What is the term for minor changes made to existing products, such as new flavors or packaging?

The correct term for minor changes made to existing products, which can include introducing new flavors or modifying packaging, is line extensions. Line extensions allow companies to expand their product offerings within an existing brand by adding variations to the original product. This strategy leverages the brand's established reputation, ensuring that the new offerings benefit from the existing customer base while also attracting new customers.

Line extensions are typically lower risk than completely new products, as they build on the familiar attributes of the original product. For example, a beverage brand might introduce new flavors of a soft drink or offer different packaging sizes, providing consumers with more choices while retaining brand loyalty.

In contrast, product innovations generally refer to more significant developments or entirely new products that introduce novel features or fulfill unaddressed needs in the market. Brand extensions entail leveraging a brand name to introduce products in different categories, which is a broader move than simply changing an existing product. Product diversification involves expanding into entirely new products or markets, which is not about altering existing products but rather broadening the business's scope.