Identifying and Ranking Marketing Strategies to Develop Iran's Leather Market: The Case of Maral Leather Company
Subject Areas : Strategic planning
Hafez Mahfoozi
1
,
Nilofar ImanKhah
2
1 - Employee of Stock Exchange Tehran Co
2 - Firuzkouh Branch, Islamic Azad University
Keywords: leather industry, marketing strategy, positioning, segmenting, targeting,
Abstract :
Abstract The purpose of this study is to identify and rank the marketing strategy with the approach of development, market, leather, Iran in Maral Leather Company.The present study method was of mixed type of quantitative and qualitative type. Using the snowball method, 10 people were estimated as the final sample and were interviewed in depth.At the same time, the statistical population included managers, .In this stage, 10 people were selected as the final sample using the purposeful sampling method and answered the prepared questionnaire.Analysis of research data was performed in qualitative stage using open, axial and selective coding and in a small stage using SPSS software and using Friedman test.The results of this study: Induction was the most important criteria of segmentation strategy on product market development in Iranian leather industry, including managers' attention to strategic beliefs, the most important criteria of targeting strategy include how to exploit new and innovative markets and the most important criteria of positioning strategy It has been an industry.Also, according to the results of Friedman test in prioritizing the criteria of targeting strategy, targeting, positioning and segmentation in the Iranian leather market, are: attention, Iranian leather industry and exporters union to the appropriate strategy, identifying the position and personality of strategic resources and the need for strategic resources.
Identifying and ranking marketing strategies to develop Iran’s leather market: The case of Maral Leather Company
Abstract
The present research aimed to identify and rank the marketing strategies for the development of the Iranian leather market in a case study on Maral Leather Company using a mixed-methods design composed of a quantitative and a qualitative phase. In the qualitative phase, the Delphi technique was employed to extract the appropriate criteria. Then, a conceptual model was developed, and it was validated in a case study in Maral Leather Company. The statistical population in the qualitative phase was composed of all academic and marketing experts with a history in Iran’s leather market out of whom 10 people were sampled by the snowball technique for in-depth interviews. The statistical population in the quantitative phase was composed of all managers, producers, and exporters in Iran’s leather market and Maral Leather Company. In this phase too, 10 people were sampled by the purposive technique to answer the questionnaire developed for the research. The research data were analyzed by open, axial, and selective coding in the qualitative phase and by Friedman’s test using the SPSS software package in the quantitative phase. Based on the results, the most important criterion for the segmenting strategy to develop a market for Iran’s leather industry is the managers’ attention to strategic beliefs, the most important criterion for the targeting strategy is how to exploit new and innovative markets, and the most important criterion for the positioning strategy is the identification of the status and appropriateness of the strategic resources of this industry. Also, Friedman’s test shows that the most important criteria for the targeting, positioning, and segmenting strategy in Iran’s leather market include “attention of Iranian leather industry and exporters union to appropriate strategy”, “identifying the status and appropriateness of strategic resources”, and “attention to the personality characteristics of the target market”, respectively.
Keywords: leather industry, marketing strategy, positioning, segmenting, targeting
Introduction
In todays’ dynamic business environment, an appropriate strategy is needed for business companies to be competitive or at least to stay where they are in their field of operation. In this context, a strategy is like a plan which guides the future and thereby differentiates firms from one another even from the same industry. Kotler et al. (2013) define marketing strategy as the marketing judgment; whereby, businesses strive to achieve marketing goals. Berndt and Tait (2012) state that marketing strategy aims to gratify present customers fully and comprehensively and, as a result, they do word-of-mouth advertising about how satisfied they are with the product/service.
Specialized marketing strategies are reflected in activities such as marketing communications, personal sales, pricing, and product development, as well as distribution in commodity-oriented industries. These strategies are important, especially in companies that emphasize the elements of focus-based product-market strategy because the establishment of advantage links with potential and actual customers depends on these capabilities of the company. Both specialized capabilities of marketing and marketing architecture are necessary for product distinguishing (Rahimzadeh & Zare, 2016). Marketing architecture supports distinguishing strategies by collecting data on the market environment and developing marketing programs by using these data. Many strategy researchers agree that the companies that focus on the efficiency cost dimensions of product-market strategies have less need to enhance their marketing capabilities whereas the companies that emphasize distinguishing-based strategies need a high level of marketing capabilities (Vorhies et al., 2009).
It is the responsibility of any business to differentiate itself from its competitors, by making use of its relative business strengths to gratify customer needs appropriately within a certain environmental setting. This requires that companies owners or managers be familiar and gain knowledge of marketing and running their businesses successfully to make positive contributions (Ciubotariu 2013). Schmid and Kotulla (2011) found that managers make decisions depending on the sensitivity of the firm’s position. For managers to understand how detailed marketing strategies are, situational factors influencing strategic decisions must be considered.
