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Product Bundling

The document discusses product bundling, which is a marketing strategy that groups complementary products together at a lower combined price than purchasing them individually. The key advantages of product bundling include increasing average order value and sales volume while decreasing inventory waste and saving money on promotion and distribution. The document provides tips for effective bundling such as creating data-driven bundles, offering different package options, informing customers of savings, using time-limited bundles, and promoting bundles across multiple channels. Examples of companies that use bundling are provided.

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193 views11 pages

Product Bundling

The document discusses product bundling, which is a marketing strategy that groups complementary products together at a lower combined price than purchasing them individually. The key advantages of product bundling include increasing average order value and sales volume while decreasing inventory waste and saving money on promotion and distribution. The document provides tips for effective bundling such as creating data-driven bundles, offering different package options, informing customers of savings, using time-limited bundles, and promoting bundles across multiple channels. Examples of companies that use bundling are provided.

Uploaded by

mark david sabella
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Product Bundling

PREPARED BY:
CERDAÑA, MAGEL B.
BSBA MM3
PRODUCT BUNDLING IS A
MARKETING STRATEGY THAT
ENABLES COMPANIES TO GROUP
COMPLEMENTARY PRODUCTS
INTO A SINGLE UNIT AND SET A
What is Product LOWER PRICE THAN IF THEY WERE
Bundling? SOLD INDIVIDUALLY. IT ALLOWS
BRANDS TO INCREASE SALES
VOLUME AND AVERAGE ORDER
VALUE AS WELL AS SAVE MONEY
ON PROMOTION.
• In this video we would discuss:

1. Why do companies bundle products?


2. Advantages of Product Bundling
3. Five product Bundling tips
4. Example of product Bundling
• Why do companies bundle products?

Nowadays, almost every brand offers its clients a package,


a combo, or a mix based on their needs and preferences.
Customers buy these sets because they help them save money
and try new products at low risks since brands usually combine
top-selling products with low-selling items. This technique can
increase your company’s average order value, sales, and
revenue, save money on promoting and distributing individual
products, and enhance customer experience. Let’s discover
these benefits in more detail
Advantages of Product Bundling

Average order value increase. If you own a beauty store, consider


offering your customer a skincare set for $35 to increase their order
value. Choose products that complement each other and work effectively
in combination.
Sales volume increase. Sales volume is the number of products sold
during a particular period, for example, a quarter. Calculating this metric
will help you identify the most effective selling techniques. Some of your
products that don’t sell can lack promotion, so consider bundling them
with your most-selling products.
Inventory waste decrease. Each company has some dead stock in their
warehouses. Such items stagnate on shelves, hindering new arrivals. You can make
room by bundling these items with the most selling products. The only thing you need
to do is to combine them well and reduce inventory waste.
Saving money on promotion and distribution. If you have five best-selling
products, try bundling them with your slowly-moving inventory and sell them at a
reduced price. Saving money on promotion and distribution. Besides, you’ll save
money on packaging since you need only one box to send a set of products.
Five product bundling tips:

• CREATE DATA-DRIVEN BUNDLES. USE YOUR CUSTOMERS’ PURCHASING HISTORY TO


CREATE DATA-DRIVEN SHOPPING BUNDLES. THIS INFORMATION WILL HELP YOU CREATE
PERSONALIZED AND UNIQUE BUNDLES RELEVANT TO EACH CLIENT. CHECK THIS DATA IN
YOUR CRM SYSTEM TO LEARN WHAT YOUR CUSTOMERS NEED, AND WHAT ITEMS THEY
LEFT IN THEIR SHOPPING CART.
• PROVIDE DIFFERENT PACKAGES. LIMITED PACKAGES MAKE THEM THINK THAT
THE ONLY GOAL OF THIS SET IS TO SELL SLOWLY-MOVING PRODUCTS. THERE ARE MORE
CHANCES THAT YOUR CLIENTS WILL FIND SOMETHING TO THEIR LIKING IF THERE ARE
MORE OPTIONS.
• INFORM YOUR CLIENTS ABOUT SAVINGS. SINCE THE CORE OF PRODUCT BUNDLING IS
SAVING MONEY, LET CLIENTS KNOW EXACTLY HOW MUCH MONEY THEY WILL SAVE. YOU
CAN SHOW THIS INFORMATION IN THE CHECKOUT, PRODUCT RECOMMENDATION, ON THE
PRODUCT PAGE, OR NOTIFY THEM VIA AN EMAIL CAMPAIGN.
• CREATE TIME-LIMITED BUNDLES. DON’T FORGET TO GIVE A HIGH DISCOUNT FOR SUCH
BARGAINS. SPECIAL CATEGORIES ON YOUR SITE SHOULD BE DEDICATED TO THE JUICIEST
OFFERS OF THE WEEK, ESPECIALLY IN E-COMMERCE.
• PROMOTE YOUR BUNDLES ACROSS VARIOUS CHANNELS. EMAIL IS ONE OF THE MOST
EFFECTIVE CHANNELS FOR COMMUNICATING WITH YOUR CUSTOMERS. YOU CAN DO THIS
FOR FREE WITH THE HELP OF THE SEND PULSE EMAIL SERVICE. PROMOTE YOUR BUNDLES
ACROSS VARIOUS CHANNELS, SUCH AS TV, RADIO, SOCIAL MEDIA, WEBSITES AND MOBILE
APPS.
Examples of product bundling

Iherb is a famous company selling dietary supplements and beauty and health
products. The brand offers to save $3 if a user buys an item they have purchased
before with the one they’re viewing at the moment. Each product package depends on
a customers’ previous purchases.
Wise Men is an online store selling high-quality men’s clothes. The brand
offers four different packages to every taste and budget.
Thank You!

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