Ever wondered why Apple isnโt afraid to announce a new iPhone even when the craze of the earlier version hasnโt dried up?
How can growth ever be degrading for Starbucks ?
Courtesy: ๐ฝ๐ง๐๐ฃ๐ ๐พ๐๐ฃ๐ฃ๐๐๐๐ก๐๐จ๐๐ฉ๐๐ค๐ฃ
It is a process of creating different sub-brands or new products of the parent brand so that it can grow its customer base by targeting large numbers of customers.
Does it really work well?
Well sometimes, after launching a new product, it โeatsโ up the sales and demand for an old popular product, hence cannibalization.
๐๐ฉ๐๐ซ๐ ๐ ๐ค๐๐จ ๐จ๐๐๐, "๐๐ ๐ฎ๐ค๐ช ๐๐ค๐ฃ'๐ฉ ๐๐๐ฃ๐ฃ๐๐๐๐ก๐๐ฏ๐ ๐ฎ๐ค๐ช๐ง๐จ๐๐ก๐, ๐จ๐ค๐ข๐๐ค๐ฃ๐ ๐๐ก๐จ๐ ๐ฌ๐๐ก๐ก"
So, whenever Apple invents a new iPhone, it ensures that the version is available in all their chain stores.
Even If it causes the older version #sales to decline, Apple makes up for this loss by capturing its competitorsโ current customers, hence increasing its client base.
Companies often risk market cannibalization is hopes of gaining a bounce in overall market share.
Author: Vasudha Khera
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