The Manufacturer's Co-op Advertising Counterstrategy to Private Label

摘要

By selling own brand, the retailer becomes at once themanufacturer's customer and his competitor. The paper gaveEquilibrium strategies of cooperative and non-cooperativeadvertising. We concluded that the manufacturer's profitincreases and the retailer's profits decrease with the co-opadvertising program, Our findings suggest that the co-op plan isan efficient counterstrategy for the manufacturer and the retailerwould accept its implementation only if the national brandcompetes strongly with the private label.