Abstract: Aiming at an omnichannel system where a manufacturer provides consumers with Buy-Online, Pick-Up-in-Store (BOPS) service through a retailer’s offline channel, coupon promotional strategy is studied under the case of manufacturer-monopoly and the case of retailer introducing a private label. How the manufacturer and retailer improve their brand competitiveness and outcomes is explored by designing price and coupon face value. It is found that under the manufacturer-monopoly case, the higher the wholesale price or the unit compensation, the larger the price and the coupon face value. However, a sufficiently large wholesale price reduces the profit of the manufacturer. It does not absolutely reduce the price of the national brand if the retailer introduces a private label. When the wholesale price is relatively low, the manufacturer can still set a high price and offer a coupon with a large-value in the BOPS channel. Besides, the introduction of private label reduces the profit of the manufacturer, while it increases the profit of the retailer. In this situation, the manufacturer should response by charging a low wholesale price.

Key words: omnichannel supply chain; brand competition; coupon promotion; pricing strategy