BUNDLING

Bundling is a marketing strategy that enables companies to group  products or
services together into a single combined unit. The single combined unit is set at a
lower price than if they were sold individually. This product or service bundling is
also known as price bundling.

Bundling- Advantages to Customer.

1. Customers get their package or combo or mix based on their needs and
   preferences
2. Customers are able to get these at low costs
3. Customers are able to try new products or services
4. The perceived value of the products/services gets enhanced before the
   customer
5. Customer’s decision making gets simplified

Bundling – Advantages to Seller/Company

1. Average order value will increase
2. Sales volume increases
3. Can get more product/service exposure
4. Will be able to attract new buyers
5. Inventory waste decreases/ Clear excess stock
6. Saves money on marketing and distribution

Types of bundling with examples

1. Pure bundle – Items which can be bought only as part of a bundle and not
   separately or individually.
   Ex: Cable TV operator packages with specific channels.
2. Mix and match bundle– Purchase an item and you have several items to
   choose from to fix your package.
   Ex: Buy a pants @ Rs 1000/- and chose any of the T- shirts.
3. Cross selling bundling– Offering a product and its compliment as part of a
   package.
   Ex: Phone and ear phone.
4. New product bundling– Placing a new product or service along with an
   existing popular product.
   Ex: Branded dish wash bar and newly introduced dish wash liquid.
5. BOGO bundling– Buy one/get another free or at discounted rate.
   Ex: Buy one smart phone @ Rs 15,000/- and get the second one @ 30%
   discount.