Bundling is the right marketing strategy to increase sales
Basically bundling is a marketing strategy that combines two different products in a promotional package. This promotion is more commonly referred to as a promotional package promotion.
Generally, promotions like this are available on various certain events such as the beginning of the month of Ramadan or Christmas promo. This marketing strategy is able to encourage consumers to buy more products from the same brand. So that it can increase the sale of products that have been promoted.
On this occasion we will discuss the most complete product bundling and also how to use marketing strategies like this.
Understanding bundling is
As we previously mentioned that bundling products are a grouping of two or more products in one SKU. So, customers only have to pay 1 item.
The product will be packaged or packaged in a different way in the form of a gift box or a special wrapper.
This promotional strategy is an opportunity that is able to increase the value value on average. Based on an estimate stated by the MC. Kinsey and reported from CXL, as many as 35% of the entire purchase of the Amazon website came from product bundling recommendations.
The beginning of the presence of a bundling package
The beginning of the bundling package was when the telecommunications world presented a CDMA cellphone in 1995.
In order to attract the attention of the public to use pulses with new networks, namely CDMA networks, vendors and operators also present this CDMA network to package bundling strategies. By using this strategy, the buyer will become more using CDMA phones.
The increase in the purchase of this CDMA cellphone because many consumers benefit, such as applications to open Facebook, Twitter, and various other social media at very cheap prices.
The application of this package strategy was also exemplary by various producers from China by providing a free package for free of these high songs, also carried out by several cellphones from China who also succeeded in more success.
Types of Bundling Products
1. Mixed bundling
Mixed Bundling is one of the most common types of bundling products like this based on products that are often sold together based on data on sales historical sales.
Generally this product will combine several products commonly used by consumers simultaneously. These products can be purchased separately but there are special discounts when you buy them simultaneously.
2. Pure bundling
Another case with mixed bundling, puree bundling is a type of bundling product that can only be bought simultaneously. That means, you can’t buy the product offered separately. But the problem is, Pure Bundling limits the choice for customers to buy goods individually, which can cause a decrease in sales over time.
3. Same bundling products
Same bundling products are the best way to offer discounts when customers order some of the same products at once. There are lots of brands with direct to consumer or DTG labels that sell essential products or personal care successfully use this type of strategy.
This type of bundling is basically similar to a subscription model, where the same product is able to provide incentives to customers who buy larger numbers in the early stages rather than paying to send new orders every time.
4. Excess inventory
Bundling packages are one of the very effective marketing strategies and is the best way to clean old inventory and also not needed to provide space on new products.
A product whose movement can quickly increase inventory storage costs, which can affect profits. If you have products that can be sold faster then you can get more easily package with the same product new, sold more precisely, or have a higher demand.
So, you can spend more supplies to provide space for new supplies that have faster movements.
Advantages of Bundling Products
1. Increase the value value on average
By applying bundling products then you can increase the advantages of selling individual items from time to time. By grouping a product simultaneously, then you can make consumers buy more than one product for one purchase, which will increase the order value on average
2. Reducing orders and also distribution costs
Bundling products will allow you to sell more shows reduce marketing costs such as distribution.
Instead of marketing every new product you can group the most complete products and also include it as a product by packing a different ecosystem simultaneously, then you no longer need to send less individual items and will also save money in shipping costs.
You can display it as a package that can make you more great at marketing costs and also at the same time you can raise your whole product.
3. Reducing waste inventory
Bundling products are one way to clean the stock before it becomes a problem. If you combine old products sold with faster products, then customers will see the bundling product as items that are easier or more likely they will buy it.
This will certainly help reduce the waste of inventory, free the debt space and also reduce the cost of storage in your inventory.
4. Improve customer experience
Customers will be more happy if they can choose products and services according to their wishes or needs. For that giving customers the choice in adding deleting or editing products it is important to make the selection process easier and also more satisfying.
5. Reducing the confusion experienced by the customer
Consumers will like many choices but they don’t like it if these choices are very much. Therefore, Netflix and Amazon also use product recommendations that are in accordance with the preferences of its users.
They will be directed to their choices according to their needs in order to help reduce the level of inequality or sum in choosing products of the many product choices.
Challenges in doing bundling products
In addition to being able to get a profit in implementing a bundling product strategy, it will definitely not escape the challenges or risks that can later appear at any time. Some challenges that might occur when bundling are as follows.
1. mistakenly bundling a product
When you as a businessman stem a product so we will not get a good response to the first experiment.
Generally this happens because the merger of products is wrong or inappropriate so that the interest of consumers will play an important role.
For that it is recommended before doing and the link you do it first you can use various tools or tools to do research and see products that are currently increasing. So, you can increase sales volume and also increase customer buying interest.
2. Running out of one bundling product
Make sure your bundling product every product has enough inventory. If the inventory is indeed limited, then you will lose the opportunity to have the most product marketing.
The best way is when you as a businessman to offer a variety of different bundling products for consumers to be chosen by them this event will reduce the risk of running out of new product stock.
In addition, surely because each team can cooperate with the marketing team and operational activities every team must be able to synergize, without cooperation and also the support of the antartim, the risk can be inaccurate and lead to the stock of new products.
Thus the explanation of us about bundling products. Understanding of bundling products must be fully understood by marketing or business teams.
Why? Because if done appropriately, this marketing strategy can bring very much profits for business people.
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