A useful portfolio gives every offer an explicit role: acquisition, trade-up, defence, retention, migration or withdr…
A useful portfolio gives every offer an explicit role: acquisition, trade-up, defence, retention, migration or withdrawal. Cannibalisation is then a diagnosis of overlap, not the page’s only subject. An extension can divert customers from a more profitable offer, defend the portfolio from a competitor or organise deliberate migration. The decision compares incremental portfolio contribution, internal transfers and consistency of each role.
Decision and method.
Keep an offer only if its role is distinct, its portfolio contribution positive and its overlap with other offers measured and accepted. For each offer, map segment, use, journey stage, price, channel, contribution and intended role; identify roles with no offer and offers with no role. Compare direct contribution with acquisition, trade-up, retention, complexity cost and transferred margin, keeping observed, estimated and unavailable effects separate. Test substitution, duplicated service, price confusion and channel competition. Assign action, owner, threshold and date—invest, maintain, migrate, merge or withdraw—and simulate the portfolio after action, not only the offer P&L.
Worked example.
Legacy serves 2,000 customers and contributes €90,000. Its use and segment now overlap Core. A simulated migration moves 70% to Core at €65 contribution, temporarily keeps 20% on Legacy at €45, with 10% attrition; migration costs €12,000. Contribution after decision: 1,400 × 65 + 400 × 45 = €109,000. Net incremental contribution: 109,000 − 90,000 − 12,000 = €7,000. Legacy enters migration rather than maintenance; complete removal remains conditional on service stability and observed first-wave attrition.
Checks and limits.
Every offer has a distinct role and portfolio-contribution indicator; segment, use, price and channel overlaps are measured; complexity, service and migration costs are included; every action has threshold and review date. Origin declarations often understate actual substitutions. Competitive reaction can alter sources after launch. Loyalty and reputation need a longer window.
Resources and sources.
Download the portfolio role map. Related: estimate offer transfers, arbitrate product portfolio, test repositioning. Sources: Cooper, Edgett and Kleinschmidt (2001); Kester et al. (2011); Van Heerde, Srinivasan and Dekimpe (2010).