Therefore, the essence of strategy is selecting to perform activities otherwise than rivals do (Porter, 2000). Hence, without an appropriate strategy, a company is unlikely to succeed unless success comes through chance. Webb et al. (2011) state that “if marketing conceptions can be carefully thought and combined with the business processes, they will facilitate in increasing performance”. Ruhdelius (2011) proclaim that marketing could be a device to empower the firm to advance its objective, it is a strategy that organization implement to support both the organizations and management’s objectives in the fulfilment profit and success. Dzisi and Ofosu (2014) define marketing as a matrix of commercial activities structured to promote, plan, price, produce; distribute goods, services, and ideas for the fulfilment of appropriate customers and clients strategically.
Owomoyela et al. (2013) perceives marketing strategy as method of delivering a distinct product that fulfils all the requirements of customers, proposing affordable prices and engaging in broader distribution and support it with a real promotional strategy. Ghouri et al. (2011) asserts that executing appropriate marketing strategy advances the overall activities of the business excellently and further strengthens the market share and the firm’s competitive advantage. Kotler and Keller (2014) state that the connection between marketing and marketing strategy is that the “formation and maintenance of unremarkably satisfying interchange relationships”.
Gbolagade et al. (2013) found that marketing strategies significantly influence business performance. Owomoyela et al. (2013) concur with Gbolagade et al. (2013) that “previous researches have established a profitable relationship between the marketing strategies and also the business performance”. Arsalan et al. (2011) state that it is essential to formulate the marketing strategies in each entity necause it permits the business to broaden its territory. Marketing strategy is one of the key efficient strategies that company adopt to enhance performance (Dzisi & Ofosu 2014). Van Scheers (2011) recommends that business managers percieve and build business marketing strategies for products and services, as their success relies on the capacity to shape an increasing body of satisfied clients. Therefore, marketing strategies serve as the most pillar and add value in enhancing organisational performance (Hassan et al., 2013).
Based on the research, the leather industry in Iran believes that competition and acquisition of competitive advantages in the context of global trade will be feasible and more achievable by having a coherent policy and strategy and using organizational strategic planning. Precisely knowing the strengths and deeply understanding the strategic fields of the organization can remarkably help the managers to take effective measures (Amirosadat et al., 2019). Despite its many competitive advantages and the high sales rate in Iran, the leather industry has failed to win a good share in exports to global markets for various reasons, e.g., the lack of proper marketing, the non-use of modern international trade techniques, and the weakness in creating a customer database to identify target customers and their needs and orient production with their tastes and needs. Traditional views and focus on the organization’s input resources such as educated and experienced human resources, high quality of the products, and low final costs have diverted the managers of this industry from paying attention to other aspects, and despite the extensive potential of different geographical regions for the products of this industry, its exports to the international markets have unfortunately been negligible (Motafakker Azad et al., 2011). Another issue is the introduction of many foreign and domestic competitors to this market, which has jeopardized the position of this industry. So, maintaining the market share is another concern of the managers. The fact that there is no formulated marketing strategy in Iran’s leather industry has made this research imperative to answer the question as to what the criteria are for an appropriate marketing strategy with market development approach and how they are ranked. In this regard, there is little research that had been done on marketing strategies amongst the leather industry in Iran. There is not enough information relating to marketing strategy contribution towards the success or failure of leather companies in Iran. Pawan and Pawan (2013) state that marketing strategies serve as the important support of the developed marketing plans to reach the marketing needs. According to Van Scheers (2011), marketing skills is considered one of the most active factors towards the organisations’ growth and survival. Lack of marketing skills and appropriate strategies can impact the leather industry's success in Iran, together with factors that affect their marketing strategy formulation. This research aims to determine the marketing strategy of leather companies. The research further aims to contribute to the current knowledge of marketing's influence on Iran’s leather industry performance.
Materials & Methods
To achieve the research objectives, a mixed methods research design was adopted. The design was applied in two phases. The first phase involved the collection and analysis of qualitative data from expert panel and semi structured interviews with academic experts and informants in the Iran’s leather market; the second phase was the collection and analysis of the quantitative data from a survey of managers or advisors of leather products companies, as well as the managers, producers, and exporters who were active in the leather market and Maral Leather Company. The research design enabled in-depth understanding of the status of marketing strategy in Iran’s leather market. The research applied a mixed methods approach through two integrated studies:
Study One involved 10 academic experts to gain a better understanding of Iran’s leather market as well as the participants’ opinions regarding the marketing strategy in this sector. These experts were sampled by the snowball technique for in-depth interviews. The interview was started with people who were experts. Also, at the end of the interview, they were asked to introduce other experts to participate in this research. Moreover, the adequacy of sampling was reached by the theoretical sampling method. In theoretical sampling, in-depth interviews with experts go so far as to reach theoretical saturation. In the qualitative phase, the Delphi technique was used to identify the appropriate criteria, and after a conceptual model was developed.
Study Two comprised structured interviews with experts within all managers or advisors of leather products companies, as well as the managers, producers, and exporters who were active in the leather market and Maral Leather Company to validate the extracted model, and to clarify and add further insights to the qualitative results obtained from the Delphi panel. In this phase too, 10 people were sampled by the purposive sampling technique to answer the questionnaire developed for the study. Finally, the identified components were ranked in terms of the targeting, positioning, and segmenting strategies.
