Question

Pricing Mini Case: Assessing the Cannibalization Risk

Cannibalization occurs when a company releases a new product in a product line or family and some % of the sales of the new entrant are because consumers stop buying the old products in favor of the new entrant.

In this exercise, you will be asked to assess the exact size of the cannibalization risk. Then, you will be asked to make a series of strategic decisions based on the analyses.

Imagine you are the CMO of "Saber Blades". Saber Blades manufactures high quality, extremely durable sci-fi laser sword products that are extremely popular among young adult consumers who enjoy dressing up like their favorite sci-fi characters in movies, books, and comics (the act of dressing up in this way is known as cosplay).

LOADING...

Click the icon to learn more details about each product.

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Click the icon to view the data from Saber Blades current financials.

LOADING...

Click the icon to view the data from a rigorous market forecast study.

Based on the values presented below, should Saber Blades introduce The Warrior to the market?

▼

 

No

Yes

,

because the change in Total Monthly Contribution value due to introducing The Warrior is

$nothing.

(Round to the nearest dollar.)Pricing Mini Case: Assessing the Cannibalization Risk

Cannibalization occurs when a company releases a new product in a product line or family and some % of the sales of the new entrant are because consumers stop buying the old products in favor of the new entrant.

In this exercise, you will be asked to assess the exact size of the cannibalization risk. Then, you will be asked to make a series of strategic decisions based on the analyses.

Imagine you are the CMO of "Saber Blades". Saber Blades manufactures high quality, extremely durable sci-fi laser sword products that are extremely popular among young adult consumers who enjoy dressing up like their favorite sci-fi characters in movies, books, and comics (the act of dressing up in this way is known as cosplay).

LOADING...

Click the icon to learn more details about each product.

LOADING...

Click the icon to view the data from Saber Blades current financials.

LOADING...

Click the icon to view the data from a rigorous market forecast study.

Based on the values presented below, should Saber Blades introduce The Warrior to the market?

▼

 

No

Yes

,

because the change in Total Monthly Contribution value due to introducing The Warrior is

$nothing.

(Round to the nearest dollar.)Pricing Mini Case: Assessing the Cannibalization Risk

Cannibalization occurs when a company releases a new product in a product line or family and some % of the sales of the new entrant are because consumers stop buying the old products in favor of the new entrant.

In this exercise, you will be asked to assess the exact size of the cannibalization risk. Then, you will be asked to make a series of strategic decisions based on the analyses.

Imagine you are the CMO of "Saber Blades". Saber Blades manufactures high quality, extremely durable sci-fi laser sword products that are extremely popular among young adult consumers who enjoy dressing up like their favorite sci-fi characters in movies, books, and comics (the act of dressing up in this way is known as cosplay).

LOADING...

Click the icon to learn more details about each product.

LOADING...

Click the icon to view the data from Saber Blades current financials.

LOADING...

Click the icon to view the data from a rigorous market forecast study.

Based on the values presented below, should Saber Blades introduce The Warrior to the market?

▼

 

No

Yes

,

because the change in Total Monthly Contribution value due to introducing The Warrior is

$nothing.

(Round to the nearest dollar.)