"Producer product" represents a product whose buyer is some other producer.

In this case, the product represents

raw material to the buyer because they are going to use it in further production. "Producer product" usually
represents one component in manufacturing other, bigger and more complex product.

Two examples of producer goods for ABC are:Iron which represents basic input from which producer can make their
final product. Iron is purchased as a raw material in a single piece shaped as a cube or long circular or square pipe. In
this form, iron is further processed and reshaped into a final product with well-specified shape and size that will be
used in future car manufacturing. Iron is the most common material used to make screws, bolts and nuts. These can
also be made from stainless steel, aluminum, copper, etc.

Machinery and tools required for metal processing. As we previously mentioned, a big piece of iron does not have
a purpose on its own. Only with further processing, it gets some usable value in the form of screws and bolts.
Special equipment is needed to process this type of material. For example, computers and programs that will be
used to make detailed sketches of screws and bolts that will serve as guidelines to workers in production. A tool to
cut big pieces of iron into smaller ones is also required. The customer expects all screws and bolts to be the same
size which can be only achieved with machine production. These specialized machines that will reshape small
pieces of iron into screws and bolts are also required.

=Protection of product. The product needs to be transported to the final customer. Process of transport can be
direct (producer → customer), or it can go through a mediator. In the latter case, the producer delivers the
product to delivery service, which is going to take the product to their warehouse, store it there for some time
and deliver it to the final customer. A higher number of mediators means that the product is exposed to more
situations in which it can potentially be damaged or made useless:

If package falls, it can cause scratches or dents and product might lose its original shape,

During transport, a part of a product like a screw can be misplaced, and delivery will be incomplete. Without the
screw, the product can't be appropriately assembled. Easier transport. Screws and bolts come in various sizes, but
it is usually about small products. There are rare occasions when someone orders only few pieces of screws.
Therefore, packing screws and bolts together is practical way to avoid individual losses during transport. Size of
one package corresponds with the order size. It can be of great help to delivery people in the transport process.
They have to deliver lots of packages in one day, so if they know the size of the order for each individual customer,
they won't lose time checking each package for the declaration to find the right one. If they know it's about a
small order they will check only smaller packages.

=All produced products are always sold because production is made on-demand. Only when the producer gets
detailed information about the type of screws and bolts, material that should be used and the exact quantity, they
go into the process of production. Product is adjusted to the wishes of the customer in all characteristics. When
working with only one customer, the producer can entirely adjust the delivery date to that customer. In this case,
the producer has no extra expenses when it comes to storing the products that were made in advance.Avoiding
big unnecessary expenses for the company. Working with only one customer, a producer knows precisely the type
of product their customer is going to demand. This way, the producer can avoid expenses for storing unused
material or buying various specialized equipment that will rarely be used. For the producer, many different
customers mean many different products. Maybe customers would demand screws and bolts made with different
material or shaped differently. In that case, the producer would have to purchase specialized machinery and tools
and implement new production techniques.

=I think that it would be good for ABC to introduce a new product to its assortment.In these days, market situations
are very dynamic, and participants are required to adjust to changes. In the situation with a big number of
competitors, it is difficult for one company to survive solely because of the quality of their product and well-
established brand. Sometimes a new way of production or usage of new materials by a competitor is going to attract
more attention from customersThat is why the producer should always consider offering new products to keep
existing customers. To know what to offer, the producer should do detailed research on their target market. That
way, they would invest exclusively in products that would later be interesting to customers. Market research would
help them with:avoiding unnecessary expenses of investing in the production of products that are not interesting to
cusomers,making estimations on which investment would require the least additional expenses.Besides offering new
products, the producer should also keep track of new trends. Each new technology requires additional expenses but
greatly accelerates production and helps in expanding the product assortment.

