Definition of Marketing Cannibalisation (Product & Market)

Marketing cannibalisation is an event that frequently occurs when a brand decides to market a new product or service. New offers drown out old onesThis results in a reduction in sales and a concern about storage. 

Marketing cannibalisation can occur for a number of reasons. What's more, cannibalisation can affect both products and markets. Here's everything you need to know about marketing cannibalisation. 

The different types of marketing cannibalisation 

There are different varieties of cannibalisation in marketing. The product cannibalisation is a phenomenon characterised by an increase in sales of a new product. At the expense of older products. The cannibalisation due to advertising is when a brand decides to choose a popular person to promote a new offer. The public is then distracted by the personality and pays no attention to the product being promoted. 

Companies also need to be careful when they decide to open new points of sale. It is often the case that new outlets compete with existing ones, even though they market the same products. This phenomenon is known as shop cannibalisation which is different from cannibalisation linked to the distribution method. The latter occurs when a company opts for a specific marketing channel. At the same time, it neglects the one it used previously. 

You also have the cannibalisation of quantity. It involves highlighting a product that benefits from special packaging. This then undermines the public's interest in basic training.

Product cannibalisation: a deliberate marketing strategy? 

Marketing cannibalisation occurs when a company markets a new product while abandoning its old models. It occurs when a sign wants to replace an old product or service with a new one. In this way, it takes on the appearance of a strategic marketing strategy aimed at selling a product that could be more profitable than the old one.

However, marketing cannibalisation is often the consequence of launching a new product in a single market. This is a strategic error. In fact, this situation is the result of a company's desire to compete with another brand operating in the same field. However, instead of defying the competition, the new product or service overshadows the company's other products. 

Market cannibalisation: a common form of marketing cannibalisation 

Market or company cannibalisation occurs when a brand focuses solely on its existing customers. It does not seek to attract new customers when promoting a new product. The problem is that it increases its production expenditure. At the same time, its market share does not grow. In general, companies that are victims of market cannibalisation inadvertently divert customers from one product to a new product. This has a negative impact on turnover. 

There are also cases where the entities deliberately cannibalise the market. This is the case when a company decides to open a new outlet close to one of its old shops. This is in the knowledge that the two outlets will eventually cannibalise each other. However, the new shop also ends up take market share from competitors. 

Note that using the cannibalisation as a strategic marketing strategy has met with disapproval from stock market analysts. These experts see in this situation a risk of loss of short-term profits.

As a result, companies need to take steps to avoid cannibalism in marketing. This is done through in-depth market research before developing a new product. It should be borne in mind that products with comparable costs present a significant risk of cannibalisation. To reduce this risk, companies need to find a way of developing new products that are similar in cost. products with unique branding. The price of new products must therefore rival that of other competing brands, not that of old products.