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Bundling Vs. Consolidation

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Fast food value meals are one form of product bundling.

Consolidation and bundling are usually different. Bundling refers to the way products are marketed, while consolidation pertains to the competition present in a certain market. There are situations, however, in which the two can be used together.

  1. Product Bundling

    • Product bundling refers to the marketing of several different products within a single purchase opportunity. The combination of items usually offers the consumer more value compared with buying each item separately. It also gives the company a chance to build packages which can be easily produced and distributed, thus maximizing their efficiency.

    Market Consolidation

    • Market consolidation suggests that a market for a product has a shrinking set of competitors. As competitors disappear, only several providers remain. Reasons may include buyouts, control over resources or more capital for advertising, research and development.

    Student Loans

    • Sometimes the terms bundling and consolidation will become synonymous. One example is student loans. If you owe loans upon finishing a program, you might opt to consolidate those loans into a single "bundle." Usually there are some criteria for consolidation, such as having multiple loans and having a minimum balanced owed.

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  • Photo Credit fast food image by sanyal from Fotolia.com

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