Cannibalization
Management
(noun)
The reduction of sales or market share for one of your own products by introducing another.
Marketing
Examples of Cannibalization in the following topics:
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Prions and Viroids
- Kuru, native to humans in Papua New Guinea, was spread from human to human via ritualistic cannibalism.
- Kuru was controlled by inducing the population to abandon its ritualistic cannibalism.
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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.
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Product Line
- Unless there are markets for the proliferations that will expand the brand's share, the newer forms will cannibalize the original product and depress profits.
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Speed of Innovation
- Similarly, first movers must carefully consider cannibalization—where their new innovative products steal sales from their older products still on store shelves.
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Commercialization
- 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.
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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.
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Primitivism and Cubism
- The press was abuzz with exaggerated stories of cannibalism and exotic tales about the African kingdom of Dahomey.
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Commercializing Innovative Products
- If there is a risk of cannibalizing the sales of the company's other products, if the product could benefit from further development, or if the economy is forecasted to improve in the near future, the product's launch should be delayed.
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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.
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The Freemium Model
- The model is particularly suited to software as the manufacturing cost is negligible, so – as long as significant cannibalization is avoided – little is lost by giving it away for free.However, this term for the model appears to have been created only much later, in response to a 2006 blog post by venture capitalist Fred Wilson summarizing the model:Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc., then offer premium priced value added services or an enhanced version of your service to your customer base.Jarid Lukin of Alacra then suggested the term "freemium" for this model.