Case Study: Wal-Mart and Barbie Doll
Sales
Wal-Mart uses data
mining techniques extensively. One recently described pattern was the
following: Wal-Mart knows that customers who buy Barbie dolls (it sells one every 20
seconds) have a 60% likelihood of buying one of three types of candy bars.
While Wal-Mart's chief of merchandising didn't seem to do
much with the information, many others proposed a variety of ideas:
- Rearrange positioning of goods in the store.
The basic idea is to place barbie dolls in a particular section, and candy in another.
Then, place other items of interest to the same group (but perhaps not purchases as often)
in the path between the barbie dolls and the candy. The thought is that in order to buy
both goods, the consumer must spend extra time in the store. Additionally, the consumer
will have additional opportunity to purchase items that might be of interest to the
consumer. (Of course, this kind of "consumer pathing" could get complicated with
multiple products.) Some others disagreed with this position, believe candy purchase to be
an impulse "buy". They suggested that instead, candy and barbie dolls should be
placed close together to encourage this behaviour.
- Co-packaging. Package candy bars with
barbie dolls to increase sales volume. Of course, there are logistical problems with this
(candy bars are less tolerant of time and heat, for example.)
- Promotional pricing. If there is a
correlation between items being purchased together in a store, promotionally reduce the
amount of the item that is typically purchased. Then, raise the price of the item that is
often purchased in additional to the first item. The idea is that sales of both products
should increase (especially considering that the consumer may believe they are
"saving" money anyway, so they may as well "splurdge".)
- Promotional programs. Allow consumers to
gain "Barbie accessories" if they mail in so many candy bar UPCs. Again, this
would encourage consumers of barbie dolls to consume more candy bars. [8]
- Create candy in the shape of Barbie dolls
