Impact Of Promotion On Inventory Strategy Of Dual Channel Retailers

While the growth rate of offline retail industry is very slow,the total retail sales of online retail companies continue to grow.With the rapid development of Internet technology and the increasingly personalized and diversified consumer demands,the market environment has become increasingly The more dual-channel retailers.There have been many researches on channel selection problems and inventory strategies of dual-channel retailers,and they are very mature in theoretical models.It is very necessary to study the actual inventory problem in the business operation process.When retailers are conducting promotions,it is a common marketing tool for retail stores.The article examines the relationship between promotions and dual-channel retailer inventory strategies.First,the article identifies the factors that influence the online demand of retailers and the demand of retail outlets for offline retailers.The common influence factors are price and consumer preferences.Second,the article uses big data analysis,independent sample t-test,and correlation analysis to analyze the influencing factors of online channel demand and offline channel demand.The result is that the factors affecting the retail channel's online channel demand are customer volume and customer conversion rate.The factors affecting the offline channel demand are the number of customers and the choice of promotion strategy,and have nothing to do with the distance of the competing products shop.Third,the article considers the influencing factors to construct the demand function separately.In the next part,the inventory strategy model is established and the model is solved by case studies.In the solution process,the Markov chain is used to calculate the equilibrium state probability in the inventory of the library.And analyze the relationship between the influencing factors involved in the promotion and the dual-channel retailer inventory strategy.Through an example analysis,the overall profit of a dual-channel retailer is high when consumers clearly prefer a single channel;The increase in the number of sales efforts,such as the number of customers,customer conversion rate,and sales promotion strategy,will result in an increase in the optimal inventory quantity of the channel.Otherwise,the optimal inventory level of the channel will remain unchanged.In addition,the promotion of these three factors in promotional efforts will lead to an increase in channel sales profits and promotion costs so that the total profits of dual-channel retailers will increase first and then decrease.When the promotion effort level is related to the ratio of channel demand transfer,the result is that the total profits of the two channels increase first and then decrease,and the optimal inventory level of online channels continues to rise.At the same time,the optimal inventory level of offline channels remains unchanged.Therefore,it is suggested that dual-channel retailers can focus on increasing customer conversion rate and increasing number of customers when formulating promotional strategies.These aspects have a greater impact on total profits,and the impact of channel demand transfer ratio on total profit is less significant.Since the number of customers in a cycle after promotion still keeps increasing,the profit of a dual-channel retailer after one round of promotion is higher than that of a non-promotion cycle.The innovation of this paper is to use the data analysis method to derive the factors that influence the online demand and offline demand of the retailer during the promotion.At the same time,the article uses the Markov chain to solve the dual-channel retailer inventory model.