While it's difficult to give the best possible answer without knowing how many products and product categories you have, there are some fundamentals of menu design and IA that can be touched on here.
Your first example will result in a less good experience for the user. When the primary navigation is a single link (no dropdown), the expectation is that the click will lead to a category landing page with a list of products. (like this one https://www.globalsign.com/products/) In your first example the user will expect a products page and land on a page that seems to be about oranges. Then they have work out that this is one of several products and that there are others which can be accessed via secondary navigation. Too much thinking required by the user here.
Your second example is the better of the two, because the dropdown allows the user to bypass the need for a 'Products page' and go directly to a specific product. The dropdown also sets a better expectation of what products exist, so the secondary navigation has more meaning when they see it.
Here are some recommendations:
If you have a lot of products (~6+)
Consider having a single 'Products' link in the primary navigation, but creating a category landing page that lists all your Products. Use secondary navigation on the individual product pages. How feasible all this is will depend on how many products and product categories you have, but this is a reliable and conventional approach.
If you only have a few products (~>6)
Consider a setup like in your second example, where the 'Products' link in the primary navigation is a dropdown listing all products. User secondary navigation on individual product pages.