Cooperative Advertising Strategies Of Supply Chain Based On Stackelberg Game

As a common communication form, advertising has been widely existed in many links of the supply chain. With the increasingly fierce market competition, the advertising cost of the enterprise reflects a growing tendency which might bring the huge consumption for enterprises. In this case, cooperative advertising has been arised. Cooperative advertising is a type of supply chain cooperation, in which the manufacturer offer a part of advertising expenditures for the retailer. Accordingly,the enterprises of suply chains can achieve the win-win through the vertical cooperation between upstream and downstream enterprises in a supply chain, and the horizontal cooperation between manufactures or retailers from different supply chains. This paper mainly focuses on three aspects of cooperative advertising of supply chain.First of all, the advertising strategy problem has been studied for a short life cycle products in a closed-loop supply chain. The closed-loop supply chain is formed of a single manufacturer and a single retailer(recycler), and the retailer is incentived to join in the behaviors of the sale and recycling advertising through the cooperative advertising provided by manufacturer. By using life cycle theory and Stackelberg game, the optimal cooperative advertising and pricing strategies have been proposed for manufacturers and retailers at different stages of life cycle. And the relationship has been discussed between the optimal advertising strategies of supply chain members, the optimal discarded product pricing strategy and the cooperation advertising subsidy rate.Secondly, two competitive supply chains are considered and the optimal horizon cooperative advertising strategy problem has been studied for two competing manufacturers. For the two chain distributed decision(DD), two chains are centralized decision(CC) and one chain decentralized decision and the other chain are centralized decision channel structures(CD), we construct mathematics model and solve by using the game method and the optimal cooperative advertisingstrategies has been obtained for each member in the supply chain under the situation of horizontal cooperative advertising between manufacturers. Further, we discuss the impact of the manufacturer horizontal cooperative advertising on the local advertising of retailers and the profits of manufacturers. Finally, we given the necessary conditions in which manufacturers adopt the horizontal cooperative advertising.Finally, integrated the content of the above two parts, based on the DD channel structure of part two, we develop a model with a horizontal cooperative advertising of manufacturers level and vertical cooperation, which two manufacturers have capacity variance. The optimal equilibrium solution of the model has been presented under the manufacturer dominated case or retailer dominated case, and the impact of the subsidy rate of vertical advertising and the level of horizontal cooperative on the profits of manufacturers.