Market Basket Analysis(MBA)- a tool for Kirana shops to build strategy to compete with Supermarkets

Abstract

Supermarkets are using transaction data to find out the relationship between sales of one product with the other. This is known as affinity analysis or marketing analysis. On the other side, most of the Kirana shops are not using any strategy. This research focuses on facilitating the Kirana shops a tool to analyze the sale of the product, so that they can create competitive pricing to increase sales. The study discusses XLMiner as a tool for analyzing the transactions, which will help the Kirana shop owners to achieve competitive edge through technology. Market Basket Analysis (MBA) has emerged as the next step in the evolution of merchandising and promotions. MBA has allowed leading retailers to quickly and easily look at the size, contents & value of their customer's market basket and understand the patterns of product affinities and products. The paper discusses the implementation of market basket analysis, to enable retailers to analyse customer-buying patterns over time and to precisely target & understand specific combinations of products, brands, categories & even time of the day to focus on.