Posted in Marketing and Strategy Terms, Total Reads: 169
Definition: Economy Pack
Economy pack is a product offering where larger quantity of goods are sold together, so that it becomes feasible to provide the same at a reduced cost, thus making it economical for the consumer to purchase.
A common method used is the selling of large quantities of products together, so that the price can be reduced, such as large packets of detergents.
Another method of doing this is bundling, wherein different products are combined together and sold together at a reduced cost. This type of pack is seen commonly in retail stores and is often also available on e commerce websites.
While producing economy packs, the concepts of economies of scale and economies of scope come into play, which makes it possible to provide the goods at reduced rates.
Economy packs may be of different types, such as price pack, or banded packs. If it features promotions like ‘two for the price of one’, it is known as a price pack. Such packs are preferred by households with more people, since it makes available a large quantity of the product for a lesser price. In a banded pack, two or more related products may be banded together as a package and sold at a relatively lesser rate, so as to appeal to the consumer.
For example, suppose a notebook alone has an actual price of Rs. 40, and another pen has its marked price at Rs.30. Now, if the notebook and the pen together are packaged and sold this pack is priced at Rs.60, it is known as an economy pack, since if the customer were to buy these related products separately, he would have to pay Rs.70.