Suppose three companies, Optimax, Megachug, and Thirstoid, dominate the sports drink market. Optimax enjoys the largest market share. In order to capture market share from Optimax and Megachug, Thirstoid redesigns its label and hires additional sports celebrities to endorse its sports drink. This is an example of:

product differentiation

Explanation:

Based on the information provided within the question it can be said that this is an example of product differentiation. This term refers to the process that a company undergoes in order to set their product apart from the competition in order to persuade customers to choose their product. Which in this scenario Thirstoid is redisigning their label and adding sports celebrities that the competition does not have.