Visual Merchandising Concepts in Planogram Development at Retail Product Shelves Based on Association Rules and Clustering of Customer Preference Analysis

Abstract

The increase in economic activity within society is supported by the distribution and development of retail businesses that are becoming more widespread throughout Indonesia. However, issues still need to be reported regarding the services received by customers, and customers also exhibit different shopping habits. Therefore, retail managers must understand the needs and desires of customers while shopping to ensure they feel comfortable and satisfied. Visual aspects are crucial as they can form the first impression customers experience in a retail store environment. These visual merchandising aspects include the exterior, interior, display, and layout of the retail store, all of which can enhance customer comfort and satisfaction. This study identifies purchasing transaction patterns and visual merchandising preferences related to sales shelves. The processing of one month's sales transactions using the association rules method revealed that 12 rules were formed between product categories, and 17 rules were formed between product sub-categories. In the stage of identifying visual shelf design preferences using the K-Means Clustering method, two clusters were found, each with different characteristics in terms of demographics, satisfaction levels, and design preferences. The discussion of visual preferences identified four aspects for product grouping: brand, colour, size, and price. Differences in interest were found in product grouping based on brand and price. Findings from these two methods were used to design a planogram for the sales shelf by considering the size and specifications. The planogram design is intended to address customer preferences for an attractive visual display and arrangement of sales shelves, providing detailed product information and ease of product search, thereby creating a positive impression for customers. Therefore, this planogram design can benefit retail managers by enabling optimal product stock arrangement and improving service quality.