Identifying and Prioritizing the Selection Criteria of Estahban's International Dried Fig Market

Document Type : Research Paper

Authors

Department of Agricultural Economics, School of Agriculture, Shiraz University, Shiraz, Iran

10.22059/ijaedr.2024.363845.669243

Abstract

Estahban’s dried fig is one of the most important export products in the agricultural sector and the best type of dried fig in the world. Surveys indicate that most fig exporters have weaknesses in international marketing, positioning and maintaining it, and they generally use the unsystematic method in international market selection. Meanwhile, choosing the right market is one of the primary factors of success and growth of companies in global markets, which requires the use of different criteria and the use of systematic methods in their analysis. Therefore, the purpose of this study was to identify and prioritize market selection criteria for large and small companies that export Estahban’s dried figs. For this purpose, 40 criteria and sub-criteria for the selection of international dried fig markets were identified and prioritized using the fuzzy hierarchical analysis method. The required information at this stage was collected by completing 17 questionnaires from large and small trading companies of Estehban’s dried figs. The results of the research showed that large and small companies have different subjective preferences for each of the model indicators. Also, the highest priority among the examined criteria in large commercial companies is given to economic factors and in small commercial companies to market potential.

Keywords

Main Subjects


Extended Abstract

Introduction

International market selection is a crucial aspect to consider before entering foreign markets. The traditional literature on IMS defines two approaches - systematic and non-systematic. In Iran's agricultural sector, Estahban's dried figs are highly sought-after export products and are considered one of the best types of dried figs in the world. However, surveys have shown that most fig exporters lack a strong international marketing strategy and tend to use unsystematic methods when selecting international markets. This can have a negative impact on their position and positioning in the global market. Choosing the right market is a key factor in the success and growth of companies in the global market. This requires the use of different criteria and systematic methods in market analysis. Preliminary investigations have revealed that Iran's business partners for dried figs are limited and the market experiences high fluctuations in different years. If fig businesses do not pay attention to IMS and its related issues, they may face various problems such as confusion, lack of planning, suboptimal allocation of company resources, inability to compete with foreign competitors, and failure to gain or maintain a position in the international market. This can lead to increased risk and decreased income. Therefore, conducting a study to identify and analyze opportunities in the global fig market can help improve exports and subsequently increase production.

 

Methods

If the information available to the IMS is limited, vague or incomplete and has a high level of uncertainty, the use of fuzzy logic is effective. Fuzzy logic along with approaches such as AHP, TOPSIS, neural networks, fuzzy inference methods and several others have been used in IMS-related articles. For this reason, this research also presents a fuzzy model based on several decision criteria for international market selection. For this purpose, 40 criteria and sub-criteria for the selection of international dried fig markets were identified and prioritized using the fuzzy hierarchy analysis method. The information needed at this stage was collected through 17 questionnaires from large and small trading companies of Estahban's dried figs.

 

Results

After examining the opinions of fig exporters and experts on criteria for the IMS process, it was found that there are 6 main criteria and 19 sub-criteria that should be considered. The study revealed that
market potential and economic factors are highly important for both small and large companies, with small companies ranking it as the top criteria and large companies ranking it second. This suggests that most exporters prioritize indicators such as public demand, compliance cost, level of competition, gross national product, per capita income, trade balance trends, fig production power, and per capita consumption of dried fruit in the target market when evaluating and selecting potential markets. Additionally, the results indicate that political and cultural factors are given lower priority. This could be due to exporters' preference for wholesale markets rather than retail markets.

 

Discussion

In most cases, the dispersion and lack of statistics related to the target countries have caused Estahban's fig merchants to choose international markets in an unsystematic manner, often simply imitating other dried fruit exporters. However, this approach can lead to failure and increased risk in the international arena if it does not take into account the internal power and capacities of each business. To address this issue, it is recommended to establish a "Comprehensive Marketing Information Monitoring and Processing System". This system can be set up by large companies, even privately, as it is both possible and economical. However, for small companies, it can be implemented as a support policy by relevant politicians. This system would collect and process all marketing information from target countries, allowing businesses to select target markets based on their own criteria, policies, and internal capacities. Additionally, utilizing commercial consultants and providing access to cultural and political information of countries can facilitate the presence of exporters at the retail level in target countries and increase their profit margin.

