The Manufacturer´s Co-Op Advertising Counterstrategy to Private Label

By selling own brand, the retailer becomes at once the manufacturer´s customer and his competitor. The paper gave Equilibrium strategies of cooperative and non-cooperative advertising. We concluded that the manufacturer´s profit increases and the retailer´s profits decrease with the co-op advertising program, Our findings suggest that the co-op plan is an efficient counterstrategy for the manufacturer and the retailer would accept its implementation only if the national brand competes strongly with the private label.