Atish HemadeCannibalization is a double-edged sword that marketers need to wield with caution.
In Product Marketing, cannibalization occurs when promoting one product affects the sales of another.
For example, if you have:
✅ Product X: Niche product, earning $50,000 annually.
✅ Product Y: Major revenue generator, earning $3M annually.
Allocating resources to promote Product X might seem less impactful on the surface, but if the market trends show a potential growth in its segment, it could be an investment worth making.
Especially in the tech industry, cannibalization is often a necessary strategy for continued innovation and maintaining market leadership. Apple introduced the iPhone and iPad despite knowing it would impact iPod and MacBook sales respectively. This proactive approach allowed them to stay ahead, innovate, and fend off competitors who might have filled those spaces.
As always, it's vital to employ data analytics to make informed decisions. For instance, if promoting a seasonal product on your website is essential, analyzing the pages’ traffic and conversion rates can help you optimize where to place the promotions. This way, you can maximize exposure without significantly impacting the regular products.
Cannibalization demands careful strategic planning. Understanding the larger goals and employing data-driven insights are key to turning cannibalization into an opportunity rather than a pitfall.