Company Cannibalization

 Brand Cannibalization Essay

COMPANY CANNIBALIZATION: EAT OR END UP BEING EATEN

With increasing commoditization of brands, differentiation is hard to can be found in every industry. Consumers are right now flooded with options, one company having several brands in same product category. Positioning, aimed towards, segmenting can serve as strategies you can forget. Rather it is the basic cleanliness which any business needs to adhere to if it should sustain inside the race pertaining to market share.

So , what should certainly a marketer adopt as being a strategy? You will discover unconventional methods followed by Multinationals to address the aim of increasing their very own market share. With consumer with regard to innovation elevating, brand commitment being a advantage of few companies and E-commerce featuring an instant comparison amongst brands, there are couple of avenues to grow revenue and consequently earn revenue. Providing affordable - good quality products is a demand with the market. But you may be wondering what company may wish to replace a high-priced item with a low-priced product? That's a good way to start on the business chopping obstruct. These lines aptly determine the paradox of a Marketing term called CANNIBALIZATION.

Marketplace cannibalization is definitely when revenue of one particular product decreases due to the release of one other product from the same firm. In the tournament of permitting Brand Expansion, in which a company introduces new brands in the same manufacturer product line to provide the consumers with variety of choices, lies hidden the fear of Brand Cannibalization. That results in increase in revenue of one manufacturer at the cost of another by same business without much effect on the final revenue earned by the company.

Inside the FMCG Sector, a classic model would be regarding " Votre Sancy” cleaning soap, a new manufacturer which aggressively ate on HUL (India) flagship manufacturer " Lux” which had to eventually taken out of

the markets. Same was observed by launch of variant " Diet Coke” which usually resulted into reduced product sales of Regular Cola. In recent years, we certainly have seen intense intentional...

Referrals:: http://blogs.hbr.org/anthony/2011/02/combating_cannibalization_conc.html http://www.citesales.com/712-brand-cannibalization-brand-proliferation-brand-rejuv.html http://seekingalpha.com/article/1189201-the-cost-of-product-cannibalization-dooms-apples-growth http://www.mcngmarketing.com/when-to-cannibalize-your-existing-products/#.UfK9ro03BUN http://ecx.io/en/news/insights/1430/kannibalisierung/ http://aqpq.org/2009/08/03/product-cannibalization-a-risky-business/

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