Prioritization of Eastern-Azerbaijan PEGAH Company’s Marketing Strategies: Using DEMATEL and VIKOR Methods

مجله اقتصاد و توسعه کشاورزی

Article 3, Volume 32, Issue 2 - Serial Number 40, July 2018, Pages 109-121   

Document Type: Research Article

DOI: 10.22067/jead2.v32i2.65767

Authors

E. Pishbahar^{* 1}; R. Ferdowsi²; B. Hayati²

¹University of Tabriz

²University of Tabriz

Abstract

Introduction: The dairy industry in Iran, for the proper use of production capacities and achieving a desirable position in a competitive environment, especially in the international arena, first requires the success of the domestic market using the right marketing methods. As a result, knowing the appropriate marketing strategies with respect to the company's situation can help further the growth of this industry. Marketing strategy is a tool for the organization to respond to competitive situations, and the existing frameworks in this field will help the company to effectively interact with the strategic sectors of the company and external factors. The marketing strategy can help create and develop knowledge and skills in the company, focus on customer needs, facilitate information and activity in a dynamic market environment. Due to the changing environment, having the appropriate strategy can help firms survive and gain competitive advantage; because the chosen strategy must also satisfy the needs of the target market, as well as comply with market and organizational objectives.
Material and Methods: Given that measures the quantity and quality as compliance with sanitary and environmental, risks, the economic - commercial, customer satisfaction, a competitive advantage, innovation and alignment with the market and align with internal process influence on appropriate marketing strategy and often are interdependent, it is a difficult, complex and cumbersome activity. In this research, by study of library resources, the most important criteria on the choice of appropriate marketing strategy to sell dairy products of Eastern Azerbaijan Pegah Company were identified. Due to the difficulties, using of tools that could be modeling network relationships could be useful. DEMATEL method is one of the known methods for determining network relationships between variables. So in this article a hybrid model based on Analytical Hierarchy Process (AHP), DEMATEL and VIKOR techniques have been proposed to prioritize marketing strategies. For this purpose, the weight of criteria is calculated by AHP method and using a pair wise comparison process. Then DEMATEL method according to the interdependence criteria, reform its weight importance. Finally, VIKOR method is used for prioritizing alternatives (strategies).
Results and Discussion: In the first stage of this research, with the assumption of the independence of the criteria, a AHP model was used to calculate the weights of the criteria. In the next stage, assuming the interdependence between the criteria, a hybrid method AHP-DEMATEL was used, and it was found that the final weight obtained both methods are almost identical, and the result is that the criteria of the model are not interdependent. In addition, based on the weights obtained for the criteria, the most important criteria were as follows: compliance with the health and environment, align with the internal process, risk, economic-commercial, having competitive advantage, innovation and alignment with the market, and customer satisfaction. The DEMATEL technique also concludes that Pegah should consider the competitive advantage criterion as the most important criterion in choosing its marketing strategy because it takes the most impact from other criteria and has the most impact on other criteria. In the last step, four considered strategies in the present study were ranked with VIKOR method and concluded that diversification and focus strategies are the first priority for the East Azerbaijan Pegah company. In addition, the integration strategy and defensive strategy respectively are the second and third priority.
Conclusions: The results of AHP model showed that compliance with the principles of health and environmental criteria is mainly criteria in the selection marketing strategy of the company. The results of DEMATEL techniques showed that the risk, economic - trade and innovation criteria and to align with market standards are cause criteria and among them, the criterion of "economic-commercial" has the greatest impact on other criteria. While compliance with the principles of environmental and health standards, customer satisfaction, competitive advantage and alignment with the company's internal process criteria are disabled. The results of VIKOR model also showed that diversity and focus strategies are first priority for the Pegah Azerbaijan Company. Then, the impact of each of the criteria obtained on four marketing strategy including the integration strategy, focus strategy, diversification strategy and defense strategy were reviewed and defensive strategy as the best marketing strategy for Eastern Azerbaijan Pegah Company was determined. And integration strategy, diversification strategy and focus strategy are the next priorities respectively. Be recommended that the Eastern Azerbaijan Pegah corporate executives instead of using plastic bags, bottles and plastic packaging, use bags that are biodegradable in the environment. The company directors also have a long-term plan to develop new products, and to understand the needs and demands of customers and their complaints and herds increase customer satisfaction.

