Marketing Is a Consequence of a Competitive Market 
The Chairman of the Board of dnaunion Group stated at the press conference on “Examining the Opportunities and Threats of Real Privatization” that:
“Our country needs private companies that are capable of competing in a free market. In a free market, brands focus on their customers and have a stronger presence.”
This press conference was held in August 2017 with the presence of reporters from various media outlets. At the meeting, Dr. Naser Pashapour Niko, CEO of dnaunion Group, Dr. Mohammad Mousavi, board member and CEO of Ertebat Tasvir Eshareh Company, and Dr. Gerhard Barkus, board member and CEO of Certius Company, responded to various questions, the full text of which follows.
Naser Pashapour Niko said at this meeting:
“The issue of privatization is currently one of the hottest economic topics in the country. All economists agree that the government should not rely solely on oil and must enter the free market and competitive space to generate non-oil income—income that leads to job creation, not just entrepreneurship. Accordingly, privatization is considered the only way to save the country. Most experts in this field state that the main reason for the destruction of brands such as Iran National was the transfer from private to public ownership. However, were products such as carpets or saffron not produced and distributed by the private sector? Such products were never under government control, so why have they not undergone transformation? Therefore, privatization is not the sole way out of an oil-based economy. Privatization is effective only when the country has the necessary infrastructure for its implementation. This infrastructure must be stable, and creating stability is currently the government’s responsibility. Hence, the most important question is not why privatization is not implemented but why private companies do not grow. It is worth noting that the private sector competes against the semi-governmental sector, which dominates the market. These issues arise amid a noisy market where all brands look toward it and seek their share. Therefore, brands compete to gain a larger market share. The important point is that the winners are those who can create value in their products and brands. To create value, brands must have a precise understanding of consumers and the market and provide creative and innovative responses to customers. Such brands, by focusing on customers, ensuring product quality, continuously innovating, offering cost-effective products, creating superior value for stakeholders, and pursuing constant progress, can compete with foreign competitors. In this context, proper marketing implementation is of great importance, requiring detailed market research. In summary, various factors influence the successful implementation of real privatization, one of which is proper marketing implementation by companies in this sector for the brands existing in the market.”
The recipient of the Outstanding Entrepreneurial Leaders Award further added:
“Over time, the Iranian market has become increasingly competitive. This trend has been felt clearly from the 1990s to the present. As the market becomes more competitive, brands take marketing issues more seriously. Therefore, marketing is a consequence of a competitive market. Marketing acts like a traffic light in a competitive market. There have been many occasions where we contacted brand owners and told them that research indicates their brand is not in a proper state—a matter the brand did not take seriously and was later eliminated from the market. Our country’s market has witnessed significant failures over recent decades. For example, in the home appliances industry, brands such as Pars, Shahab, and Arj have been removed from the market. We must learn from their failures.”
The Chairman of the Board of dnaunion Group elaborated further on the essentials of real privatization:
“Job creation, foreign currency earning, and political-economic power are the main benefits of genuine privatization. It should also be considered that privatization does not proceed fully across all industries, and the government must identify market potentials and implement privatization by investing in them.”
Pashapour Niko continued:
“In our country, self-sufficiency is always emphasized, but self-sufficiency is a defensive arrangement. Meanwhile, the government should act aggressively instead of defensively. We must be able to export our products like leading companies. Large brands such as Samsung and LG have not only weakened our domestic brands but have also stood against brands like Sony. Therefore, in the market, we should act aggressively rather than defensively.”
Continuing the session, Dr. Gerhard Barkus, board member and CEO of Certius Company, spoke about investment in Iran’s market:
“Some say investing in Iran is highly risky, while the risk depends on various factors. Some are controllable, others are not. Political and legal matters are factors that the private sector cannot change, but there are factors that can reduce failure risk for investors. Cultural issues and lack of brand understanding of the Iranian market are important reasons for investment failure and increased risk, where much help can be provided to investors for local market understanding. Barkus said: ‘Twenty-five years ago, manufacturers only produced, and customers bought. A decade later, sales and distribution networks became important. Now, it is the era of competition, and creativity is the key to success.’”
Dr. Mohammad Mousavi, board member of dnaunion Group and CEO of Ertebat Tasvir Eshareh Company, said at the conference:
“Investors still take cautious steps in our country. This has caused investors to move toward quick-return industries. Certainly, with the improvement of foreign relations and the JCPOA, conditions will get better.” He added: “In the past two years, many brands have shown interest in entering the Iranian market. However, they must realize that the Iranian market differs from other regional markets and should not serve Iranian customers with the same approach. I hope brands enter our country with a more precise perspective derived from Iranian market research.”
It is worth mentioning that this conference received widespread media coverage. Additionally, journalists were honored on the occasion of Journalist Day during the event.
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