Post on 13-May-2015
Cannibalisation Strategy... and its relation to product introduction, segmentation & pricing
- the Keynote Remake -
@ReggyMortier - Mobile: 0478 25 25 16@ the most “Ghent”-ile of cities2013
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“longest” record
“Secure” timing
“High” success rate
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All other yield a
!!!! 4% !!!!
success rate only
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Determine Control Secure
Crucial success factors
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Determine: to fix or find out precisely, calculate
“Product” Life Cycle - Monitoring
Crucial success factor 1
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Determine the right moment by monitoring the Profit contribution
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??? RED ???Engineering?!
Product Management?!
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New markets act on different timings
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New solutions act on different timings
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Control: be in command of, manage, restrain
Portfolio (Product Line) Management
Crucial success factor 2
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Control by strategically using ....
Cannibalisation
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Lost Profit byBad Cannibalisation
Cannibalisation risknot so much unlike in the movies ...
at least for the product manager’s career ...which will be short-lived
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Is it relevant to your business ?
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Worst case example ...
http://bit.ly/kn4bio
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Cannibalisation & Competitive Loses
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What about the best in class, like ...
What is that ?!?!
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BIO-MIMICRY story
Eliminate Competition
- Procreation -
Secure Food For Offspring
- Procreation -
Cannibalise for maximum RETURN only
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Cannibalise for maximum PROFIT only
Chapter 11
Cannibalisation as competitive strategy
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0
3000
6000
9000
12000
2005 2006 2007 2008 2009 2010
30
00
60
00
Cannibalised Profit
Profit 2 CompetitionRegained Profit
12
00
0Profit contribution with each sold unit
90
00III
III
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-10000
-4500
1000
6500
12000
2005
2006
2007
2008
2009
2010
90
00
III
Resulting profit contribution & RoI
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NPI was 2 years 2 early
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Secure
Secure: make certain or safe, succeed in getting
Customer Engagement & Phased Introduction
Crucial success factor 3
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Not only to avoid the “Voice of the Customer” TRAP !
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by sharing & hence mitigating the risk of NPI
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But foremost to create customer delight !
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Determine the right moment by monitoring profit contribution
Control the right moment bystrategic cannibalisation
Secure the right moment bycustomer engagement & phased introduction
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