Research Of Dynamic Cooperative Advertising Strategy Based On Ingredient Branding Strategy

Ingredient Branding Strategy is the brand management activities aimed at promoting ingredient branding through the brand promotion of the final product.It helps supply chain participants to establish brand advantages and enhances consumers'perceived quality of ingredient brands and final products,as well as creating consumer demands.The core is a reward-based mode of cooperative advertising.That is,to encourage the manufacturer to integrate ingredient branding of the supplier in his final product and advertisement,the ingredient supplier takes part of the advertising cost for the manufacturer.In the same time,the supplier also advertises directly to the end clients.With the success of enterprises such as Intel and Dolby,Ingredient Branding Strategy has attracted the attention of marketers and scholars.However,the problem of cooperative advertising decision-making,which has not been fully researched,is still the main challenge faced by business practice of Ingredient Branding Strategy.Therefore,this paper studies the dynamic cooperative advertising strategy between suppliers and manufacturers,under the background of Ingredient Branding Strategy.Firstly,On the basis of Ingredient Branding Strategy,the basic model of dynamic cooperative advertising is constructed to specific the problem,taking the single manufacturer-single supplier case as an example.It describes the impact of advertising on brand goodwill,according to the extended Nerlove-Arrow model.Assuming the game between supplier and manufacturer is the supplier-driven Stackelberg game,there are generalized profit function and dynamic optimization problem of two different patterns,both of which are direct advertising allowance model and indirect advertising subsidy model.Then,based on the fundamental model of Chapter 3,it analyzes the Ingredient Branding Strategy of direct advertising allowance model,and discusses the cooperative advertising strategies of two different supply chain structures:(1)single supplier-single manufacturer,(II)single supplier-two manufacturers existing advertising competition.Using the differential game method,we obtain each member's optimal strategy and their optimal steady state goodwill level under the strategy.Besides,the influence of the implementation of the Ingredient Branding Strategy and the competition between the manufacturers on the optimal decision is further analyzed,combined with the numerical examples.It is indicated that each channel members acquire more benefits from both the appropriate advertising competition between the manufacturers and the implementation of Ingredient Branding Strategy.In addition,the fifth chapter minutely analyzes the optimal advertising decision,the optimal goodwill and profit level of the channel members,when implementing the Ingredient Branding Strategy using the indirect advertising subsidy mode.Research shows that,to meet certain conditions,the indirect advertising subsidy cooperation mode is also beneficial to the channel members.Finally,numerical examples are used to specific the significance of the system parameters to the optimal decisions and performance of channel members.We still compared the optimal strategy and the results of two different cooperative patterns,to choose the more optimal decision of the channel members.It is found that the two cooperative advertising subsidy modes have different conditions.If all system parameters are identical,the direct advertising allowance mode is superior,but if some conditions are attached,the indirect advertising subsidy mode may be superior.All in all,whether adopting direct advertising allowance model or using the indirect advertising subsidy model,each channel members and the supply system acquire more benefits from both the appropriate advertising competition between the manufacturers and the implementation of ingredient branding strategy.