DATE: September 13, 2018
FROM: LINYI TIAN
SUBJECT: increasing upselling in grocery segment
The problem your company faces right now is increasing upselling in grocery
segment. To solve out the problem, acquiring the data about consumer’s buying habits,
patterns and correlation among products from Whole Foods is indispensable.
ANALYTICAL APPROACHES FOR THE DATA:
Getting the data of consumer’s buying habits and patter:
1. You can divide products into two different groups. One of the groups is the products
people prefer to buy in grocery. And the other is the products people prefer to buy
online. After dividing this products, you could adjust the inventories of them.
2. You need to know the transportation consumer prefer to use for shopping. You can
adjust the parking spaces based on this data. You can also choose the address of the
grocery you set up: near the subway station, near residential area or near school and
Getting the data of correlation among products:
1. When people buy a toothbrush, 85% of them will buy a toothpaste. After getting
the data of the correlation among products (usage correlation and category
correlation). You could adjust the inventory of one product based on others, which
is an efficient way to increase upselling of the correlated products.
If adjustment of the product inventory was approved, it would solve out the
problem of oversupply and undersupply, thereby increasing upselling in grocery.
Convenient transportation for consumers also can increase upselling in grocery since it
will increase the number of times customers go shopping.
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