Research On Cooperative Advertising Strategy Of Online Retail Platform

With the rapid development of online retail market,online channel as a supplementary mode of traditional retail channel plays an increasingly important role.The emergence of online retail platforms intensifies the competition between platforms.Advertising strategy is one of the most commonly used strategies for online retail platform to obtain consumers.In order to improve competitiveness and save costs,more and more online retail platforms choose to cooperate with manufacturers,such as "618 Plan","East Alliance Plan" and "Tianhe Plan".The model is similar to the traditional cooperative advertising model,in which manufacturers share advertising costs for the network platform.It has been proved that cooperative advertising strategy can effectively improve supply chain profits in traditional retail channels,but in the dual-channel model,manufacturer's profits come from both online and offline channels.Therefore,whether the emergence of online retail platform will affect the cooperative advertising strategy between manufacturers and traditional retailers,whether manufacturers should cooperate with the network platform has become an important issue.This paper puts forward the following research questions: whether the cooperative advertising strategy research between online retail platform and manufacturer is good for network supply chain.The introduction describes the concepts of online retail market,retail platform and cooperative advertisement strategy.The first chapter summarizes the research on cooperative advertisement.Chapter 2 studies the application of cooperative advertising strategy in dual-channel supply chain,we establishes Stackelberg two-stage model where manufacturer as leader,traditional retailer and online retail platform as follower to analyses the optimal decision-making and cooperation strategy among channel members,then we compares non-cooperative advertising strategy,unilateral cooperative advertising strategy(manufacturer cooperates with only one of them)and dual-channel.By solving the mathematical model and comparing different strategies,we can draw the following conclusions:(1)Cooperative advertising strategies are beneficial to improve manufacturer profit;(2)The manufacturer's optimal strategy is to cooperate with both retailer;(3)The traditional retailer's optimal strategy is that manufacturer only cooperates with the retailer,and the online retail platform's optimal strategy is that manufacturer only cooperates with the platform;(4)There is a "relative" optimal strategy: all channel members should participate in cooperative advertising strategy,which may reduce the profit of retailers or platforms,but the proportion of reduction is the smallest.In order to obtain more consumers,manufacturers usually choose to set up sales stores on different online retail platforms at the same time,the competition between manufacturer and platform form a network cross-competitive supply chain,the network cross competitive supply chain is the expansion mode of dual-channel supply chain.In the third chapter,we analyze the application of cooperative advertising strategy in the network cross-competitive supply chain.We establish a Stackelberg two-stage bargaining model with the manufacturer as the leader and the platform as the follower,and manufacturer 1 as the leader of the two manufacturers.By solving the mathematical model and comparing the strategies,we can draw the following conclusions:(1)the commission ratio of commission platform affects the manufacturer's optimal strategy;(2)the optimal strategy of online retail platform is that two manufacturers choose to bear the advertising cost simultaneously;(3)the optimal strategy between channel members is inconsistent,but there is a "relative" optimal strategy: two manufacturers are separated to bear the cost of one platform.The choice of the two manufacturers is related to the commission ratio and the position of the manufacturers in the channel.At this time,the profit of the platform may be reduced,but it is still better than the non-cooperative strategy.This paper studies the efficiency of cooperative advertising between online retail platform and manufacture.According to the characteristics of channels,this problem can be divided into two specific research issues.The effectiveness of cooperative advertising in dual-channel supply chain and the effectiveness of cooperative advertising in network cross-competitive supply chain.By solving the mathematical model and comparing different strategies,we can see that even if profits will be damaged,traditional retailers and platforms should actively participate in cooperative advertising strategies.