Is your new product growing the business... or replacing it? A snack company launched a new flavo...Is your new product growing the business... or replacing it? A snack company launched a new flavo...
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Is your new product growing the business... or replacing it? A snack company launched a new flavor of chips. The launch looked successful. Everyone in the meeting room was celebrating. "Our new product is a success!" The CEO looked at me and asked, "What do you think?" As a Business Consultant, I wasn't interested in the new product's sales alone. I wanted to understand what happened to the entire business. When I reviewed the report, I asked one question. "Did we gain new customers... or did our existing customers simply switch products?" The room became silent. After checking the data, we found the answer. The new product wasn't taking customers from competitors. It was taking customers from our own best-selling product. The new product was selling well... But the business wasn't growing. 🔍 What would I do before giving any recommendation? I wouldn't recommend increasing marketing immediately. First, I would investigate: ✅ Are we attracting new customers? ✅ Or are existing customers simply changing products? ✅ Has our total market share increased? ✅ Is total company revenue growing? ✅ Is this cannibalization intentional or hurting profitability? Only after answering these questions... would I recommend the next business decision 🤝 Give Me an Opportunity Business problems don't begin with solutions. They begin with the right investigation. I don't recommend decisions based on assumptions. I recommend decisions based on business understanding. If your business numbers are raising questions... Give me an opportunity to investigate before making the next decision. Because... The right business decision starts with understanding the real problem. #BusinessDNA #CannibalizationEffect #BusinessAnalysis #BusinessConsulting #BusinessStrategy #DecisionMaking #CriticalThinking #DataAnalytics #BusinessIntelligence #RootCauseAnalysis #BusinessStorytelling #ConsumerBehavior #BusinessGrowth
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Creatives on Contra have earned over $150M and we are just getting started