About the report
The upcoming report aims to create insight into customers’ combined shopping carts, understand customer preferences in the shopping cart, and attempt to improve strategic decisions, advertising, and branding. It also introduces the concept of bundling and identifies its potential.
Bundling refers to the combined sale of multiple items in a single package. This strategy is used to encourage customers to buy more items. More about this strategy follows.
You can read the full report for more details on each of the items mentioned, the research methodology, etc.
Introducing bundling
Bundling is a strategic tool for companies, known as “combining multiple products into one package.” When two or more separate products are offered in a single package (usually at a lower price), the so-called bundling strategy is used.
Bundling is one of the effective strategies in improving the profits of companies. A package created from several products has a lower operating cost than offering the products individually, and in this way companies can earn more profit. This makes the products more attractive to the customer and increases the desire to buy. Bundling also makes similar products from competitors compete with the integrated package and not just with one of the products in the package.
Bundling can reduce the disruptive effects of introducing a new product to the market by placing the new product alongside a popular product that is perceived as valuable by the customer, and the combined package of these two products makes the price and costs of the new product more appropriate.
Successful examples of bundling in the world
Bundling strategy can be implemented between products of two or more independent brands. In this method, the products are placed in a single package and introduced to the market. There are numerous use cases for bundling multiple different brands.
Collaboration between Samsung and AKG: Samsung’s report shows that the collaboration with AKG and the placement of the company’s hands-free headphones alongside its new generation phones has been successful and has led to an increase in sales compared to previous generation phones.
Amazon bundling: In retail businesses (online or offline), bundling strategies can bring many benefits to collections. There are many successful examples of stores that offer their products to customers in the form of multi-product packages at a discount.
Amazon’s packaging strategy is a smart way to increase sales and reduce operating costs on its low-priced products.
Reviewing Tehrani Shopping Carts: Single and Multiple Orders
Among supermarket products in Tehran, cigarettes were the most frequently purchased individually. This means that the shopping cart was a single item. In 41% of cigarette purchases, this item was purchased alone and in another 59%, it was purchased together with another product.
The chart below shows the 10 products with the highest and lowest individual sales relative to total sales.
Best-selling supermarket combination products
The most attractive mixed baskets of supermarket goods
Some supermarket products are often purchased together with another product.
Milk (84% of the time) with things like yogurt, cheese, eggs, cream, and bread
Cheese (88% of the time) with: milk, yogurt, cream, butter, and eggs
Yogurt (89% of the time) with: milk, cheese, soda, eggs, and chips
Biscuits (86% of the time) with: cake, cheese, breakfast chocolate, ice cream and yogurt
Ice cream (81% of the time) with: milk, biscuits, yoghurt, cake and chips
By examining the best-selling combinations, it is clear that the probability of purchasing the combination is higher than buying each item individually. For example, the probability of buying chips and flavored yogurt together is 5 times higher than the probability of buying each individually.
Conclusion and questioning
With the help of available data and analytics, it is possible to achieve a variety of combinations and analyze them in shopping carts. For example, supermarket product manufacturers can understand which brands of their brand are purchased the most, and physical and online stores can increase the likelihood of sales by arranging goods more appropriately.
By analyzing shopping carts, we can answer the following questions:
- What products and brands are most often purchased together at the same time?
- What products does the band increase the likelihood of buying?
- Is bundling a strategy useful for your products?
- What are the popular bands based on consumer behavior in different geographic regions?
- How can we increase the likelihood of purchase by properly arranging products on the shelves of physical and online stores?
- What are the most frequently purchased items in consumers’ shopping carts, in terms of quantity and value?
- What is the market size in rials and weight of each product and brand in Iran?
- What is the market size in rials and weight of each product and brand in different areas of Tehran?
- What are the popular brands based on consumer behavior in different geographical regions?
- What are supermarket orders like by day, hour, weekend, occasion, holiday, etc.?