OPTIMIZING
MARKETING STRATEGIES USING FP-GROWTH AND ASSOCIATION RULE MINING ALGORITHMS IN
THE TEXTILE INDUSTRY
Wijaya NG1, Robby Sukma2,
Christina Juliane3
STMIK
LIKMI, Jawa Barat, Indonesia
�[email protected]1, �[email protected]2 , [email protected]3
ABSTRACT
This study
leverages association rule mining to analyze transaction data from PT. Labda
Anugerah Tekstil, a prominent player in the textile industry, to uncover
significant purchasing patterns and associations between different fabric
types. Utilizing data from January 1, 2022, to December 31, 2023, which
includes 7,143 transaction entries, the research applies the FP-Growth
algorithm followed by Association Rule Mining to identify and evaluate frequent
itemsets and strong association rules within the dataset. The analysis revealed
robust associations among fabrics such as Cotton, Linen, Rayon, and Viscose,
suggesting substantial opportunities for targeted marketing strategies and
inventory management enhancements. The findings indicate that strategically
bundling and promoting associated fabrics can drive higher sales volumes and
improve customer purchasing experiences. The insights from this study provide
actionable strategies for optimizing marketing efforts and inventory management,
aiming to enhance sales performance and customer satisfaction in the
competitive textile market.
Keywords: Association
Rule Mining, FP-Growth Algorithm, Textile Industry Marketing,� Customer Purchasing Behavior, Inventory
Management Strategies
Corresponding Author: Wijaya
NG
E-mail [email protected]
INTRODUCTION
The textile industry is one
of the most critical sectors of the global economy, providing clothing and
fabrics for various applications (Tsai et al., 2020). However, the industry faces many challenges, such as high
competition, low profit margins, changing customer preferences, and
environmental issues (Nugroho & Fadhilah,
2023). To remain relevant and
competitive, textile companies must adopt data-driven marketing strategies (Majumdar et al., 2021); (Abbate et al., 2024). PT. Labda Anugerah Tekstil, a key player in the textile
industry, continuously strives to leverage the vast data generated from customer
interactions and sales transactions to understand the ever-changing market
dynamics.
Extensive data analysis has
become crucial in identifying patterns and trends in purchasing behavior that
are not immediately apparent (Ramkumar et al., 2023). One way to achieve this is by using data mining techniques
to analyze customers' transaction data and discover valuable patterns and
insights (Soepriyono & Triayudi,
2023). Data mining can help
textile companies understand the behavior and preferences of their customers,
identify market segments and niches, and design effective promotional campaigns
and pricing policies (Shah et al., 2021).
One of the most popular data
mining techniques for analyzing transaction data is association rule mining
(ARM) (Shaukat et al., 2015), which aims to find rules that describe the relationships
between items in a transaction database (Safitri, 2022). For example, an association rule can state that jeans
customers are likely to buy T-shirts, too. Such rules can help textile
companies recommend products to customers, cross-sell and up-sell products, and
increase customer loyalty and retention (Arcos & Hernandez,
2019).
However, traditional ARM
methods, such as the Apriori algorithm, could be more efficient and practical
for large-scale transaction databases because they generate many candidate item
sets and require multiple scans (Gu et al., 2011). To overcome this problem, a more efficient and scalable
algorithm, FP-Growth, was proposed by (Jiang and Meng, 2017) (Yin et al., 2018). The FP-Growth algorithm uses a compressed data structure,
called a frequent pattern tree (FP-tree), to store the frequent itemsets and
their support counts and mines the association rules from the FP-tree without
generating candidate itemsets (Ahmed & Nath, 2019); (Pan et al., 2018).
