Cooperative Advertising In A Manufacturer-retailer Supply Chain

The cooperative advertising is vertical restraint in essence to solve someproblems. These years, the phenomenon of over-capacity is becoming more serious.Retail chain enterprises are become dominant with huge advantage of scale and lots ofsale channels.The relation of manufacturers and retailers is never kind ofleader-follower. The article launches the research on vertical cooperative advertisingbetween manufacturers and retailers and establishes models to discuss the detailedmeasures taken by enterprises. The article extends the study of cooperativeadvertising.After reviewing the massive domestic and foreign literatures about cooperativeadvertising, the thesis discusses the cooperative advertising in dominantmanufacturer-retailer supply chain with the combination of analysis of case andconcludes that when manufacturer is dominant, cooperative advertising will increasethe profits of enterprises and the whole supply chain. According to market conditions,the author establishes the cooperative advertising model of single dominant retailchain enterprise and the model of duopoly dominant retail chain enterprises separately.Based on research results before, the author introduces the national advertisinginvestment of retailer and spill-over-effects of the national advertising into the model.Through the analysis before, the author concludes that no matter the retailer is singledominant or duopoly dominant, cooperative advertising is good to enterprises, thesupply chain and customers. In terms of the certain proportion, we discuss thedistribution of system incremental profit by using the dynamic bargaining model.After that,the article analyses the case of Suning and Guomei that happened onNovember11th,2012.Finally, main conclusions are summarized. Then, some suggestions are pointedout.