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EXECUTIVE SUMMARY................................................................................................. 3
1.
Introduction.......................................................................................................... 4
2.Marketing audit....................................................................................................... 5
2.1. The micro internal analysis..............................................................................6
2.1.1 Competitors:............................................................................................. 6
2.1.2 Customer segmentation and targeting.......................................................7
2.1.3 Brand.......................................................................................................... 8
2.1.4. Distribution................................................................................................ 8
2.1.5 Product........................................................................................................ 9
2.1.6 Public:......................................................................................................... 9
2.2 Micro External Environment............................................................................ 10
2.2.1 Threats Of Substitute Product...................................................................10
2.2.2 Threats Of New Entrance.........................................................................10
2.2.3 Bargaining power of customer..................................................................11
2.2.4 Bargaining Power Supplier......................................................................12
2.2.5 Rivalry...................................................................................................... 13
2.3.Macro environment......................................................................................... 14
2.3.1 Political Factor........................................................................................... 14
2.3.2 Economical Factor..................................................................................... 14
2.3.3 Social Factor.............................................................................................. 14
2.3.4 Technological factor..................................................................................15
2.3.5. Legal Factor.............................................................................................. 15
2.3.6 Environment factor.................................................................................... 15
2.4 Internal analysis.............................................................................................. 18
2.4.1 HR and skills.............................................................................................. 18
2.4.2 Physical resource...................................................................................... 18
2.4.3 financial resources.................................................................................... 18
2.4.4 competences............................................................................................. 18
2.4.5 Capabilities............................................................................................... 18
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EXECUTIVE SUMMARY
This report observes the marketing strategies of Morrison one the market
leader of retail the grocery sector in the UK. Research has presented that in
this oligopolistic marketplace, Morrison is adopting various marketing
strategies to remain market leader. Morrison has been emphasis on focusing
in different marketing strategies by continuously subsequently the report
highlights the different marketing strategies adopted by Morrison, specifically
market
penetration,
product
development,
market
development
and
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consistent
with
the
current
companys
vision
strategy
objectives
1. Introduction
As competitive strategies have the ability to create the business stands out
between the seas of competitors within the same sector. So, competitive strategies
can eventually help business in growing their productivity, profitability and help to
achieve goals. The following tasks of the assignment will be arguing on the basis
behind competitor analysis. In addition, how competitor analysis can help in
ensuring the survival of a business organization will also be tackled.
For keeping things simple: Morrisons
Everyone is now well advanced. Our constant focus on freshness, great value and
outstanding service is appealing to more and more people. And were now closer to
customers
having
opened
43
new
stores
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last
As the current situation there are more than 370 Morrisons stores across the UK.
They welcoming around million customers each week. The company presently
employs more than 114,000 members of staff in stores, factories, and distribution
centers and head office administration. As Morrisons provides fresh food with fewer
prices. More than 20,000 differe nt foods are exposed in stores. As well as many
desired
top
varieties
labels
there
is
an extensive
own
label
range.
2.Marketing audit
A marketing audit is a broad, efficient, autonomous and periodic assessment
of a company's marketing assets. It is an active tool in appraising the
capability of a marketing strategy, studying the objectives, rules and
strategies of the company's marketing division as well as the methods and
the profits engaged in getting these goals.
Through Marketing audit Morrisons can continuous get, reflecting evolution, a
reference point, from internal business environment, external business
environment. From these they can develop strategies and marketing plan.
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product etc.
2.1.1
Competitors:
In retail industry Morrisons competes with other retail stores such as Tesco,
ice land, co-operative foods, Asda, Sainsbury, are the major competitors
though they are using different strategies for marketing. Not only have these
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but M&S. waited rose corner shops are also the competitors of Morrisons
following perceptual map help to retail food industry the rivalry and where
Morrisons stands surrounded by the market by preparing use of marketing
strategies.
