Study On Pricing And Advertising Promotion Under The Competition Between The Two Channels Of Brand Manufacturers

Along with the rapid development of Internet, the network marketing channel has develop with an unexpected speed.Some manufacturers who use network platform sales products have greatly increased in sales.For example,Xiaomi Company has become a black horse in the mobile phone market because of using the network channel to sale their products.Two major network vendors of the market both have their own brands, such as, Tmall has its original brand "Othermix" and "Liebo", jingdong has its own-brand "dostyle".Still now they use network channel sale products and didn’t open offline brand stores.Then we can combine network channels with offline channels, in order to make the market bigger and wider.The combination of these channels can provide theoretical basis for the multi-channel. Nowadays the factors which influences consumer’s choice is no longer limited to the price and quality but also the brand loyalty of the products. Further provide advertising can influence the brand loyalty of the products.In this dissertation, we are comparing the effect of advertisements on the optimal pricing and the optimal advertising strategy of different supply chain models.First of all, this paper is about study on two brand manufacturers both of them use network marketing channel. One of them(manufacturers) open a new offline brand stores,along with their network channel,which forms dual channel supply chain system model.We study the effect of advertising on the pricing and profit. Compare and analysis the Nash equilibrium of decentralized and centralized decision model.Finally, the paper study on several advertising fee payment, manufacturers and retailers make a cooperative advertising contract, which can coordinate the conflict between the supply chains effectively and avoid the endless price war and ultimately achieve a win-win goal for supply chain members.