Cannibalism in Multibrand Firms

Abstract

Although cannibalism is seldom desirable, it can be tolerated under certain conditions. This paper illustrates those conditions and shows that cannibalism may not be so bad after all.

A Conceptual Approach for Cannibalism Between Goods

“…These effects can called product cannibalism". A similar definition is stated by Traylor (1986): cannibalism occurs when sales of a product from a company reduce sales of other. Traylor notes that cannibalism is a problem faced primarily by companies that use multi-brand strategies, since the risk of cannibalism increases as they seek better definitions of new market segments.…”

“…To prevent the occurrence of cannibalism is to introduce different products to well-defined market segments (Traylor, 1986;Copulsky, 1976). Kein et al (1978) identified that it was quite common in organizations that can cause cannibalism without benefits.…”

“…For a proper understanding of the figures, it should be understood by the competing product sum of the products of competitors targeting the same market segment, and the old products, the products targeted at this segment, belonging to the company that is introducing the new product. The circles represent the sales of products (without scale, just to clarify the ideas described) and the intersections between competing products-new and old should be understood as part of business performance for both floating, i.e., one that also affected of promotional tools, typically reaching consumers who have little loyalty towards a brand or company (Traylor, 1986).…”

“…There are, according to Traylor (1986), two ways to understand cannibalism: with vision focused on the product when a company offers two or more similar products, and market-oriented view, when two or more products of a company competing in the same segment. Kerin et al (1978) remembered that sales of a new product were coming from sources like new customers, consumers of similar products of competitors and consumers of products like the company itself.…”

A Perspective on Remanufacturing Business: Issues and Opportunities

“…Primarily they raise the problem of cannibalization between new and remanufactured products. "...Cannibalism occurs when the sale of some of a company's portfolio of products reduces the sale level of one or more products in the company's portfolio of products" [25].…”