Cannibalisation

No, its not when a tribesman eats a clown in the jungle and asks does this taste funny to you..well it is, but not in this case.

In this case its a situation where a new brand gains sales at the expense of the introduction of another of the company’s brands. For example when Coca Cola introduced Vanilla Cola. The sales generated from their new offering takes away from the sales of their orinal offering, regular coke.
Therefore, the estimated profit generated from the new product must be reduced by the earnings on the lost sales.