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Analysing marketing strategy at Morrisons

3506 words (14 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Marketing strategy is a technique of focus on business capabilities and resources toward a defined task which leads the organisation toward sale promotion and target marketing place. Marketing strategies are the combination of product advertising, distribution, pricing, relationship administration and other essentials; identifies the company’s marketing objectives, and make clear how they will be accomplished, preferably inside a fixed time. Marketing strategies are concluding the target market division, positioning, marketing mix, and distribution of resources.

In recent years, several conceptual frameworks have been developed to better understand the processes of strategy formulation, and for such processes, the term “strategic marketing” is used to describe the decisions taken to develop long-run strategies for survival and growth

About Morrisons

We are the UK’s fourth biggest food retailer with¬†403 outlets. Our business is primarily food and grocery. distinctively the company resource and practice most of the fresh food that Morrisons put up for sale through their own manufacturing services, giving us close manage over provenance and quality; and the company have new people preparing extra food in store than any other retailer.

Every week nine million customers pass through our doors and 124,000 colleagues across the business work hard each day to deliver great service to them. With competitive prices and hundreds of special offers, we are proud to save our customers money every day.

Definition of Strategic Marketing

Marketing Strategy is a procedure that can permit an association to give attention to its restricted assets on the greatest opportunity to increase sales and achieve a sound competitive edge. (Baker & Michael 2008)

Principles of marketing strategies

People Oriented Marketing

The purpose of marketing strategies is to create the added advantage of the company. The strategies that are supported to the customer orientation is the most important one because the customer is the king of market.

The Cost Of Something Is What You Give Up To Get It.

Marketing strategies are planned according to the pricing of their products. Company set their pricing that are supported their products and customer are likely to buy it.

Reward System Strategies

Strategies are prepared to satisfy the customer and employees. Bonus Cards, loyalty cards are the rewards that organisation gives to their customers just to retain them.

Competitive Advantages

Marketing strategies are prepared according to the competitive advantage of the competitor.

Marker Base Assets

Marketing strategies are supported to the brand name, brand image, company name and then cash them to gain advantage.

Vision of Morrisons

‘food specialist for everyone’

Food specialist

We really understand food…

we know where it comes from;

we pack it and make it in our factories;

we make it in our stores; and

we employ craft skills in every store.

For everyone

Great food which is also:

great value; and

for every day, not just special days.

This vision is supported by our brand values and strategic objectives.

Brand value

Our brand values are important to delivering our strategy and underpin all our strategic objectives. Fresh, Value and Service are discussed in the right-hand box above.

SMART Analysis:

SMART is an acronym which tells us that when ever we set any companies objectives they should be

,S =Specific

M= Measurable

A = Actionable or Achievable

R = Realistic

T = Time Frame

Morison’s strategy

maintenance things trouble-free: Our vision to be the ‘Food Specialist for Everyone’ is at the presentbecomes superior. Morrisons regular spotlight on freshness, great worth and wonderful service is alluring to more and more people. The company now more closer to the customers.

Morrisons share of UK grocery marke

In 2009/10 the share of morrisons was worth of 90.2bn in the market.

Morrison’s market share continues to increase as we move from National to Nationwide.

Morrisons market share(percentage %)








Morrisons share of grocers UK 2010

(percentage %)

Morrisons market share intensification was superior than the whole market growth year-on-year and as a outcome we grew market share. The crown four superstore shared accounted for around 76% of the market.

(Source: Kantar Worldpanel)

Porters five forces

New comers

Morrisons have also a fear the new entrents in the market because the company is now on growth stage.


Another important issue is the competition in the industry or sector.there are a lot of competitors in the market and this is the big therat for the company.


Suppliers are also affect the companies this industry suppliers are strong and they have a strong bargaining power.


The potentional customers have a planty of options to buy the product.the competitors of the morrisons like tesco and asda are market leaders and they are offering the cheap products.the power of customers is also affect the Morrison,s marketing strategy.

Substitute products

There are many others compnies are offering the same products which are offering the morrisons so this thing is also affecting the morrisons marketing strategy.

SWOT Analysis

SWOT analysis in the technique to understand the internal and external analysis of the company that tell companies strength, weaknesses, opportunities and threat of the company.


Market share growth in 2009/10

acquirement of co-operative stores

Opening of 34 new stores

Food expert

expert in food

Owen supply chain

Own distribution channel

Morrison structure for food

Owen stuffing factories

In store grounding of food

Quickest go around time among order and delivery

Employees education programme (MBA)


Lack of the customers trust

Very less number of stores

Less Advertisement

Little bit high pricing


Home Delivery

extension of small stores to cover the more customers

start the new business line as Morrisons pharmacy

Move into non-food retailing in the UK.

