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Product Bundling

         Morakhia Sagar
         MBA in Technology Management
         Sagar.morkhia.mtm12@cept.ac.in
         CEPT University, Ahmedabad
Product bundling
Product 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               Joint Bundling
Bundling   Pure       Leader Bundling
           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
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              Consumer Survey




             Product Study and search                                Doing Survey by using
              regarding full features                                    questionnaire




                                                                                 Ask customers, about the
Limitations of Product                                                            awareness, satisfaction
      Bundling                                                                   and usage of the product
Work Plan Phase II



                                Consult a
Combine the                    R&D person
                  Find the
 data from                        in the    Conclusion
                 customer      company of
 previous
                satisfaction    any DTH
  process
                                 service
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

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Product bundling

  • 1. Product Bundling Morakhia Sagar MBA in Technology Management Sagar.morkhia.mtm12@cept.ac.in CEPT University, Ahmedabad
  • 2. Product bundling Product 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.
  • 3. Types Of Product Bundling Product Joint Bundling Bundling Pure Leader Bundling Bundling Mixed leader Bundling Mixed Bundling
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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)
  • 8. 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)
  • 9. • “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)
  • 10. 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 )
  • 11. 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
  • 12. Share of DTH in Indian market (Research paper on ‘Industry Analysis-DTH Industry’, The Analyst, March-09 )
  • 15. Example Survey • http://www.surveymonkey.com/s.aspx?sm=wvxDKPuTtrb_2fDQ02KGQQ6A_3d_3d
  • 16. Work Plan and Schedule
  • 17. Work Plan Phase I Product Bundling Product Selection Consumer Survey Product Study and search Doing Survey by using regarding full features questionnaire Ask customers, about the Limitations of Product awareness, satisfaction Bundling and usage of the product
  • 18. Work Plan Phase II Consult a Combine the R&D person Find the data from in the Conclusion customer company of previous satisfaction any DTH process service
  • 20. 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