Analysis of marketing strategy at setia stores using ahp, clustering, and ar-mba method

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.