The cannibalization in the business world is a phenomenon that is usually desirable, but if it is controlled by the company you may have its advantages the cannibalization is often described as a situation in which the sales of a product cause the reduction in sales of other products by the same company. The concept could be extended not only to a company’s products, but to an entire category, as we shall see. To explain the cannibalization and damages that can be caused if you don’t have account, we can consider the example of the Volkswagen Group. Apart from other more exclusive brands, account between the generalist brands with the own Volkswagen, Seat and Skoda this requires a careful positioning of these three brands, would normally be Volkswagen as the Premium brand, with a position as a sports brand Seat and Skoda would mark do cheap? Up there, all right. However, by dint of insisting that the Skoda have quality Volkswagen, the first began to cannibalize the second. If the Fabia was of a similar quality to the of the Polo, or the Octavia was similar to the Passat, but for a lower price they offered more equipment, do more expensive brand why buy? General Motors, which owns brands such as Cadillac, Pontiac, Chevrolet, GMC, Opel, and so on, and that in many cases they compete not only among themselves, but to obtain cost savings, they share too many things, which ones are similar to others has suffered from this same problem. 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 category of products, as it is the case with Netbooks.
Sales of these 10 inch laptops with screens around minicomputers, are canibalizando sales of low-end laptops. The cannibalization is therefore a matter which companies must have an extreme caution, that is also one of the reasons why certain brands advertise that they do not make for others. If I know that I can buy a yoghurt which produces Danone under the Acme brand, but a 30% cheaper, possibly buy the latter. But if it does not manufacture for other brands, if I want to buy a quality Danone yogurt, I have to buy that brand, I have no option. There are however companies that promote the cannibalization between their marks, to promote the competitiveness of the same and to dominate the market through multiple brands one of the specialists in this strategy is the corporate giant Procter and Gamble, which has cornered the market through its various brands in diverse product lines. P & g doesn’t care, for example, HS to take clients to Pantene, what matters most is that its brands dominate the market. Pablo Rodriguez has a degree in business sciences, postgraduate in auditing accounts and master MBA, passionate about the world of Economics and business management. To share your comments and your point of view on these topics, visit:. economiasencilla.