understanding of market cannibalization

1. PRODUCT CANNIBALIZATION
VIKASH KUMAR
MBA-2

2. Definition
 Market cannibalization is the impact of a
company's new product on the sales
performance of its existing and related
products. Definition
 DefinitionWhen the sales of an
existing product of a company is
reduced due to introduction of
another product, it is
cannibalization

3. Uses
 Product Generates = Rs. 100 After
introducing Product B, Sales of Product A
reduce to Rs. 50 Sales of Product B, generates
Rs. 80,Total Sales = Rs. 50 + Rs. 80= Rs.130
 Advantages Boost up the sales
Introduce new products, Product
Innovation Customer Expectations
Generates More Profit

4. Example 1
 Coca Cola Introduced the New Coke On April
23, 1985, replacing the old Coke formula in
order to give customers new taste Coca Cola
(1985)

5. Example 2
 P&G continuously cannibalized its featured
razor series, GILLETTE, by introducing
Fusion, Mach,Vector, Blue series P&G

6. Example 3
 Unilever introduced Axe Body Roll on
although it had Rexona Roll on. Unilever

7. ThankYou!