The Pricing Decision Between Private Brand And Manufacturers’ Brand

This paper discusses the common products of the private brand and manufacturers’brand in the market. The six different pricing strategies study the private brand and manufacturers’brand with the game theory and pricing strategy. Under the different strategies, we are analyzed and compared the profit of the retailers. When the retailers adopt the difference pricing strategy VI, the retailers, selling private brand and manufacturers’brand, can obtain the biggest gross profit. Due to the indiscrimination pricing model is commonly used by a large retail enterprise in social economic activities, so this paper further analysis the total profit of the upstream supplier (including private brand suppliers1and the manufacturers’brand suppliers2) under the indifference pricing strategy Vand differentially pricing strategy VI with the Stackelberg game and incomplete information Bertrand competition game. And the paper compared the profits of suppliers to each other.The first, this article introduced the background of this topic and significance of this research, summarized the topic’s theory of literature at home and abroad, determined the research framework and the main content of this research, pointed out the innovation points in this paper. Secondly, the paper summarized the theoretical knowledge of game theory and the concept of private brand. This paper introduced the concept and the evolution process of private brand, expounded the concept of game theory and the classification of game theory, introduced the master-slave game—Stackelberg game and the incomplete information game of Bertrand competition game, given the three assumptions in this paper, including the retailer only sells a brand of merchandise (private brand or manufacturers’ brand) and the retailer sells the private brands and manufacturers’brand. Thirdly, this paper discussed the pricing strategy between private brand and manufacturers’ brand, analyzed the six different pricing strategies between the private brand and the manufacturers’brand, determined the retailer’s profit function under the different pricing strategy, and discussed the results of six different pricing strategies. Under the six kinds of pricing model, we contrasted the retail price of the private brand and the manufacturers’ brand, analyzed the size of the retailer’s profit, and discussed the total amount of the largest profit. Finally, this thesis analyzed upstream suppliers with the master-slave game and Bertrand game. Under the indifference pricing strategies Ⅴ and the difference pricing strategyVI, we discussed the supplier’s profit with the Stackelberg game and Bertrand game, and analyzed the results of retailer’s profits under the two kinds of game.