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.
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.
The parametric measures developed helped to identify the level of product cannibalization at the product, product group, family and brand levels in the portfolio.
Marketing strategists who can identify the victims of cannibalization in the product portfolio will be better prepared for the effects of cannibalization.