To identify the status of the marketing strategy in Maral Leather Company, experts were asked to give the score to each concept from 0 to 100. A score of 0-10 shows the statements without support or lack of evidence. Score 15-35 indicate the weakness of the desired aspect of the structured interview. It shows that experts have only paid attention to this aspect. Score 40-60 show the desired aspect in the structured interview is average or has done acceptable work. A score of 65 to 85 shows desired aspect is good based the opinion of the experts. A score of 90 to 100 is excellent in the desired aspect of the structured interview.
Data were analyzed by open, axial, and selective coding in the qualitative phase and by Friedman’s test using the SPSS software package in the quantitative phase.
Results
The respondents answered the questions related to the marketing strategy dimensions in terms of the segmenting, targeting, and positioning criteria. Based on the analysis of the interviews, Tables 1-3 present the criteria that are appropriate for the segmenting, targeting, and positioning strategies with the Iranian leather market development approach.
Expert’s panel opinion regarding segmenting category coded in to three concepts, demographic factors, psychological and behavioral factors, and geographical concepts.
The majority of expert panel underlined important factors matters of segmenting strategy criteria and considered them as one of the main concepts to be valued during the designing market strategy. Table 1 shows the indicators related to all those three concepts. For instance, in terms of Psychological and behavioral factors experts stated that “Organizational culture based on active partnership of employers, workers, and the market”, “The youth’s perception of the use of leather products being prestigious” should be considered in market strategy.
Table 1. Concepts and categories identified for the segmenting strategy criteria
Category | Concept | Final codes |
Segmenting | Demographic factors | The effect of employment status and unemployment rate on leather market production and sales |
Lack of planning for the recruitment of the active population in the leather market | ||
The growing rate of the young population and their interest in leather products as the target community | ||
The immigration of experts and the loss of specialized human resources in the fields of production and export of leather products | ||
Human resource management and the effect of product multiplicity, and market diversity on ultimate productivity | ||
Extensive communication of employees and managers with leather market partners | ||
Psychological and behavioral factors | Organizational culture based on active partnership of employers, workers, and the market | |
The youth’s perception of the use of leather products being prestigious | ||
Class restrictions on the use of leather products, especially clothing | ||
Cultural flexibility in changing management practices | ||
The personality characteristics of the target market | ||
Managers’ attention to strategic beliefs | ||
Market adjustment and stability of developed strategies | ||
Capacity of risk-taking in international markets | ||
Attention to innovation in the production and distribution of commodities and services | ||
Geographical factors | The effect of climatic and geographical conditions on the use of products and the absorption of the target community | |
Ideological and cultural instances in customs and traditions for the use of leather products | ||
Having a dynamic and efficient product transportation system | ||
Proximity of production centers to consumption centers | ||
Ease of access to domestic resources and raw materials |
After interviewing with experts, the appropriate targeting criteria for identifying the international target market with the Iranian leather market development approach were identified as shown in Table 2. Parnels indicated 25 statements which are concepted in three groups, exportation, competitors, and target marker.
Table 2. Concepts and categories identified for the targeting strategy criteria
Category | Concept | Final codes |
Targeting | Exportation | Legal facilitation of the export platform of leather products to neighboring countries |
Facilitation of customs regulations for export to international markets | ||
Specific subsidies to compete with neighboring leather-producing countries | ||
Reducing legal gaps in the process of production and export of leather products | ||
Exogenous characteristics of international markets | ||
Export profitability | ||
Exchange rate fluctuations and their impact on the export of leather products | ||
How to be present and advertise in international markets | ||
Features of manufacturing and trading companies in the domestic leather market | ||
Attention of Iranian leather industry and exporters union to the appropriate strategy | ||
Gradual and possible changes in the competitive resources of international markets | ||
How to exploit new and innovative markets | ||
Competitors | Setting long-term and medium-term goals | |
Increasing competitiveness in the leather industry with countries in the region | ||
Improving bargaining power with customers and suppliers | ||
Strategies for providing alternative services to competitors | ||
Studying and analyzing the working method of current competitors | ||
Target market | Recognizing the characteristics and goals of customers | |
Examining the characteristics of the target market | ||
How to choose a target market | ||
Having the necessary capacity to invest | ||
Setting the goal to differentiate products from competitors’ products | ||
Setting the goal to provide special services to customers | ||
Having a history in the leather industry | ||
Adopting modern methods to advertise the products |
Table 3. Concepts and categories identified for the positioning strategy criteria
Category | Concept | Final codes |
Positioning | Advantages | Determining the company’s performance based on customer feedback |
|
| Setting up a monitoring and responding system for customer critiques and recommendations |
|
| The competitiveness of the manufactured products versus the global market context |
|
| Identifying the status and appropriateness of strategic resources |
|
| Recognizing and having the values demanded by the target market |
|
| Improving the transfer of managerial and marketing mentality to internal and external arenas |
|
| Creating synergies in the process of international trade |
|
| Taking a high risk in decision-making |
|
| Improving the management and business relations and capabilities of the company |
| Distinctions | Identifying weaknesses and threats in domestic and international markets |
|
| Enhancing the efficiency and performance of the company |
|
| Improving the quality of manufactured and exported products |
|
| Providing appropriate in-service and after-sales services |
|
| Developing an optimal recruitment protocol for employing capable forces in the field of marketing |
|
| Proportionality of measures related to customer perception of the brand |
|
| Necessary potential to promote sales in domestic and international markets |
Finally, the final 61 extracted codes are classified into eight concepts, three sub-categories and eight categories. The data analysis procedure led to the creation of the theoretical model including segmentation, targeting, and positioning strategies that explain the main phenomenon, namely the development of an appropriate marketing strategy with a development approach to the Iran leather market.
