Optimal production of remanufactured products with collaboration and co-branding of luxury brands

Abstract

Remanufactured products belong to the category of environmentally friendly products. Here, we develop models and strategies for collaborating and co-branding of luxury brands with other companies for producing remanufactured products of luxury brands. Then, we examine whether the strategies can coordinate them for producing remanufactured products or not, because of small market share of luxury brands, they should co-brand with a company which has large market share for expanding the market share and selling the remanufactured product. We use a specific name for a brand of remanufactured product because of preventing change of viewpoint of customers to the luxury brand and avoiding brand switching. Producing a new type product should not hurt the status of the luxury brand. Thus, all the possible circumstances should be considered in the process of introduction of a new brand. After development of remanufactured products, we describe different ways and models of advertising for expanding sales by employing differential game models. Overall, we describe the complete activities that are necessary for development of a new brand. As a specific case, we choose the production of remanufactured products by luxury brands which can be a new subject for future research. We find expansion of luxury brand’s market share a new issue. Moreover, producing remanufactured and environmentally friendly products with secondhand materials by luxury brands is a new subject. In the last part, we perform sensitive analysis to examine the effect of parameters on decision variables and presenting managerial insights.