By using this map its easy to understand the situation of Morrisons in the
market. Through Perceptual map it can be used to plan the interrelationships
of customer foodstuffs as well as populations.
Following map can be use to understand the situation of Morrisons:
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This perceptual Map helps to identify the industry rivalry and where Morrisons
stands out within market with their competitors. One of the useful tool of marketing
called BCG matrix also help to Morrisons . *( see appendix 1)
2.1.2 Customer segmentation and targeting
A market segment consists of costumers who respond in a similar way to a given set
of marketing efforts. Morrisons provides a different food for their customers with the
wide range of variables that differentiates Morrisons target customers with their :
age sex socio-economic grade, marital status, type of job type of job, and their
nationality *(see appendix 2).
Target marketing includes calculating
selecting one or more segment to enter These target market includes middle level
people who consume normally buy food for weekly basis, with knowing the
importance of these target market to Morrison, treats each target people who need
their food as per their taste and preferences. For example Morrisons offers a wide
range of yogurt-based products with different flavors.
2.1.3 Brand
A strong brand identity of Morrisons can position above its competition all by
itself. Brand identity is the reason that offers customer to choose different
food instead of your competition. Morrisons has won different awards which
shows its brand image and customers perception about its brand (Appendix
3)
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Morrisons always focusing on their customers need they believes Our Values are
at the heart of everything we do, defining what we expect of each other
and what our customers can expect of us as we aim to deliver our vision
of becoming the Food Specialist for Everyone. Morrisons strive to
forward this message to the customers.
The perceptual maps below shoes hoe each target market is seen by the company
from a customers brand image and value to the business aspects
2.1.4. Distribution
Morrisons distribution channel is very smooth. its easy to understand . Morrisons
buy their product from different continent for different people as per their taste
and preferences and sell to their end users. (*Appendix 4 )
2.1.5 Product
Morrisons is offering families great value for money on lots of fanciful fresh British
produce and everyday essentials. It take good attention in the way it drive about its
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trade and are dedicated to making a modification. So whether customers are after
100% British fresh meat from our expert butchers on Market Street or customers are
collecting Lets Grow vouchers so your childs school can get their hands on lot s of
free gardening equipment theres something for everyone
Morrisons have new strategy which called Market Street in which customers
can fine all food what they need as their requirements. In Market Street we
have more highly trained and experienced colleagues with craft skills on
hand than any other supermarket. Whether our customers are looking for
recipe ideas, advice about whats in season, or a certain cut of meat for their
family Sunday roast, our expert staff will be happy to help. Were able to
respond quickly to changes in demand, which means we can cut down on
unnecessary waste while giving more of our customers what they want.
Morrisons stated on their official side that: The best thing about being a butcher for
Morrisons is that we offer the full traditional butchers shop service. We dont just sell meat, we
offer advice and help on how to cook it. Morrisons provides all foods from different continent
like Asian food such as Indian, halal, Irish food etc.
2.1.6 Public:
Morrisons marketing environment involves various publics which mean a group of
people who real or likely involve and impact on its ability to achieve Morrisons
objective, such as media public. Financial public, general public, local community,
shareholder, and government. The core point for the marketing tactician are first to
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acknowledge the reputation of such publics to the process of the planning and then
to ensure that connections with essential publics are effectively managed.
threat
High
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threat
High
diversificati
the
on
Economic
Low
scale
Product
Medium
differentiati
on
Capital
low
requirement
Distribution
low
channel
(Conclusion: The threat of the new entrance in food industry is relatively
profitable nature of the food industry, the threat of new entrants is high.
German super market chains such as Lidl have opened up retail stores in
major British cities. In addition, major North American market chains might
also comes in order to decline U.K players and thereby challenge prospective
threats in home markets. )
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Factor
Quality of product
Level of threat
High
Implication
There
equal
quality,
Law
offered by competitor
For food, customers are
Medium
very dependable
Customer
have
High
area of choice
Customer can
vast
change
of
awareness the customers have full information about demand and actual
market prices.)