After formulating a conceptual model of marketing strategy with a leather market development approach, structured interviews with experts of a specific brand in the Iran leather market (Maral leather) are applied to assess the conceptual model for this case study. This part presents the results of the structured interviews with the representatives of a certain brand in Iran’s leather market (i.e., Maral Leather Company) within the context of an intra-case analysis (description of cases independent of one another). Since the results of the structured interviews were extensive, only the results related to the categories of segmenting, targeting, and positioning are presented here.
Therefore, regarding the segmenting strategy category in Maral Leather Company, class restrictions on leather product use, especially clothing is the most significant concept of this company’s strategy.
Table 4. The final status of the segmenting strategy category in Maral Leather Company
Concepts | Description | Score |
The effect of employment status and unemployment rate on leather market production and sales | Considering the employment conditions and the decrease in the production level of this company, it can be said that the human resource cutting, and the unemployment of employees have been effective on the status of the company in particular and the Iranian leather products market in general. | 37.5 |
Lack of planning for the recruitment of the active population in the leather market | No plan has been developed for the recruitment of the active population in this company due to unprecedented economic sanctions and the lack of raw materials on the one hand and the challenges of modernizing and upgrading equipment on the other. | 41.7 |
The growing rate of the young population and their interest in leather products as the target community | No plan has been developed for the recruitment of the active population in this company due to unprecedented economic sanctions and the lack of raw materials on the one hand and the challenges of modernizing and upgrading equipment, the loss of the company’s economic capacity, and human resource cutting on the other. | 34.5 |
The immigration of experts and the loss of specialized human resources in the fields of production and export of leather products | Over the past decade, several experts and specialists in various fields of production and trade of this company have immigrated. | 65.3 |
Human resource management and the effect of product multiplicity, and market diversity on ultimate productivity | In this company, the human resources unit is very active and despite the problems ahead, it is very concerned about productivity and final return. | 79.8 |
Extensive communication of employees and managers with leather market partners | In this company, there are not enough considerations for extensive communication between employees and managers, but the relationship between partners and managers is appropriate. | 39.5 |
Organizational culture based on active partnership of employers, workers, and the market | In this company, there are no significant considerations for promoting the participation-oriented organizational culture. | 32.5 |
The youth’s perception of the use of leather products being prestigious | Many managers of the company believe that leather products in some societies are associated with a kind of social prestige among the youth, so efforts should be made on institutionalizing belief in the target market of Iran with advertising programs. | 74.3 |
Class restrictions on the use of leather products, especially clothing | The average price of the company’s products versus domestic competitors has somewhat overcome the class restrictions on the use of leather products and clothing in the Iranian target market. | 87.0 |
Cultural flexibility in changing management practices | There is no significant flexibility in changing management methods in this company and there is an unwritten insistence on traditional management methods. | 35.7 |
The personality characteristics of the target market | In this company, the personality traits of the target market have been ignored as an effective factor in formulating a marketing strategy. | 11.5 |
Managers’ attention to strategic beliefs | Managers’ strategic beliefs for overcoming potential competitors follow a traditional and new logic. | 21.7 |
Market adjustment and stability of developed strategies | Due to market fluctuations, the marketing strategies of the company do not have proper stability and executive guarantee. | 15.6 |
Capacity of risk-taking in international markets | The company’s ability to take risks versus international markets is very low due to international issues and challenges and restrictions on foreign exchange. | 18.3 |
Attention to innovation in the production and distribution of commodities and services | In this company, no attention has been paid to innovation in the production and distribution of neglected goods and services. | 12.5 |
The effect of climatic and geographical conditions on the use of products and the absorption of the target community | Not much attention has been paid to the geographical factor and the impact of climatic conditions on the use of products and attracting the target community in the marketing affairs of this company, and the most advertising focus is on large cities regardless of the climatic situation. | 20.6 |
Ideological and cultural instances in customs and traditions for the use of leather products | Some company managers believe that in some parts of the Iranian society and international markets, there is special attention to not using leather and leather products in the ideological beliefs of the region, so the necessary culture must be created to use the products and synthetic leather should be introduced to people, but they have currently no place in the company’s plans. | 11.5 |
Having a dynamic and efficient product transportation system | The company does not need a dynamic and efficient product transportation system since it has active agencies in some large cities and metropolises, as well as online stores. | 60.8 |
Proximity of production centers to consumption centers | This category is not the concern of managers in this company. | 9.8 |
Ease of access to domestic resources and raw materials | Due to economic turmoil, unprecedented increase in inflation, and the existence of low quality and cheap imported products and goods, access to high-quality domestic resources required by the company has faced risks. | 56.3 |
This table shows the status of the targeting strategy category in Maral Leather Company. Setting long-term and medium-term goals (88.4) has the best and first rank in Maral company. Contrary, increasing competitiveness in the leather industry with countries in the region (5.5) is ranked in the last place (Table, 5).
