Identifying the effects of cannibalization on the product portfolio

Purpose - The need for studying the effects of cannibalization and its importance has been established in the literature, especially, since an assessment of the expected cannibalization effect of a new product can help in deciding on suitable times for new product introduction and promotions. However, quantitative measures that can be easily monitored and interpreted are not commonly available. Design/methodology/approach - This study uses parametric measures to help identify and investigate the effects of cannibalization. It proposes a predictive framework that may be used to investigate the effects of cannibalization. A case study, with real data from a consumer beverage company, illustrates the practical applicability of the model. Findings - The parametric measures developed helped to identify the level of product cannibalization at the product, product group, family and brand levels in the portfolio. Originality/value - Marketing strategists who can identify the victims of cannibalization in the product portfolio will be better prepared for the effects of cannibalization.