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Product Bundling (Case Study)

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Product Bundling (Case Study)
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The group is presenting on the topic of product development and product bundling are significant factors influencing market demand in telecommunication.

Product development involved modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer wants or market niche.There are two parallel paths involved in the product development process, one involves the idea generation, product design and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new product within the overall strategic process of product life cycle management used to maintain or grow their market share.

Product bundling is a marketing strategy that involves offering several products for sale as one combined product. This strategy is very common in the software business (for example: bundle a word processor, a spreadsheet, and a database into a single office suite), in the cable television industry (for example, basic cable in the United States generally offers many channels at one price), and in the fast food industry in which multiple items are combined into a complete meal. A bundle of products is sometimes referred to as a package deal or a compilation or an anthology.

Product bundling is most suitable for high volume and high margin (i.e., low marginal cost) products. Research by Yannis Bakos and Erik Brynjolfsson found that bundling was particularly effective for digital "information goods" with close to zero marginal cost, and could enable a bundler with an inferior collection of products to drive even superior quality goods out of the market place. As an example of product bundling is that McDonald’s value meal, phone-internet-cable combos, and all-inclusive vacation packages. In the business-to-business environment, contracts often contain solutions-oriented bundles, example

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