this by establishing internal metrics
for measuring the acceptable level of
cannibalization.
This can be a percentage or value/volume
measure that will act as a trigger for the
next steps. Another way could be product
pricing. If the new product is priced
lower than the existing one, but offers
more value cannibalization will happen.
Therefore competing purely on pricing
may end up being dilutive. To counter
this, look at other ways to determine
better value to consumers in addition to
say a discounted price.
The last way is product discontinuation.
This is a big one because most
organizations find it hard to kill certain
products. They see discontinuation of
a product as failure. This should not be
the case as some products go through
the product life cycle too fast, bringing
in profit immediately after launch but
are unable to sustain growth. This is
particularly true for variants and flavors.
If the launch objective has been met, the
business must be bold enough to curl such
products.
The Opportunity
Companies such as Netflix, Amazon,
Facebook, Apple and P&G have embraced
cannibalization as an opportunity for
sustaining business growth which they do
by continually innovating new products
that focus on future growth. They believe
that if they don’t, someone else will.
Be bold enough to compete against
yourself. It is better to eat yourself than
have yourself munched up by others. Self-
cannibalization is self-preservation.
If there exists an unmet consumer need
that your current products don’t address,
chances are that your competitor can see
it too and can leverage on the opportunity
faster than you imagine.
Senorine Wasike is an innovation
champion with over 10 years’ experience
in FMCG, currently working as the
Innovation Commercialization Manager
at Kenya Breweries Limited. You can
commune with her on this or related
matters via email at: Senorine.Wasike@
gmail.com
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