Each time the Coca Cola Company introduced a new type of cola beverage,Coke Original lost sales.When Diet Coke was released it resulted in a loss of sales to the original.When Coke Zero was launched,it took sales away from both Coke Original and Diet Coke.This loss of sales,as a direct result of a brand extension strategy,is known as ________.
A)brand cannibalisation
B)fighting brands
C)product obsolescence
D)derived demand
E)portfolio planning

Question

Quizplus · Accepted Answer

Brand cannibalisation is the loss of sales for an existing product due to the introduction of a new product within the same brand. In this case, each new type of Coca Cola beverage is a brand extension, and as a result of these extensions, the sales of Coke Original, the original product, decreased.

Each Time the Coca Cola Company Introduced a New Type