Cannibalization of Dabur

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MARKETING MANAGEMENT

ASSIGNMENT-I

CANNIBALISATION OF BRANDS

SUBMITTED BY:

ACHINT PAL

BHAGWANDAS PARWANI

DEVYANI KHANKHOJE

SHIJI JOHN

TRIMESTER-II

SUBMITTED BY:

ACHINT PAL

BHAGWANDAS PARWANI

DEVYANI KHANKHOJE

SHIJI JOHN

TRIMESTER-II

INTRODUCTION TO CANNIBALIZATION OF BRANDS

 Cannibalization refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer. While this may seem inherently negative, in the context of a carefully planned strategy, it can be effective, by ultimately growing the market, or better meeting consumer demands. Cannibalization is a key consideration in product portfolio analysis.

For example, when Apple introduced the iPad, it took sales away from the original Macintosh, but ultimately led to an expanded market for consumer computing hardware.

Another example of cannibalization occurs when a retailer discounts a particular product. The tendency of consumers is to buy the discounted product rather than competing products with higher prices. When the promotion event is over and prices return to normal, however, the effect will tend to disappear. This temporary change in consumer behaviour can be described as cannibalization.

Cannibalization is an important issue in marketing strategy when an organization aims to carry out brand extension.

MARKET CANNIBALIZATION:

Market cannibalization refers to a situation where a new product "eats" up the sales and demand of an existing product. This can negatively affect both the sales volume and market share of the existing product. Market cannibalization occurs when a new product intrudes on the existing market for the older product, rather than expanding the company's market base. Rather than appealing to a new segment of the market and increasing market share, the new product appeals to the company's current market, resulting in reduced...