Table 5. The final status of the targeting strategy category in Maral Leather Company
Concepts | Description | Score |
Legal facilitation of the export platform of leather products to neighboring countries | Due to legal gaps for export in the Iranian market, competitiveness and related targeting are limited. | 46.3 |
Facilitation of customs regulations for export to international markets | The company uses up-to-date mechanisms, as well as experts familiar with customs laws, in international markets | 74.6 |
Specific subsidies to compete with neighboring leather-producing countries | The company needs subsidies and bank loans with low interest rates and long intermission to be able to successfully compete with neighboring producing countries. | 34.5 |
Reducing legal gaps in the process of production and export of leather products | Reducing legal gaps in the production and export process of leather products enhances the company’s competitiveness and targeting. | 69.6 |
Exogenous characteristics of international markets | The company uses up-to-date mechanisms, as well as experts familiar with the features and rules of international markets. | 75.1 |
Export profitability | In this company, the profitability of exports is moderate and is more affected by foreign policy fluctuations and international sanctions than domestic mechanisms. | 37.2 |
Exchange rate fluctuations and their impact on the export of leather products | Exchange rate fluctuations, sanctions, and a sudden rise in inflation have had a significant effect on the company’s exports. | 51.5 |
How to be present and advertise in international markets | The company has employed people familiar with the characteristics of international markets. | 73.0 |
Features of manufacturing and trading companies in the domestic leather market | There is a working group in the company to monitor and identify the characteristics of manufacturing and trading companies in the domestic leather market. | 81.6 |
Attention of Iranian leather industry and exporters union to the appropriate strategy | The company has a good two-way relationship with the union of Exporters of leather products. | 88.3 |
Gradual and possible changes in the competitive resources of international markets | The company has a working group to monitor and identify gradual and possible changes in the competitive resources of international markets. | 73.5 |
How to exploit new and innovative markets | The company has a working group to deal with how to exploit new and innovative markets. | 70.3 |
Setting long-term and medium-term goals | The company has a mission statement and long-term, medium-term and short-term goals. | 88.4 |
Increasing competitiveness in the leather industry with countries in the region | The company does not have significant competitiveness in the leather industry with countries in the region. | 5.5 |
Improving bargaining power with customers and suppliers | This category is not the concern of managers in this company. | 9.3 |
Strategies for providing alternative services to competitors | The company has plans to provide alternative services and reduce the price of products through this. | 79.1 |
Studying and analyzing the working method of current competitors | This category is not the concern of managers in this company. | 8.6 |
Recognizing the characteristics and goals of customers | The company needs powerful and serious mechanisms to recognize the characteristics and goals of customers. | 14.5 |
Examining the characteristics of the target market | The company needs powerful and serious mechanisms to recognize the characteristics of the target market. | 16.6 |
How to choose a target market | The company needs powerful and serious mechanisms to recognize how to select the target market | 44.3 |
Having the necessary capacity to invest | The company has the necessary capacity to invest in the domestic and international markets with a focus on regional countries. | 73.7 |
Setting the goal to differentiate products from competitors’ products | The company does not have a significant strategy to target differentiating its products from competitors’ products. | 11.3 |
Setting the goal to provide special services to customers | The company does not have a significant strategy to provide special services to customers. | 15.2 |
Having a history in the leather industry | The managers of the company have an acceptable history and experience in the leather industry. | 82.5 |
In terms of positioning strategy category, recognizing and having the values demanded by the target market (84.3) and improving the management and business relations and capabilities of the company (4.6) are the strongest and the weakest strategy in Maral leather company.
