Iranian Journal of Agricultural Economics and Development Research

Iranian Journal of Agricultural Economics and Development Research

Analyzing the Branding Challenges of Damavand’s Apple: using Grounded Theory

Document Type : Research Paper

Authors
Siavash Noori
Mehrdad Niknami
Mohammad Sadegh Sabouri
Department of Agricultural Extension and Education, Garmsar Branch, Islamic Azad University, Garmsar, Iran
10.22059/ijaedr.2023.352345.669195
Abstract
Iran ranks fifth in apple production in the world, and Damavand apple has good production in this regard, but this product does not have a suitable brand in national and international markets. The purpose of this research was to analyze the branding challenges of Sib Damavand: through the application of foundational data theory. The research method was qualitative and it was based on the data theory. The statistical population were specialists and experts in the field of branding agricultural products, who were selected using the purposeful sampling method and the snowball technique. Sampling continued until theoretical saturation was reached and finally 15 people were selected as a sample. The data was collected through semi-structured interviews. For data coding, maxqda12 software was used to validate the results using the Lincoln and Goba evaluation method. Retest reliability (consistency index) and intrasubject agreement method (reproducibility index) were validation methods. The results showed; Retest reliability index is 79% and intra-subject agreement is 76%. Based on this, a foundational theory of the challenges of Damavand apple branding was drawn. The central phenomenon of Damavand apple branding challenges and causal conditions (expectations and experience of customers, international competition, attitude and knowledge of farmers, abuse of product names, sales and marketing issues) and strategies (branding knowledge, strengthening organizations, Incentives and drivers, government and agricultural jihad role), background conditions (Ability to produce products with high quality and quantity, skilled manpower, knowledge and communication and access to the market), intervening conditions (brand cost, market monopoly, export, research and development) and finally cause Creating consequences (more sales and higher prices, development of exports, increase in income and development of the agricultural sector of the city) were drawn.Key words: Branding, Damavand apple, grounded theory, competition, export.
Keywords
Branding
Competition
Damavand’s Apple
Export
Foundation Data Theory

Extended Abstract

Objectives

    Food industry is one of the most important sectors of the country's industry, which is closely related to the food security of the society. The increase in population along with the expansion of urbanization and increase in the level of per capita income has increased the need for processed foods day by day. The food industry market is a market in which brand identity is very important and customers' decisions are very sensitive in it. In the long term, they can achieve better performance by gaining a competitive advantage among competitors, and this competitive advantage leads to an increase in sales over time at present, most of the agricultural products in Iran are offered in bulk form without brand name and only with the name of the variety or the name of the city. Although these types of names can also be called a type of brand name, but such names are not capable of creating a commercial and competitive concept and will only refer to the customer's perceptions of the class and type of product, not the customer's understanding of the perceived values of the product. If the brand name is created accurately and purposefully, it can help the development of the market of agricultural products inside and outside the country.

 

Research method

This research is qualitative with an inductive approach, and, considered an applied research. Since there is no deep understanding of the research topic, it is an exploratory research by nature. The current research sought to form a conceptual framework or develop a theory, on this basis, was used "grounded Theory". The statistical population was specialists and experts in the field of branding agricultural products, who were selected using the purposeful sampling method and the snowball technique. Sampling continued until theoretical saturation was reached. Obviously, in this case, with a non-random approach, the samples to be selected and the required information have been collected. The interview session with experts lasted 98 minutes on average. After collecting the data from the focus groups, the extracted information was entered into Maxqda software and coding was done.

 

Results and Discussion

The results showed that five categories of identification of customers' expectations and experience, international competition, attitude and knowledge of farmers, abuse of product names, sales and marketing issues are the causal conditions of Damavand apple branding. It seems that the inability of Damavand apples to compete with foreign samples has led to low product prices and ultimately low exports. On the other hand, the low export and lack of recognition of Damavand apples in the national and international markets has caused low sales and marketing ability, considering the high quality and quantity of Damavand apple production and branding this product is necessary. Knowledge and communication, market access. Skilled human resource and the ability to produce with high quality and quantity were the background conditions effective on branding strategies. In general, it can be said that Damavand city has good potentials and capacities in the field of apple production, and this has provided the main conditions for branding this product, and based on this, we can act on the basis of these capabilities and increase the added value of Damavand apples. Branding. Examining the conditions of the interventionist showed; Brand cost, market monopoly, export, research and development are the five main categories and obstacles in Damavand apple branding. The cost of creating a brand is high, especially for small-scale operators, and these operators often prefer higher profits in the short term. Also, proper research has not been done on the implementation strategies of branding agricultural products, and as a result, farmers have not been trained. The monopoly of the market has also caused this product to remain unknown in the markets. Based on the results, the four categories of branding knowledge, strengthening organizations, incentives and drivers, and the government and agricultural jihad are effective as strategic conditions in Damavand apple branding. Encouraging branding through the provision of incentives and stimuli by the government and related organizations such as agricultural jihad is effective on the will of farmers in branding. These drivers are through reducing the cost of export taxes and introducing target markets at international levels. Finally, more sales at a higher price, development of exports, increase in income and development of the agricultural sector of the city, improvement of production were identified as the consequences of Damavand apple branding. Branding, despite the higher costs at the beginning, will gradually increase sales and increase the quality of products, and this will also increase the reputation of the brand and ultimately bring more profit to the manufacturer. When a brand is well known nationally and internationally and the products are of good quality. Consumers are willing to pay a higher price for it, so the producers' income increases.

 

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Iranian Journal of Agricultural Economics and Development Research
Volume 55, Issue 1
Spring 2024
Pages 113-129