Differentiate variants, price‑pack roles and evidence so new SKUs add rather than steal value. This quiz covers concepts, measurement, and tests that keep line extensions incremental.
What best defines product cannibalisation within a portfolio?
Competitors copy your features
A new SKU draws sales from an existing SKU without growing total revenue
A new SKU grows the whole category
Stores add more shelf space overall
Which formula expresses cannibalisation rate at a simple SKU level?
(New SKU sales ÷ Total category sales) × 100
(Units sold this year ÷ last year) × 100
(Old price ÷ New price) × 100
(Sales lost on existing SKU ÷ Sales of the new SKU) × 100
A pre‑launch method specifically used to flag cannibalisation risk is ______.
randomizing server regions
tracking code coverage in CI
running only brand lift surveys
shelf/simulation testing comparing lineups and shopper choice
Which move most often reduces unintended cannibalisation?
Matching prices and claims across variants
Launching multiple near‑identical flavors
Clear price‑pack architecture and differentiated positioning by need state
Hiding differences in packaging
Which evidence best proves a line extension is incremental?
Higher ad impressions only
Anecdotes from one store visit
Net portfolio sales and margin rise after controlling for seasonality and distribution
The new SKU sells but legacy sales fall faster
When can cannibalisation be a rational strategy?
When retailers resist assortment changes
When migrating users to a higher‑margin or strategically critical offer
When the new item has lower margin than the old
When supply is constrained on all SKUs
Which monitoring approach catches cannibalisation early post‑launch?
Only total brand sales without mix
SKU‑level YoY sales and velocity by store, benchmarked against category trends
Engineering ticket throughput
Follower counts on social media
What portfolio action helps fund incremental bets while managing overlap?
Add every proposed variant simultaneously
Replicate a rival’s lineup exactly
Freeze prices regardless of elasticity
Prune or fix low‑return SKUs to free capacity for stronger variants
Which pricing scenario typically increases cannibalisation risk?
Launching a cheaper near‑substitute below an existing item without clear differentiation
Bundling complements together
Introducing a premium tier with added benefits
Adding a bulk pack at a distinct price‑per‑unit
Which test demonstrates incrementality most convincingly to retailers?
A single influencer campaign
Internal preference polls
Controlled pilots showing net category lift and minimal substitution
One week of uncontrolled sales
Starter
You get the basics; strengthen measurement and pre‑launch testing for incrementality.
Solid
Good grasp of pricing, roles and dashboards; tighten retailer‑ready proofs of lift.
Expert!
You manage overlap deliberately—using tests, roles and pruning to grow portfolio value.
