Marketing & Branding
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Activity:
Question posted: 01 31 2008 03:59:32 +0000,
4 answers, 2339 views, last activity
02 13 2012 10:56:51 +0000
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Brand Cannibalization is not exactly brand extension. However in both cases you are extending the line of a given brand, in case of brand cannibalization you are actually eating away the market share of your own existing brand. Brand Cannibalization can be deliberate or oblivious. In case of deliberate cannibalization, company actually try to phase out some old brand or try to grab the additional market share of competitors' along with its own. When cannibalization is not a well thought of strategy behind the brand extension, company tries to eliminate it by repositioning new brand (mostly).
When two brand in the same product line, offered by same player target same market segment and compete with each other by eating away the market share without adding any value to the marketer.
Brand Cannibalization is eating away the market share of your own existing brand.
Brand cannibalization is an advanced science in brand marketing warfare. It is the science of creating sub-brands within the main brand so that it targets a whole range of consumers in order to reatin and grow its consumer base.
For eg. Marriot group runs hotels like Courtyard by Marriot which is a lesser budget concsious hotel targetted at the business class in the same city where Marriot is also present. Marriot is the parent brand and is a 5 star chain whereas Courtyard by Marriot is a sub brand for business and budget conscious customers.
Another common example is the brand extensions by GM Motors like GMC, Buick, Pontiac, Saturn, Outlook and Traverse within its 4x4 domain. What it basically does is offer a customer multiple choice within the GM brand, it also allows the dealer the chance to book additional profit margins by converting a customer who is say wanting to buy an entry level 4x4 into a mid level 4x4. Becasue of the plethora of choices the customer is satisfied at the same outlet and doesnt have to look elsewhere. Hence it is a win-win situation on all sides.
To sum up brand cannibalization is the art of brand extensions to benefit the brand owner, seller and the end user. Brand cannibalization can be resorted to activate an existing parent brand by offfering individual stronger sub-brands. Like Coke did in india with the launch of Minute Maid, Sprite etc.
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