Should you cannibalize your own product?

Cannibalizing one’s own products is a strategic decision that depends on the specific circumstances and goals of a company. There are both advantages and disadvantages to product cannibalization, and it is essential to weigh these factors carefully before making a decision.

What is product cannibalization?

Cannibalization in retail refers to the phenomenon where a newly introduced product negatively impacts the sales and revenue of existing products within the same company’s portfolio. This occurs when the new product shares a similar customer base with the older products, leading to internal competition between the company’s offerings instead of attracting customers from external competitors.

In some cases, companies deliberately engage in product cannibalization to stay competitive, prioritize customer needs, or expand their market share. For instance, when Coca-Cola launched Coke Zero in 2006, it aimed to attract male consumers concerned about their sugar intake, even though it might have cannibalized sales of other…