Case Detail

Case Summary

Kookaburra Cricket Bats: Dealing with Cannibalization

Case Number: 3-112-002, Year Published: 2012

HBS Number: KEL684

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Authors: Julie Hennessy; Evan Meagher

Key Concepts

Branding, Consumer Marketing, Financial Analysis, Market Analysis, Marketing, Marketing Planning, Cannibalization

Abstract

This exercise is one in a series intended to help students learn how to perform financial calculations in marketing contexts.

Kookaburra, a maker of cricket equipment popular in Australia, New Zealand, the United Kingdom, South Africa, and India, was considering two strategies for positioning a new cricket bat in India. Both strategies would cannibalize current sales, and Lulu Popplewell, category manager responsible for the Indian market, needed to calculate the financial impact of both to determine which one she would recommend.

This exercise poses a fictional problem about branding strategy on a new product, and asks students to consider the financial impact of different branding strategies and cannibalization rates.

Learning Objectives

After completing the exercise, students should be able to:
• Calculate the impact of cannibalization on units and profit for a new product launch
• Determine break-even cannibalization rates
• Understand how different branding decisions may impact the degree of cannibalization they should expect from a new product launch

Number of Pages: 4

Extended Case Information

Teaching Areas: Marketing

Teaching Note Available: Yes

Geographic: India, Australia

Industry: Sports Equipment

Organization Name: Fictional

Decision Maker Position: Category Manager

Decision Maker Gender: Female