MARKET BASKET

ANALYSIS
INTRODUCTIO
N TO MARKET TERMINOLO
DATASE
BASKET GIES AND
T
ANALYSIS PROCESS

IMPLEMENTA RECOMMENDAT
TION OUTPUT IONS
 What is Market
Basket Analysis?

● Technique used by large retailers to

uncover associations between items.
● Enables retailers to identify relationships
between the items that customers buy.
● Also called as association analysis or
frequent itemset mining.
 Benefits of Market Basket Analysis

Increases customer engagement

Optimize marketing
strategies and campaigns
Boosting sales and increasing
RoI
Improving customer
experience
Identifies customer behavior
and pattern
 TERMINOLOGIES AND PROCESS

Association Rule: {X} =>

{Y}
SUPPORT LIFT
CONFIDE
NCE
 DATASET

Our dataset consists of 7501 individual transactions made up of 119 unique items.
An example of dataset is as shown below:
Market Basket Length Distribution:
IMPLEMENTATIO
N
Frequency Distribution of Items:
Creating the rules:
Top 10 rules based on confidence:
Scatter plot for Support vs Confidence:

01
CROSS - SELLING
Cross-selling is the process of
offering a customer products
that are compatible with the
ones they're purchasing.
Low support but high
confidence => opportunity for
cross selling.
{cake, meatballs, mineral
water} => {milk}
RECOMMENDATIONS
02
PRODUCT
PLACEMENT
Items that are associated can
be put near each other so that
customers are more likely to
purchase them.
Frequency plot of items also
give a chance to place items
effectively to draw customer
attention.
Eg: Mineral Water
03
PROMOTIONS
Promotions can be designed
based on associated
products. What drives the
sales of the other is important
to move stock.
{pasta, mushroom sauce,
fries} => {escalope}
THANK YOU!