Table 6. The final status of the positioning strategy category in Maral Leather Company,
Concepts | Description | Score |
Determining the company’s performance based on customer feedback | The company has no significant strategy to determine the company’s performance based on customer opinions. | 20.5 |
Setting up a monitoring and responding system for customer critiques and recommendations | The company intends to set up a monitoring and responding system for customer critiques and suggestions. | 61.8 |
The competitiveness of the manufactured products versus the global market context | The company has the necessary capacity to compete in the domestic and international markets with a focus on regional countries. | 72.3 |
Identifying the status and appropriateness of strategic resources | The company has the necessary capacity to invest in the domestic and international market with a focus on regional countries. | 82.0 |
Recognizing and having the values demanded by the target market | The company has up-to-date mechanisms, as well as experts familiar with the values demanded by the target market. | 84.3 |
Improving the transfer of managerial and marketing mentality to internal and external arenas | The company does not have a significant strategy to improving the transfer of management and marketing mentality in the domestic and foreign arenas. | 16.1 |
Creating synergies in the process of international trade | The company has a working group to monitor and identify gradual and possible changes in the competitive resources of international markets in order to create synergy in the international trade process. | 72.5 |
Taking a high risk in decision-making | The company has a high capacity for risk-taking in decision-making. | 64.6 |
Improving the management and business relations and capabilities of the company | There are no significant considerations in the company to improve the relations and managerial and commercial capabilities of the company. | 4.6 |
Identifying weaknesses and threats in domestic and international markets | The company has a working group to monitor and identify gradual and possible changes in the competitive resources of international markets to identify weaknesses and threats in domestic and international markets. | 73.9 |
Enhancing the efficiency and performance of the company | The company has a serious concern and long-term plan to increase its efficiency and performance. | 61.5 |
Improving the quality of manufactured and exported products | In this company, there is a serious concern and long-term plan to improve the quality of manufactured and exported products. | 79.3 |
Providing appropriate in-service and after-sales services | This category is not the concern of managers in this company. | 12.1 |
Developing an optimal recruitment protocol for employing capable forces in the field of marketing | This category is not the concern of managers in this company. | 19.5 |
Proportionality of measures related to customer perception of the brand | This category is not the concern of managers in this company. | 8.0 |
Necessary potential to promote sales in domestic and international markets | The company has a working group to monitor and identify gradual and possible changes in the competitive resources of international markets to enhance its potential to promote sales in domestic and international markets. | 72.4 |
Friedman’s test was employed to rank the marketing strategy with the approach of developing the Iranian leather market. Table 7 presents the results as to the significance of Friedman’s test.
Table 7. The significance of Friedman’s test
Number of observations | 10 |
χ2 | 43.211 |
Degrees of freedome | 7 |
Significance | 0.000 |
According to Table 7, the significance of Friedman’s test is confirmed. Since the significance level of Friedman test for ranking marketing strategy was 0.00, so the difference is significant, and the importance of the factors is different.
Tables 8-10 presents the results as to the ranking of marketing strategy criteria with the approach of developing the Iranian leather market for the segmenting, targeting, and positioning strategies. According to the results, prioritizing the criteria of segmenting strategy in the Iran’s leather market are: attention to the personality characteristics of the target market, Ease of access to domestic resources and raw materials, cultural flexibility in changing management practices, organizational culture based on active partnership of employers, workers, and the market, managers’ attention to strategic beliefs, capacity of risk-taking in international markets, Market adjustment and stability of developed strategies and Attention to innovation in the production and distribution of commodities and services (Table 8).
Table 8. Ranking of segmenting strategy criteria in the Iranian leather market
| Final indicator | Mean rank | Rank |
Segmenting strategy | Attention to the personality characteristics of the target market | 3.94 | 1st |
Ease of access to domestic resources and raw materials | 3.93 | 2nd | |
Cultural flexibility in changing management practices | 3.89 | 3rd | |
Organizational culture based on active partnership of employers, workers, and the market | 3.87 | 4th | |
Managers’ attention to strategic beliefs | 3.86 | 5th | |
Capacity of risk-taking in international markets | 3.84 | 6th | |
Market adjustment and stability of developed strategies | 3.80 | 7th | |
Attention to innovation in the production and distribution of commodities and services | 3.77 | 8th |
According to the results obtained in table 9, prioritization of targeting strategy criteria in Iran’s leather market are: respectively, attention of Iranian leather industry and exporters union to the appropriate strategy, having a history in the leather industry, strategies for providing alternative services to competitors, Exogenous characteristics of international markets, Having the necessary capacity to invest, How to be present and advertise in international markets, How to exploit new and innovative markets, Reducing legal gaps in the process of production and export of leather products, Exchange rate fluctuations and their impact on the export of leather products, Setting the goal to differentiate products from competitors’ products and Increasing competitiveness in the leather industry with countries in the region.
Table 9. Ranking of targeting strategy criteria in the Iranian leather market
| Final indicator | Mean rank | Rank |
Targeting strategy | Attention of Iranian leather industry and exporters union to the appropriate strategy | 3.75 | 1st |
Having a history in the leather industry | 3.74 | 2nd | |
Strategies for providing alternative services to competitors | 3.73 | 3rd | |
Exogenous characteristics of international markets | 3.71 | 4th | |
Having the necessary capacity to invest | 3.69 | 5th | |
How to be present and advertise in international markets | 3.65 | 6th | |
How to exploit new and innovative markets | 3.63 | 7th | |
Reducing legal gaps in the process of production and export of leather products | 3.52 | 8th | |
Exchange rate fluctuations and their impact on the export of leather products | 3.43 | 9th | |
Setting the goal to differentiate products from competitors’ products | 3.35 | 10th | |
Increasing competitiveness in the leather industry with countries in the region | 3.32 | 11th |
Table 10 shows the rank of the criteria for a positioning strategy. Identifying the status and appropriateness of strategic resources, Improving the quality of manufactured and exported products, identifying weaknesses and threats in domestic and international markets, and Identifying weaknesses and threats in domestic and international markets are in first to the third rank respectively.