Entry into new retail segments, such as drugstores, department stores, speciality units

Increase the number of stores to cover the more population areas


Low pricing of competitors

Communication is weak

High competition

Open market for entering new competitors

Purchasing of co-operative store are not maintain Morrisons standard

Uncertainty will affect the sale and profitability of the company

Competitive Analysis

Competitive analysis conducted for the comparison of company to the other different companies/ competitors. It tells the company that where their products are and where the other have, they are in the good position are their competitor. Competitive analysis is tells advantages and the weaknesses of the companies over the competitors.

Morrisons have strong competition with Tesco, ASDA, and Sainsbury etc.

Boston Consulting Group Matrix


High growth business or products that competing the market where they have competitive advantage/ edge as compare to the competitor. Normally heavy investments are required to exist in the market. Morrison may not fall in this part of the matrix.

Cash Cows

Business growth is low or product having relative market share. There is normally low business and little investment is required to retain in the market. Good leadership and strategies are required for growth. Morrisons is in this area of matrix.

Question mark

Business or product have low market share but exist in the high growth market. Businesses in this area are required high investment but they have potential to grow high. Management have to make some growth strategies that Morrison have done and now in the growth position of the market.


Businesses or products have low market share and unattractive market. Business fall in this area may generate profit to come on breakeven point.


Pricing strategies

There are number of pricing strategies that companies used in according to their purpose that are fit and matched with objectives and goals. The strategies are:

Premium Pricing

Economy Pricing

Penetration Pricing

Psychological Pricing

Skimming Pricing

Captive Product Pricing

Product Bundle Pricing

Promotional Pricing

Geographical Pricing

Morrisons are used various pricing strategies from the above mentioned strategies.

Economy Pricing

Morrisons are using this strategy in their products that are daily use items. All most all the grocery items are under economy pricing scheme.

Psychological Pricing

Morrisons are also adopting this pricing technique just for psychological impact on the customers. For example 99P

Promotional Pricing

Morrisons are using this strategy for promotional items.

Example: buy 1 get one free or two item 2 pound etc.

STP Strategies

STP is another type of marketing strategies that companies kept in mind while formulating its marketing strategies. STP stands for

S- Segmentation

T- Target

P- Positioning







Uk is a multi culturel country.according to this morrisons set its divided its market according to thr race,gender and age etc.for example i many places where Asian people are living they are providing those products which the people like.they are giving a very carefull attention to this strategy becausr when the company fulfil the need of the people then they can attract more and more people.


Company divided its area into different parts than these subareas are also divided into regions. Morrisons have divided its UK market into 4 parts that are the states then these are divided into cities and then cities are divided its sides like central, north, east, west, northwest this way it is very easy for the company to give proper attention to all sites.

Distribution and channel strategies

Morrisons have their own distribution channel that is use to deliver its products to the retail stores for the end use of customers. Fresh foods are taken from own forms than they distribute to the concern factory for packing and finally distribute to the retail stores effective and efficient use of the supply chain management.they have also a strong back up if some problem arises.they are paying a lot of attention to its distribution network.


Morrisons have a different strategy options to stay in the market because morrisons is the fourth largest retail store in the uk market.morrisons is now trying to adopting the mixture of three strategies.these are differentitation,cost leadership and focus.morrisons regularly offereing different cheap offeres to attract more and more customers.they are also offereing planty of products for a special age group which they are adopting the focus strategy.morrisons are offering many services to its customer like free eye check up to attract more and more people or customers.

Task 3: Implication of changes in the marketing environment for organization

The change in marketing:

The marketing is the big aspects for any company so the NESTLE making the marketing strategy to attract there customers by there advertisements. Because every one want to see their Childs happy and healthy and the NESTLE is doing that and they are getting the attention of the mom’s by their baby healthier marketing advertisements. Advertisement marketing of the NESTLE is getting the good business, “Every day they want to make mom’s happy”.

The effective’s areas for the organization’s changes:

The company cannot bring the change in without their participants and stack holders, directly effected are the big responsible for the organizations change.

The employee motivation is most effective way for the organization’s step to go to success and the NESTLE has a big motivation for their employees because they are a good motivator for the mom’s.

Customer’s satisfaction is a need for good company if your customer happy then you will be happy and in the world of competition the NESLTE is providing that satisfaction by their healthier products.

Inter departmental collaboration is the big concern of the organization’s achievements because they are the all internal factors for the organization.

Now we are going to discuss the company’s affective areas where the marketing will be effect.

The company “NESTLE” has the big share in the world business because the people like the milk range of this company to make their kids healthy. The company is going to meet his objectives and the customer’s aspects because it is fulfilling the needs of the peoples.

