Cannibalisation strategy 2013_slideshare

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This document discusses a cannibalization strategy and its relation to product introduction, segmentation, and pricing. It outlines three crucial success factors: 1. Determine the right moment for introduction by monitoring profit contribution. 2. Control the portfolio by strategically using cannibalization to maximize profit. 3. Secure the right moment through customer engagement and phased product introduction to create customer delight and mitigate risks.

Business

Cannibalisation Strategy
... and its relation to product introduction, segmentation & pricing
- the Keynote Remake -
@ReggyMortier - Mobile: 0478 25 25 16
@ the most “Ghent”-ile of cities
2013
1
Monday 20 May 2013

“longest” record
“Secure” timing
“High” success rate
2
All other yield a
!!!! 4% !!!!
success rate only
Monday 20 May 2013

Determine Control Secure
Crucial success factors
3
Monday 20 May 2013

Determine: to ﬁx or ﬁnd out precisely, calculate
“Product” Life Cycle - Monitoring
Crucial success factor 1
4
Monday 20 May 2013

Determine the right moment by
monitoring the Proﬁt contribution
5
??? RED ???
Engineering?!
Product Management?!
Monday 20 May 2013

New markets act on different timings
Monday 20 May 2013

New solutions act on different timings
Monday 20 May 2013

Control: be in command of, manage, restrain
Portfolio (Product Line) Management
Crucial success factor 2
8
Monday 20 May 2013

Control by strategically using ....
Cannibalisation
9
Monday 20 May 2013

Lost Profit by
Bad Cannibalisation
Cannibalisation risk
not so much unlike in the movies ...
at least for the product manager’s career ...
which will be short-lived
10
Monday 20 May 2013

Is it relevant to your business ?
Monday 20 May 2013

Worst case example ...
http://bit.ly/kn4bio
Monday 20 May 2013

Cannibalisation & Competitive Loses
13
Monday 20 May 2013

14
What about the best in class, like ...
What is
that ?!?!
Monday 20 May 2013

BIO-MIMICRY
story
Eliminate
Competition
- Procreation -
Secure Food
For Offspring
- Procreation -
Cannibalise for maximum RETURN only
15
Monday 20 May 2013

Cannibalise for maximum PROFIT only
Chapter 11
Cannibalisation as
competitive strategy
16
Monday 20 May 2013

0
3000
6000
9000
12000
2005 2006 2007 2008 2009 2010
3000
6000
Cannibalised Proﬁt
Proﬁt 2 Competition
Regained Proﬁt
12000
Proﬁt contribution with each sold unit
9000
III
II
I
6000
Monday 20 May 2013

-10000
-4500
1000
6500
12000
2005
2006
2007
2008
2009
2010
9000
III
Resulting proﬁt contribution & RoI
Monday 20 May 2013

NPI was 2 years 2 early
Monday 20 May 2013

Secure
Secure: make certain or safe, succeed in getting
Customer Engagement & Phased Introduction
Crucial success factor 3
20
Monday 20 May 2013

Not only to avoid the “Voice of the Customer” TRAP !
21
by sharing & hence mitigating the risk of NPI
Monday 20 May 2013

But foremost to create customer delight !
22
Monday 20 May 2013

Determine the right moment by
monitoring proﬁt contribution
Control the right moment by
strategic cannibalisation
Secure the right moment by
customer engagement & phased introduction
23
Monday 20 May 2013

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Cannibalisation strategy 2013_slideshare

1. Cannibalisation Strategy ... and its relation to product introduction, segmentation & pricing - the Keynote Remake - @ReggyMortier - Mobile: 0478 25 25 16 @ the most “Ghent”-ile of cities 2013 1 Monday 20 May 2013

2. “longest” record “Secure” timing “High” success rate 2 All other yield a !!!! 4% !!!! success rate only Monday 20 May 2013

3. Determine Control Secure Crucial success factors 3 Monday 20 May 2013

4. Determine: to ﬁx or ﬁnd out precisely, calculate “Product” Life Cycle - Monitoring Crucial success factor 1 4 Monday 20 May 2013

5. Determine the right moment by monitoring the Proﬁt contribution 5 ??? RED ??? Engineering?! Product Management?! Monday 20 May 2013

6. New markets act on different timings Monday 20 May 2013

7. New solutions act on different timings Monday 20 May 2013

8. Control: be in command of, manage, restrain Portfolio (Product Line) Management Crucial success factor 2 8 Monday 20 May 2013

9. Control by strategically using .... Cannibalisation 9 Monday 20 May 2013

10. Lost Profit by Bad Cannibalisation Cannibalisation risk not so much unlike in the movies ... at least for the product manager’s career ... which will be short-lived 10 Monday 20 May 2013

11. Is it relevant to your business ? Monday 20 May 2013

12. Worst case example ... http://bit.ly/kn4bio Monday 20 May 2013

13. Cannibalisation & Competitive Loses 13 Monday 20 May 2013

14. 14 What about the best in class, like ... What is that ?!?! Monday 20 May 2013

15. BIO-MIMICRY story Eliminate Competition - Procreation - Secure Food For Offspring - Procreation - Cannibalise for maximum RETURN only 15 Monday 20 May 2013

16. Cannibalise for maximum PROFIT only Chapter 11 Cannibalisation as competitive strategy 16 Monday 20 May 2013

17. 0 3000 6000 9000 12000 2005 2006 2007 2008 2009 2010 3000 6000 Cannibalised Profit Profit 2 Competition Regained Profit 12000 Profit contribution with each sold unit 9000 III II I 6000 Monday 20 May 2013

18. -10000 -4500 1000 6500 12000 2005 2006 2007 2008 2009 2010 9000 III Resulting proﬁt contribution & RoI Monday 20 May 2013

19. NPI was 2 years 2 early Monday 20 May 2013

20. Secure Secure: make certain or safe, succeed in getting Customer Engagement & Phased Introduction Crucial success factor 3 20 Monday 20 May 2013

21. Not only to avoid the “Voice of the Customer” TRAP ! 21 by sharing & hence mitigating the risk of NPI Monday 20 May 2013

22. But foremost to create customer delight ! 22 Monday 20 May 2013

23. Determine the right moment by monitoring proﬁt contribution Control the right moment by strategic cannibalisation Secure the right moment by customer engagement & phased introduction 23 Monday 20 May 2013

Cannibalisation strategy 2013_slideshare

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