Table 10. Ranking of positioning strategy criteria in the Iranian leather market
| Final indicator | Mean rank | Rank |
Positioning strategy | Identifying the status and appropriateness of strategic resources | 3.87 | 1st |
Improving the quality of manufactured and exported products | 3.86 | 2nd | |
Identifying weaknesses and threats in domestic and international markets | 3.84 | 3rd | |
Necessary potential to promote sales in domestic and international markets | 3.80 | 4th | |
Creating synergies in the process of international trade | 3.74 | 5th | |
The competitiveness of the manufactured products versus the global market context | 3.73 | 6th | |
Taking a high risk in decision-making | 3.71 | 7th | |
Improving the transfer of managerial and marketing mentality to internal and external arenas | 3.69 | 8th | |
Developing an optimal recruitment protocol for employing capable forces in the field of marketing | 3.65 | 9th |
Conclusion & Policy Implications
According to the results, the most important segmenting strategy criterion that influences the development of a product market for Iran’s leather industry from the interviewed experts’ view is the managers’ attention to strategic beliefs. The second and third ranks are attention to the personality characteristics of the target market and the market adjustment and stability of the developed strategies, respectively. This asserts the significance of adopting a segmenting-based strategy for the development of the product market in Iran’s leather industry. Regarding this finding, it can be said that the marketing and business experts of the Iranian leather industry emphasize the development and persistence of a marketing strategy among all segmenting criteria.
The most important criteria of targeting strategy, which can influence the development of product market in the Iranian leather industry are how to exploit new and innovative markets in the first rank, increasing competitiveness in the leather industry with regional countries in the second rank, and having the necessary capacity to invest in the third rank. This implies the significance of the effect of the factors related to competitiveness and target market on the development of a product market for Iran’s leather industry. The experts of marketing and business fields in Iran’s leather industry indeed emphasize the focus on the target market and competition more than other targeting criteria when developing a marketing strategy.
Regarding the positioning strategy criteria that can influence the development of a product market for Iran’s leather industry, the experts suggest that identifying the status and appropriateness of strategic strategies is of uttermost importance followed by the competitiveness of the products in the context of the global market and improving the transfer of managerial and marketing mentality to internal and external arenas in the second and third ranks, respectively. So, the improvement of competitive advantages in the international context has an important role to play in the development of a market for Iran’s leather industry. In other words, the marketing and business experts in this industry argue that the most important positioning criterion is to develop a strategy based on the improvement and distinction of products in competitive international markets.
Based on the results of Friedman’s test, the criteria of the segmenting strategy for Iran’s leather market was ranked as “attention to the personality characteristics of the target market”, “ease of access to domestic resources and raw materials”, “cultural flexibility in changing management practices”, “organizational culture based on active partnership of employers, workers, and the market”, “managers’ attention to strategic beliefs”, “capacity of risk-taking in international markets”, “market adjustment and stability of developed strategies”, and “attention to innovation in the production and distribution of commodities and services”, respectively.
The criteria of the targeting strategy for Iran’s leather market were also ranked by Friedman’s test as “attention of Iranian leather industry and exporters union to appropriate strategy”, “having a history in the leather industry”, “strategies for providing alternative services to competitors”, “exogenous characteristics of international markets”, “having the necessary capacity to invest”, “how to be present and advertise in international markets”, “how to exploit new and innovative markets”, “reducing legal gaps in the process of production and export of leather products”, “exchange rate fluctuations and its impact on the export of leather products”, and “increasing competitiveness in the leather industry with countries in the region”, respectively.
Finally, Friedman’s test ranked the criteria of the positioning strategy as “identifying the status and appropriateness of strategic resources”, “improving the quality of manufactured and exported products”, “identifying weaknesses and threats in domestic and international markets”, “necessary potential to promote sales in domestic and international markets”, “creating synergies in the process of international trade”, “the competitiveness of the manufactured products versus the global market context”, “taking a high risk in decision-making”, “improving the transfer of managerial and marketing mentality to internal and external arenas”, and “developing an optimal recruitment protocol for employing capable forces in the field of marketing”, respectively.
Based on the results, it is recommended to the Iranian Leather Exporters Union or the companies of this industry to hold free training courses to train leather products marketing and development strategists. Also, plans should be developed to increase the awareness of leather market managers and activists about the importance of strategic beliefs, market adjustment, and stability of the strategies. As well, officials and policymakers should adopt macro-level strategies to introduce the status and appropriateness of the Iranian leather industry’s strategic resources at the global level.