="Brand" represents merchandise that is unique in its specifics and stands out from other similar products. A brand
can be a name, design, concept, jingle, or something else that immediately makes customers associate it to a specific
product or service. It takes a lot of time, work, and effort for a company to create a brand. Company has to be in
constant communication with their customers, build up a good relationship with them, and always try to deliver
products of the same or even better quality. Based on their own experience or experiences and recommendations
from other customers, for each brand customers will know in advance what they can expect for their money.
 =Two ways the business could react to falling sales of chocolate bars are:

Change of packaging represents a very simple way producer can try to re-engage their customers into buying their
products. This change is not going to create huge financial expenses and investments to the producer. A producer
has to make research on their customers to find out the following:

quantity and purpose of chocolate that is bought,

their suggestions on improving the packaging and what bothered them so far.

For example, customers might be buying chocolate as a birthday present, so packaging should look nicer and more
elegant to serve this purpose. Maybe it would be more convenient to customers if one packaging of chocolate would
contain smaller pieces packed separately. That way, it is more convenient to offer a piece of chocolate to a friend and
leave the rest for later without exposing it and keeping it fresh.

Extending the product life is a more challenging form of increasing the interest of customers to make a repeat
purchase. This sort of activity requires higher financial investments, but it can also bring higher profit if the target
market is expanded to a new segment of customers. The producer can increase product life in the following
ways:Coming up with chocolate for kids. This type of chocolate would contain other flavors like strawberry, and it
would be shaped like a fruit itself;Making a type of chocolate that would be suitable for people who have diabetes.

Protection of quality and stability of the product. Quality and appropriate packaging will protect the chocolate from
breaking and losing its original form it should have. For example, it is not uncommon for the chocolate to melt if left
in a car in warmer months. However, if it is packaged correctly, customer can put it in the fridge after melting and
once hardened, it will retake its original form. The protective foil that chocolate is wrapped with will help chocolate
from spoiling and losing flavor. A very important feature of packaging is ensuring that handling during transport is
safe and secure. By its consistency, chocolate can quickly be melted, and packaging ensures that the customer does
not have direct contact when shopping so the chocolate will stay solid.

Attracting the attention of customers. Interesting or unusual packaging will always encourage customers to buy that
product even if they did not intend to. For example, we are looking for a present for a friend's birthday. This
chocolate made its reputation on the market as prestigious and expensive. Therefore, a present in the form of this
chocolate is going to show our friends that we care about them and are willing to spend more money on a high-
quality gift.

The excellent taste which separates their chocolates from the competition. Chocolates must always be of the same
quality, no matter where the customer bought them. That way, we can keep our customers satisfied. A satisfied
customer is going to share their experience with the chocolate with others which is going to help the producer to
expand their market. Some producers are ignoring this fact and are selling lower quality products in areas that are
not very interesting to them while keeping higher quality products to areas they prefer. When operating this way, the
reputation of the brand will fall, and there is a great danger of a decrease in sales

Built-up brand of luxurious chocolate which is always going to play a role to a customer when choosing between different chocolates
to purchase. Some reasons customers might choose this chocolate areThey want to show to somebody that they care about
them,They are buying a product for some special occasion, and this chocolate is a good choice,They want to point out that they are
always choosing the highest quality products,They want to let others know that they are ready to spend a higher amount of money,
even though it is only about chocolate.

I think that putting the brand name on the product itself can definitely help in creating a successful product on the
market. I don't think it is the only important segment when launching a product on the market, but it is a very
important one. When the producer is trying to launch a new product on the market, it is very difficult to get the
attention of customers because of the vast competition that is already available on the market. Even though the
producer is using only the best ingredients and designed very good-looking packaging, it is unlikely that most
customers will choose this product amongst other

To create a safe market position for this type of chocolate, a lot of time has to pass, and many customers have to
spread the good word about chocolate. In this case, putting the brand name on the chocolate itself is going to
shorten the time required for the chocolate to be recognized by customers as a good product. It has been proven in
practice that customers react to the brand name and will create expectations about the new product, even though
they have not tested it yet. If this were about a popular brand that makes very good snacks, the same would be
expected of chocolates by the same producer.