📖 Business terms

Cannibalisation

When your new product steals sales from your old one.

Formula

Net gain = New product sales − Sales lost from existing products

Launching a new product or store can pull customers away from your existing ones, so the true gain is smaller than the new sales.

🧮 Example

A new ₹99 burger sells 1,000 a day, but 400 of those buyers would have bought the ₹149 burger.

🎯 Interview tip

Always net out cannibalisation when sizing a launch — interviewers love catching this.

Used in

Learn next

Pricing strategy

Three ways to set a price: cost, competitors, or value.

The 4Ps (marketing mix)

Product, Price, Place, Promotion.

Growth strategy (Ansoff matrix)

Four ways to grow: sell more, sell new, go new places, or both.

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