Integration of the fuzzy failure mode and effect analysis (Fuzzy FMEA) and the Analytical Network Process (ANP) in marketing risk analysis and mitigation

Abstract

Marketing plays an important role in determining an enterprise's success. Inappropriate marketing strategy can lead to various risks, especially for SMEs that have not prepared their risk management. This research aims to identify and specify marketing strategy priorities in the production of potato chips, and to decide anticipationary action in determining risk mitigation. The research is a case study of XYZ company. The method used for risk analysis was Fuzzy FMEA, and that used to specify the strategic priorities was ANP. The results indicate that the most potential risks in potato chip marketing are promotion risk, which is caused by inappropriate steps with regard to promotion targets, and the absence of a brand image. The primary strategy in market risk mitigation is to improve sub-strategy promotion, which increases the effectiveness of promotion facilities and infrastructure, complies with the development of information and communication media, and maintains service quality in the sub-criteria of building and maintaining good relations with customers.