Pricing Mini Case: Assessing the Cannibalization Risk Cannibalization occurs when a company releases a new product in a product line of family and some % of the sales of the new entrant are because consumers siop buying the old products in tavor of the now entrant. In this exercise, you will be asked to assess the exact size of the cannibalization risk. Then, you will be asked to make a series of strategic decisions based en the analyses. Imagine you are the CMO of "Saber Bledes", Saber Biades manufactures high quality, extremely durable sci.fi laser sword products that are exiremely popular among young adult consumers who enjoy dressing up like their favorite scl-f characters in movies, books, and comics (the act of dressing up in this way is known as cosplay) Click the icon to leam more details about each product. Click the loon to view the data from Saber Blades current financials. Click the icon to view the data from a rigorous market forecast study. Based on the values presented below, should Saber Blades introduce The Warrior to the market? because the change in Total Monthly Contributien value due to introdueing The Warrior is $ (Round to the nearest dotar.) More Info These costume prop swords feature a stylized aluminum handle and a clear, high density plastic "blade." The blade is fitted internally with a lighting system; this allows people to pick whether their sword glows blue, red, purple, green, or some other color. Currently, there are two different lines of Saber Blades. First, there is "The Apprentice." The Apprentice is the low price option. It features a standard aluminum handle and the color of the blade can be either red, blue, or green (but only one of the colors works on any given sword). The second product is "The Master." The Master is the high price option. It features the choice of one of several highly intricate aluminum handles. In addition, the blade has a color changing function, meaning it can be one of any 16 colors with ease. In addition, The Master makes cool sci-fi sounds when swung, and it comes with a stylish leather holster. Saber Blades is considering adding a new line, "The Warrior." The Warrior would be a midrange option. The aluminum handle would be very intricate, but the color of the blade would remain fixed as a single color. In addition, The Warrior would make cool sci-fi sounds when swung, but the sound options are limited compared to The Master. No holster would be included. The product is already developed and ready for production, but Saber Blades is worried the new product will simply takes sales away from their already existing products. \begin{tabular}{lcc} \hline & Existing Product: The Apprentice & Existing Product: The Master \\ \hline Sales Price & $80 & $210 \\ Variable Cost & $36 & $137 \\ Contribution per Unit & $44 & $73 \\ Unit Sales per Month & 193 & 73 \\ \hline \end{tabular} More Info Pricing Mini Case: Assessing the Cannibalization Risk Cannibalization occurs when a company releases a new product in a product line of family and some % of the sales of the new entrant are because consumers siop buying the old products in tavor of the now entrant. In this exercise, you will be asked to assess the exact size of the cannibalization risk. Then, you will be asked to make a series of strategic decisions based en the analyses. Imagine you are the CMO of "Saber Bledes", Saber Biades manufactures high quality, extremely durable sci.fi laser sword products that are exiremely popular among young adult consumers who enjoy dressing up like their favorite scl-f characters in movies, books, and comics (the act of dressing up in this way is known as cosplay) Click the icon to leam more details about each product. Click the loon to view the data from Saber Blades current financials. Click the icon to view the data from a rigorous market forecast study. Based on the values presented below, should Saber Blades introduce The Warrior to the market? because the change in Total Monthly Contributien value due to introdueing The Warrior is $ (Round to the nearest dotar.) More Info These costume prop swords feature a stylized aluminum handle and a clear, high density plastic "blade." The blade is fitted internally with a lighting system; this allows people to pick whether their sword glows blue, red, purple, green, or some other color. Currently, there are two different lines of Saber Blades. First, there is "The Apprentice." The Apprentice is the low price option. It features a standard aluminum handle and the color of the blade can be either red, blue, or green (but only one of the colors works on any given sword). The second product is "The Master." The Master is the high price option. It features the choice of one of several highly intricate aluminum handles. In addition, the blade has a color changing function, meaning it can be one of any 16 colors with ease. In addition, The Master makes cool sci-fi sounds when swung, and it comes with a stylish leather holster. Saber Blades is considering adding a new line, "The Warrior." The Warrior would be a midrange option. The aluminum handle would be very intricate, but the color of the blade would remain fixed as a single color. In addition, The Warrior would make cool sci-fi sounds when swung, but the sound options are limited compared to The Master. No holster would be included. The product is already developed and ready for production, but Saber Blades is worried the new product will simply takes sales away from their already existing products. \begin{tabular}{lcc} \hline & Existing Product: The Apprentice & Existing Product: The Master \\ \hline Sales Price & $80 & $210 \\ Variable Cost & $36 & $137 \\ Contribution per Unit & $44 & $73 \\ Unit Sales per Month & 193 & 73 \\ \hline \end{tabular} More Info