A CRITICAL INVESTIGATION INTO MARKET RESPONSE AND CANNIBALIZATION OF PRODUCT IN A HIGHLY COMPETITIVE INDUSTRY

ABSTRACT: The aim of this study was to look at product cannibalization as a market response in a highly competitive industry. Specific objectives were established to tactically analyse this phenomenon, including determining whether product cannibalization is a strategic market response to competition, examining the efficacy of product cannibalism as a market response strategy, and examining the position of price in employing successful product cannibalization. In order to accomplish these goals, a survey research design was used. A total of 100 participants from Nestle Nig. PLC were enrolled in the survey. A detailed consent was obtained from the participants prior to their enrolment. On-spot questionnaire distribution strategy was adopted. The study's findings showed that in a highly competitive industry, product cannibalization is an efficient consumer response. Its effectiveness, however, is primarily determined by market research and strategic pricing mechanisms. Before launching a new product into the market, management should conduct in-depth market research, according to the survey. Furthermore, since purchasing is an emotional decision, this study suggests effective price setting, as research has shown that effective pricing promotes the effectiveness of product cannibalism.