Keywords

Food security; FSI index; Kermanshah Province; Self-sufficiency index

References

1- Alaybeyoglu E., Albayrak E., and Gurbuz T. 2012. Criteria weighting and 4-P planning in marketing using analytic network process. Proceedings of the international multi conference of engineers and computer scientists. Vol. II, IMECS, March 14-16, Hong Kong.

2- Amiri M. 2011. Determine the position of technology management in the Sepah Bank using the Analytic Network Process. Industrial Management Outlook, 4: 9-27.

3- Borza S.I., and Borza I.C. 2014. A broad analysis of marketing strategies for their incorporation as activities in a user centered process. 21st International Economic Conference, IECS 2014, 16-17 May, Sibiu, Romania. procedia economics and finance, 16(2014): 239-250.

4- Client Center Website. http://www.decideo.ir

5- Fontela E., and Gabus A. 1976. The DEMATEL observer, DEMATEL 1976 Report. Switzerland, Geneva: Battelle Geneva Research Center.

6- Ghodsipur S.H. 2002. Discussions on Multi-criteria Decisions. Amir Kabir University Press, Third Edition.

7- Ghofrani M., Farshchi V., and Azizi M. 2015. Investigation and Identification of Effective Indices of Customer Loyalty to Brand in the Furniture Industry with Analytical Hierarchy Process. Iranian Journal of Wood and Paper Research, Vol. 29, 2: 310-323.

8- Hoseyni M., Mohtaram R., and Asadi Kargan A. 2016. Identification of factors influencing the selection of market development strategies of Zar Makaron Industrial Company. Magazine Quarterly Journal of Advertising and Marketing, No 2. Pp: 89-98.

9- Jafarnejad Chaghooshi A., and Karimi Zarchi M. 2014. Using Integration of Fuzzy AHP– VIKOR for Selecting the Best Strategy in Green Supply Chain Management. Global Journal of Management Studies and Researches, 1(1): 46-53.

10- Karimi Shirazi H., Modiri M., and Farajpoor Khanaposhtani Gh. 2015. A New Hybrid MCDM model DEMATEL -ANP-VIKOR to Prioritize Nanotechnology Applications in the Food Industry. Journal of Operations Research and its Applications, No 3(42). PP: 13-33

11- Ketabi S., Ansari M.E., and Naseri Taheri M. Choosing the Appropriate mix marketing using AHP technique with strategic marketing planning approach. Journal of Faculty of Administrative Sciences and Economics, University of Isfahan. Year 17.

12- Khajuyipour A., Mohammadinejad A., Shabanzadeh M., and Khubyarishoorbaz H. 2016. Selecting a competitive marketing strategy using the analysis network process (Case study: Rafsanjan Pistachio Producer Cooperative Company). Journal of Agricultural Economics and Development, Year 24, pp: 25-43.

13-Mahmudi Meymand M., and Khoobyari Shoorbaz H. 2013. Application of Analytic Network Process (ANP) in Selecting Marketing Strategy. Iranian Rubber Industry Journal, 72: 45-55.

14- Mehrmanesh H., Saeidi N., Lesani P., and Bayrami Lataran A. 2012. Strategy Development and Prioritization of Behnoush Iran's Company Strategies by Comparing Fuzzy Approaches and QSPM. Journal of Research in New Marketing Research. Year 2, 3(6): 135-154.

15- Mirzayi Chaboki M. 2010. Development of strategy for Chuka Company and ranking of strategies with Fuzzy Topsis Technique. Master's thesis, Faculty of Management, Islamic Azad University, Tehran Branch.

16- Mohaghar A., Fathi M. Reza., Karimi Zarchi M., and Omidian Asia. 2012. A Combined VIKOR-Fuzzy AHP Approach to Marketing Strategy Selection. Business Management and Strategy. ISSN 2157-6068, vol. 3, No. 1.

17- Mohammadi H., and Sani Heydari A. 2016. Factors Affecting the Selecting the Type of Marketing Strategy for Food Products at Growth and Product Introduction Stages (Case Study of Mashhad City). Agricultural Economics Journal, Volume 10 No. 4, pp: 1-21.

18- Mombini H., and Yazdani Chamzini A. 2014. Presentation of a new method for prioritizing investment strategies in the private sector of Iran. Quarterly Journal of Investment Knowledge, Third Year, 11: 259-289.

