A company introduced a new low calorie version of one of its popular cold drinks. as a result, the sales of the original cold drink started decreasing because consumers preferred its low calorie version. this situation is known as:

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Andrew9017 Andrew9017

21-06-2018
Business

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A company introduced a new low calorie version of one of its popular cold drinks. as a result, the sales of the original cold drink started decreasing because consumers preferred its low calorie version. this situation is known as:

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MrsTriplet MrsTriplet · Answer 1 · 2018-07-04T01:00:02+02:00

This situation is known as cannibalization. Cannibalization is a marketing strategy that refers to the reduction company's see in there sales volume, revenue or market share of a current product when they release a new product. When a company releases a new product, those who are fans of their other products will likely try the new product instead of the hold which initially brings down the volume they sell and make from the initial product.