Comments on: How can I avoid cannibalization with a new product? http://ask.goodproductmanager.com/2009/06/01/how-can-i-avoid-cannibalization-with-a-new-product/ Your product management questions answered Tue, 13 Dec 2011 18:48:32 +0000 hourly 1 By: ban http://ask.goodproductmanager.com/2009/06/01/how-can-i-avoid-cannibalization-with-a-new-product/comment-page-1/#comment-83537 ban Fri, 30 Apr 2010 03:36:31 +0000 http://ask.goodproductmanager.com/?p=123#comment-83537 I think you should offer an extra with the older product once you have introduced the new version, keep the price of the older product less than the newer one but add something to it that can work with it , for example a printer needs a ink cartradge to work, there are two products that work together. depending on what your product is think of something you can add to it to make it as good as the new version. the new version may have new features but the old one has older feature but at the same time it has an extra product on the side that appeals as much as the new version. in other words it's like buy one get sumthing free if that makes sense. i am only a uni student doing business and i dont know how much help i contributed , but putting myself in the position of the customer, this perspective would be helpful. may be even do a survey ? .. I think you should offer an extra with the older product once you have introduced the new version, keep the price of the older product less than the newer one but add something to it that can work with it , for example a printer needs a ink cartradge to work, there are two products that work together. depending on what your product is think of something you can add to it to make it as good as the new version.

the new version may have new features but the old one has older feature but at the same time it has an extra product on the side that appeals as much as the new version.

in other words it’s like buy one get sumthing free

if that makes sense.
i am only a uni student doing business and i dont know how much help i contributed , but putting myself in the position of the customer, this perspective would be helpful. may be even do a survey ? ..

]]> By: David Locke http://ask.goodproductmanager.com/2009/06/01/how-can-i-avoid-cannibalization-with-a-new-product/comment-page-1/#comment-9059 David Locke Mon, 29 Jun 2009 18:09:09 +0000 http://ask.goodproductmanager.com/?p=123#comment-9059 I would wonder why you need a new product. With an appropriate architecture, you can sell a plug-in or supplemental web services to features without modifying your underlying product. Doing this would mean that you have to have an appropriate sales force structure, and other organizational impacts. The needed changes might move beyond the scope of the product manager, or it may change the scope of the offer and the product manager's responsibilities. I would wonder why you need a new product. With an appropriate architecture, you can sell a plug-in or supplemental web services to features without modifying your underlying product.

Doing this would mean that you have to have an appropriate sales force structure, and other organizational impacts. The needed changes might move beyond the scope of the product manager, or it may change the scope of the offer and the product manager’s responsibilities.

]]> By: PuristProductManagement http://ask.goodproductmanager.com/2009/06/01/how-can-i-avoid-cannibalization-with-a-new-product/comment-page-1/#comment-6712 PuristProductManagement Wed, 10 Jun 2009 15:28:16 +0000 http://ask.goodproductmanager.com/?p=123#comment-6712 I've come across this problem multiple times, and the answers really depend on the context of the product, but in essence I agree with Bob. In the past the first point of call for me has been to investigate whether there are incremental release benefits that can be drip fed, although this sometimes dilutes the marketing message I’ve come across this problem multiple times, and the answers really depend on the context of the product, but in essence I agree with Bob. In the past the first point of call for me has been to investigate whether there are incremental release benefits that can be drip fed, although this sometimes dilutes the marketing message

]]> By: Raj http://ask.goodproductmanager.com/2009/06/01/how-can-i-avoid-cannibalization-with-a-new-product/comment-page-1/#comment-6098 Raj Wed, 03 Jun 2009 01:41:49 +0000 http://ask.goodproductmanager.com/?p=123#comment-6098 Great points by Bob. Just like Bob, I too feel like I have insufficient understanding of the question. That said, here is a point I'd like to share. If the new product is just an upgrade over the current product and is sold for the same price - then prospective customers may want to wait until the new version to purchase. One possible way to overcome this issue is to offer them free upgrade to new versions of the product for a period of N months after their original purchase. - Raj <a href="http://www.accompa.com" rel="nofollow">Accompa - Affordable Requirements Management Tool for Product Managers</a> Great points by Bob.

Just like Bob, I too feel like I have insufficient understanding of the question. That said, here is a point I’d like to share.

If the new product is just an upgrade over the current product and is sold for the same price – then prospective customers may want to wait until the new version to purchase. One possible way to overcome this issue is to offer them free upgrade to new versions of the product for a period of N months after their original purchase.

- Raj
Accompa – Affordable Requirements Management Tool for Product Managers

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