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).

1 Pricing Mini Case: A8sessing the Cannibalization Rlsk characters in movies, books, and comics (the act of dressing up in this way is known as cosplay). Click the ioon to learn more details about esch product. Click the ioon to view the deta from Saber Blades current financials. Click the ioon to view the dete from a rigorous market forscast study. Besed on the walues presented below, should Saber Blades introduce The Werior to the market? , breause the change in Total Monthy Contrution valus dus to introducing The Warrior is 32026 . Round to the nsarest dollar.) More Info