Sustainable Future: Trends, Strategies and Development – Noviaristanti & Hway Boon (eds)

© 2023 copyright the Author(s), ISBN 978-1-032-37201-3

Open Access: www.taylorfrancis.com, CC BY-NC-ND 4.0 license

Determining the marketing strategy of tenant food & beverages using

association rules at the boarding lounge international terminal 3
Soekarno-Hatta Airport

K.A. Ramadhan, G. Ramantoko & S. Noviaristanti

Master of Management, Telkom University, Bandung, Jawa Barat, Indonesia

ABSTRACT: Soekarno Hatta International Airport, the busiest and largest aviation hub in the
Southeast Asia Region with three terminals, is one of the airports managed by PT Angkasa Pura II
(Persero). The object of this research is Terminal 3 international departure, with a non-aeronautical
business stream consisting of various categories, such as retail, food & beverages, advertising,
lounges, utility fees, duty-free, public parking, land transportation, etc. This research aims to deter-
mine the food & beverages products most often purchased in the international boarding lounge area
of Terminal 3 Soekarno-Hatta. The concepts used are market basket analysis, cross-selling strategy,
and recommendations for increased purchases. Secondary data were collected from transactions on
products purchased by customers through the E-Pos Collection System (ECSyS) platform belonging
to PT Angkasa Pura II (Persero). The data collected were processed using the R Studio application
to determine the criteria of Confidence, Support, and Lift as well as the frequently purchased items.
The results showed that tenants can use the cross-selling method to determine the right policy and
marketing strategy for customers to provide product promotion program materials more precisely
on target.

Keywords: Market basket analysis, Cross-Selling, Frequently Items, Association Rules

1 INTRODUCTION

A prediction model is needed in planning the marketing strategy, which is then optimized to
determine the number of tenant sales transactions using the association rules approach. Sales
transactions can be increased through the sale of additional products from the main product where
it is purchased by customers. Therefore, when marketing and alternative strategies, such as cross-
selling, are implemented, the tenant’s main focus is on how to get potential new customers and sell
more products to the existing ones. Profits can be obtained by improving the right and accurate
marketing strategy by offering other items that are likely to be purchased by customers beforehand.
To determine this information, it is necessary to analyze the transaction data stored in the database.
Analyzing product cross-selling can be carried out precisely and accurately by offering other items
that are likely to be purchased by customers in advance. The problem is determining the goods
that are almost certain to be purchased by customers and where the information can be obtained
by processing customer transaction data (Ghozali & Sugiharto 2017).
In addition, cross-selling helps to streamline the company’s efforts in fostering relationships by
providing the right product. They can also make cost savings by cross-selling products and services
to existing customers because the costs incurred are lower than offering new products (Kamakura
et al. 2003). The association method is often used in this process and also known as Market Basket
Analysis (MBA) in the retail business. Triyanto (2014) defined market basket analysis is a data
mining method known as Association Rule Mining that focuses on finding purchasing patterns by
extracting associations from a store. This is a good way to provide scientific decisions and support
to stores through mining association relationships between purchased items (Xie 2010).

DOI 10.1201/9781003335832-57 227

2 LITERATURE REVIEW

2.1 Data mining

Data mining is analyzing a group of large data to obtain unexpected relationships, which are
summarized in a form that is easier to understand and also an analytical tool that has proven to
be useful for companies through the Association Rules method with the concept of Market basket
analysis.

2.2 Market basket analysis

Market-basket is a collection of goods purchased by customers in a transaction, which merchants
keep. Traders use the analysis results to increase sales by rearranging a group of items in adjacent
locations or shopping catalogs (Goldie 2012).

3 RESEARCH METHOD

This research was carried out using a pre-processing data approach consisting of Pre-Processing
Data, Data Selection, Cleaning, and Transformation stages, as follows:
1. Pre-Processing Data: This stage collects data from all required attributes, such as the Elec-
tronic Point of Sales Data Collection System (ECSys) Report of PT Angkasa Pura II (Persero)
consisting of historical sales transactions data from July 1, 2019, to December 31, 2019.
2. Data Selection: This stage starts from the process of distributing stored names within the scope
of Terminal 3. Each store name has more specific data attributes in the form of daily transactions.
3. Data Cleaning: This stage removes noise and inconsistent data by analyzing relevant data.
Therefore, it is necessary to audit the data first to ensure it is not Null.
4. Data Transformation: This is the data consolidation stage, suitable for description development.
Therefore, it is necessary to carry out a data transformation that aims to transform raw data into
a more measurable process with a value.

