The client launched a new product, B, in addition to its existing brand A. By grouping stores according to handling condition an assessment was made of the contribution of the new brand and any possible cannibalisation that has taken place.

The client’s total market share in stores handling both A and B was marginally higher than those stores only handling the parent brand. However, given that brand B in those stores has achieved a 3% share it would appear that some cannibalisation occurred.

Brand B has achieved an 8% share in stores not handling A.

Consideration of relative profit margins enabled the client to determine whether expanding B’s distribution alongside A was a sensible measure.