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The Double Marginal Effect between Established National Brands and Emerging Brands

In: Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)

Author

Listed:
  • Yuchen Zhu

    (Jilin University of Finance and Economics, School of Economics)

Abstract

Based on the double marginal effect model caused by the joint venture of MOUTAI and Luckin, a sequential game model is established to consider whether to joint venture. In the context of the development of the market by various brands, a horizontal difference model is established to explore the optimal decision of the new and old brands to joint venture and the impact on the two brands. The main factors affecting the brand to expand the specific market are investigated. The conclusion shows that the joint venture of the new brand (Luckin) and the old brand (MOUTAI) is a win-win decision, which promotes the understanding of the young people to MOUTAI, broadens the MOUTAI (old brand) in the dynamic main consumer market, improves the sales volume and profit of Luckin, and finally weakens the double marginal effect, improves the living environment of the new and old brands, and improves the viability.

Suggested Citation

  • Yuchen Zhu, 2024. "The Double Marginal Effect between Established National Brands and Emerging Brands," Advances in Economics, Business and Management Research, in: Hongbing Cheng & Sikandar Ali Qalati & Noor Sharoja Binti Sapiei & Mazni Binti Abdullah (ed.), Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024), pages 210-216, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-506-5_24
    DOI: 10.2991/978-94-6463-506-5_24
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