Product bundling


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The Presentation is a rough outline about types of bundling and bundling practices of DTH service providers in India

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Product bundling

  1. 1. Product Bundling Morakhia Sagar MBA in Technology Management CEPT University, Ahmedabad
  2. 2. Product bundlingProduct bundling is a marketing strategy that involvesoffering several products for sale as one combinedproduct.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. 3. Types Of Product BundlingProduct Joint BundlingBundling Pure Leader Bundling Bundling Mixed leader Bundling Mixed Bundling
  4. 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. 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. 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. 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. (• 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. 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. 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. 10. Pros and Cons of Product bundlingPros:• 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. 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. 12. Share of DTH in Indian market(Research paper on ‘Industry Analysis-DTH Industry’, The Analyst, March-09 )
  13. 13. Airtel DTH packages
  14. 14. Tata Sky Packages
  15. 15. Example Survey•
  16. 16. Work Plan and Schedule
  17. 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 theLimitations of Product awareness, satisfaction Bundling and usage of the product
  18. 18. Work Plan Phase II Consult aCombine the R&D person Find the data from in the Conclusion customer company of previous satisfaction any DTH process service
  19. 19. Schedule
  20. 20. ReferencesBooks:• Marketing Management – Kotler, Phillip 8th Edition• Services Marketing – Christopher Lovelock, Jochen Wirtz,Jayanta Chatterjee 5th Edition• Markeeting Management – Czinkota, Kotabe 2nd EditionWebsites :• dthtechnology.html• t107.html•