Asked by Milya Griffin on Jun 26, 2024
Verified
Sierra Hats Inc. previously sold just ten types of hats and cornered the market in hat sales for years. Eight months ago the company decided to add 20 new hats and since many of the hats are similar to the original ten hats, sales have been lost on the existing brands. In other words, sales of the new hats have ________ the existing brands.
A) cannibalized
B) re-positioned
C) co-branded
D) broadened
E) consumed
Cannibalized
When a new product or service significantly reduces the sales, market share, or demand of an existing product within the same company.
Existing Brands
Brands that have been established in the market over time and have developed awareness, loyalty, and identity among consumers.
- Recognize the concept of brand cannibalization and its implications.
Verified Answer
JH
Janeen HowellJun 27, 2024
Final Answer :
A
Explanation :
The term "cannibalized" means to take sales away from an existing product or brand by introducing a similar or competing product. Therefore, the best choice in this scenario is A.
Learning Objectives
- Recognize the concept of brand cannibalization and its implications.