The Effect of Cannibalization on Multi-Brand Strategy

• Main Authors: Lin Fan-yi, 林凡怡
• Other Authors: Lin Gin
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/73973287885725614879

碩士 === 國立臺北大學 === 企業管理學系 === 94 === Cosmetics has become a valued-added industry today, the government in Taiwan has enhanced research and development for cosmetics industry and classified cosmetics industry as “Challenge 2008─National Development Plan.” Under the condition of multi-brand strategy will increase consumer’s perception and attempt to purchase the organization’s product. This will increase consumers attitude to love this brand. This brand has successfully enter the consumer market by only observing the sales data. However, when observing the organization deeply, there is a decrease of sales in the other existing brand. With multi-brand strategy, it might be a trap for all the existing brand and the limited market all shared among the brands. When consumers are switching brands under the same company will cause competition between these brands and create cannibalization effect. This research is to investigate the variables to cannibalization effect under multi-brand strategy. The concept of cannibalization effect has been defined as ”the process by which a new product gains sales by diverting sales from an existing product ”. Many companies enter the market with multi-brands or sub-brands, they expected it will be increase market share by this way and the investment on brand would be formed larger synergy. However, the main disadvantage of multi-brand strategy is each brand has a small market share, none is more profitable. In order to attract an common customers among brands, each brand compete witch each other, otherwise attract to customer from competitor. The independent variables in this research include the customer loyalty to the firm, product knowledge, perceived risk, product attribute. The dependent variable is cannibalization effect. This research discuss the relationship between independent variable and dependent variable. Finally, it also offer some management implication.