product bundling

Product Bundling

Morakhia SagarMBA in Technology ManagementSagar.morkhia.mtm12@cept.ac.inCEPT University, Ahmedabad

Product bundlingProduct bundling is a marketing strategy that involves offering several products  for sale as one combined product.

This strategy is very common in software business.

Example:• Fast food industry in which multiple items are

combined into a complete meal.• Bundle a word processor, a spreadsheet and

a database into a single office suite.

Types Of Product Bundling

Product Bundling Pure

Bundling

Joint Bundling

Leader Bundling

Mixed leader Bundling

Mixed Bundling

Direct To Home (DTH)• DTH is defined as the reception of satellite programmes with a

personal dish in an individual home.

• An individual Set Top Box (STB) empowering you to pick &

choose you bundles of choice and pay for what you watch.

Digital Cable TV DTH service

Membership Price Fix Flexible

HD Channels No Yes

Localised Content Yes No

Mode Of Payment Fix Flexible

Transmission Same Problem In Rainy Season

Channels Variety No Yes, Variety Of Pack Available

Why DTH?

• Range of Interactive services• Freedom to choose from a bouquet of channels

& pay only for selected• Packages that suits the regional taste• Enhanced services such as HD• Better TV viewing experience for consumers• Better picture & sound clarity

Features of DTH(Direct to Home) Television

• Different Packages• Movie on Demand• Accessed through Web or SMS• Quality of Services• Smart learning• Matrimonial or Job services• 24×7 customer support

Literature Review

• Product Bundling• Product bundling is combining two or more products or

services together, creating differentiation, greater value and therefore enhancing the offering to the customer.

(articles.mplans.com)• Bundling is extremely effective - so much so, in fact,

more companies would experiment(Paper : Better by the Bundle?, Harvard Business School

Weekly - October 1,2012)

Different views over Product Bundling

• “Since customers may not have planned to buy all of the components, the price on the product bundle must be substantial enough to induce them to buy the bundle”

-Marketing Management

(Kotler, Phillip 8th Edition-pg. 514)• “Bundling usually makes price comparisons between the bundles

and its components impossible and thereby sidesteps potential unfairness perceptions and reductions in reference prices”

-Service Marketing, A South Asian Perspective (Christopher lovelock, Jochen Wirtz, Jayanta

Chatterjee 5th Edition - pg.162)

• “Product Bundling is a type of discounting, where a bundled product is sold to customers at a reduced price, as compared to the price of separate items”

-Marketing Management

(Czinkota, Kotabe 2nd Edition - pg.328)

Pros and Cons of Product bundling

Pros:• Feasible to load products with a large number of features• Each feature individually might be perceived as useful.

Cons:• Product may become overwhelming• Difficult to use with increase in features.

( Journal of Marketing Research, American Marketing Association; pg. no: 431 Vol. 42 ,November 2005 )

Commonly found bundle of services

Common Sercives Bundled

•Different Packages •Movie on Demand•Accessed through Web or SMS•Quality of Services•Smart learning•Matrimonial or Job services•24×7 customer support

Share of DTH in Indian market

(Research paper on ‘Industry Analysis-DTH Industry’, The Analyst, March-09 )

Airtel DTH packages

Tata Sky Packages

Example Survey• http://www.surveymonkey.com/s.aspx?sm=wvxDKPuTtrb_2fDQ02KGQQ6A_3d_3d

Work Plan and Schedule

Work Plan Phase I

Product Bundling

Product Selection

Product Study and search regarding full

features

Limitations of Product Bundling

Consumer Survey

Doing Survey by using questionnaire

Ask customers, about the awareness,

satisfaction and usage of the product

Work Plan Phase II

Combine the data from previous process

Find the customer

satisfaction

Consult a R&D person in the company of

any DTH service

Conclusion

Schedule

References

Books:• Marketing Management – Kotler, Phillip 8th Edition• Services Marketing – Christopher Lovelock, Jochen Wirtz,Jayanta

Chatterjee 5th Edition• Markeeting Management – Czinkota, Kotabe 2nd Edition

Websites :•

http://www.preservearticles.com/2012032027846/what-is-dthtechnology.html

• http://teck.in/news/what-is-dth-why-is-dth-different-from-cable-tv-t107.html

• https://secure.gantto.com/login/gantto.html#demo