FINANCIAL NEEDS ANALYSIS OF FARMERS AS A FACTOR TO DIFFERENTIATE THE PRODUCT POSITIONING OF COMMERCIAL BANKS

Abstract

This study, based on a structured survey of 33 Bulgarian agricultural producers, explores the specific financial needs of farmers and how these shape the effective positioning of financial products offered by commercial banks. The research examines several key financial instruments, including working capital loans, overdrafts, advance financing credit lines, investment loans, and revolving credit. Each need was evaluated using a six-point Likert scale and analyzed using cumulative scoring and the Fishbein method to determine the significance of each factor in product positioning. Based on the results of the survey the following conclusions are identified: (1) Financial institutions must better differentiate their products based on farmers' needs across different financial categories, especially in regions with high land acquisition costs or growing mechanization demands; (2) Strategic positioning markers, such as loan size, repayment terms, and purpose, are essential tools for aligning bank offerings with the realities of agricultural production. (3) There is a critical opportunity for commercial banks to enhance their competitiveness by offering value-added services such as business consulting, more flexible collateral requirements, and financing options aligned with subsidy cycles.