What is cannibalization in marketing? If you have ever heard of cannibalization in marketing, you probably know that it is the practice of not taking a product away from its competitors and selling it at a reduced price. However, there are also instances when cannibalization can occur in other ways. For example, let’s say a company is in the process of launching a new product that is very similar to one, like say digital marketing agency London Ontario, that is already on the market.

what is cannibalization in marketing

And let’s say the marketing agency London Ontario decides to open a store of the same brand in an area that had a previous store. This could mean that a lot of people who bought the original product will leave and go to the new one. In this situation, you will need to calculate how much you are losing on sales of the old product.



In business, market cannibalization is a common strategy. It is when a company introduces a new product that eats into sales of a previous product. This is often seen as a negative strategy, but it can actually be a valuable strategy to boost market share.

For example, Apple has released multiple iPhone models over the years. With each model release, it cuts the price of the older iPhones. That way, consumers who have purchased the old model can continue to use it. However, the newer model is usually more expensive.



One of the most well-known examples of cannibalization in marketing is Coke. It has been a long time since Coca-Cola launched its first soda, but the brand is still raking in billions of dollars every year. The original Coke was the star of the show, but it was followed by dozens of other flavors, many of which are nearly identical.

There are many different ways to cannibalize a product, but there are some that aren’t as bad as you might think. In fact, it is possible to cannibalize your own brand without putting too much blood, sweat, and tears into it. This is especially true if you are the producer of the product, and you can use cheaper production costs to your advantage.



Kodak has been suffering from market share loss over the past few years. This is not surprising, considering that Kodak was one of the world’s most successful brands in the 90s. Unfortunately, the company failed to adapt to the digital revolution and missed out on the opportunity.

In its corporate culture, Kodak believed that brand strength and marketing were the keys to success. But innovation was needed to meet the needs of a complex market.

A major problem with this approach was that Kodak lacked an integrated understanding of customer needs. Instead of focusing on the new, it invested in the same old products, thinking that this would help protect its large share of the market. The result was a failure to adapt to the new marketplace and a decrease in its market share.


Reminder: Being Adaptive

There will be multiple instances where you will have to resort to cannibalization in marketing, take our sample from earlier – a digital marketing agency London, Ontario, as local advertisements and personal services become obsolete newer and better ways of marketing are being developed. If your business prior to a digital marketing agency London, Ontario, had the aforementioned services then you’ll most likely have to resort to cannibalization in marketing to keep your business afloat.


For a free consultation on anything digital marketing-related, head on over to Digital Specialist Co. to grab your own inquiry.