A family owns a gelato business next to a small town's park, a favorite place for parents and children to stop on their way home from work or school. However, the business owner is barely making ends meet. Customers frequently compliment his unusual gelato flavor selections. He decides to package his special flavorings into small packets that can be used at home for drinks. Sales of the packets soar and profits rise. This is an example of a __________ strategy.

Question

Quizplus · Accepted Answer

The business owner developed a new product (gelato flavor packets) to complement his existing gelato business, which is a product development strategy. The packets allow customers to enjoy the unique flavorings at home, expanding the reach of the business beyond just the gelato shop. Market penetration would involve expanding the customer base for the existing product, market development would involve entering new markets with the existing product, diversification would involve entering entirely new markets with new products, and product-market addition is not a commonly used strategic term.

A Family Owns a Gelato Business Next to a Small