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All Journal International Journal of Industrial Optimization (IJIO)
Fadhlurrohman, Najib
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Decision Sciences, Operations Research & Management Engineering Industrial & Manufacturing Engineering

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Marketing strategy planning at alfamart lodadi stores using the clustering, ahp, and ar-mba method Azhra, Fariza Halidatsani; Fadhlurrohman, Najib; Putra, Bagas Swardhana; Ibrahim, Faisal
International Journal of Industrial Optimization Vol 2, No 2 (2021)
Publisher : Universitas Ahmad Dahlan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.12928/ijio.v2i2.4361

Abstract

Nowadays, people are very facilitated by the existence of various shopping centers, including retail. Because many retailers are close to each other, Alfamart Lodadi must have a good marketing strategy. So far, the strategy used is sometimes inaccurate because it is not based on customer segmentation.  Therefore, the purpose of this research is to help retail owners to make decisions regarding the right marketing strategy with three methods so that Alfamart Lodadi can compete and increase sales. The Analytical Hierarchy Process (AHP) is employed to find the priority variables of customer segmentation; meanwhile, the K-Means Clustering is used to group customers based on the similarity of predetermined characteristics. AR-MBA is used to find out the best rules, and products are rarely, sufficient, and frequently purchased.  The results of this research, based on AHP, obtained five segmentation priority variables based on the largest eigenvector values. There are income, age, expenditure, distance, and shopping intensity with each eigenvector value of 0.13; 0.16; 0.12; 0.12; 0.17. From clustering, there are three customer clusters with different strategies, including free shipping when shopping, product discounts for certain periods, and providing catalogs and discounts on each transaction and offer notifications. Then, this research also obtained three strategies based on AR-MBA. These include making a catalog by bringing frequently purchased products closer together, choosing a layout for shopping places by bringing frequently purchased products closer together, and making shopping coupons for rarely purchased products. With several strategic choices, companies can make decisions appropriately according to the desired criteria.
Analysis of marketing strategy at setia stores using ahp, clustering, and ar-mba method Ibrahim, Faisal; Putra, Bagas Swardhana; Azhra, Fariza Halidatsani; Fadhlurrohman, Najib
International Journal of Industrial Optimization Vol 2, No 2 (2021)
Publisher : Universitas Ahmad Dahlan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.12928/ijio.v2i2.4369

Abstract

A company can survive and thrive when the strategies and processes applied in its business are correct. One of the processes in determining strategy in decision making. The owner of Setia Store has difficulty in choosing a marketing strategy. The product layout shows this in the Setia Store, which confuses customers. Setia Store also rarely offers a promotion, making it difficult to compete with competitors. This study aims to help Setia Store increase sales by determining the right marketing strategy. To determine the right marketing strategy, there are three methods developed. First of all, the analytical hierarchy process (AHP) is employed to find the customer priorities. Then, clustering is proposed to find potential marketing targets that have similar characteristics from the results of the AHP method. Third, association rule-market basket analysis (AR-MBA) is developed to find the best rules for product marketing strategy. The first method shows that the housewives (EV=0.6270) are Setia Store's priority customers from the three methods. Second, cluster 3 (which has three characteristics in common) is a very potential target market. Third, the best rule is to buy products from departments 2 and 3 (Confidence 60%, Support 12%). From these results, the right marketing strategy is to create a buy 1 get 1 promo banner or label for products that are rarely purchased, such as household appliances. Then, create a catalog by bringing together frequently purchased products such as spices and food ingredients. Finally, improve the layout by bringing the departmental shelves closer to frequently purchased products.
Co-Authors Azhra, Fariza Halidatsani Ibrahim, Faisal Putra, Bagas Swardhana