Private Branding Analysis with the Intervention of Marketing Efforts on Channel Competition

Abstract

Over the past decades, the retail industry has been continuingly prosperous through the constant booming of Chinese economy, a reality that retailers brand their store names or other private labels to products made by unaffiliated manufacturers. However, mass of data shows that retailers are reluctant to maximize their marketing efforts without private labels; from this perspective game theory was used to construct models for three modes, by which two distinguished circumstances depended on whether to adopt private branding. The results reveal a new theoretical insight into private branding choice that retails will not be fully motivated to optimize their marketing efforts on product branded by manufacturers because of the brand specificity. In addition, results also offer an internal condition of private branding strategy and its relevant factors. I’ve built my hope that this approach of private branding is useful to retailers who need scientific suggestions for crafting an efficient branding strategy.