Research On Multi-brand Strategy In The Presence Of Copycat

As consumers' spending power continues to escalate and product preferences diversify,it is difficult for a single product to meet consumers' demand.Traditional FMCG(Fast Moving Consumer Goods)brands,in order to continuously capture the market,participate in the high-end brand show,and "learn from" the concept of high-end brand products design.The production of a high degree of similarity to the high-end brand products will effectively adapt to the market's "fast" demand.Thus FMCG brands will make huge profits.With the advent of imitations,high-end companies realize that the willingness of high-end consumers to buy will gradually decrease.So it's necessary for high-end companies to take measures to offset this impact.Entering the segmented low-end market through multi-brand strategy is the long-term development trend of enterprises.Introducing competition to the low-end market may reduce the impact of copycat.In this dissertation,we study the multi-brand strategy of high-end enterprises from the perspective of consumer consumption decision making model,and construct a two-stage sequential game model to study the equilibrium decision of high-end enterprises' products in different situations under the copycat background.Through the generalization of domestic and foreign literature,it is found that foreign scholars mainly study the impact of copycat and high-end brand products on consumer psychology from the perspective of consumer psychology and marketing.However,domestic scholars have conducted few research on topics related to copycat.Research on brand strategy and copycat is relatively scattered.There is little literature on quantitative studies that combine corporate branding decisions with product imitation behavior.This dissertation constructs a two-stage sequential game model of consumer decision making.The market is divided into two sub-markets and the product price decision is studied under three scenarios: there is copycat in the low-end market,there does not exist copycat in the low-end market,and high-end companies use low-end brands to enter the low-end market.Next,this dissertation examines the effects of consumer uniqueness preference and consistency preference on product price,demand of two sub-markets,firm profit,and firm profit margin through equilibrium results analysis and numerical analysis.Research results show that the existence of imitation products will reduce the market demand for high-end products and the optimal profit of high-end enterprises,but high-end enterprise can introduce low-end brand products into the target market through price competition.Multi-brand strategy of high-end enterprise can reduce the demand for copycat in the low-end market to a certain extent,thereby reducing the impact of copycat on the total profit of high-end enterprise.The introduction of a multi-brand strategy may lead to higher optimal profits for copycat enterprise,whose profit margins are affected by consumers' sensitivity to the social utility of the product.