Also called convenience good, a convenience product is a type of consumer product that consumers buy instantaneously, regularly, and post little research as the buyer knows enough details about the product already, thanks to frequent past purchases. Biscuits, milk, sodas, soap, newspapers, etc. fall under the convenience product category. These products have a big target market, fall in the budget price category and are widely available. Stores selling these products are referred to as convenience stores.
Types of Convenience Products
Convenience products can be further classified as staple, impulse, emergency and home delivery products. A staple product, as the name suggests, is a basic item that’s bought often, such as rice and salt. An impulse product is any product that’s bought unplanned and on instinct. Examples include ice creams, magazines, toys, etc. Advertising plays a significant part in determining how well these impulse items sell.
An emergency product is a type of convenience product that’s bought when there’s an immediate requirement. These products could be car parts, medicines, seasonal clothing, etc. A home delivery product is ordered online or through telephone and delivered right at the buyer’s doorstep.
Brand Loyalty and Marketing
Convenience products enjoy a certain level of brand loyalty. For instance, people don’t buy biscuit packets randomly. Most look for specific brands of biscuits. However, the brand loyalty isn’t too strong. In other words, people who don’t get the biscuits they want can easily end up buying comparable biscuits from another brand.
Thanks to this negligible brand loyalty and overall nature of convenience goods, sellers must ensure widespread availability to sell them well. And since these products have a small profit margin, companies must make convenience goods in substantial volumes to make a decent profit. As far as marketing goes, convenience products aren’t backed by complex or well-thought-out advertising. Retail stores promote convenience products in cooperation with manufacturers and the ads usually relate to deals and discounts.
Convenience goods across brands and sellers aren’t much different from each other in terms of features and quality. This is why buyers react sharply to even the slightest of price changes. In other words, if a company sells its packet of rice for even a dollar or two more than the prevailing market price, it could very likely see its buyers switching brands.
This doesn’t mean a price increase is impossible. However, marketers should look into price hikes considering the demand for the item. The key here is to strike the right balance between price and demand so that minor price increases do not hurt product sales.