Research On Impact Of Competitive Strategy On FMCG Brand Diffusion

In twenty-first Century, the competition of enterprises has changed from product competition to brand competition. How to promote the brand, how to let consumers become loyal consumers is an important issue for brand decision-makers.Unlike durable goods, FMCG has short turnover cycle, low unit value, low competition barrier and low consumer loyalty, the competition among brands is quite fierce. To make the brand stand out in the market competition, we need to have a understanding of the FMCG branding diffusion mechanism.Past brand diffusion researches include qualitative research and quantitative research. But they mostly focus on the dynamics mechanism of constructing brand diffusion, influence analysis of characteristics of the brand diffusion process and the relevant variables on the diffusion process from the macroscopic angle. This article applies computational experiment method to study the consumer brand decision. With the help from the perspective of behavior analysis of brand influence on consumer brand choice decision and the utility function defined by the consumer brand choice method, we thus research on brand decision influence on brand diffusion.This paper starts from brand diffusion research review, then gradually sets the basis of the brand diffusion and thus builds a suitable model framework for computational experiments, incorporating NetLogo software. We conduct three group of experiments, they are non-strategy diffusion simulation, sales corresponding strategy diffusion simulation and "Price war" strategy diffusion simulation. We acquire the following findings:1) FMCG brand diffusion still has first-mover advantage;2) Because of the existence of word-of-mouth effect, taking market share as the goal often leads to blind decision while taking profit as the goal of brand decision may not achieve the optimum either;3) During the price war, the first mover will eventually suffer the greatest loss while those who do not follow the price may avoid loss, even get more profit. In the late period of price war, all brand market shares tend not to be related to their own properties. This paper gives analysis according to the research results. These research results will provide instruction for brand managers to make scientific brand decisions.