Product bundling is a common marketing approach used by firms to get customers to buy more than they intended. It usually includes combining many similar products or services and selling them all at a discounted price.
This strategy can be appealing to customers who value bundle discounts, but it also makes price comparison more difficult for customers. Value meals at restaurants, beach kits, and shampoo and conditioner sets are all examples of product bundles.
Types of Product Bundling
- Pure Bundling- is a sort of bundling in which the individual components that make up the bundle can only be purchased as a whole — they can't be bought separately. The cable company, for example, allows you to select different bundles of services and channels, but not the individual channels that make up those bundles. Pure bundling is sometimes preferred since it is considered as a strategy to boost sales – to obtain the channel you want, you must also pay for a slew of other channels you don't care about. Pure bundling can be scrutinized and possibly susceptible to litigation because it restricts the alternatives accessible to consumers.
- Mixed Bundling- a method of bundling in which the individual components that make up the bundle can be purchased separately. Mixed bundling is seen in movie theatre snacks and fast food combos, where you can buy each item separately or as part of a package for a single price.
How to Implement this strategy?
- Consider the needs of your customers: To know what to include in your promotions, you must first identify your clients' demands.
- Know what the competition is offering: Another important consideration is to understand exactly what the competitor is offering to generate good suggestions for what to include in your own offerings.
- Personalize the products for each type of client: It's critical to provide different types of packs for different types of profiles. As a result, you'll be able to meet the needs of a wide range of people.
- Take advantage of the situation and innovate: This is an excellent opportunity to be creative and acquire a competitive advantage.
- Use the freemium model: This is when you give a product away for free as an incentive for the customer to add additional for a defined price. This is an excellent technique to attract customers.
- Users have a new method to save money with these types of promotions.
- Users will get loyal to your brand if they believe they are saving money as a result of your promos.
- This type of offer results in more stock rotation due to the rise in sales.