• by Igor Blystiv , August 4, 2025

Sometimes businesses notice internal brand competition too late — only when consumers no longer see a meaningful difference between products and focus solely on price. This is a clear sign it’s time to rethink brand positioning, distribution strategy, and sales stimulation tactics.

Here are common mistakes that lead to brand cannibalization:

Overlapping brand promises. When different products target similar consumer needs — such as “a daily low-calorie snack” — they lose their distinctiveness. Consumers see them as interchangeable and choose based on price, since brands fail to offer unique value.

Sales context doesn't match brand positioning. If a super-premium product is sold alongside a standard-tier item, its exclusivity is diluted. Consumers start comparing it to the lower-tier option, and price again becomes the deciding factor. In the worst case, consumers may stop choosing the premium brand altogether.

Misalignment between marketing and business goals. Marketing builds brand image and recognition; the business side focuses on sales targets. Without alignment between the CEO and CMO, promotional decisions — like excessive discounts on premium products — can undermine brand positioning by lowering prices to standard levels.

What to do about it

One of the key risks of brand cannibalization is losing control over how consumers perceive your products. This can be fixed. Here are my recommendations:

Strengthen brand associations. Even products within the same segment can be perceived differently if each brand communicates a unique message. For example, one brand may emphasize environmental care, while another focuses on technology and innovation. A well-known example is Coca-Cola Zero Sugar and Diet Coke: Coke Zero Sugar is associated with the original Coke taste, while Diet Coke has its own distinct flavor and fan base, linked to style and lightness.

Consider launching a sub-brand. This acts as a separate product line with its own identity but can also enhance the perception of the parent brand, especially in the premium segment.

Work closely with the sales team as brand ambassadors. To build an effective distribution strategy, sales managers must clearly understand each brand’s positioning and effectively communicate it to buyers and potential partners.

Synchronize sales growth strategies. Growth plans should consider not only volume but also the long-term perception of the brand. To avoid devaluing premium products, marketing and top management must align their tactical tools, especially pricing strategies. For example, instead of deep discounts, it’s better to use value-added promotions like “buy 2 get 1 free,” gifts, or limited-edition collections. This approach supports rather than undermines brand positioning.

Sometimes these measures don’t achieve the desired effect. In such cases, a full rebrand may be necessary. This can include updating positioning, product range, design, or even the brand name. Such a step is not a failure, but a strategic decision that restores the brand’s relevance and business potential, while maintaining the integrity of the portfolio.