Cannibalization would most likely occur if

Question

BlackTom AI · Accepted Answer

When evaluating cannibalization, focus on whether the new product would take sales away from an existing product sold by the same company within the same brand family or product category.
Option 1: Dell adds high-end speaker systems to its line. This is a cross-category extension into audio hardware but not clearly cannibalizing an existing Dell product, since speakers are not a direct, closely competing laptop/PC accessory in the same line. It could be an adjacent product expansion, not necessarily cannibalizing.
Option 2: General Motors markets a motorcycle similar to the Can-Am Spyder Roadster three-wheel bike. While this is a new vehicle in a related mobility space, GM historically does not compete in motorcycles at scale; even if it did, selling a motorcycle could attract a different customer segment than traditional cars/GM vehicles, making cannibalization less certain unless it directly takes share from a GM-vehicle model.
Option 3: General Mills launches Caramel Crunch Cheerios. This is a new flavor/variation within the Cheerios brand. Because it directly competes with existing Cheerios varieties, it has a high potential to attract the same cereal consumers away from existing Cheerios options, thereby cannibalizing its own product line.
Option 4: Procter & Gamble adds a new line of baby clothing to its Pampers stable of products. This represents diversification into a different product category (apparel) and is unlikely to cannibalize Pampers’ existing diaper sales; it targets a distinct market altogether.
Option 5: Pillsbury adds boxed sugar to its product mix. Introducing sugar as a boxed product would extend a food brand into a novel packaging format or category that may not directly compete with existing Pillsbury products; it could even be seen as an ingredient/product extension rather than cannibalizing current ready-to-bake goods.
In short, cannibalization is most likely when the new product directly competes with and takes share from an existing product within the same brand family, which is exactly what happens with General Mills’ Caramel Crunch Cheerios. The other options describe expansions into adjacent or unrelated categories that do not pose the same risk of taking sales from existing, similar offerings.

Cannibalization would most likely occur if

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