CANNIBALIZATION

REEMA SHAH | SYMMS | 2018068

MARKETING
STRATEGY
 Diversification
Product &
• Successful leaders know that if they
Mitigation of Risk want their business to grow and
Market Variety
prosper in long term, they cannot
stick with the same old strategies

• One such strategy for acomplishing

is diversification.

• It is a growth strategy that involves

adding products, services and
Various Types of Brand Equity and
markets to company’s core business.
Diversification Brand Image

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Diversification

Product
Market
Diversification Diversification
New products to the existing markets Existing Products to new markets
Cannibalisation

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• It is an phenomenon that results when a
firm develops a new product or service
that steals business or market share from
one or more of its existing products and
services.

• Thus one product may take sales from Cannibalization

another offering in a product line.
In marketing strategy, cannibalization refers
to a reduction in sales volume, sales
• If the sales of a firms new product is high revenue, or market share of one product as
because of decreasing sales of its existing a result of the introduction of a new
product by the same producer.
and established product then we can say
that cannibalization has occurred.

• In other words, we can say that the firm

is actually eating away its own market.
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The effects...

Competition Revenue Trust Market Share Margins

Leaving less shelf It impacts the sales It helps to win the Higher penetration of The net profit margins
space for competitors revenue of the loyalty of customers products would lead combining all the
and obtaining more existing markets and as they move from to increase in market products in the
for yourself. products one product to share of the company product lines offered
another marketed by in various markets are
same firm generally higher

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Examples

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CONCLUSION
“IF YOU DON’T CANNIBALIZE YOURSELF,
SOMEONE ELSE WILL”