Some time ago, I think it was Black Friday, I received a text message from a pharmacy that I always buy from. He had advertised the cosmetics festival. There was no harm. I visited By the way, I also bought a whole lot. He had done a smart thing. He had come and packed the skin care products that are usually used together and sold them in one place. When I did the math, I realized that if I were to buy the three products separately, I would have to pay more. So it would be cheaper for me to buy a package of three products.
Chain stores also use this strategy (selling several products together in one package). They have come to sell bleaching liquid and cleaning spray of the same brand together and for less. Of course, I must add that these are not the only products that may be sold together in a package. Services can also be packaged.
For example, when a travel agency or a hotel comes and offers this package: three nights stay in a hotel plus a round-trip train ticket to Canada, it uses this strategy to categorize services. Some doctors (beauty specialists and hairdressers) also sometimes do these things. But why this strategy? The answer is obvious: more sales and encouraging customers to buy more products at a lower price.
This marketing strategy has a certain and special name: Bundling Strategy or Bundling Marketing. So what exactly is this strategy? Why should a business use it to market its products? What are the advantages and disadvantages? You will read the answers to these questions below.
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What is bundling strategy?
Bundling strategy is one of the marketing strategies just like niche marketing. Every business may use a particular strategy or a combination of marketing and sales strategies at any given time for various reasons. In the word bundling, it means packing, grouping and wrapping. The meaning of this word in marketing is exactly the same as its literal meaning.
In marketing, bundling strategy ie
Bundling is when companies package several of their products or services together as a single combined unit, often for a lower price than they would charge customers to buy each item separately.
The criterion for grouping products or services (Product Bundling) is usually their similarity. But it is also possible that if a business and its marketing and sales team come to the conclusion that several different products are attractive to a certain group of customers, then the criterion of difference is used to categorize products. Another point is about the implementation time of the bundling strategy. This strategy is very good and practical for sales festivals and special occasion sales or end of season auctions.
What products or services the business offers together in the form of a package for sale is one discussion, and the price it puts on this package is another discussion. When a business uses the bundling strategy, it should put a different and more attractive price on the package for the buyer. The bundle price must be lower than the total price of products or services. In fact, the business with bundling gives the customer a choice to buy several products at a lower price.
The main point is that with the bundling strategy, businesses can increase their sales in a certain period of time by offering a lower price and make a profit as a result. So, the goal of the business may be to sell products that are not very popular or that are difficult to sell individually, together with the best-selling products or products in the form of a package. For end of season auctions and ensuring the sale of certain goods or goods and emptying the warehouse, bundling is also useful and a way forward.
Mixed bundling vs. Pure Bundling
There are two types of bundling. Because the macro strategies of businesses, the type of products and policies and their marketing and sales strategies are different. When it comes to bundling strategy and there is no word of its type, it means Mixed Bundling. That is, what has been discussed so far: packaging several products that are usually similar together and offering them at a lower price than their individual prices? In Mixed Bundling, the business gives the customer two choices: single purchase and bundle purchase.
But in Pure Bundling, the business does not give the customer a choice. Two or more products are offered together in the form of a suggested package with a specific price. This means that the customer cannot buy any of the goods in the package separately. Those goods are not sold individually. In this type, there is no question of lower price. Because basically there is no other choice and no other price. For example, when the insurance company decides to sell its types of insurance in the form of specific packages (for example, fire and accident and theft insurance for homes all together).
Mixed bundling is more common and when a business is said to have used a bundling strategy, it means mixed bundling. In this article, the meaning of bundling and bundling strategy is the same type.
Advantages and disadvantages of bundling strategy and pricing
To some extent, the advantages of bundle sales have been identified. This strategy is actually a way to increase sales and order products. The bundling strategy can be used to sell almost any type of product. In the next title (examples of bundling), you will see that there is a package sale in the menu of restaurants.
Customer behavior and choice are very decisive in evaluating the effectiveness of marketing and sales strategies, including retention marketing or even Telegram marketing. Analyzing customer behavior and the reaction to the implementation of each of these strategies makes businesses and marketers more determined in their choice. There must be a reason for choosing any strategy. In a research, it has been proven that customer’s tendency towards Mixed Bundling is more?
These groupings are often successful only if the consumer is given the option of buying the same products separately.
Bundle pricing and buying a package is a kind of discount for the buyer. Of course, this may not always be the case. One of the disadvantages of buying packages for the customer is that there may not actually be a discount and the customer ultimately pays the price of each product.
The bundling strategy for businesses may also have a big disadvantage. When a customer knows that a business has closed sales at certain times of the year and he can actually buy a few products at a lower price, he may wait and delay his purchase. In this case, that business seems to compete with itself. In the meantime, the competitor may have a better offer for the customer and he will make the purchase. However, for businesses, advertising and marketing costs are saved when they advertise for bundles instead of selling individual products.
Examples of bundling (Product Bundling)
1. Microsoft Office Bundle
We are all familiar with this example. Digital goods (software, computer games, etc.) can also be marketed as packages.
2. McDonald’s Bundle
Bundling is one of the popular marketing and sales strategies of big and famous fast foods in the world. McDonald’s always offers various bundles to its customers.
3. BMW Bundle
Yes! Even a business as big as BMW benefits from bundling. He gives his customers the choice of either buying the car without accessories or some technology at one price, and with additional accessories and features in the form of a pack at another price.