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What is this marketing tactic called when a single product sells way too well?

What is this marketing tactic called when a single product sells way too well, so well, that it dwarfs all other products and you pull it off the shelves so you don't hurt your sales for other products?

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Best Answer

It’s called cannibalization when a new product sources volume from your existing products. This “tactic” is pretty self-defeating in your example unless:

a) new product is less profitable

b) you have production capacity issues with the new product.

If it’s selling that fast you’d have alternatives to reducing distro. Why not try to increase price to lower volume? This would make new product more profitable and (hopefully) restore volume to your old products.

No new product is 100% incremental. “Cannibalization” at some firms gets thrown around as a word to deter new innovation. If your total top line (and thus hopefully bottom line) show show growth, what’s the problem?

Other points

It's called Market Cannibalism, which could indeed be a strategy.

Because some use cannibalization strategies to get market share and establish positions, only you know if this form of cannibalism is hurting you, hurting your competition, or both, and go from there.

Something I decided recently not to do. We have one service and I considered offering another but knowing people and price in my industry I thought it would pull way too many people from our main offering. It was one of those “if it ain’t broke” situations and at about 1/4th the cost of what we do now I knew it would drive a lot of people to that vs where we know we can help them best.

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May 23, 2020 at 3:02:50 PM

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