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A New Method for Agricultural Market Share Assessment

Author

Listed:
  • Alina Popa

    (The Doctoral School, The Bucharest University of Economic Studies, Bld. Dacia 41, 010404 Bucharest, Romania)

  • Shahrazad Hadad

    (UNESCO Department for Business Administration, The Bucharest University of Economic Studies, Calea Grivitei 2-2A, 010731 Bucharest, Romania)

  • Robert Paiusan

    (Department of Finance, The Bucharest University of Economic Studies, Mihail Moxa Str., 5–7, 010961 Bucharest, Romania)

  • Marian Nastase

    (Department of Management, The Bucharest University of Economic Studies, Caderea Bastiliei Str. 2–10, 010374 Bucharest, Romania)

Abstract

The Romanian market for plant protection products (PPP) is fragmented, dispersed, and very competitive. In recent years, there has been a constant decrease of farmers’ profitability, which has cascaded into the distribution of pesticides, fertilizers, and seeds. Since the structure of any market is dynamic over time, companies can determine the effectiveness of their different marketing strategies using analytical tools. As an alternative to econometric tools for predicting the market share in the farming industry, we propose the analytic network process (ANP) model, in which the market share is described as a network of nodes and clusters. Domain experts validate the ANP structure with respect to criteria and alternatives. The model allows the quantification of qualitative judgments provided by either experts or customers, through the highest eigenvalues. The eigenvalues are then further aggregated to deliver conclusive scores for the distribution of a particular market among competitors. The purpose of this research is twofold: (1) to develop an ANP-based tool for analyzing the competitive position (market share) of a company and (2) to help companies use the new tool in order to improve their business. The paper is of interest to PPP distributors, PPP manufacturers, customers, and policy-makers. The first two categories of stakeholders can use the analysis to better direct their marketing efforts, the customers can use it to select their providers, and the policy-makers can use it to evaluate and improve the control of PPP.

Suggested Citation

  • Alina Popa & Shahrazad Hadad & Robert Paiusan & Marian Nastase, 2018. "A New Method for Agricultural Market Share Assessment," Sustainability, MDPI, vol. 11(1), pages 1-13, December.
    • Handle: RePEc:gam:jsusta:v:11:y:2018:i:1:p:88-:d:192891
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    References listed on IDEAS

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