Market Cannibalization

The negative impact of a company's new product on the sales performance of its existing related products.

If a company is practicing market cannibalization, it is eating its own market. For example, say Coca Cola puts out a new product called Coke2, and customers buy Coke2 instead of regular Coke. Although sales may be up for the new product, these sales may be eating into Coke's original market, in which case the overall company sales would not be increasing. Because of the possibility of market cannibalization, investors should always dig deeper, analyzing the source and impact of the success of a company's new but similar product.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Market cannibalism — Market cannibalization, market cannibalism or corporate cannibalism is the practice (on the part of a company) of slashing the price of a product or introducing a new product into a market of established product categories. If a company is… …   Wikipedia

  • Cannibalization — In businessIn marketing and strategy, cannibalization refers to a reduction in the sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer.For example, if Coca Cola were to …   Wikipedia

  • cannibalization — A market situation in which increased sales of one brand results in decreased sales of another brand within the same product line, usually because there is little differentiation between them. For instance, two drinks marketed by the same… …   Big dictionary of business and management

  • Corporate Cannibalism — An act of self infringement upon market share by corporations through the issuance of new products. Also known as market cannibalization . Corporate cannibalism occurs when companies introduce new products into a market where these products are… …   Investment dictionary

  • Planned obsolescence — The Centennial Light in the Livermore, California Firehouse is often cited as evidence for the existence of planned obsolescence in later produced light bulbs.[1] Planned obsolescence or built in obsolescence[2] …   Wikipedia

  • Private label — For the license, see Private label rights. Swedish grocery store where private label products (under the brands Hemköp and Eldorado, Axfood) are placed along with other brands such as Knorr (Unilever) and Blå band (Campbell Soup). Privat …   Wikipedia

  • Cannibalism — For non human cannibalism, see Cannibalism (zoology). For other uses, see Cannibal (disambiguation). Cannibalism, Brazil. Engraving by Theodor de Bry for Hans Staden s account of his 1557 captivity …   Wikipedia

  • Chrysler Pacifica — See also: Chrysler Pacifica (1999 concept vehicle) Chrysler Pacifica Manufacturer DaimlerChrysler Chrysler (final model year only) Production …   Wikipedia

  • Brand — For other uses, see Brand (disambiguation). Marque redirects here. For other uses, see Marque (disambiguation). The Coca Cola logo is an example of a widely recognized trademark representing a global brand …   Wikipedia

  • Topic outline of marketing — For a more comprehensive list, see the List of marketing topics. Marketing refers to the social and managerial processes by which products, services and value are exchanged in order to fulfil individual s or group s needs and wants. These… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.