The Research On The Decision Of Store Brand Introduction Under Different Channel Structure

With the increasingly fierce competition in the channel,the establishment of store brand is rapidly affecting the competition among brands.With the advantage of the retailer's terminal market,store brand has been or began to be adopted by more and more retailers.The diversification of the product means more choices to meet the needs of different consumers.For retailers,the introduction of store brand is an important business decision,which is related to how to win the competition between store brand and national brand,and whether brand strategy can be realized.By constructing linear demand function,this paper discusses the strategy choice of store brand under different channel structure,so as to provide suggestions for retailer strategy.The results showed that:(1)No matter in single channel or dual channel structure,retailers' store brand will hurt manufacturers' profits,reduce the wholesale price and retail price of national brand products.And the manufacturer's profit,the wholesale price and the retail price have decreased with the increase of the elastic coefficient of the cross price.The retailer's profit and the retail price of store brand products are increasing with the increase of the elastic coefficient of cross price.(2)Under the dual channel structure,the market performance of the retailer and the manufacturer is affected by the cross price elasticity.When the retailer introduces its store brand,the manufacturer's profit and the manufacturer's wholesale price increase with the increase.But retailer's profit and retail price of store brand have decreased with the increase of retail price.Therefore,the establishment of direct marketing channels can alleviate the impact of retailers' introducing their own brands.Whenever under the single channel or dual channel structure,the retailer's introduction of its own brand has damaged the manufacturer's profit.Therefore,the retailer can't achieve a balanced and stable state by introducing its own brand strategy.In this paper,the profit distribution is coordinated to ensure that the manufacturer's profit is not damaged or even improved.Therefore,when retailers satisfy the requirements of introducing store brand,by coordinating the distribution of profits,retailers can introduce store decisions to a stable state.