Originally Published on: QuantzigMarket Basket Analysis Helped A Food and Beverage Manufacturer to Optimize Product Placement and Increase Sales By 54%
In the fiercely competitive landscape of the food and beverage industry, a distinguished Austrian manufacturer embarked on a mission to comprehend consumer purchasing behavior and elevate sales. Initiating a transformative journey by harnessing the potential of market basket analytics, the company aimed to refine marketing campaigns and enhance sales effectiveness.
Navigating Business Challenges: The manufacturer grappled with a declining cross-selling strategy, leading to consecutive profit margin reductions over two years. Inventory management issues caused delays in fulfilling customer orders, and insufficient historical data analysis hindered the creation of impactful pricing models. Seeking a solution through market basket analytics, the company aimed to leverage historical data, unveil product and customer relationships, and explore new revenue streams.
Journey through Market Basket Analysis:
Phase 1: Crafting Robust Strategies through Customer Data Analysis The initial phase involved analyzing customer data to formulate robust cross-selling strategies.
Phase 2: ETL Processes for Data Load Optimization Analytics experts focused on developing extract, transform, and load (ETL) processes to strengthen market basket analysis methodologies.
Phase 3: Tailored Analytics Dashboards for In-Depth Insights The final phase centered around creating customized analytics dashboards for store and product category-level market basket analysis.
Delivering Impactful Results: Quantzig's solution empowered the client to monitor crucial metrics like average spend and profit per basket, facilitating the tracking of top-selling product categories' performance. The market basket analysis solution optimized product placement, doubling the effectiveness of marketing campaigns. Results included a remarkable 54% increase in quarterly sales, an 18% reduction in the overall marketing budget, and the establishment of a flexible and reliable business model.