2.2.4 Bargaining Power Supplier
Factors
Level of threat
Cost of supplier
Low
implication
Morrisons have supply
in bulk so cost will be
Supplier
High
concentration
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of
particular
in
brands
market
(conclusion There is partly due to its policy in house finding of major
percentage of its products. However with its market extension, particularly in
relationship of geography has required the search for new suppliers.so
Morrisons has up to now been not threatened by the bargaining power of
suppliers greatly. Therefore future bargaining power of suppliers is highly
impulsive. On the other hand Morrisons will be able to use its economies of
scale advantage to moderate the suppliers.)
2.2.5 Rivalry
Factor
Brand identity
Level of threat
High
Fixed cost
High
Implication
Competitors have strong
brand and direct
competition with
Morrisons
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2.3.Macro environment
2.3.1 Political Factor
Factors
Effect on Morrisons
Employment
the government inspires
legislations
retailers to offer a mix of job
prospects from flexible, lowerpaid and locally-based jobs to
highly-skilled, higher-paid and
centrally-located jobs
Federation of
Government
Unions
Unpredictable legislation on
taxation
Its growing broad way
acceptance of union rules and
obligations
Effect on Morrisons
The Governments target
measure was 4.5 per
cent in May,
fluctuation .of exchange
rate is high
important driver of
population change and the
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Implication
Morrisons with a
classically high staff
turnover, these workers
offer a higher level of
loyalty and therefore
represent desirable
employees.
Need to be active towards
government actions
Implications
Impact on customers
Demand and price is
decreasing
Increase market for food
(Appendix 6)
Employment rate
(Appendix 7)
Effect on Morrisons
It concerned with
standards of people who
interested eat verities of
food
People of the UK who are
from different countries
which influence Morrisons
Implications
Requirement of
environmental standards
and chance to grow
market.
It divided in to different
category
Olympics 2012
International tourism
increase
People
E-security
Secure important
information of Morrisons,
online security set by the
government
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It has become a
necessity to provide
with more products to
meet this category of
customers.
Implication
improved the
effectiveness of
distribution and stocking
doings, with essentials
being communicated
almost in real time to the
supplier
Increase marketing with
promotional activity
through internet
Can increase market
share and awareness and
satify customers needs.
Effects on Morrisons
Application of rules and
regulation of government
for business.
Society
Implications
Need to keep up date for
all rules and regulation of
government
Implication
Need to be social and
environmentally and
clean environment
sustainable consumption
and production to cut
waste, reduce
consumption of resources
and minimise
environmental damage
Good future for marketing
by using strategy that
mark the market
sector and has not branched out globally, this analysis has been restricted to
the U.K conservational allegations specifically for food sector. However on
the occasions, where a Global perspective is required it has been analyzed
so. The broad analysis existing above offers the foundation for the expansion
of future strategies of Morrisons. )(appendix 9 )
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HR skills(see appendix- 8)
For maintain good quality they need
good equipments and good electricity
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equipments
(Appendix-7) Need money which is back
born of any business
Good quality of food and other customer
services.
Morrisons is on of the market leader of
retail food industry.
Money
Material
Market
Level of
implication
Strengths
one of the largest supermarkets in the UK
offer branded and own label products.
focus heavily on their market street concept
High
High
High
(appendix 9)
Better usage of technology in marketing and distribution.
High
(Appendix 4)
Weaknesses
No online shopping, however this could be a possible
strength at the same time
Reliance upon the UK market.
Medium
High
Opportunities
Moving into different markets. as insurance and
High
banking.
Olympic 2012 sponsorship
Increasing migration in UK from different countries
Online arena for selling and marketing of products and
Medium
Medium
High
services
Threats
Any possible takeover/ mergers
Competition (2.1.1)
Government regulation and policies
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High
High
Medium
High
High
Conclusion:
AS Morrisons vision to be the Food Specialist for Everyone is well advanced. From
swot analysis it concludes that the constant emphasis on freshness, great value and
exceptional service is attractive to for customers. Morrisons should emphasis on
weakness and threats.
