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Business Goal

Store Segmentation helps to identify the local stores which are most suitable for optimizing product sales. It wanted to locate businesses near the center of their potential consumer population to attract the greatest amount of customers.


  • Assortment relevance is a major challenge.

  • Understanding the patterns of store items and item categories.

  • Retail assortment planning is very hard.

  • Manual categorization is extremely time consuming due to wide variations.

  • Lack of statistical knowledge among retail managers.

  • Lack of real-time grouping.

  • Various types of clustering makes the process extremely complex.

Solution Approach

1. Sparkflows provides various workflows to gather, analyze and process various types of attributes like:

  • Store Location type

  • Geographic Location (region, climate)

  • Store Size

  • Footfall

  • No. of footfalls

  • Product Range

  • Purchase type (impulse, convenience, compulsory)

  • Transactional (metrics, spend)

  • Behaviour (values, interests & hobbies)

2. Sparkflows provides workflows with powerful clustering algorithms which can group by similar features. Clustering is based on stores where we split stores into segments so that product assortments, size allocations, and promotional offers can be localized as needed.

3. Stores similar to each other are bundled together in a segment so that product assortments, size allocations, and promotional offers can be localized as needed; while stores with different characteristics are assigned to different segments.

4. Evaluating sales performance by category leads to a more precise understanding of variations in the level of demand across stores. This way, assortment breadth, and depth can be treated differently for each category.

5. Sparkflows Analytical Workflows perform Geographic analysis and can develop KPIs. The rich reports and analytical apps empower Business Users with critical decisions to optimize range, price, and merchandising that relate to the target audience or offering for that particular segment.

Business Impact

  • By segmenting your market, you can target the right groups with the right products.

  • With segmentation Industry can use a different strategy for each group, tailoring the approach so that customers can avail of better choices.

  • It can give your brand a stronger identity.

  • Segmenting your market can illuminate new areas for innovation that you may have missed otherwise.

  • Create marketing campaigns and use channels that are much more tailored to your audience.

  • Drive international expansion for your brand.

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