In this study, we apply the
FP-Growth algorithm and ARM methods to analyze the transaction data of Labda
Anugerah Tekstil, a textile company in Indonesia that produces and sells
various types of fabrics and garments. Our main objectives are: �1) To find the frequent itemsets and
association rules from the transaction data of Labda Anugerah Tekstil. 2) To
evaluate the quality and usefulness of the association rules using various
measures, such as support, confidence, lift, and conviction. 3) To provide
recommendations and suggestions for optimizing the marketing strategy of Labda
Anugerah Tekstil based on the association rules. The rest of the paper is
organized as follows. Section 2 reviews the related literature on ARM and FP
growth. Section 3 describes the data and methodology used in this study. In
section 4, we present and discuss the results of the analysis. In section 5, we
conclude the pap�� er and suggest some
directions for future research.
METHOD
This study employs quantitative research methods to
analyze transaction data from PT. Labda Anugerah Tekstil using data mining
techniques. The methodology is structured as follows:
Data Collection
The
dataset used in this study consists of transaction records from PT. Labda
Anugerah Tekstil spans a specified period. The dataset used in this study
comprises fabric and clothes sales records spanning from January 1, 2022, to
December 31, 2023. The data, totaling 7,143 rows, includes detailed transaction
entries with fields for Date, Customer Name, and quantities of fabrics such as
Cotton, Linen, Rami, Rayon, Silk, Tencel, and Viscose. This comprehensive
dataset provides an overview of buying patterns and customer preferences within
the company's operations.
Data Preparation
The
preparation of the dataset involves several crucial steps to ensure the data is
suitable for mining:
1. Data Cleaning: Handling missing
values, removing duplicate entries, and ensuring the consistency of data
formats across the dataset.
2. Data Transformation: Converting the
relevant numerical data into a binominal format where fabric types are
represented as binary attributes. This transformation is crucial for the
subsequent application of the FP-Growth algorithm.
Data Mining Techniques
FP-Growth
Algorithm
The FP-Growth algorithm will efficiently discover
frequent itemsets in the dataset. This algorithm is chosen for its efficiency
in handling large datasets without candidate generation, significantly reducing
the computational overhead compared to traditional apriori-like approaches.
Association Rule Mining
After
identifying frequent item sets, association rules will be generated using a
minimum confidence threshold. The rules will identify which fabric types are
frequently purchased together. Parameters such as support, confidence, and lift
will be calculated for each rule to assess its strength and relevance.
Analysis
The
analysis will focus on interpreting the association rules to understand the
co-purchasing patterns among fabric types. The results will draw insights into
consumer behavior and preferences, identifying potential cross-selling
opportunities and effective promotion combinations.
Validation
To ensure
the findings' reliability, the generated rules will be validated against known
marketing and sales strategies PT employs. Labda Anugerah Tekstil. The impact
of these rules on sales performance will be analyzed to measure the
effectiveness of data-driven decision-making in the textile industry.
Tools
The study will utilize RapidMiner for data
processing and analysis due to its robust data mining capabilities and
user-friendly interface for handling complex datasets and performing advanced
analytical processes. Below is
the flowchart for this research:
Figure 1. Research Flowchart
Our analysis's initial stage begins with providing raw
transaction data from PT. Labda Anugerah Tekstil. This dataset includes
comprehensive details of each transaction, encompassing attributes such as
Date, Customer Name, and quantities of fabric types like Cotton, Linen, Rayon,
Silk, Tencel, and Viscose. Here, I will display the raw data table to provide a
snapshot of the information as it was initially recorded. This table will
include several rows of data, each representing a unique transaction, filled with
all original details and including any inconsistencies or anomalies present in
the dataset.