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3 Marketing plan
3.1 objective
As discussed in market audit which helps to create marketing objective which
supported by companys strength and opportunity within the market. (appendix 13)
To increase online marketing
To increase market share from 12.8 (July2011 ) to 15 by august 2012
Divert their market in different fields such as banking, insurance and mobile.
3.2Gap analysis
The main objective of the marketing plan is to improve its market share by 3 % by
within a two year. Due to high competition in food industry it might be chances for
loosing markets hare (say to be by 2 %) then there will be gap of5% .
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3.3. Strategy
3.1.1 Growth Strategy :
Ansoff made growth strategy matrix which defined the combination of business
activities in existing and new market; all together with new products and existing
product can be lead to growth
There are four strategies which improving market of Morrisons from the matrix :
Market penetration: which increase market share of Morrisons.
Market development: where a business seeks new markets for its product its
abilities.
Product development: the launch of new product to existing markets.
Diversification: in which a business decides to offer new products in new
markets.
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4.Implementation plan
After tactical objectives have been identified for online marketing, the target market
selected, and the desired positioning, product or brand has been determined,
marketing managers focus on how to best implement the chosen strategy.
conventionally, this has involved implementation planning across the "7Ps" of
marketing: Product management, Pricing , Place ,promotion, People., process and
physical evidence. (appendix -16)
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During the marketing project is the millstones stage getting will be used as control
tool which is helps to mark down weather we are on right track or not and to
evaluate the performance. For this Gantt chart is good for budget estimation.(see
appendix 17).
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APPENDIX
standard of living it also depends on their socitail grade the main customers are
depend on indian chinese irish greek, east eropean, etc which includes all age of
people with different
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3. achievements .
Morrisons is a retailer that prides it on having the best operators and buyers
in the industry. We are therefore delighted to inform you that we received
four major awards at this year's prestigious Retail Industry Awards more
than any of our competitors.
Award in 2011
National Fish & Chip Awards, January 2011:.Winner - The Best Foodservice Outlet
Serving Fish and Chips.
Winner - Fresh produce retailer of the year and Winner - Meat retailer of
the year and highly commended - Seafood retailer of the year category
4. Distribution:
Being closer to source means Morrisons
can better control the provenance and
quality of their food. Sustainable and
1
responsible sourcing is important to us
From selection...
and Morrisons work with the producers
to develop a relationship that is
reasonable and fair to all parties.
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Distributed and
delivered to...
4
Queensbury store
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(Note :This diagram is made in power point presentation help by all research from
books and websites)
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As a result of using this model there are different opinion suggested to Morrisons
which are given bellow table :
6 http://www.statistics.gov.uk/cci/nugget.asp?id=19
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(source:www.morrisons.com)
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Human resources
1. Physical a. Plants
b. Equipment
c. Natural resources
2. Human a. Managerial Know-how
b. Talented key employees
c. Friendly staff
Marc Bolland(ex- CEO) said that by having online shopping, it will ruin
Morrisons vision. Customers willlose the feeling of picking fresh fruit and
vegetables or smelling the bakery when they walk past.
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11. competition
Waitrose which is owned by the John Lewis partnership, it is up- market
supermarket chain that currently has 228 branches in the UK .it has a market share
of around 4%. It separates it self by high quality of food and customer services .
