Market basket analysis helps optimize product bundling and pricing for increased profits.
Authors
Gaurav Nagpal, Department of Management, Birla Institute of Technology and Science, Pilani, India
Ankita Nagpal, Department of Management, Birla Institute of Technology and Science – Pilani Campus, Pilani, India
Manish Das, Department of Business Management, Tripura University, Suryamaninagar, India
Sachin Gupta, Department of Economics, VIPS, Technical Campus, Delhi, India
Sandeep Singh, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India
Sarveshwar Kumar Inani, Associate Professor, Jindal Global Business School, O.P. Jindal Global University, Sonipat, India
Summary
Learning outcomes: To appreciate the problems faced by the restaurants during the pandemic. To be able to perform the computations related to market basket analysis metrics using an Microsoft Excel spreadsheet. To be able to perform association rule mining using Python. To identify the products that are likely to go together from the output of market basket analysis and to suggest the product bundles. To recommend suitable pricing for the product bundles and the individual elements of the combo to maximize the profits, using evolutionary optimisation in an Microsoft Excel spreadsheet.
Case overview/synopsis: This case is about a restaurant in the Kolkata city of West Bengal state of India that wanted to find the degree of association between different products in the customer’s cart so that it could use that information to create suitable product bundles. The case not only exposes the students to appreciate the significance of metrics in market basket analysis but also enables them to compute those metrics using an Microsoft Excel spreadsheet and a Python notebook. The case also aims to enable the students to determine the optimal selling price of the product bundles and the individual elements so as to maximise the profits.
Complexity academic level: This case can be used in the graduate studies programs such as Masters of Business Administration for the courses related to marketing analytics or pricing analytics during the later stage of the programmes when the specialised courses are covered. Supplementary material: Teaching notes are available for educators only.
Published in: Emerald Emerging Markets Case Studies
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