4 RESULT AND DISCUSSION

4.1 Frequent itemset

This research processed data using the basket analysis method with the RStudio software. The script
used is the R function with the Mining Association Rules and Frequent Itemset (arules) method. The
first analysis was carried out by uploading the processed data transactionData_july_des_2019.csv
and viewing the summary of the processed data.
According to Musungwini (2014), the relationship market basket analysis is an exploratory
research technique that identifies the strength of the association relationship between several prod-
ucts purchased from each trader. This analysis is usually applied to data on shopping behavior, such
as those collected at the point of sale. Therefore, further vital information can be obtained using
the summary function, and it is necessary to search for the items that are most frequently purchased
on international boarding lounge area of Terminal 3 Soekarno-Hatta.

4.2 Association rule

The result of mining transaction data in arules are associations that are conceptually known as sets
of objects used to describe the relationship between an itemset with assigned values for different
quality measures. It comprises measures of significance, interest, and other types, such as support,
confidence, lifts, etc.

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4.2.1 Support
The support constraint is simply the occurrence of two sets of unique items in one basket divided
by the total number of transactions. The absolute value was used to plot the numerical frequency
of each item independently, while the relative was used to plot many of these items in comparison
to others.

4.2.2 Confidence and lift ratio

The Confidence constraint is used to determine the occurrence of more than one unique item in
one basket from a total of all other transactions containing. This is followed by using the Apriori
algorithm with the Induction function () from package rules. The apriori is denoted with trObj as
the transaction object on which mining is to be applied.
A lift ratio value is used to evaluate the rules formed and measure the interestingness. The lift
ratio shows the level of strength in an association rule, which can be determined using a simple
correlation rule.

4.3 Conclusion
The following conclusion was drawn from a series of data collection processes, discussion, and
research results:
1. Cross-selling business strategy can be conducted as follows:
a. Set a good layout or tenant mix locations that are closely arranged and apply a pattern of
bringing frequent items closer to obtain a high confidence value. Tenant Mix Products with
a low confidence value cannot be used as a recommendation.
b. Apply product discount packages to the pattern of purchasing items that have a small support
value at the right time.
c. Use the Lift criteria with a value of n > 1 as a recommendation for a complimentary product
of the frequent items.
2. It is recommended to determine the marketing strategy needed to increase the company’s revenue
by implementing this cross-selling strategy and sales. Therefore, with the help of business
intelligence tools, historical transaction data that was not previously involved can be used to
determine sales strategy. In this case, data mining is a concept that plays a vital role in extracting
transaction data into added value from the association rules. The cross-selling products are
intended not only for cases of retail companies such as supermarkets and minimarkets but also
for general food & beverage companies with regular customers. If the bundling strategy is aimed
to increasing product sales, a rule to be chosen is that contains goods with the lowest support
value condition. Meanwhile, if the purpose of bundling is to increase sales turnover, a rule is
chosen that contains items that are often purchased by customers.
In addition, Tenant Mix concept also has important role in increasing profitability of the tenants.
Tenant mix is simply putting together a group of tenants to help optimize sales traffic, which in
turn increases the tenants’ sales revenue. In order to give potential clients a simple purchasing
experience, it is similar to forming a synergy of various though complimentary service providers.
In today’s market economy, most tenants establish clustering based on the services they provide
and location in question. Additionally, based upon the tenant cluster, the customer has access to a
remarkable variety of products.

4.4 Suggestion
From the analysis and conclusions, the following suggestions were given for further research.
1. Users can use another reference packages, such as Eclat or FP-Growth, based on the similarity
of products purchased with others.

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2. In the process of making the prediction model, data within one year are expected to be used for
the transaction. This will be useful in comparing the accuracy level of the various data generated
in each product purchased. The quality of the data obtained also needs to be considered, in terms
of the quantity and quality of the existing data.

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