(source: www.waitrose.com)
Mark and spencer- it has over 700 stores in the UK. It is an up-market end of the
grocery spectrum. In addition food sales it has strong range of non food
items(source www.marksandspenser.com )
Iceland- the owner of the iceland is Icelandic retail conloerate,Baugur. It has
about 700 locations and seels primaeily frozen products(source :
www.iceland.co.uk)
The Co-operative Group the co-op has a total market share of around 8%. It is
the world larget community . it is the UKs largest community retailer, specilising in
conviniences strores and small supermarket (www.co-operative.com)
LiDL Owned by the German company Schwarz it has about 500 stores in the uk it
is based heavily price discounted formate (www.lidl.co.uk)
Aldi
Albrecht
UK
Stores Name
Market share
Tesco
Sainsbury
Morrison
Co-op
Waitrose
Aldi
Lidi
Iceland
Others(including
(%)
31
16
13
8
4
3
2
1.8
2
marks and
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etc)
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Tesco the UKs largest and most successful supermarket chain, its has 2500 stores
in the UK .it has extensive range of food product (www.Tesco.com)
Asda group Ltd : It is in the model of Wal-Mart, the US retail gaint which bough it
in 10999. It focus on hypermarkets and out-of own stores than the other UK chains
(www.asda.co.uk)
Sainsbury plc. It has a good image in the UK and is seen a more up arket
supermarket than Tesco and Asda it has 537 superstores . it has online market and
non food range. (www.sainsbury.co.uk)
MARKET SHARE AS PER REASERCH IN UK as per research :
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Morrisons environmental considerations fall mainly into two parts. First, is all that they have
do to ensure food is produced, moved and sold with minimal waste and help customers reduce,
reuse and recycle. This is about making the most of food.
Second, is the major issue of carbon emissions reduction, which is a key overarching benchmark
for environmental performance. When people think of emissions, they tend to think of energy,
but in fact refrigeration, transport and waste are also significant factors. Increasingly, attention is
turning to carbon in the wider supply chain, which commentators highlight as being the greatest
challenge. Morrisons agree, but from a practical point of view we believe strongly that our focus
should remain on our direct emissions where Morrisons can exert the most control.
13
http://www.morrisons.co.uk/Corporate/2011/annualreport/directors-report-and-
business-review/performance-review/operational-review/marketoverview/Default.aspx
14. see appendix 5
15. competitor strategy
This
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Product
Operational strategy
It addressed different
segment in to UK so it
will be response by
online sales.
Tactics
-Conduct a marketing
research to collect
information about over
100s audience lifestyle
and preferences, and
peoples suggestions,
opinions and views
regarding online
purchase systems by
July2011.
-Develop detailed
specification for the new
line of products by August
2011.
-Develop new detailed
specification and
standards for online
purchase system by
August2011.
-Develop and trial test the
new line of products for
over 50s by October
2011.
-Develop and conduct test
on the enhanced online
purchase system by
December 2011.
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Price
Place
Effectively and
efficiently distribute
products directly to
customers and with no
intermediates, either
from the store branches
or online system.
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Promotion
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Update advertising
content of new products
and online system by July
2012.
People
Physical evidence
2011.
-Evaluate physical
evidence tools and
update/change them
where necessary by July
2012.
Process
-Assess issues on
Personal shopping,
Warehouse, delivery and
staffs knowledge about
products by August
2011.
-Improve each of these
processes according to
customers expectation by
October2011.
-Evaluate processes
applied to the marketing
plan by April 2012.
Conduct
change/adaptations on
processes by august
2012.
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References :
Guiltinan,p., paul,G. Madden, T Marketing management Stratagic and Programs,
(6th edition),Mc Graw Hill.1997
Kotler P (1991), Marketing Management (7th Edn), Prentice Hall
Armstrong,G., Haker Michael,M. Kotler, P. Brennan,R;marketing: an introduction
London 2009,( p.p54)
Kotler,P., Armstrong,G, Wong,V., Saunders, J.; principles of Marketing, 5th
edition,itlay,2008.
Harding,S; Long,T. MBA Management models, gower,2008.
Websites.,
www.morrisons.com
http://www.bookrags.com accessed t 15/06/2011
http://www.marketingmagazine.co.uk/news/1015594/Morrisons-adopts-celeb-freeactivity/ (accessed
19/06/2011)
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(accessed
25-06-
Turn it in :
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