Co-Promotion Strategies And Coordination In Dual-Channel Supply Chain

With the rapid development of Internet, more and more companies selling direct though Internet as well as traditional retail channel, namely called dual-channel sales model. Dual-channel mode has stronger market penetration and can meet the diverse needs of consumers. But at the same time how to coordinate the two channels become an urgent problem to these companies.Under the background of highly competitive market environment, promotion has become an important competitive instrument in modern market. Enterprise send product information to consumers by promotion in order to stimulate their demand. The spillover effects of promotion cause free-riding phenomenon among manufacturers and retailers in real life, which restrain their initiative for promotions. Therefore, it’s essential to study joint marketing strategies for Dual-Channel supply chain.Based on the papers at home and abroad, this paper mainly analyzes the sale-promotion strategic of dual-channel supply chain with agreement price and dual-spillovers. This thesis mainly analyzes the following contents around the design and control with the method of theoretical analysis, mathematical modeling and simulation.First, considering coordinate the channel conflict of dual channel model supply chain under consistent price througl. promotional efforts. The study found with no promotional efforts when adopting manufacturer pricing decisions, retailer pricing decisions and centralized pricing decisions two-channel supply chain, pricing conflicts exist when the same pricing model. After the promotional efforts to introduce into the demand function, the simulation analysis results manufacturer and retailer sales promotion decision situations can ease decision-channel conflict situation to some extent, but cannot achieve dual channel supply chain Pareto improvement. Joint marketing strategy can achieve supply chain performance dual-channel Pareto improvement, prompting the development of dual-channel members centralized decision making.Second,this paper consider spillover with demand function and import distribution ratio of promotional investment between the two channels, allocation ratio of promotional invest-ment between the two channels were introduced into the promotional model, combined promotion strategy and supply chain performance were solved under the situation of centralized decision-making decision manufacturers decision-making and retailers decision-making.We conclude that distribution ratio between the two channels are independent of the scale of investment and promotion, decision-party distribution corresponding to proportions;joint marketing strategies under these cases remit the negative impact of dual-channel supply chain to some extent, profit growth of channel members are proportional to their share of investment promotion, the growth rate is equal to manufacturers and retailers; the joint promotion strategy under centralized decision-making situation is more acceptable, indicating the promotion allocation strategy is fair and reasonable and promoting centralized decision-making transit to decentralized decision-making.