hypermarkets
- Million loyalty card members
- Private labels
Solution
TransOrg developed market basket analysis for a target campaigns
- Customer Segmentation
- Segment customers as valuable, loyal, new, potential and lapsed
- Premium vs. private label spend
- Store Analytics
- Mix of premium vs. private label spend by store
- Weekend vs. weekdays and seasonal spend variations by store
- Basket Analysis: Department penetration by transactions and spend
- Affinity Analysis
- Affinity at department and class level
- Monthly variations in affinities for ‘top affinity’ classes
Impacts
24% of customers contribute to 55% spend & 65% transactions – Loyal Customers
1/3rd of all the customers have a preference to buy premium products – similar trend for private labels
About 50% of the premium spend is at seven stores – similar for private label
