CC BY
31
Научни трудове на Съюза на учените в България-Пловдив Серия A. Обществени науки, изкуство и култура том IV, ISSN 1311-9400 (Print); ISSN 2534-9368 (On-line), 2017, Scientific works of the Union of Scientists in Bulgaria-Plovdiv, seriesA. Public sciences, art and culture, Vol. IV, ISSN 1311-9400 (Print); ISSN 2534-9368 (On-line), 2017. ANALYSIS OF MARKETING INSTRUMENTS USEDBYORGANIC FOOD PRODURERS FROM REPUBLIT ОБ1 MABYDONIA Julija Petrevska, Martina Kochishka, Aneta Jankulovska Mentor: Assoc. Prof. Katerina Bojkovska, PhD University "St. Kliment Ohridski" - Bitola, Fauulty of biotechnical ^eiernces
- Bitt>l^^, Republic of Maeedonia
Abstract: The overview of previous research results points oct to the fact that the majority of the sources related to the organic food marketing belong to the literature based on the research of consumers, with the lack of extensive research of organic food producers. Thus, the results obtained by the quantitative research of organic food producers on the territory of the Republic of Macedonia, are presented in this paper. The main marketing mix instruments (4P) are in the focus of analysis, as the most beneficial way of determining the success of marketing activities of the organic food producers in Republic of Macedonia. In order to get a comprehensive idea of the success of the market activity of the producers, the obtained results are explained in regard to the theoretical knowledge of consumer behavior, acquired by an extensive overview of the relevant literature. The research results are significant, both for the producers of organic food, as well as for traders, because they indicate the key elements to improve the placement of organic food products originating in Republic of Macedonia. Us an important contribution of the paper to the topic, recommendations for the development of an appropriate marketing strategy are given in the conclusion.
Key words: organic food, market, consumers, producers, Macedonia Introduction
The production of organic food takes central place in the transition to sustainable production and consumption in the food sector (Vitters & Tangeland, 2015). In the organic production every stage of the process, from production to consumption, is supervised and certified, and thus ensures the achievement of long-term usefulness for people and the environment, such as: promotion of the land quality and the water resources, improving the biodiversity, slowing the climate changes, reducing the exposure to toxic chemicals, with regard to the high standards of the animal welfare, increasing sales and profits of farmers, stopping the depopulation of the rural areas and of course the production of food with high nutritional value and health safety (Stolze et all., 2000; Heaton, 2002; Piementel et all., 2005; Nieberg & Offerman, 2008; Lairon, 2010; Dimitry et all., 2012) . Objectives of the research
The aim of this paper is to analyze each individual marketing mix tool of the organic food producers from Macedonia and thus identify a potential gap between the market activity of the producers and consumer behavior to the organic food, taking into account the instruments of the marketing mix. Identifying and understanding the weaknesses in the functioning of the marketing mix is crucial for the development and implementation of successful marketing strategies and as a result, improving the competitiveness within the producers of organic food. Material and methods
In order to achieve the preset goals, there has been conducted an empirical research, i.e. survey examining the producers (in the sample were included 41 producers) alongside with the consumers 116
(included 200 consumers) of organic food in Republic of Macedonia, which is also a prerequisite for the realization of the main objective of the research, and that is to discover the extent to which the domestic producers have set up the instruments of the marketing mix to the actual customers' requirements, and that is the extent to which the domestic producers adjusted the instruments to the marketing mix.
In the survey of the producers' views to the organic food can be applied qualitative as well as quantitative research. The study presented in this paper is based on findings obtained in quantitative research, using the technique of polling. As an instrument was used a structured questionnaire which included a list of questions formulated by the author, which are presented mainly in the form of closed multiple-choice questions and five-grade scale. The data analysis was conducted using the Statistical Package for Social Sciences (SPSS - Statistical Package for Social Sciences), and the results presented in this paper were obtained by using descriptive statistics (relative numbers, measures of central tendency and measures of dispersion). Results and Discussion
Product
The organic food as a product is the most important variable of the marketing mix. The quality of the organic food produced in Macedonia is high. The marking of certified organic products as an important aspect of the product mix in Macedonia is regulated by law. So the product as such is not a problem, but the main drawback concerns the improper structure of the production range. The survey results show that 81% of the surveyed manufacturers believe that their product range is wide, while only 19% believe that it is narrow. The most common types of organic food are grains and fresh vegetables. For production of the given product categories have decided more than a half of the respondents (51.2%). On the other hand, the lowest percentage of those are engaged in the production of organic honey (9.8%), beverages (9.8%) and sugar products (2.4%). The structure which is given, is synchronized enough with the structure of the market demand.
Price
The certified organic products achieve significantly more favorable prices compared to the products produced with the conventional methods. The main reason for that is the disproportionately higher demand than supply of organic food in combination with other factors such as the substitutes price, the consumers income, the organic food availability, as well as the quality of other marketing tools. The price of the organic food within the most production units from Macedonia covered in the survey (70.7%) is 30% higher than the conventional food. On the contrary, only 12.2% and 2.4% of manufacturers have priced up to 50% and 80% higher than the conventional rivals. This confirms the price competitiveness within the domestic producers and in accordance with the consumers goodwill to pay for these types of product. Despite the demands of the Western market to allow producers from Macedonia slight increase in the price of organic food, the price as an instrument of the marketing mix is sufficiently adapted to the demand.
