This document discusses a cannibalization strategy and its relation to product introduction, segmentation, and pricing. It outlines three crucial success factors: 1. Determine the right moment for introduction by monitoring profit contribution. 2. Control the portfolio by strategically using cannibalization to maximize profit. 3. Secure the right moment through customer engagement and phased product introduction to create customer delight and mitigate risks.

1. Cannibalisation Strategy
... and its relation to product introduction, segmentation & pricing
- the Keynote Remake -
@ReggyMortier - Mobile: 0478 25 25 16
@ the most “Ghent”-ile of cities
2013
1
Monday 20 May 2013

2. “longest” record
“Secure” timing
“High” success rate
2
All other yield a
!!!! 4% !!!!
success rate only
Monday 20 May 2013

3. Determine Control Secure
Crucial success factors
3
Monday 20 May 2013

4. Determine: to fix or find out precisely, calculate
“Product” Life Cycle - Monitoring
Crucial success factor 1
4
Monday 20 May 2013

5. Determine the right moment by
monitoring the Profit contribution
5
??? RED ???
Engineering?!
Product Management?!
Monday 20 May 2013

6. New markets act on different timings
Monday 20 May 2013

7. New solutions act on different timings
Monday 20 May 2013

8. Control: be in command of, manage, restrain
Portfolio (Product Line) Management
Crucial success factor 2
8
Monday 20 May 2013

9. Control by strategically using ....
Cannibalisation
9
Monday 20 May 2013

10. Lost Profit by
Bad Cannibalisation
Cannibalisation risk
not so much unlike in the movies ...
at least for the product manager’s career ...
which will be short-lived
10
Monday 20 May 2013

11. Is it relevant to your business ?
Monday 20 May 2013

12. Worst case example ...
http://bit.ly/kn4bio
Monday 20 May 2013

13. Cannibalisation & Competitive Loses
13
Monday 20 May 2013

14. 14
What about the best in class, like ...
What is
that ?!?!
Monday 20 May 2013

15. BIO-MIMICRY
story
Eliminate
Competition
- Procreation -
Secure Food
For Offspring
- Procreation -
Cannibalise for maximum RETURN only
15
Monday 20 May 2013

16. Cannibalise for maximum PROFIT only
Chapter 11
Cannibalisation as
competitive strategy
16
Monday 20 May 2013

17. 0
3000
6000
9000
12000
2005 2006 2007 2008 2009 2010
3000
6000
Cannibalised Profit
Profit 2 Competition
Regained Profit
12000
Profit contribution with each sold unit
9000
III
II
I
6000
Monday 20 May 2013

18. -10000
-4500
1000
6500
12000
2005
2006
2007
2008
2009
2010
9000
III
Resulting profit contribution & RoI
Monday 20 May 2013

19. NPI was 2 years 2 early
Monday 20 May 2013

20. Secure
Secure: make certain or safe, succeed in getting
Customer Engagement & Phased Introduction
Crucial success factor 3
20
Monday 20 May 2013

21. Not only to avoid the “Voice of the Customer” TRAP !
21
by sharing & hence mitigating the risk of NPI
Monday 20 May 2013

22. But foremost to create customer delight !
22
Monday 20 May 2013

23. Determine the right moment by
monitoring profit contribution
Control the right moment by
strategic cannibalisation
Secure the right moment by
customer engagement & phased introduction
23
Monday 20 May 2013