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MRA Project 2: Sudesh Yadav

The document analyzes transaction data from a grocery store to identify popular product combinations and make recommendations. Key findings include: 1) Poultry is the most commonly purchased product. Market basket analysis identified the top 5 product combinations including paper towels with eggs and dinner rolls. 2) Food and snacks accounted for the highest share of products in orders over the years. 3) Recommendations include offering combo deals of poultry with other popular foods and increasing sales of least purchased products through offers and bundles.

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sneha sharma
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100% found this document useful (2 votes)
349 views23 pages

MRA Project 2: Sudesh Yadav

The document analyzes transaction data from a grocery store to identify popular product combinations and make recommendations. Key findings include: 1) Poultry is the most commonly purchased product. Market basket analysis identified the top 5 product combinations including paper towels with eggs and dinner rolls. 2) Food and snacks accounted for the highest share of products in orders over the years. 3) Recommendations include offering combo deals of poultry with other popular foods and increasing sales of least purchased products through offers and bundles.

Uploaded by

sneha sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MRA Project 2

Sudesh Yadav
• Problem statement
Agenda: • Data description
• Tools Used
• Exploratory Analysis
• Market Basket Analysis
• Rules identified
• Recomendations
Problem A Grocery Store shared the transactional data with you. Your
job is to identify the most popular combos that can be
statement: suggested to the Grocery Store chain after a thorough analysis
of the most commonly occurring sets of items in the customer
orders. The Store doesn’t have any combo offers.

Analysis is done in this document to suggest the best combo &


Offers.
• Data shape : 3 columns & 20641 rows.
Data • Columns :
Description: 1) Date – Order date, in DD-MM-YYYY format
2) Order – Order Number
3) Product – items or products in orders.
• Unique values:
1) Date – 603
2) Order – 1139
3) Product - 37
• No Duplicates
• No missing rows.
• Tableau for EDA Visualization
Tools Used: Profile | Tableau Public

• KNIME for Market Basket Analysis


EDA - Orders over the years

• 2018 had the highest number of


orders

• 2020 is lowest ( but 2020 is


having only 2 months data)
EDA - Orders & Products
•Poultry is a product that ordered most. And is part of 480 orders out of 1139 orders. Followed by ice-cream and
cereals and so on as below:

•Hand Soap is a product that ordered least among the product list. And is part of 394 orders out of 1139 orders.
Followed by Sandwich loaves and flour and so on as below:
EDA - Orders trend over the years
•The orders trend for the
given data is decreasing over
the years with 2018 having
highest orders and then
followed closely by 2019 and
then 2020.

•Note – 2020 data is only for


2 months and not full year.
EDA - Orders trend over the years
•The orders trend for the
given data over the quarters
indicate 2019 with highest
number of orders followed by
Q3 of 2018.

•Note – It could mean a trend


of high orders during Q3-Q4-
Q1 of every year – but then
the data is limited so this
hypothesis could not be
proved.
EDA - Orders trend over the years
•The orders trend for
the given data over the
months however
indicate Jan & Feb being
months where high
orders are placed.
EDA - Highly ordered products over the years
•The top 3 products per year:
•2018

•2019

•2020

•Poultry seems to be one of


the high selling products.
EDA - Highly ordered products over the years
•Comprehensive view of
products & Years
EDA - Highly ordered products over the years
•Similarly some of the
less frequently sold
products that could
form part of a product
deal to increase its
sales :
EDA – Binning the products into categories
•The products are binned into 3
categories to see if there is a
pattern:

•Category 1 – NC (Non-
cosumables like soap and liquid
detergent etc.

•Category 2 – FS (Food & Snacks)


like pork, poultry etc.

•Category 3 – BD (Beverages &


Drinks) like juices & Tea etc.
EDA – Product categories & Orders
•FS occupies the highest share
of products in orders followed
by NC & BD.
EDA – Product categories & order frequency
over years
•FS occupies the highest share
of products in orders followed
by NC & BD.
EDA – Product categories & order frequency
over years
•FS occupies the highest share
of products in orders followed
by NC & BD.
MBA – Association Rules
• Association Rules – is the set of rules where the likelihood of buying a product is greater with a set of product.

• In our case as an example the product paper towels being bought along with set of
[eggs, dinner rolls, ice cream, pasta, lunch meat] is
2.349 times higher when compared to it being bought individually which is just 0.02.

• Like this with a minimum of below threshold values the association rules for the given data are calculated:

Support of minimum = 0.02 (This is the minimum possibility of a product being ordered)
Maximum Item set length = 10 ( Maximum counts of products in 1 set of the order basket)
Minimum Confidence level = 0.08 (Minimum confidence that the product suggested would be
picked up while the other set of products are in the basket)
MBA – Association Rules in tabular form
39 such Association rules or suggestions :
MBA – KNIME workflow used for MBA
MBA – Association Rule Parameters
The threshold values are found out by
various regressions and shown here:
Ssuggestions & Recommendations
• Poultry could be suggested as a combo offer with most of the food and snacks items such as dinner rolls and
spaghetti sauce.

• Soda could be another item which can be offered in a combo.

• Best 5 combo’s are:

paper towels <--- [eggs, dinner rolls, ice cream,


pasta, lunch meat]
[yogurt, dishwashing
mixes <--- liquid/detergent, all- purpose,
hand soap]
[eggs, dinner rolls, poultry, ice
paper towels <--- cream, pasta]
ketchup <--- [tortillas, coffee/tea, juice, soap]
[paper towels, dishwashing
pasta <--- liquid/detergent, eggs, dinner
rolls, ice cream]
Ssuggestions & Recommendations

• Since Poultry and Soda are the


most sold items and hand soap
and Sandwich loaves are the lest
– a combo offer of these would
eventually increase a sale of Hand
soap and Sandwich loaves as well.

• Another strategy could be to have


sale offer on the least sold
products to increase its sales.

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