Approach to Kirana Store Product Arrangement Using Machine Learning

Market Basket Analysis (MBA) is a method for determining the association between entities, and it has often been used to study the association between products in a shopping basket. Trained Computer vision models are able to recognize objects in photos so accurately that it can even outperform humans in some instances. This study shows that combining objective detection techniques with market basket analysis can assist Stores/Kirana in organizing the products effectively. With the use of MBA and Object detection, we formulated recommendations for store arrangements along with putting a recommendation engine on top to help shoppers. After deploying this to local Kirana stores, the Kirana store was able to see an increase of 7% in the sale. The recommendation engine performed better than just the domain knowledge of the kirana store.

Online or Offline? How Smog Pollution Affects Customer Channel Choice for Purchasing Fresh Food

Due to fresh foods' unique characteristics, where quality, freshness, and perishability are the main concerns, consumers are more inclined to choose offline channels for purchasing foods. However, it is not well-understood how these behaviors are affected by the adverse external environment, e.g., smog pollution. Fine particulate matters (PM2.5) on smog days would irritate the respiratory tract and pose health risks to people, triggering negative emotions such as sadness and depression. People tend to stay in a clean indoor environment on smog days. An adverse external environment is causing a gradual change in people's habits and emotions. Still, its impact on shopping behaviors is a complex process in need of further study. The study fills this gap by examining the impact of smog pollution on customer channel choice. Based on data from an e-commerce retailer that operates in both online and offline channels. We find that (1) the degree of smog pollution has a significant positive effect on online channel purchasing at aggregated store-, product-, and individual- levels; (2) moreover, the retailer's in-store interactive activities would restrain this positive relationship; (3) variation of product pricing and customers' healthy eating tendency would pronounce the positive association between smog and online purchasing. These results can serve as a reference for retailers to adjust channel strategies in the face of harsh external conditions.

The sales effect of in-store product displays: The special case of total product relocation

Purpose of the research: Special product displays are expected to increase sales of the products they contain. Opposite to the rich existing literature on the impact of product in-store displays, we investigate the case of total product relocation instead of using the display location as an additional sales spot (secondary location strategy). Design/methodology: In our setting, products are fully taken off the usual shelf and put into special displays close to the checkout area. We use data from a field experiment conducted in 214 stores of a German perfumery chain, in which eight products were moved to an in-store display. Results/findings: Compared to the control group, the treated products placed in display boxes show a statistically significant increase in sales. The precise effect differs markedly between the investigated products, ranging from 80% to 478%. Accumulated sales increased by 217.69€ per week on average due to the installation of product displays. We can conclude that complete relocation, indeed, boosts sales, but the precise magnitude seems to be driven by factors not covered in this study. Practical implications and Conclusions: Based on the product selection, the results seem transferable to both other perfumery stores as well as general supermarkets. However, given the low additional revenues, retailers must consider all the additional costs associated with the implementation of product displays such as the costs of installing and maintaining the display, the costs of removing tags and rearranging the former shelf, and any opportunity costs. If these costs do not exceed the estimated effect, then the installation could be of economic importance.

