Research On Supply Chain Cooperative Advertising In Oligopoly Retail Market

The cooperative advertising is a cost allocation mechanism, which is the manufacturer provides the advertisement support for retailer and shares the certain proportion. Cooperative advertising is a market operational scheme model in essence, which is implemented by the manufacturer and the retailer. With the promotion of production capacity, the phenomenon of over-capacity is becoming more serious. Under this kind of economic situation, retail chain enterprises with huge advantage of scale and lots of sale channels influence gambling structure in industry chain and the allocation of profit profoundly. The article launches the research on retail chain monopoly supply chain, focuses on the cooperative advertising of supply chain and discusses strategy of different enterprises. The article expends the study of cooperative advertising.After analyzing the massive domestic and foreign literatures, the thesis discusses the cooperative advertising between retail chain monopoly enterprise and vulnerable manufacturer firstly. According to market conditions, we establish the cooperative advertising model of single dominant retail chain enterprise and the model of duopoly dominant retail chain enterprises separately. Based on research results before, we introduce the national advertising investment of retailer and spillover effects of the national advertising into the model at the first time. In order to close to the actual situation, we process the effect of local advertising by nonlinear method. Through the analysis before, conclusions involve that manufacturer can make decision to maximize its interest in a relative loose supply chain and manufacturer is always forced to make the decision which retailers prefer in an relative intense supply chain. In addition, the introduction of competition can increase the level of advertising invested by retailers.Next, the thesis discusses the cooperative advertising between retail chain monopoly enterprise and strong manufacturer. We establish the cooperative advertising model of single retail chain enterprise and strong manufacturer and the model of duopoly retail chain enterprises and strong manufacturer separately. Comparing the level of whole system profit and partners' choices when partners hold different attitude, conclusions involve that it is helpful to increase the level of system profit and marketing extent if partners make their decision cooperatly. We discuss the distribution of system incremental profit by using the dynamic bargaining model and the conclusion is that how much each partner gets depends on their attitude to risk and their dependence for cash flow. Strong manufacturer can make the use of the cooperative advertising distribution rate to adjust the level of competition between different retailers.Finally, main conclusions are summarized. Then, the research limitation is pointed out and prospect is discussed.