Cannibalization

(noun)

In marketing strategy, cannibalization refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer.

Examples of Cannibalization in the following topics:

  • Product Line Depth

    • Will it cannibalize existing products?
    • Yet there is stil serious risk to consider: unless there are markets for proliferation that will expand the brand's share, the newer forms will cannibalize the original product and depress profits.

  • Commercialization

    • Timing of launch: When facing the danger of cannibalizing the sales of the company's other products, if the product can be improved further, or if the economy is down, the launch should be delayed.

  • Branding Strategies

    • Cannibalization is a particular problem of a multi-brands strategy approach, in which the new brand takes business away from an established one which the organization also owns.