STRATEGI KOMUNIKASI PEMASARAN DIGITAL PADA PRODUK KULINER TRADISIONAL

Digital marketing communication strategy is a brand promotion activity that has been planned and arranged systematically. Its strategy builds brand interaction within its users. This marketing strategy is also carried out by several traditional Cirebon culinary business people. The purpose of this study was to analyze the marketing communication strategy in the three producers of Cirebon savory sticky rice, namely: Ketan Gurih (Sticky Rice), Mrs. Yudi; Ketan Gurih Kamba’s Table, and Ketan Gurih Ny. Lany. The research method used is descriptive qualitative. The results showed that the digital marketing strategy carried out by traditional products was to build a one stop shopping image on offline stores by sorting out some products that could be sold online, innovating products with special flavors, building confidence in consumers that the product was trusted and legendary, also endorsement of mass media (through television culinary programs) and positive testimonials from consumers who have used the product. In addition to direct marketing in stores (offline) where producers open outlets, the media used in the marketing of this Cirebon savory sticky rice are Instagram, whatsapp, line, SMS / Phone and online store (tokopedia / bukalapak). In the online store, product descriptions are described that only hold 1-3 days, and advice on the use of expedition services (shipping) that arrive quickly so that the product is still awake and good for consumption. Abstrak Strategi komunikasi pemasaran digital adalah suatu kegiatan promosi merek yang sudah direncanakan dan disusun secara sistematis. Strategi tersebut membangun interaksi merek dengan penggunaanya. Strategi pemasaran ini juga dilakukan oleh beberapa pelaku usaha kuliner tradisional khas Cirebon. Tujuan penelitian ini untuk menganalisis strategi komunikasi pemasaran pada tiga produsen ketan gurih Cirebon yaitu: Ketan Bumbu Ibu Yudi, Ketan Gurih Kamba’s Table, Ketan Gurih Ny. Lany. Metode penelitian yang dilakukan adalah deskriptif kualitatif. Hasil penelitian menunjukkan bahwa strategi pemasaran digital yang dilakukan oleh produk tradisional ini yaitu membangun citra one stop shopping pada toko offline dengan memilah beberapa produk yang bisa dijual secara online, melakukan inovasi produk dengan citarasa khusus, membangun keyakinan terhadap konsumen bahwa produk terpercaya dan legendaris, juga melakukan endorsement media massa (melalui program kuliner televisi) serta testimoni positif dari konsumen yang sudah menggunakan produk tersebut. Selain pemasaran secara langsung di toko (offline) tempat produsen membuka gerai, media yang digunakan dalam pemasaran digital ketan gurih Cirebon ini adalah instagram, whatsapp, line, SMS/ Telpon dan toko online (tokopedia/bukalapak). Pada toko online tersebut, dijabarkan deskripsi produk yang hanya tahan 1-3 hari, dan saran penggunaan jasa ekspedisi (pengiriman) yang cepat tiba agar produk masih terjaga dan baik untuk dikonsumsi.

Toward circular economy of fashion

Purpose The purpose of this paper is to examine the challenges and solutions emerging when fashion brands develop and test circular economy solutions within their existing business models. Design/methodology/approach The paper is based on a 34-month case study in a global fashion brand, which launched a new in-store product take-back initiative. Findings The results indicate that fashion brands need to cope with multiple challenges in the process of developing circular business models in the organization, including: diverging perspectives of value and unclear success criteria, poor alignment with existing strategy, limited internal skills and competences, and limited consumer interest. Research limitations/implications The results of this paper are grounded in a single case study and thus limitations associated with broad generalizations apply. In addition, the paper only investigated one aspect of circularity, namely, product take-back and did not investigate design for circularity, product reuse, recycle and other circularity related issues. Originality/value The findings derive from practical experiences of a fashion brand implementing an in-store product take-back system in the existing business model. The study reveals new insights into the actual process of making circular fashion operable.

Price and in-store promotions in an emerging market

PurposeThe purpose of this paper is to evaluate the influence of price and products on the promotion (through in-store temporary displays) on consumer sales in an emerging market context (i.e. Brazil) in different regions with contrasts in the market and store formats analyzed.Design/methodology/approachThe data originate from retail market audits conducted over three years and are broken down by a region and a channel for a product category that has experienced increased competition and growth and is highly distributed throughout the analyzed regions and channel formats (i.e. the ready-to-drink juice category). This study uses a panel vector autoregression framework and an impulse-response function to determine the effects on sales over time.FindingsThe results suggest that price sensitivity and the effects of promotions on sales vary with the type of store format rather than through structural differences between regions with lower vs higher levels of economic development in an emerging market.Practical implicationsManagers should consider differences in store format more than the heterogeneity among regions when making price and promotion decisions. Additionally, this paper highlights the importance of in-store product visibility through temporary displays of promoted products, especially in smaller stores in an emerging market.Originality/valueBy considering the challenges of managing a consumer brand for which market heterogeneity is key, this paper extends the current research by contrasting consumer price and in-store promotion decisions across two heterogeneous regions and store formats within an emerging market.