To complete the cannibalization
story requires development of economic curves that depict how an item will cannibalize its segment based on the number of like items in the segment.
Marineau acknowledges that there may be cannibalization
of Diet Pepsi and Pepsi-Cola, but says added sales from Pepsi One will generate incremental volume for the supplier.
Further, the CEO directly looks at marketing results and calculates, among other things, the cannibalization
effect that a new product will have on existing menu items, thus quantifying net new business.
business accelerating beginning in mid-June to reflect more favorable comparisons and minimal cannibalization
from the "strong" launch of Reign.
Internationally, Canada turned in low-double-digit growth for the first quarter, but rapid expansion in Asia was negatively impacting comparable-warehouse sales growth due to cannibalization
, Galanti said.
Hargreaves expects Apple to sell 35 million iPad mini units in 2013, causing 25 percent cannibalization
of the larger 9.5-inch iPad.
Sophisticated assortment tools that account for cannibalization
, yet are easy to use, can help to quickly determine efficient assortments for the specific retailer.
JP Morgan analyst Spencer Wang says, "Continued decline in DVD sell-through prices, cannibalization
of the VHS market and the arrival of Video on Demand will place structural and competitive pressures on Blockbuster," Wang concluded.
Regarding competition, Skrovan expects things to heat up as the major players face head-to-head competition in the key markets, which will result in "some cannibalization
" of sales.
Those factors, he added, have resulted in price cannibalization
and margin erosion throughout the industry.
Additionally, due to the fact that the two brands differ markedly, A-B can successfully market the two brands without fear of brand cannibalization
In addition, Model S and X deliveries were a "big miss," which shows the impact of cannibalization
and Tesla's decision to cut the 75kwh variant, which was likely done to boost higher end Model 3 sales, Johnson tells investors in a research note titled "Tesla 1Q deliveries call hyper-growth into question." The analyst sees the S and X miss as incrementally negative to Tesla's long-term average selling prices.
By slowing its Supercenter expansion pace, Wal-Mart expects to reduce cannibalization
at the units and improve their productivity and profitability.