Retail Store Segmentation for Target Marketing

Abstract

In this paper, we use Data Mining techniques such as clustering and association rules, for the purpose of target marketing strategy. Our goal is to develop a methodology for retailers on how to segment their stores based on multiple data sources and how to create marketing strategies for each segment rather than mass marketing. We have analyzed a supermarket chain company, which has 73 stores located in the Istanbul area in Turkey. First, stores are segmented in 5 clusters using a hierarchical clustering method and then association rules are applied for each cluster.