Channels of marketing
The organic food as a relatively new product is very important to ensure Internet availability when and where the consumers would want. On the way to the consumer, the organic products are transported, stored and sold separately from the products of conventional production, unless they are properly packaged and placed in a separate section that is suitably marked (Law on Organic Production, 2010). According to the results of this survey the wholesale and the supermarkets are the most important channels in sales for most of the surveyed producers (87.8% and 82.9%). On the other hand, specialty shops and markets are less used as channels for sales of organic food to the consumers. The results are consistent with the findings of the theoretical analysis which enable users to choose a supermarket as a place where they usually buy organic food. The above leads to the conclusion that the channels of marketing as a tool of marketing mix, are adapted according to the consumers' behavior.
Marketing communication
The presence of confusion or lack of knowledge among consumers regarding the certification and labeling of the organic products indicate the inefficiency of the marketing communication, but also the enormous importance of this instrument for further growth in the market for organic food. According to the responses of the surveyed manufacturers 75.6% use personal selling, while 61% of the manufacturers use the Internet as a means of communicating with consumers. The personal selling is the highest, as a form of communication on the business market, but not on the market of individual consumers. The economic propaganda in the context of marketing communication, is used less by the respondents in the sample, although a review of the literature showed that consumers generally receive information about organic products through electronic and print media, as well as through oral propaganda. As a result, marketing communication as a tool of the marketing mix is not adjusted with the consumers' behavior. The data from the survey show that the Internet (4.59) and television (4.32) are rated by the producers as the most efficient means of marketing communication, and telephone (2.12) and mails (1.98) -as the least efficient.
This means that the participation of individual methods of communication in the promotional mix do no match only to the preferences of the consumers, but also to the subjective assessment of the producers in terms of the efficiency of the given instruments of communication, with the customers.
Table 1. Descriptive indicators of effectiveness of certain means and methods of marketing communication with individual customers
Means N Min Max AS SD
Internet 41 1 5 4,59 1,865
Television 41 2 5 4,32 1,850
Visiting a client 41 1 5 3,85 1,216
External resources 41 1 5 3,59 1,095
Magazines 41 1 5 3,32 1,934
Radio 41 1 5 3,22 1,151
Newspapers 41 1 5 3,07 1,932
Telephone 41 1 5 2,12 1,005
Mail 41 1 4 1,98 1,851
Source: Own research
Competitiveness within the producers of organic food
A company can achieve competitive advantage by creating an offer that meets the needs of potential buyers better than the competitors offer. It is therefore very important, as much as possible, the companies to be familiar with their existing competitors as well as with some future ones. The value of the arithmetic mean shows that all the respondents rated themselves as competitive producers in terms of the major competitors. These results must be considered with a certain amount of doubt regarding the reality of their answers and respondents should be asked an important question, which is how well these producers know their competitors. This leads to the conclusion that they investigated the competitive environment very little, partly because of the big growth of the demand in many markets which on the market mitigates the degree of rivalry among the competitors. Taking into account the fact, other data show that the quality of the products is the highest ranked dimension of the competitiveness (AS = 4.68), while the introduction of new products (AS = 3.95) and the additional services (AS = 4.00) - the lowest rated dimensions. These data reveal the main weakness of the producers from Macedonia, which is manifested in the insufficient presence of innovation and customer orientation in their operations.
Table 2 Descriptive indicators of the competitiveness of the producers in terms of the major _competitors ____
Dimensions of the competitiveness N Min Max AS SD
Products quality 41 3 5 4,68 0,521
Packaging design 41 1 5 4,17 1,022
Favorable prices 41 1 5 4,15 0,910
Width of the assortment 41 1 5 4,12 1,005
Organization's image 41 1 5 4,12 0,927
Brand name of the product 41 1 5 4,02 0,987
Additional services 41 1 5 4,00 1,140
Implementation of new products 41 1 5 3,95 1,048
Source: Own research
Conclusions and Recommendations
Although Macedonia is a country with comparative advantages for development of organic production, the market is still at an early stage of development. The lack of strategic approach towards the business and poor appreciation of the consumers' needs and desires, which results in even worse maladjustment of the marketing mix to the structure of the demand is the main reason of the unused opportunities on the market by Macedonian producers. Therefore, we should pay more attention to the marketing and understand the indispensible role that the marketing plays in the work of the organic food producers. The findings to which was come through theoretical and empirical research can provide a solid basis for selection of appropriate marketing strategies. An important aspect on which is based the marketing strategy is properly executed market segmentation. For segmentation of the market of organic food it is best to use socio-demographic and behavioral variables. The target markets on which the marketing efforts should be focused primarily consist of mature female individuals who are married and have children, preadolescents and people with higher incomes and higher education levels. For implementation of the strategy of differentiation, the emphasis should be placed on the product design and packaging, to ensure recognition of the products in the mass of similar products. In the positioning of organic food, it is also very important the positioning to be based on instrumental values such as health, because in these values the consumers find the main motive for buying organic food. Socially responsible behavior of the enterprises can also provide added value based on a favorable reputation that they create.
References
1. Dimitri, C., Dettmann, R.L. (2012), „Organic food consumers: what do we really know about them", British Food Journal, Vol. 114, No. 8, str. 1157 - 1183
2. Heaton, S. (2002), Organic farming, food quality and human health: A review of the evidence, Soil Association, Bristol, United Kingdom.
3. Lairon, D. (2010), „Nutritional quality and safety of organic food. A review", Agronomy for Sustainable Development, Vol. 30, No. 1, str. 33-41.
4. Pimentel, D., Hepperly, P., Hanson, J., Douds, D., Seidel, R. (2005), „Environmental, Energetic, and Economic Comparisons of Organic and Conventional Farming Systems", BioScience, Vol. 55, No. 7, str. 573- 582.
5. Vitterso, G., & Tangeland, T. (2015). The role of consumers in transitions towards sustainable food consumption. The case of organic food in Norway. Journal of Cleaner Production, 92, 91-99.