Amin-Tahmasbi H, Saltooni A. (2020). Investigating the interaction of factors in the target markets of Iranian Handwoven carpets for export using fuzzy DEMATEL. Goljaam, 16 (37), 19-40. In Persion.
Andersen, O., & Buvik, A. (2002). Firms' internationalization and alternative approaches to the international customer/market selection. International Business Review, 11, 347-363.
Armando Deaza, J., Díaz, N. F., Castiblanco, S. E. & Barbosa, M. I. (2020). International market selection models: a literature review. Tendencias, 21(2), 191-217.
Brouthers, L. E., & Nakos, G. (2005). The role of systematic international market selection on small firms’ export performance. Journal of small business management, 43(4), 363-381.‏
Buckley, J. J. (1985). Fuzzy hierarchical analysis. Journal of Fuzzy Sets and Systems, 17(3), 233-247.
Buckley, J. J., Feuring, T., & Hayashi, Y. (2001). Theory and methodology: fuzzy hierarchical analysis revisited. European Journal of Operation Reseach, 129(1), 48-64.
Cano, J. A., Campo, E., & Gómez-Montoya, R. (2017). International market selection using weighing and Monte Carlo simulation. Polish Journal of Management Studies, 16, 40-50.
Chang, D. (1996). Theory and methodology: applications of the extent analysis method on fuzzy AHP. European Journal of Operational, 95(3), 649-655.
Food and Agriculture Organization of the United Nations. (2022). FAOSTAT: Crops and livestock products. Retrieved from http://www.fao.org/faostat/en/#data/QCL.
Gogus, O., & Boucher, T. O. (1998).  Strong transitivity and weak monotonicity in fuzzy pairwise comparisons, Journal of Fuzzy Sets and Systems, 94(1), 133-144.
Górecka, D., & Szałucka, M. (2013). Country market selection in international expansion using multicriteria decision aiding  methods. Journal of Multiple Criteria Decision Making, 8, 31-55.
Hedenbergh, M., & Råberg, J. (2016). International market selection among Swedish retailers, Phys. Rev. 47, 777-780.
Horner, S., Baack, D., & Baack, D. (2016). The role of psychic distance in internationalization strategy evaluations and strategic choices. Journal of Business Strategies, 33(1), 17-48.‏
Javanmard, M., Mahmoudi, H. (2008). A SWOT Analysis of Organic Dried Fig Production in Iran, Environmental Sciences, 6(1), 101-110.
Marchi, G., Vignola, M., Facchinetti, M., & Mastroleo, G .(2014). International market selection for small firms: a fuzzy-based decision process . European Journal of Marketing, 48(11-12), 2199-2212.
Miečinskienė, A., Stasytytė, V., & Kazlauskaitė, J. (2014). Reasoning of export market selection. Journal of Procedia-Social and Behavioral Sciences, 110, 1166–1175.
Mirakbari, Z., Mojaverian, M., Rafiee, H., & Amirnejad, H. (2020). Clustering Target Countries of Iranian Pistachio Exports Based on Hybrid Meta-Heuristic Algorithms, Iranian Journal of Agricultural Economics and Development, 51(3), 413-427. In Persion.
Mohammadzadeh-Asl, N., & Mohammadi, F. (2011). Investigating factors affecting Iran's non-oil exports with an emphasis on globalization. Economic Sciences Journal, 6(21), 7-30. In Persion.
Mojaveriyan, M., Ahmadi, S., Amirravan, M. 2016. Determination of medical plant export target markets in Iran, Iranian Journal of Agricultural Economics and Development, 46(4), 729-732. In Persion.
Musso, F., & Francioni, B. (2012). How do smaller firms select foreign markets?. International Journal of Marketing Studies, 4(6), 44-53.
Ozturk, A., Joiner, E., & Cavusgil, S. T. (2015). Delineating foreign market potential: a tool for international market selection. Journal of Thunderbird International Business Review, 57(2), 119-141.
Papadopoulos, N. & Martín Martín, O. (2011). International market selection and segmentation: perspectives and challenges. International marketing review, 28(2), 132-149.
Priya, P. and Venkatesh, A. (2012). Integration of analytic hierarchy process with regression analysis to identify attractive locations for market expansion. Journal of Multi‐Criteria Decision Analysis, 19(3-4), pp.143-153.
Rask, M., Strandskov, J., & Håkonsson, D. D. (2008). Theoretical Perspectives on the Internationalization of Firms. Journal of Teaching in International Business, 19(4), 320-345.
Saaty, T. L. (1970). How to make a decision: the Analytic Hierarchy Process. European Journal of Operational Research, 48(1), 9-26.
Sakarya, S., Eckman, M., & Hyllegard, K. H. (2007). Market selection for international expansion: Assessing opportunities in emerging markets. International Marketing Review, 24(2), 208–238. 
Schu, M., & Morschett, D .(2017). Foreign market selection of online retailers — a path-dependent perspective on influence factors. International Business Review, 26(4), 710-723.
Silva, S., Meneses, R., & Radomska, J. (2018). A holistic perspective on the international market selection phenomenon. Journal of East European Management Studies, 23(4), 529-552.
Yazdani, S., Baghbanhaghighi, S., & Aminizadeh, M. (2021). Measuring the Export Efficiency of Iran's Agricultural Products in ECO Countries: Application of Stochastic Frontier Gravity Model. Iranian Journal of Agricultural Economics and Development Research, 14, 20-30. In Persion.
Zadeh, L. A. (1965). Fuzzy sets. Journal of Information and Control, 8(3), 338-353.
Zhou, J., Yang, F., & Wang, K. (2016). Fuzzy arithmetic on LR fuzzy numbers with applications to fuzzy programming. Journal of Intelligent & Fuzzy Systems, 30(1), 71-87.