Table
1. Fabric Sales 2022-2023 Labda
Anugerah Textile
|
No |
Customer |
Fabric |
Date |
Rayon |
Cotton |
Linen |
Viscose |
Silk |
Tencel |
Rami |
|
1 |
TIO |
Rayon |
Jan-22 |
1,25 |
- |
- |
- |
- |
- |
- |
|
2 |
TIO |
Cotton |
Jan-22 |
- |
12,00 |
- |
- |
- |
- |
- |
|
3 |
TIO |
Rayon |
Jan-22 |
32,00 |
- |
- |
- |
- |
- |
- |
|
4 |
TIO |
Cotton |
Jan-22 |
- |
106,00 |
- |
- |
- |
- |
- |
|
5 |
SYA |
Silk |
Jan-22 |
- |
- |
- |
- |
52,82 |
- |
- |
|
6 |
SYA |
Rayon |
Jan-22 |
160,00 |
- |
- |
- |
- |
- |
- |
|
7 |
SYA |
Rayon |
Jan-22 |
120,00 |
- |
- |
- |
- |
- |
- |
|
8 |
SYA |
Rayon |
Jan-22 |
160,00 |
- |
- |
- |
- |
- |
- |
|
9 |
SYA |
Rayon |
Jan-22 |
123,00 |
- |
- |
- |
- |
- |
- |
|
10 |
SYA |
Linen |
Jan-22 |
- |
- |
2,00 |
- |
- |
- |
- |
|
11 |
SYA |
Linen |
Jan-22 |
- |
- |
2,00 |
- |
- |
- |
- |
|
|
�� |
�.. |
|
|
|
|
|
|
|
|
|
7143 |
SIM |
Viscose |
Dec-23 |
- |
- |
- |
19,60 |
- |
- |
- |
The raw data often contains issues that could skew the
analysis, such as missing values, duplicate records, and incorrect data
entries. To address these problems, we apply a series of data-cleaning
procedures:
1.
Handling Missing Values: We
identify and address missing entries in the dataset. Depending on the nature of
the missing data, we either fill these gaps with estimated values (using
methods such as the mean or median of the column) or remove rows entirely if
the missing data comprises critical information that cannot be reliably
estimated.
2.
Removing Duplicates: We
eliminate duplicate entries to ensure each transaction is unique. This is
crucial to prevent bias from the same transaction being recorded multiple
times.
3.
Correcting Data Anomalies: Any
anomalies or outliers that do not make sense within the context of the data
(such as the unrealistic confidence level mentioned earlier) are corrected or
removed after a thorough investigation to determine their cause.
Following the data cleaning steps, I will display the
cleaned data table. This table will be free from duplicates, filled with
missing values, and corrected anomalies. It will be ready for further analysis.
This version of the dataset is what we use to conduct our association rule
mining.
Table
2. Association Rule Mining Dataset
|
No. |
Customer Name |
Cotton |
Linen |
Rami |
Rayon |
Silk |
Tencel |
Viscose |
|
1 |
ATI |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
|
2 |
SYA |
0 |
1 |
0 |
1 |
1 |
0 |
0 |
|
3 |
TIO |
1 |
0 |
0 |
1 |
0 |
0 |
0 |
|
4 |
AJI |
0 |
0 |
0 |
1 |
0 |
0 |
0 |
|
5 |
ATI |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
�. |
�.. |
�. |
|
|
|
|
|
|
649 |
WYA |
1 |
0 |
0 |
1 |
0 |
0 |
0 |
After the initial data cleaning phase, we transformed
the dataset to align it for practical mining of association rules. This
transformation involved two critical steps: data pivoting and data
binarization.
Data Pivoting: To structure the data more
effectively for analysis, we performed a pivoting operation based on the
transaction date. This process reorganized the dataset so that each row
represents a customer's daily transactions. The columns of this pivoted table
correspond to various types of fabrics, such as Cotton, Linen, Rayon, Silk,
Tencel, and Viscose. The resulting table aggregates the data such that each
entry indicates all the fabric types purchased by a customer on a specific
date.
Data Binarization: Following the
pivoting of data, the next step was to address the issue of missing
values�instances where no purchase quantity was recorded. In this context,
missing values were replaced with 0, indicating that the customer did not
purchase the fabric on that date. Conversely, any positive quantity indicating
a purchase was replaced with 1. This binarization transforms the dataset into a
binary format, where 1 signifies a fabric's presence (purchase), and 0
indicates its absence (no purchase). This step is crucial for the subsequent
application of data mining algorithms as it simplifies the dataset, making it
amenable to the algorithms' requirements.
