Market Diversification
Market diversification is when a company grows by reaching out to new groups of customers or market niches with its current products or services. This strategy means finding and entering markets that are different from the ones the company already serves, whether in terms of location, demographics, or interests.
An example of market diversification is Coca-Cola, which has expanded its product offerings beyond traditional sodas to include a variety of beverages such as juices, bottled water, sports drinks, and teas. By diversifying its product portfolio, Coca-Cola can reach different consumer segments and cater to changing preferences in the beverage market. This strategy allows Coca-Cola to mitigate risks associated with relying solely on one type of product and expand its presence in various beverage categories, increasing its overall market share and revenue opportunities.