Product Modification refers to the improvement of the existing products by making necessary changes in the characteristics, nature, size, packing and colour, etc., of the products so that the changes in demand of consumers may be dealt effectively. The purpose of the product modification is to maintain existing demand, attract new users and to face the competitors effectively. It helps in increasing the sales of the enterprise which results in increase in the profits of the enterprise. The term “Product Modification” has been defined by the following eminent authors.
- Philip Kotler: “A product modification is any deliberate alteration for the physical attributes of a product or its packing”.
- Stanton: “Even a slightly changed product either in colour, design or in quality is a completely new product”.
The following diagram clearly depicts the concept of product modification:
Strategies of Product Modification
Some important strategies of product modification are as follows:
Quality improvement strategy
In this strategy, the product quality can be improved by modifying the engineering process or by introducing changes in the material from which it is constructed. The purpose of this strategy is to face the competition of market successfully.
Style improvement strategy
In this strategy, the appearance of product is changed. Though, the quality of a product remains same. Here, the packing of the product may be changed or the size, form, colour etc., of the product may be changed. This strategy widely used by the fashion industry.
Functional features improvement strategy
All changes which make the product work better or satisfy additional needs are known as functional changes. Here, the design of the product is changed in a manner that new design may be more attractive to consumers and they feel it convenient to use.
Packaging improvement strategy
It is a strategy in which the packaging of the product is changed. These improvements may be necessary due to the development of new techniques of packaging or due to the defect of present packaging of the product; or due to the suggestions for changes made by consumers.