19- Mousavidosty S., and Haji Ali Akbari F. 2014. The Study of Factors Affecting Marketing Strategies for Exporting Dairy Products of Pegah Zanjan Company. International Management Conference, Tehran, Mobin Institute of Cultural Ambassadors,http://www.civilica.com/Paper-ICOM01-ICOM01_0909.html

20-Nejatbakhsh V., and Bahremand SH. 2015. Formulation, Evaluation and Prioritization of Strategies of a Manufacturing Company Using the FUZZYTOPSIS-SWOT Combined Model. Case Study: Pak Tehran Dairy Company. The First International Conference on Accounting, Management and Business Innovation, Gilan, New thinking pioneers Institute and the Sumeaesara Municipality, Farabi Culture and Arts Complex, Office of Culture and Guidance.

21- Opricovic S. 1998. Multi-criteria Optimization of Civil Engineering Systems. Faculty of Civil Engineering, Belgrade.

22- Opricovic S., and Tzeng G.H. 2004. The Compromise Solution by MCDM methods: A Comparative Analysis of VIKOR and TOPSIS. European Journal of Operational Research, 156, 445-455.

23- Rahimnia F., Pouya A., and Afshani M. 2012. Effect of Relationship in Marketing Channels on Marketing Strategies (Case Study: Food and Beverage Producers of Toos Industrial Town in Mashhad). Master's thesis in Business Management, International Marketing Trend.

24-Rahmani F., Blurryan Tehrani M., and Hedighi A. 2013. Strategy Development in the Competitive Environment of the Dairy Industry Based on Michael Porter's Five-Power Model (A Case Study in Dairy Company of Haraz Amol). Master's thesis, Mazandaran University of Science and Technology, MBA.

25- Rashidi M., and Roshan Aligholi. 2016. Identification and Prioritization of Marketing and Sales Strategies of Cement Company. Public Management Research, Year 8, No 29, pp: 87-106.

26- Saei Y. 2015. Strategic Marketing Planning and Choosing the Right Strategy Using the AHP Technique (Case Study: Industrial Units). International Conference of Management, Economics and Financial Systems.

27- Samadi M., and Fakher A. 2009. Strategic Marketing Planning and Choosing the Right Strategy Using AHP Technique (Ahwaz Pipeline Company). Journal of Daneshvar Behavioral Sciences, Shahed University, Sixteenth Year, New Period, 35: 82-69.

28- Sarmad Saeidi S., and Abdollahi Bejestani A. 2016. Identify and Prioritize Integrated Marketing Communication Tools (IMC) in the Food Industry Using AHP Techniques (Dina food industry). Marketing Management Magazine, No 29, pp: 85-100.

29- Shafei R. 2012. Investigating the impact of market presence strategies on managerial attitudes and their relationship with the selection of marketing indicators in industrial production companies. Journal of Research in New Marketing Research, Year 2, 4 (7): 87-104.

30- Shahhoseyni M.A., Nazari M., and Hashemi M.S. 2015. Analysis of Marketing Strategies of Private Banks of Iran during the Depression in 2013 and 2014. Journal of Management Science of Iran, year 9, No 33. Pp: 125-145.

31- Shahhoseyni Bide Sh., Morovati Sharifabadi A., and Zanjirchi M. 2015. Comparing the performance of organizations in implementing customer relationship management using a hybrid approach ANP and Fuzzy DEMATEL. Journal of Research in New Marketing Research, Year 4. No 4(15). Pp: 195-212.

32- Tamura H., and Akazava K. 2005. Structural modeling and systems analysis of uneasy factors for realizing safe, secure and reliable society. Journal of Telecommunication and Information Technology, 3: 64-72.

33- The website of Bazargostar Pegah Company. www.bazaarpegah.com.

34-Vafa Shokohosadat., Hoseyni Mirzahasan., and Nasiri P. 2011. Investigating the Impact of Knowledge and Consumer Relationship with the Brand on Current and Future Purchases (Pegah Industries Co.). Master's thesis, Faculty of Management and Accounting, Payame Noor University of Alborz Province.

35- Wu H.Y., Tzeng G.H., and Chen Y.H. 2009. A fuzzy MCDM approach for evaluating banking performance based on balanced scorecard. Expert System with Applications, 36: 10135-10147.

36- You X., Liu H., and Zhen L. 2015. Group Multi-Criteria Supplier Selection Using an Extended VIKOR Method with Interval 2-tuple Linguistic Information. Expert Syst. Appl. 42, 1906-1916.

37- Zeleny M., and Cochran J.L. 1982. Multiple Criteria Decision Making, McGraw-Hill: New York, NY, USA, Volume 25.