The marketing environment is a marketing term and refers to all of the forces outside of marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. The market environment consists of both the macro environment and the microenvironment.

These are the factors which can changes the marketing plans by these factors any organization bring the changes in there marketing environments.

Micro environmental aspects:

The microenvironment refers to the forces that are close to the company and affect its ability to serve its customers. It includes the company itself, its suppliers, marketing intermediaries, customer markets, competitor, and publics.

The company aspect of microenvironment refers to the internal environment of the company. This includes all departments, such as management, finance, research, purchasing, operations and accounting. Each of these departments has an impact on marketing decisions. For example, research and development have input as to the features a product can perform and accounting approves the financial side of marketing plans and budgets.

The company supplier:

The suppliers of a company are also an important aspect of the microenvironment because even the slightest delay in receiving supplies can result in customer dissatisfaction. Marketing managers must watch supply availability and other trends dealing with suppliers to ensure that product will be delivered to customers in the time frame required in order to maintain a strong customer relationship.

The people:

Marketing intermediaries refers to resellers, physical distribution firms, marketing services agencies, and financial intermediaries. These are the people that help the company promote, sell, and distribute its products to final buyers. Resellers are those that hold and sell the company’s product. They match the distribution to the customers and include places such as wall-mart, Target, and Best Buy. Physical distribution firms are places such as warehouses that store and transport the company’s product from its origin to its destination.

The customer:

Another impact of micro environment is the customers. There are different types of customer markets including consumer markets, business markets, government markets, international markets, and reseller markets. The consumer market is made up of individuals who buy goods and services for their own personal use or use in their household. Business markets include those that buy goods and services for use in producing their own products to sell. This is different from the reseller market which includes businesses that purchase goods to resell as is for a profit. These are the same companies mentioned as market intermediaries. The government market consists of government agencies that buy goods to produce public services or transfer goods to others who need them. International markets include buyers in other countries and includes customers from the previous categories.

The departmental people:

The final aspect of the micro environment is publics, which is any group that has an interest in or impact on the organization’s ability to meet its goals. For example, financial publics can hinder a company’s ability to obtain funds affecting the level of credit a company has. Media publics include newspapers and magazines that can publish articles of interest regarding the company and editorials that may influence customers’ opinions and our mostly products are selling on the public advertisement because the people are the too much concision about their health.

The macro environmental aspects:

The macro environment refers to all forces that are part of the larger culture and affect the microenvironment. It includes concepts such as demography, economy, natural forces, technology, politics, and culture.

An other thing in NESTLE refers to studying human populations in terms of size, density, location, age, gender, race, and occupation. This is a very important impact to study for marketers and helps to divide the population into market segment and target markets.


Every market impacts have different characteristics and causes they find important. This can be beneficial to a marketer as they can decide who their product would benefit most and tailor their marketing plan to attract that segment. The market could be made by the company itself because if you are selling your product as much you want then you can drive the market by yourself. Demography covers many aspects that are important to marketers including family dynamics, geographic shifts, work force changes, and levels of diversity in any given area.

Another aspect of the macro environment is the economic environment. This refers to the purchasing power of potential customers and the ways in which people spend their money.


The natural environment is another important impact of the macro environment for the organization. This includes the natural resources that a company uses as inputs and affects their marketing activities. The concern in this area is the increased pollution, shortages of raw materials and increased governmental intervention. As raw materials become increasingly scarcer, the ability to create a company’s product gets much harder. Also, pollution can go as far as negatively affecting a company’s reputation if they are known for damaging the environment. The last concern, government intervention can make it increasingly harder for a company to fulfill their goals as requirements get more stringent.


The technological environment is perhaps one of the fastest changing factors in the macro environment. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. As these markets develop it can create new markets and new uses for products. It also requires a company to stay ahead of others and update their own technology as it becomes outdated. They must stay informed of trends so they can be part of the next big thing, rather than becoming outdated and suffering the consequences financially.


The political environment includes all laws, government agencies, and groups that influence or limit other organizations and individuals within a society. It is important for marketers to be aware of these restrictions as they can be complex. Some products are regulated by both state and federal laws. There are even restrictions for some products as to who the target market may be, for example, cigarettes should not be marketed to younger children. There are also many restrictions on subliminal messages and monopolies. As laws and regulations change often, this is a very important aspect for a marketer to monitor.


The final aspect of the macro environment is the cultural environment, which consists of institutions and basic values and beliefs of a group of people. The values can also be further categorized into core beliefs, which passed on from generation to generation and very difficult to change, and secondary beliefs, which tend to be easier to influence. As a marketer, it is important to know the difference between the two and to focus your marketing campaign to reflect the values of a target audience.

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