Since the research data were collected by interviews, the respondents’ personal opinions may be involved in them as a source of bias in the results. Also, due to the Covid-19 pandemic, all respondents could not be interviewed face-to-face, so most interviews were conducted online or by telephone, which may have imposed limitations on precise information collected from the participants. These points are recommended to be considered in future research efforts.
References
Amirosadat, N., Shafiee, M., Hajipour, B., & Soltanee, M. (2019). Identifying and modeling consumer motivations for participation in the value co-creation in beverage industry (Zamzam Iran Co.). New Marketing Research Journal, 9(2), 53-76. (In Persian)
Arsalan, M.G., Naveed, U.R.K. & Muhammad, A.M. (2011). ‘Marketing practices of textile business and firm’s performance: A case of Pakistan’. Euro Economical, 2(28), 99-107.
Berndt, A. & Tait, M. (2012). Relationship Marketing and Customer Relationship Management. (2nd ed.) Claremont: Juta.
But, I. Kunnar, U. Kummar,V,.(2017). An Empirical Investigation of Factors Influencing the Development of Positioning Strategy, Procedia Computer Science, Volume 122, 2017, Pages 629-633.
Ciubotariu M, S. (2013). The role of small and medium enterprises in the modern economy and the importance of IFRS application for SMEs. The USV Annals of Economics and Public Administration, 13(17), 201-210.
Dzisi S. & Ofosu, D. (2014). Marketing Strategies and the Performance of SMEs in Ghana. European Journal of Business and Management. 6(5), 102-111.
Gbolagade A, Adesola M.A. & Oyewale I.O. (2013). Impact of Marketing Strategy on Business Performance A Study of Selected Small and Medium Enterprises (SMEs) In Oluyole Local Government, Ibadan, Nigeria. Journal of Business Management. 11(4), 59-66.
Ghouri, A.M., Khan, N.R., Malik, A.M. & Razzaq, A. (2011). ‘Marketing practices and their effects on firm’s performance: findings from small and medium sized catering and restaurants in Karachi’. International Journal of Business and Management, 6(5), 251- 259.
Hassan, M.U., Qureshi S.U., Sharif, S. & Mukhtar, A. (2013). Impact of Marketing Strategy Creativity on Organizational Performance via Marketing Strategy Implementation Effectiveness: Empirical Evidence from Pakistani Organizations. Middle-East Journal of Scientific Research, 16(2), 264-273.
Kotler, P. & Keller, K.L. 2014. Marketing management. (14th ed.) Upper Saddle River, NJ: Pearson Prentice Hall.
Mehrmanesh, H., & Saeedi, N., & Lesani, P., & Bayrami Latran, E. (2012). Formulation and categorizing Iran Behnoosh Co. strategies: a fuzzy approach. New Marketing Research Journal, 2(3 (6)), 135-153. (In Persian)
Motafakker Azad, M., & Ghalebi, S., & Jahangiri, K. (2011). Investigation on the comparative advantages and priorities of target markets for exporting Iranian raw hides and skins. Journal of Macroeconomics (Journal of Economics Sciences), 6(11), 149-168. (In Persian)
Owomoyela, S.K., Oyeniyi, K.O. & Ola, O.S. (2013). Investigating the impact of marketing mix elements on consumer loyalty: An empirical study on Nigerian Breweries Plc. Interdisciplinary Journal of Contemporary Research in Business, 4(11), 485-496.
Pawan, K. & Pawan, K. (2013). Marketing Strategies of Small-Scale Industries: A Review. International Journal on Arts, Management and Humanities, 2(2), 35-38.
Philip Kotler; Gary Armstrong; Lloyd C. Harris; Nigel Piercy. (2013). Principles of Marketing. 6th European edition, Pearson, Harlow, UK.
Porter M. (2000). Location, competition, and economic development: local clusters in a global economy. Economic Development Quarterly, 14(1),15–35.
Rahimzadeh, F., & Zareh, A.R. (2016). A study on the role of international marketing strategies in exportation decision-making and performance of saffron exporting companies. Proceedings of 3rd International Conference on Industrial Management and Engineering. (In Persian)
Ruhdelius, H.K. (2011). The Core Marketing. McGraw-Hill Irwin. New York.
Schmid, S. & Kotulla, T. (2011). 50 years of research on international standardization and adaptation— From a systematic literature analysis to a theoretical framework. International Business Review, 20, 491-507.
Van Scheers, L. (2011). SMEs’ marketing skills challenges in South Africa. African Journal of Business Management, 5(13), 5048-5056.
Vorhies D.W., MorganR.E.,& AutryC.W. (2009). “Product-market strategy and the marketing capabilities of the firm: impact on market effectiveness and cash flow performance”. Strategic Management Journal, 30, pp: 1310– 1334.
Webb, W. J. Ireland, R. D., Hitt, M. A., Kistruck, G. M., Tihanyi, L. (2011). Where is the Opportunity Without the Customer? An Integration of Marketing Activities, the Entrepreneurship Process, and Institutional Theory. Journal of the Academy of Marketing Science, 39, 537-556.
