A New Method for Agricultural Market Share Assessment

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.