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MS-111 New Product Cannibalization v05

[Market Simulation] MS-111 New Product Cannibalization
Market Simulation (MS-111) - New Production IntroductionShows how a new Coke Product can be built from Features and added to anexisting Market. The analysis predicts whether the new Product wouldCannibalize existing Sales, or grow Revenue and Profitability. Competitive Story:Coke experiment by introducing a new Product Variation into their assortment. Theydevelop "Coke Zero Cherry" and sell it in a can in bundles of 6x330 ml.At first the sales look good with the new product selling more than 50% of thecurrent sales of "Coke Zero" ("Coke Zero Cherry" sells 128 bundles per monthversus 211 "Coke Zero" bundles).But at second glance, the total Quantity, Revenue, and Profitability grow at a muchsmaller rate. Revenue is up from $96,125 per month to only $96,985 (about an$850 increase).It turns out that over 90% of sales were due to cannibalization. Over 90% of newcustomers would have bought another Product from Coke but was induced awayto buy "Coke Zero Cherry" (109 previous Coke customers versus 19 Pepsi or otherbrand customers). New Product Small Increase inQuantity Sold > 90%Cannibalization CurrentMarketNew ProductNew_CokeZeroCherryCan_6x330New ProductNew_CokeZeroCherryCan_6x330Current Market +New ProductProduct ArrayFutureMarketCurrentPurchasedFuturePurchasedCurrentPurchasedFuturePurchasedSwitchedPurchaseDecisionSwitchedPurchaseDecisionSwitchedPurchaseFrom ProductSwitchedPurchaseFrom ProductCoke Salesvs Pepsi SalesCokeBrandOtherBrandCurrentFutureCurrentvs FutureAggregateCurrent MarketAggregateFuture MarketSource ofSalesDegree ofCannibalizationCurrent vs FuturePurchasedCurrent Market +New ProductWTP MatrixMS-111 CokeNew Product IntroductionInput Product ArrayMS-111 CokeNew Product IntroductionInput Product WTP MatrixMS-111 CokeNew Product IntroductionInput Feature WTP Matrix Simulate Market Table Creator Product Generator Concatenate Simulate Market Column Filter Column Filter Column Rename Column Rename Java Snippet Row Filter GroupBy Sorter Row Splitter ConstantValue Column ConstantValue Column ConstantValue Column ConstantValue Column Concatenate Aggregate Sales Aggregate Sales Concatenate GroupBy Column Appender Column Appender Excel Reader Excel Reader Excel Reader Market Simulation (MS-111) - New Production IntroductionShows how a new Coke Product can be built from Features and added to anexisting Market. The analysis predicts whether the new Product wouldCannibalize existing Sales, or grow Revenue and Profitability. Competitive Story:Coke experiment by introducing a new Product Variation into their assortment. Theydevelop "Coke Zero Cherry" and sell it in a can in bundles of 6x330 ml.At first the sales look good with the new product selling more than 50% of thecurrent sales of "Coke Zero" ("Coke Zero Cherry" sells 128 bundles per monthversus 211 "Coke Zero" bundles).But at second glance, the total Quantity, Revenue, and Profitability grow at a muchsmaller rate. Revenue is up from $96,125 per month to only $96,985 (about an$850 increase).It turns out that over 90% of sales were due to cannibalization. Over 90% of newcustomers would have bought another Product from Coke but was induced awayto buy "Coke Zero Cherry" (109 previous Coke customers versus 19 Pepsi or otherbrand customers). New Product Small Increase inQuantity Sold > 90%Cannibalization CurrentMarketNew ProductNew_CokeZeroCherryCan_6x330New ProductNew_CokeZeroCherryCan_6x330Current Market +New ProductProduct ArrayFutureMarketCurrentPurchasedFuturePurchasedCurrentPurchasedFuturePurchasedSwitchedPurchaseDecisionSwitchedPurchaseDecisionSwitchedPurchaseFrom ProductSwitchedPurchaseFrom ProductCoke Salesvs Pepsi SalesCokeBrandOtherBrandCurrentFutureCurrentvs FutureAggregateCurrent MarketAggregateFuture MarketSource ofSalesDegree ofCannibalizationCurrent vs FuturePurchasedCurrent Market +New ProductWTP MatrixMS-111 CokeNew Product IntroductionInput Product ArrayMS-111 CokeNew Product IntroductionInput Product WTP MatrixMS-111 CokeNew Product IntroductionInput Feature WTP MatrixSimulate Market Table Creator Product Generator Concatenate Simulate Market Column Filter Column Filter Column Rename Column Rename Java Snippet Row Filter GroupBy Sorter Row Splitter ConstantValue Column ConstantValue Column ConstantValue Column ConstantValue Column Concatenate Aggregate Sales Aggregate Sales Concatenate GroupBy Column Appender Column Appender Excel Reader Excel Reader Excel Reader

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Created by: Berlin
Created at: 2018-06-13
On NodePit since: 2021-02-05
Last update: 2024-04-27
Created with KNIME version: v4.3.0

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