Extending the line : A case study of the marketing strategies used when managing cannibalization in the FMCG industry

Abstract: The purpose of this study is to enhance our understanding of the marketing strategies used to manage cannibalization when extending product lines within the fast-moving consumer goods (FMCG) industry. Previous research has mainly investigated the causes and consequences of cannibalization, while cannibalization management has gotten limited attention and does not include companies' strategic undertakings. Researchers have also called upon an empirical investigation to analyze the role of marketing strategies used when developing successful line extensions, especially in the FMCG industry where it is highly competitive and cannibalization is common. In order to fulfill the purpose, this study implemented a single case study of a company operating within the FMCG industry, utilizing a semi-structured interview approach. The findings identify seven marketing strategies that play a role in managing cannibalization, including market research; targeting; positioning; product attributes; distribution strategies; promotional strategies, and market testing. The research findings revealed that by initially embracing cannibalization, these strategies can then be utilized in various ways and complement each other. For future studies, it would be of interest to examine whether similar findings also are applicable for the same purpose in smaller FMCG firms as well as in other industries with distinctive characteristics.