Implementation of Data Mining Algorithms: With the
data now properly formatted�grouped by customer and date and binarized to
indicate the presence or absence of fabric types�we are poised to apply the
FP-Growth algorithm. The FP-Growth algorithm will allow us to efficiently
discover frequent itemsets within the dataset, which are groups of items
(fabrics, in this case) that occur together frequently in transactions.
Following identifying these frequent itemsets, we will employ Association Rule
Mining to explore and identify strict rules where certain fabrics in a
transaction imply the presence of others. These rules are evaluated based on
metrics such as support, confidence, and lift, which provide insights into the
strength and reliability of the associations.
The analysis of association rules within the transaction data of PT.
Labda Anugerah Tekstil has yielded significant insights into the co-purchasing
patterns of different fabric types. The study identified strong association
rules among fabrics such as Cotton, Linen, Rayon, and Viscose.
Table 3. The Transaction Data
|
No |
Premise
Conviction |
Premise Items |
Conclusion |
Conclusion Items |
Confidence |
||||||
|
Gain |
Laplace Lift |
Ps |
Total Support |
||||||||
|
1 |
Cotton,
Linen |
2 |
Rayon |
1 |
0,500 |
1,162 |
-0,227 |
0,934 |
1,193 |
0,012 |
0,012 |
|
2 |
Cotton,
Silk |
2 |
Linen |
1 |
0,500 |
1,495 |
-0,180 |
0,946 |
1,979 |
0,030 |
0,060 |
|
3 |
Rayon,
Linen |
2 |
Cotton,
Viscose |
2 |
0,500 |
1,716 |
-0,143 |
0,956 |
3,527 |
0,034 |
0,048 |
|
4 |
Cotton,
Silk |
2 |
Viscose |
1 |
0,513 |
1,562 |
-0,179 |
0,948 |
2,147 |
0,033 |
0,062 |
|
5 |
Rayon,
Viscose |
2 |
Cotton,
Linen |
2 |
0,517 |
1,757 |
-0,137 |
0,959 |
3,422 |
0,034 |
0,048 |
|
6 |
Rayon,
Viscose |
2 |
Cotton,
Silk |
2 |
0,517 |
1,820 |
-0,137 |
0,959 |
4,299 |
0,037 |
0,048 |
|
7 |
Cotton,
Viscose |
2 |
Rayon |
1 |
0,522 |
1,215 |
-0,210 |
0,941 |
1,245 |
0,015 |
0,074 |
|
8 |
Cotton, Silk |
2 |
Rayon |
1 |
0,538 |
1,259 |
-0,176 |
0,950 |
1,285 |
0,014 |
0,065 |
|
9 |
Rayon, Linen |
2 |
Viscose |
1 |
0,548 |
1,685 |
-0,139 |
0,961 |
2,296 |
0,030 |
0,052 |
|
10 |
Linen, Viscose |
2 |
Cotton, Rayon |
2 |
0,554 |
1,809 |
-0,125 |
0,965 |
2,874 |
0,031 |
0,048 |
|
11 |
Rayon, Silk |
2 |
Linen |
1 |
0,566 |
1,722 |
-0,117 |
0,967 |
2,240 |
0,026 |
0,046 |
|
12 |
Rayon, Viscose |
2 |
Linen |
1 |
0,567 |
1,725 |
-0,133 |
0,963 |
2,242 |
0,029 |
0,052 |
|
13 |
Rayon, Viscose |
2 |
Silk |
1 |
0,583 |
1,938 |
-0,131 |
0,965 |
3,029 |
0,036 |
0,054 |
|
14 |
Rayon, Silk |
2 |
Cotton, Viscose |
2 |
0,585 |
2,068 |
