Marks Cannibals

Cannibalization in the business world is a phenomenon that is generally not desirable, even if it is controlled by the company can have its advantages The cannibalization is usually defined as a situation in which sales of a product cause the reduction in sales of other products of the same company. The concept could be extended not only to the products of a company but an entire category, as we shall see. To explain the cannibalization and the harm it can cause if not taken into account, we consider the example of the Volkswagen Group. In addition to other exclusive brands, has among the very general framework Volkswagen, Seat and Skoda This requires careful positioning of these three brands, would normally be a premium brand such as Volkswagen, Seat position as a sports brand, and Skoda would be the Markings Are cheap? So far, so good. However, by dint of insisting that they have quality Volkswagen Skoda, first began to cannibalize the second. If the Fabia had a similar quality to the Pole, or the Octavia was similar to the Passat, but at a lower price offered more equipment, why buy the more expensive brand?

This same problem has been experienced General Motors, which owns various brands such as Cadillac, Pontiac, Chevrolet, GMC, Opel, etc., and in many cases not only compete, but for cost savings, share many things with which resemble each other. As a result, sales of the Pontiac G6, for example, produce a decrease in sales of the Chevrolet Malibu. The same situation can occur in an entire product category, as in the case of Netbooks. Sales of portable mini-computers, with screens 10 inches around, are cannibalizing sales of low-end laptops. Cannibalization is therefore an issue that companies must take extreme care, that is also one of the reasons why certain brands advertise that they do not manufacture for others. If I know I can buy a yogurt Danone manufactured under the name Acme, but 30% cheaper, possibly buy the latter. But if it makes for other brands, if you want to buy a yogurt "quality Danone?, I have to buy this brand, I have no choice. There are however companies that promote cannibalization among its brands, to promote their competitiveness and to dominate the market through multiple brands One of the experts in this strategy is the corporate giant Procter and Gamble, which accounts for the market through its various brands in various product lines.

A P & G does not care, for example, that HS to win customers from Pantene, what matters is that brands dominate the market.