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.