-0,116 |
0,969 |
4,126 |
0,036 |
0,048 |
|
15 |
Viscose |
1 |
Cotton |
1 |
0,594 |
1,054 |
-0,336 |
0,922 |
1,038 |
0,005 |
0,142 |
|
16 |
Linen |
1 |
Cotton |
1 |
0,598 |
1,064 |
-0,354 |
0,919 |
1,045 |
0,007 |
0,151 |
|
17 |
Linen Slik |
2 |
Rayon |
1 |
0,600 |
1,452 |
-0,108 |
0,971 |
1,432 |
0,014 |
0,046 |
|
18 |
Linen, Viscose |
2 |
Rayon |
1 |
0,607 |
1,479 |
-0,120 |
0,969 |
1,449 |
0,016 |
0,120 |
|
19 |
Silk |
1 |
Cotton |
1 |
624,000 |
1,139 |
-0,265 |
0,939 |
1,092 |
0,010 |
0,120 |
|
20 |
Cotton, Rayon, Linen |
3 |
Viscose |
1 |
0,633 |
2,072 |
-0,103 |
0,974 |
2,649 |
0,030 |
0,048 |
|
21 |
Cotton, Rayon, Viscose |
3 |
Linen |
1 |
0,646 |
2,110 |
-0,100 |
0,976 |
2,556 |
0,029 |
0,048 |
|
22 |
Cotton, Rayon, Viscose |
3 |
Slik |
1 |
0,646 |
2,280 |
-0,100 |
0,976 |
3,353 |
0,034 |
0,048 |
|
23 |
Viscose, Silk |
2 |
Cotton, Rayon |
2 |
0,660 |
2,372 |
-0,097 |
0,977 |
3,425 |
0,034 |
0,048 |
|
24 |
Rayon, Silk |
2 |
Viscose |
1 |
0,660 |
2,241 |
-0,109 |
0,974 |
2,765 |
0,034 |
0,054 |
|
25 |
Cotton, Linen, Viscose |
3 |
Rayon |
1 |
0,689 |
1,867 |
-0,091 |
0,980 |
1,644 |
0,019 |
0,048 |
|
26 |
Cotton, Rayon, Silk |
3 |
Viscose |
1 |
0,738 |
2,906 |
-0,082 |
0,984 |
3,090 |
0,032 |
0,048 |
|
27 |
Viscose, Silk |
2 |
Rayon |
1 |
0,745 |
2,275 |
-0,091 |
0,983 |
1,777 |
0,024 |
0,054 |
|
28 |
Cotton, Viscose, Silk |
3 |
Rayon |
1 |
775,000 |
2,582 |
-0,076 |
0,987 |
1,849 |
0,022 |
0,048 |
|
29 |
Linen, Silk |
2 |
Cotton |
1 |
0,780 |
1,947 |
-0,094 |
0,984 |
1,364 |
0,016 |
0,060 |
|
30 |
Rayon, Linen |
2 |
Cotton |
1 |
0,790 |
2,043 |
-0,116 |
-0,116 |
0,982 |
1,383 |
0,021 |
|
31 |
Rayon, Silk |
2 |
Cotton |
1 |
0,792 |
2,064 |
-0,099 |
0,984 |
1,386 |
0,018 |
0,065 |
|
32 |
Rayon, Viscose |
2 |
Cotton |
1 |
0,800 |
2,142 |
-0,111 |
0,983 |
1,399 |
0,021 |
0,074 |
|
33 |
Linen, Viscose |
2 |
Cotton |
1 |
0,804 |
2,181 |
-0,103 |
0,984 |
1,406 |
0,020 |
0,069 |
|
34 |
Viscose, Silk |
2 |
Cotton |
1 |
0,851 |
2,876 |
-0,083 |
0,990 |
1,489 |
0,020 |
0,062 |
|
35 |
Rayon, Viscose, Silk |
3 |
Cotton |
1 |
0,886 |
3,748 |
-0,060 |
0,994 |
1,549 |
0,017 |
0,048 |
|
36 |
Rayon, Linen, Viscose |
3 |
Cotton |
1 |
0,912 |
4,855 |
-0,057 |
0,996 |
1,595 |
0,018 |
0,048 |
Key
Findings:
High Confidence and Lift Values: Several rules demonstrated high confidence
and lift values, indicating solid relationships. For example, the rule
involving Cotton, Linen, and Rayon concluded with Viscose (Confidence: 0.689,
Lift: 1.867) suggests a strong likelihood that customers purchasing the first
three fabrics are also likely to purchase Viscose.
