Flux AI: Types of consumer products

Q1. Types of Consumer Products a. Convenience Products • Products bought frequently, with minimal effort, and low involvement. Examples: • Staples: Everyday items like milk, bread, rice. • Impulse: Products bought without prior planning, e.g., chocolates, chewing gum. • Emergency: Products needed urgently, e.g., umbrellas during rain, batteries during power outages. b. Shopping Products • Products consumers compare based on quality, price, and style. Examples: • Homogeneous: Similar products where price comparison is crucial, e.g., TVs, washing machines. • Heterogeneous: Unique products differing in features, e.g., furniture, clothing. c. Specialty Products • Products with unique characteristics or brand loyalty. Examples: Luxury cars (Tesla), designer bags (Gucci). d. Unsought Products • Products not actively sought until needed. Examples: Life insurance, funeral services. Q2. Types of Business Products a. Materials and Parts • Used in the production process. i. Raw Materials: • Farm Products: Natural items from farms, e.g., wheat, cotton. • Natural Products: Extracted resources, e.g., crude oil, timber. ii. Manufactured Products: • Materials: Fabricated inputs, e.g., steel, plastics. • Components: Finished parts used in products, e.g., car engines. b. Capital Items • Products used in production for long periods. Examples: • Installations: Large investments like factories, heavy machinery. • Equipment: Tools like computers, forklifts. c. Supplies or Business Services • Support operations without becoming part of the end product. i. Maintenance Supplies: • Cleaning materials, lubricants. ii. Business Services: • Maintenance services (repair), advisory services (legal, IT consulting). Q3. Types of Products Based on Longevity a. Durable Goods • Long-lasting products requiring infrequent purchases. Examples: Furniture, cars, home appliances. b. Non-durable Goods • Products consumed quickly, requiring regular replenishment. Examples: Food, cosmetics, disposable items. c. Services • Intangible offerings consumed as delivered. Examples: Haircuts, education, transportation. Q4. Product Mix Terms a. Product Mix Breadth • Number of product lines offered by a company. Example: Nestlé’s food, beverages, and pet care lines. b. Length of Product Line • Total number of products in a specific line. Example: Nestlé’s dairy line includes Milkmaid, Nestlé Everyday, and Nestlé A+ Milk. c. Depth/Item Design of Product Mix • Variations of products within a line. Example: Nestlé’s KitKat comes in flavors like milk chocolate, dark chocolate, and orange. d. Consistency of Product Mix • Degree of similarity among product lines. Example: Nestlé’s focus on nutrition across food, beverages, and health products. Q5. Product Mix of Nestlé Based on Nestlé’s website: 1. Beverages: Coffee (Nescafé), Tea (Nestea), Health Drinks (Milo). 2. Dairy Products: Milkmaid, Nestlé A+ Milk. 3. Culinary Products: Maggi noodles, sauces. 4. Nutrition and Health Science: Cerelac, Lactogen. 5. Confectionery: KitKat, Munch, Milky Bar. 6. Pet Care: Purina products. Q6. Criteria for Product Mix Breadth Decisions i. Risk Diversification: • Diversify offerings to reduce reliance on a single product line. Example: Nestlé entering pet care reduces dependence on food and beverages. ii. Leveraging Organizational Strengths: • Build on core competencies to expand product lines. Example: Nestlé leveraging expertise in nutrition to develop health science products like Cerelac. iii. Complementary-in-Use Products: • Introduce products used together to enhance customer experience. Example: Nestlé’s beverages (Nescafé) and snacks (KitKat) target the same consumer moments.