What strategy do companies follow when they focus on a single market segment with multiple products?

The strategy companies adopt when they concentrate on a single market segment while offering multiple products is known as a depth strategy. This approach allows a company to thoroughly understand the specific needs, preferences, and behaviors of a targeted group of consumers within that segment. By offering a variety of products tailored to that particular audience, the company can enhance customer satisfaction and loyalty, as it provides options that meet diverse needs within the same segment.

This strategy contrasts with broader approaches that might try to reach various market segments with fewer products. With a depth strategy, businesses typically aim to establish a strong brand presence and deepen customer relationships by catering to more specific desires or requirements of consumers within the chosen segment. Such focus often leads to innovation in product offerings as the company seeks to address emerging customer demands effectively.