Channel Competition Decision after Store Brand Introduction

Abstract

The paper analyzes the channel competition decision under the channel structure with two symmetric manufacturers and one retailer. We reach some findings: Store brand will result in the decline of national brand wholesale price and retailing price. Store brand introduction will result in the decline of national brand profit, and the decline of imitated national brand profit is evident when store brand positions to one national brand. Store brand introduction can improve the retailer profit. Store brand positioning to one national brand is superior to positioning in the middle of two national brands.