Pricing strategies of saffron: strategic factors analytical

Abstract

Saffron is considered as an important crop for farmers of the Khorasan Razavi province due to the ability to create high employment and generate appropriate income. Problems of saffron producers in marketing and export has caused this product not to be in a good position in the world market despite its high quality. Therefore, the study of marketing mix as one of the most important factors affecting marketing of saffron in the region seems to be necessary. In order to identify the strengths, weaknesses, opportunities and threats of marketing mix of saffron, a strategic factor analysis approach was used in this study. The required information was collected through face-to-face interviews and completing a questionnaire with managers and experts of saffron producing and exporting companies in Mashhad and Torbat Heydarieh cities in 2015. To investigate the validity of the questionnaire, the questionnaires were reviewed by supervisors and consultants and several experts. At first, some initial questions were completed and using the Cronbach's alpha method, the reliability coefficient was 0.79. The results of the internal factor matrix showed that the weaknesses overcome the strength and, according to the results of external factors matrix, the points of opportunity are superior to the threat. The results of the study showed that the increase in the value added due to saffron processing with a score of 0.57 and export value with a score of 0.54 are the most important strength and low purchase price of farmers with a score of 0.13 and a lack of knowledge of the price of competitors with a score of 0.11 are the most important weaknesses in marketing mix price. Also, the export of the product with different qualities based on the financial ability of target customers with a score of 0.32 and price determination based on the competitive and economic environment with 0.23 are most significant opportunities, and the volatility of the exchange rate with a score of 0.4 and a price fluctuation in the export market with a score of 0.36 are the most important current threats of saffron marketing. The general results obtained from the status analysis matrix indicate that the saffron processing factor strategies are defensive. Therefore, according to the results, the strategies of establishing a regional exchange market for saffron and long-term control of prices in export markets with the aim of paying attention to pricing and fair purchase are suggested.

Keywords

• processing
• Saffron
• pricing
• strategy
• SWOT