How to Increase Retail Sales

5817 Words Jan 16th, 2013 24 Pages
ssHow to Increase Sales in Retail with Market Basket Analysis
Marko Svetina, Jože Zupančič Merkur d.d. C. na Okroglo 7, Naklo, Slovenia marko.svetina@merkur.si University of Maribor, Faculty of Organizational Sciences Kidričeva cesta 55a, Kranj, Slovenia joze.zupancic@fov.uni-mb.si Abstract: This paper investigates market basket analysis as an important component of analytical CRM in retail organizations. It presents the case of the company Merkur d.d., Slovenia, a trading company dealing in items for home improvement. The business intelligence system and market basket methodology used in Merkur are described. Use of market basket analyses in Merkur is explained and analysed. In particular, the paper addresses issues such as sales
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The company is organised in several large departments: Wholesale, Retail Sales, Sales to Foreign Markets, Purchasing, Logistics and Supporting Services. Customers include construction companies, trading organisations, installation companies, industrial enterprises, craftsmen and small entrepreneurs, as well as end consumers. The company makes almost 60% of its sales revenues by selling goods wholesale. To make the sales quick and efficient, the Wholesale Department has been divided into four sales sub-divisions. At present, Merkur has 38 retail sales centres in Slovenia. Specialisation increases the effectiveness of sales, so two types of Merkur sales centres were developed: MERKURDOM focusing on ordinary households, and MERKURMOJSTER intended for DIY (do-it-yourself) users. More information about MerkurDom and MerkurMojster is available on Merkur internet site: www.merkur.si.

2.1 Characteristic figures of the company
The scope of the company Merkur, d.d. can be shown through the following figures: The sales programme consists of about 200.000 active items (more than 120.000 items on stock), divided into 5 sales programmes, 74 lines of goods, 720 groups of goods and 5.600 basic goods classifications. Around 80% of sales are done with the top 12.000 items and 80% of stock is held on the top 20.000
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