= Key Calculations
Cannibalization Rate
Lost Sales / New Product Sales x 100
Net Incremental Sales
New Sales - Cannibalized Sales
Break-Even Rate
New Margin / Existing Margin x 100
30-50% is typical for line extensions
Higher rates may be strategic if protecting share
+ What You Get
? Use Cases
Launch
New product intro
Extend
Line extensions
Upgrade
Version upgrades