Diverse Fabric Combinations: The study highlighted the frequent
combination of traditional and modern fabrics, such as the pairing of Cotton
and Silk with modern synthetic fibers like Viscose and Rayon. This suggests a
blending of traditional and contemporary fashion trends among the customers.
Negative Gain Values: Several rules exhibited negative gain, indicating
that the occurrence of the conclusion is less than expected under independence,
such as the rule (Cotton, Silk → Linen), which showed a gain of -0.180.
This could suggest a conditional dependency among these items, where purchasing
one may discourage purchasing another in the absence of a third item.
We will first present several graphs before diving into the detailed
discussion of our findings from the association rule mining performed on PT
Labda Anugerah Tekstil's transaction data. These visualizations are designed to
illustrate the relationships and patterns identified through our analysis,
providing a clear visual context for the subsequent detailed discussion.
Figure 2. Cotton Graph
Figure 3. Linen Graph
Figure 4. Rayon Graph
Figure 5. Viscose Graph
�
Figure 6. Silk Graph
Each graph represents a network diagram where nodes correspond to fabric
types such as Cotton, Linen, Rayon, Silk, and Viscose. Edges between these
nodes represent the association rules derived from the data, with the rules'
strength and confidence indicated on the connecting lines. Specific metrics
such as support and confidence values are displayed alongside each connection.
These metrics quantify the strength and reliability of each association rule,
aiding in the visual interpretation of how frequently and strongly different
fabrics are purchased together. The layout of these diagrams helps identify
clusters of fabrics that frequently appear together in transactions. This
clustering provides initial insights into potential customer purchasing
patterns and preferences, which are explored in greater depth in the discussion.
The results of the association rule mining on PT will be discussed.
Labda Anugerah Tekstil's transaction data brings several strategic insights
that could significantly affect the company's marketing strategy. The analysis
revealed strong associations between specific groups of fabrics, which suggests
the potential for targeted promotional activities or bundled offers to boost
sales volumes effectively. For example, promoting Viscose alongside Cotton,
Linen, and Rayon could capitalize on their strong association, encouraging
customers to purchase these fabrics together.
Regarding inventory management, the findings provide valuable insights
that can aid in optimizing stock levels by ensuring that fabric types
frequently purchased together are well stocked and placed adjacently PT. Labda
Anugerah Tekstil can facilitate cross-selling, which may lead to increased
sales. This strategic placement could also enhance the shopping experience,
making it easier for customers to find and purchase complementary fabrics.
Additionally, the identified patterns from the data can assist in
segmenting customers based on their purchasing preferences. This segmentation
can be leveraged for personalized marketing, where promotions and
communications are tailored to meet different customer segments' specific needs
and preferences. Such targeted marketing efforts could lead to higher
conversion rates and customer loyalty.
CONCLUSION
The association rules are derived from PT. Labda Anugerah Tekstil's
sales data provide valuable insights into its customers' purchasing habits. The
study not only aids in understanding current market dynamics but also offers
actionable strategies for enhancing marketing efforts. Leveraging advanced data
mining techniques will be crucial for sustaining competitive advantage in the
evolving textile market. The
implications of the results of this study can be used to design marketing
campaigns that are more targeted and efficient, as well as help companies in
managing inventory better. By understanding customer buying patterns, companies
can identify popular products and areas that need innovation, so as to help new
product development. In addition, purchase data provides insights that can be
used to set more competitive prices. With the rules of association, companies
can also identify different market segments and adjust marketing strategies
according to the characteristics of each segment, increasing the relevance and
effectiveness of the overall campaign.
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