Market Basket Analysis Helped A Food and Beverage Manufacturer to Optimize Product Placement and Increase Sales By 54%

Sep 13, 2019

The client is a well-known food and beverage manufacturer based out of Austria with its operation spread across Europe. They were finding it difficult to understand the purchasing behavior of their consumer and identify potential customer segments to drive sales. They wanted to leverage the market basket analysis solution to increase the effectiveness of their marketing campaigns and improve sales.

In a highly fragmented and complex business landscape, manufacturers are looking at leveraging smart analytics tools to address the rapid shifts in customer demands and preferences. This is where market basket analysis can help manufacturers to understand the purchasing behaviors of consumers. Market basket analysis can aid companies to develop precise marketing strategies and meet business goals. Also, market basket analysis can help in increasing the efficiency of marketing messages resulting in improved customer experience and customer loyalty.

Business Challenge

The client, a well-known food and beverage manufacturer, lacked a robust cross-selling strategy for their products. As a result, the food and beverage manufacturer was facing a continuous reduction in the profit margins for two consecutive years. Also, the client was struggling when it came to inventory management due to which they were not able to fulfill customer demands on time. Furthermore, their inability to analyze historical data properly prevented them from creating effective pricing models. Therefore, the company was looking for market basket analysis solution to utilize the historical data to identify relationships products and customers and generate new revenue.

Quantzig’s market basket analysis solutions help companies to develop customer centric marketing strategies  by identifying factors that drive consumer buying preferences and behaviors. Request a FREE proposal to gain in-depth insights into our portfolio of analytics solutions.

Solution Offered and Value Delivered

To help the client tackle their core business challenges, the market basket analysis experts adopted a comprehensive three-step  approach. The first phase of the market basket analysis engagement focused on analyzing available customer data to help the client devise robust cross-selling strategies. In the second phase of the market basket analysis, the analytics experts focused on the creation of extract, transform and load (ETL) processes for the initial data load to support methodologies of market basket analysis. The third and final phase revolved around the creation of customized analytics dashboards to support market basket analysis at the store and product category level.

The solution offered by Quantzig’s experts helped the client to keep a track of key metrics such as average spend and profit per basket. This, in turn, helped the client to track the performance of their top-selling product categories. Additionally, Quantzig’s market basket analysis solution helped the client to optimize their product placement. Furthermore, the client was able to improve the effectiveness of their marketing campaigns by 2X, enhance customer satisfaction and reduce churn rate.

Request a FREE demo below to know how our market basket analysis can help you improve customer loyalty and MROI.

Quantzig’s market basket analysis solution also helped the client to:

  • Increase quarterly sales by 54%
  • Decrease overall marketing budget by 18%
  • Develop a flexible and reliable business model

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