Market Basket Analysis: Case Studies

Market Basket Analysis (MBA) is an analysis to understand products bought together by the retail customers.  Market Basket Analysis is also known as association rule or affinity analysis. The concept of MBA is used now across problem statements and industries. For example: Understanding sequence of calls leading to product closure or customer attrition.

Case Study: Market Basket Analysis for an Organic Grocery Store

Bubble Chart

Summary:  Organic grocery store source products locally and sell to its customers. As a typically Market basket analysis, the objective was to understand the products bought together, so that appropriate promotion activities can be targeted.

Steps used:

    • Frequency of individual products : select frequent products and calculate “support”
    • Association Rules: Product Association and plotting bubble chart. Also checked support and lift for the product combinations
    • Selected top 5 associations

Summary Insights and Recommendations

  • For placing products together to increase cross sell – e.g.  Dairy Products along with Bread and Baked products
  • Product Bundling – – Cheese and Sausage: “Party platter”

Case Study: NEXCOM Manages 745,000 active SKUs using Market Basket Analysis

Market Basket Analytics (MBA) is used for store level product affinities, and also helps NEXCOM in determining the success of each store promotion.  MBA is attributed with 18% Sales increase for Intimate Apparel, 25% for Men’s Apparel and 24% Ladies’ Shoes

Case Study: MBA by a Restaurant Chain

A leading US Quick service restaurant chain leveraged Market Basket Analysis (MBA) for finding product affinities among its core products for increasing marketing effectiveness.

Market Basket Analysis using R

Market Basket Analysis (MBA): Step by Step Approach Tutorial on  MBA

Case Study: How to do Market Basket using R

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