Explain cannibalization. How does a line extension strategy increase the risk of cannibalization?

What will be an ideal response?

Organizations often decide to extend their product lines by adding more brands or models. Any time a new or similar product is introduced, there is a risk of cannibalization of existing products. Cannibalization is the loss of sales of an existing product to a new item in a product line or product family that the company has introduced. Instead of reaching new customers, the new product may just cause current customers to switch brands. Marketers must consider whether a new brand or model will significantly detract from their existing brands.