Marketing Is the Effect of Competitive Market
Chairman of the Board of Directors of the dnaunion group addressed a press conference on the sideline of “Privatization: Opportunities and Threats” forum, said: “Our country is in need of companies that would be capable of competing in the open market. In the open market, brands are focused on their customers and are maintain a more powerful presence.”
In the course of the news conference, Dr. Nasser Pashapour Nikoo Managing Director of the dnaunion group, Dr. Mohammad Mousavi a member of the Board of Directors and Managing Director of Ertebate Tasvir Company and Dr. Gerhard Barcus member of the Board of Directors and Managing Director of Certius Company answered various questions.
Speaking at the meeting, Pashapour said: “The topic of privatization is now one of the hottest economic issues of the country. It is a topic in which all the economists say the government should not rely just on oil and should enter into the competition market and generate non-oil revenues. Revenues which would create jobs rather than job opportunities. On this basis, they consider privatization as the only way to save the country. The majority of the people in this field say the main reason for the omission of brands such as Iran National is their transfer from the private sector to the public sector. But isn’t it true that products such as carpet and saffron were produced and distributed by the private sector; such products were not in the hands of the government, then why they were not developed? Therefore, privatization is not the only way to save the oil-dependent economy. Privatization is good when our country has the required grounds for its implementation. The ground for privatization should be stable and creation of stability under such circumstances is in the hands of the government. Therefore, the most important question at the moment is not why privatization has failed to be implemented. The question is why private companies do not grow. Of course, in the meantime the private sector stands against the public sector. The sector which is the only champion in the market. These topics are discussed at a time when our county is faced with a chaotic market to which all the brands are placing hope and seek their own share. Therefore, brands for gaining more shares from the market compete with each other. But, the important point is that the winners of the competition are those who are capable of creating value in manufacturing their products and their brands. In order to create value the brands should develop a sound understanding of their consumers of the market and should also give creative and innovative responses to the customers. Such brands should become capable of competing with foreign competitors by focusing on the customers, ensuring quality of the product, consistency in innovation, presenting cost-effective products, creating superior value for the stakeholders and continuous progress. In line with the mentioned topics, implementation of sound marketing is highly important: A task which needs sound market studies. In total, for the implementation of real privatization different topics are influential one of which is execution of sound marketing by companies in this field for the brands existing in the market.”
Pashapour Nikoo who has received the high award of entrepreneur leaders, further remarked: “With the passage of time, Iran’s market is becoming more competitive day by day. One can easily feel the trend since the 1990s onward. The more competitive the market becomes, the more seriously will brands take marketing topics into consideration. Therefore, marketing is the effect of the competitive market. Marketing acts like a traffic light in the competitive market. It has repeatedly happened for us to contact brand owners and informed them that the research trend shows that their brand is not in a good condition but they have not taken the issue seriously and after some time they have been eliminated from the market. The market of our country has been witness to heavy defeats in the recent decades. For example in the industry of household appliances brands such as Pars, Shahab, Arj, etc. have been omitted from the market. A lesson should be taken from their defeat.”
Chairman of the Board of Directors of the dnaunion group while outlining requirements for real privatization said: “Job creation, generating foreign currency and political-economic power are among the main advantages of real privatization. Also, it should be taken into consideration that privatization would not be completely implemented in all industries and the government should identify market potentials and should implement privatization by making investment on them.”
Pashapour Nikoo continued by saying: “In our country there is constant emphasis on self-sufficiency but self-sufficiency is a defensive arrangement. In the meantime, the government instead of making a defensive arrangement should act aggressively. We should export our products like the famous companies. Big brands such as Samsung and LG have not weakened our domestic brands rather they have stood in front of brands such as Sony. Therefore, in the market instead of defensive behavior an aggressive step should be taken.”
Also addressing the news conference was Dr. Gerhard Barcus, a member of the Board of Directors and Managing Director of Certius Company who talked about making investment in Iran. He said: “Some would say that making investment in Iran has high risks, this is at a time when different factors are involved in the creation of risks… There are factors which cannot be controlled and there are those that could be checked. Political, legal and other issues are the factors which cannot be changed by the private sector, but attention could be paid to the factors that reduce the risk of failure for the investor. Cultural issues and lack of identification of the brands of the Iranian market are among important issues that would defeat investment and would raise the risks. In this field great assistance could be offered to the investors for the identification of the local market.”
Barcus said: “25 years ago the producers would only produce and the customers would only buy. But, a decade later, the issue of sales and the distribution network was raised. The present time is the time of competition and creativity is the key to success.”
Meanwhile, Dr. Mohammad Mousavi, a member of the Board of Directors of dnaunion group and Managing Director of Eshareh creative Solutions said: “The investors are still taking steps with caution in the country. This same issue has made investors to prefer the industries with early return. Certainly, with the improvement of foreign relations and the benefits of the Joint Comprehensive Plan of Action (JCPOA) the conditions will improve as well.”
(The Joint Comprehensive Plan of Action known commonly as the Iran deal or Iran nuclear deal, is an international agreement on the nuclear program of Iran reached in Vienna on 14 July 2015 between Iran, the P5+1 (the five permanent members of the United Nations Security Council—China, France, Russia, United Kingdom, United States—plus Germany), and the European Union).
He further remarked: “In the past two years, many brands expressed willingness for presence in the Iranian market. But, they should know that the Iranian market is different from other markets in the regional countries and they should not render services to the Iranian customers with the same outlook. I hope the brands would enter our country with more accurate outlook and in compliance with the research work on the Iranian market.”
It should be noted that the conference had extensive coverage in the Iranian media. Also, in this press conference, reporters were honored on the occasion of the Reporter’s Day.