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A CRITICAL INVESTIGATION INTO MARKET RESPONSE AND CANNIBALIZATION OF PRODUCT IN A HIGHLY COMPETITIVE INDUSTRY

  • Project Research
  • 1-5 Chapters
  • Quantitative
  • Regression
  • Abstract : Available
  • Table of Content: Available
  • Reference Style: APA
  • Recommended for : Student Researchers
  • NGN 5000

EXCERPT FROM THE STUDY

Product cannibalization happens when a business chooses to substitute an existing product with a new one, regardless of its market position (i.e., the product's life cycle phase is ignored). According to reports, branded producers have used a range of delaying tactics to stop the branded segment's "cannibalization" of their income. One common method is for a marketed company to launch and market a new version of the concerned product with strategic or tactic results. Cannibalization is an important factor to consider when analysing a product portfolio. As manufacturers struggle to optimize the leverage of their brand equity, cannibalism is a serious challenge for the vast majority of them, as is the prevalence of line extensions. Any new product that enters a market will eat into the market share of all existing players, and predicting this cannibalization is a difficult job.




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