U Enterprise Dual Channel Pricing Strategy Considering Advertising Investment

The birth of the dual-channel supply chain meets the needs of traditional enterprises to broaden their sales channels.Whether the effective management of dual channel supply chain can be realized is an important symbol of the market competitiveness of modern enterprises.With the popularization and development of Internet e-commerce technology,consumers have gradually become accustomed to price comparison purchases,and at the same time,corporate brand promotion methods have become rich and diverse from the original singularity: among them,national advertising and joint advertising are used in many manufacturing companies.National advertising means that manufacturers bear all advertising costs to advertise on national media.This advertising will increase the demand for both online and offline channels due to its greater influence,joint advertising refers to advertising in offline physical stores where members of the supply chain share the advertising costs.The main increase is the demand of offline retailers,and there will be some spillover effects from manufacturers' online demand.At the same time,pricing,as an important factor in dual-channel supply chain management,also has new pricing strategies under new advertising factors.How to make reasonable pricing decisions and advertising investment strategies to maximize profits is an urgent problem for companies to solve.The research subject of this dissertation,U Company,is the world's largest manufacturer of daily chemical consumer products.At present,there are two coexisting advertising decision-making methods in the company,but the relationship between advertising,pricing and profit is not clear.Based on this background,this dissertation uses mathematical modeling and empirical analysis to first construct demand and profit functions under national and joint advertising,and find the optimal pricing and the best advertising investment level under centralized supply chain decision-making and decentralized decision-making based on Stackelberg master-slave game,giving the best joint decision under different circumstances;Then,combined with the empirical analysis,select the pricing and advertising data of a certain shampoo product of a single brand of U companies as experimental data.Aiming at the current problems of the company,study the optimal pricing and advertising investment joint decision-making problems of U companies in different advertising investment methods,providing solutions and optimization plans for companies to improve their profit levels.The model problem was solved through operations research,game theory,marketing,and finally the following conclusions and management suggestions were obtained:U company's channel pricing is directly related to advertising investment,consumers' preference for online channels,and decision-making methods.The pricing under national advertising is lower than that under joint advertising,and under national advertising,direct sales prices and retail sales Prices are both greater when they are dispersed than when they are concentrated;under joint advertising,both direct selling prices and retail prices are greater when they are concentrated than when they are scattered.When an enterprise chooses one of the decision-making methods,it should choose according to the channel preference when making pricing.In centralized decision-making,when the online channel preference is greater,the dual-channel pricing of national advertising should be less than the pricing of syndicated advertising Under the decentralized decision-making,when the preference for online channels is greater,the direct selling pricing of national advertising should also be lower than that of joint advertising,while the retail price should be higher under national advertising.In the choice of advertising investment,first investing in national advertising and then choosing joint advertising is the best solution for manufacturers to decentralize decision-making;when manufacturers choose centralized decision-making,they should choose joint advertising to maximize their own and overall profits.There are 20 figures,26 tables and 77 references in this dissertation.