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Cannibalization


In marketing, cannibalization refers to a reduction in the sales volume,
sales revenue, or market share of one product as a result of the
introduction of a new product by the same producer.

For example, if Coca Cola were to intoduce a similar product (say, Diet Coke
or Cherry Coke), this new product could take some of the sales away from the
original Coke. Cannibalization is an important consideration in product
portfolio analysis.

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