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Strengthening Ties with Customers through Morrison's Loyalty Card

   

Added on  2019-09-30

8 Pages1943 Words227 ViewsType: 227
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Assignment1.Short Introduction on UK supermarket competitiveness and Introduction on Customer ValueChainThe supermarkets in UK is an oligopolistic market, where few competitors compete with eachother for the market share in the market. However, growth of other supermarket chains isslowly mushrooming up in the UK market and stealing the market share of giants such as Tescoand Sainsbury. There are other supermarket chains opening up in UK market and have started price warresulting in decline of bottom lines of these supermarket giants. As a result of which thesupermarket giants have lowered the price of products available in their stores to attract varietyof customers to their respective stores. A figure here from 2014 stats briefly describes the market shares of supermarket giants andsmall players in the market such as Morrisons. As can be seen from the pie chart Tesco leads the supermarket market with 29 % followed bySainsbury with 16 % hold on market shares. Morrisons holds 11 % and is slowly grasping themarket share through its strategic initiatives. The rise in Supermarkets have resulted in declineof Independent retailers. A studyfrom 2015 IGD Research and WilliamReed Business Media study highlightsthat in span of ten years number ofindependent retailers have fallenfrom earlier 35, 000 to 18, 500(Economics online, 2017). These are good signs for thesupermarkets growth and theirstrategy to win over consumermindset. However, with inflow ofsmaller players in the market, theindustry has become highlycompetitive in nature. This will leadtodecline of oligopoly status of fewgiants in the supermarkets marketspace (Pettinger, T., 2014).
Strengthening Ties with Customers through Morrison's Loyalty Card_1

2.Customer Portfolio AnalysisCustomer portfolio analysis is a concept where the marketing managers analyse the relationshipbetween the suppliers of goods and services and their customers. Customer portfolio analysis islong term and forward thinking analysis where deep analysis of the customer is carried out inorder to re allocate the sparse resources in order to suit the customers needs, wants anddesires. Customer portfolio analysis is approach to understand the customer so well that thebest services are offered to the customers in alignment with the presence of competitors sellingthe same line of goods and services to the customers. This way of analysis helps in analyzing theroot cause behind customer behavior and use of set of strategies to acquire new customers andretain older customers. Customer Portfolio analysis is one of the ways customer relationshipsare managed in order to boost the profitability of the business and gain sppedy growth in garbof fierce competition from the competitors. Cost is considered as one of the variable whichdecides particular customer relationship with the company and its goods or services. Customerportfolio analysis is required to develop further customer relationship strategies in order tobuild the brand of company in customers mindset directly. Marketing is battle of mindsets andhere customer portfolio analysis helps in winning the strategic steps and position to win the raceagainst the competitors (Ford, 1997 & Kotler, et al., 1996). The new loyalty card would help greatly in developing a good customer portfolio Analysis. Withthe help of new loyalty card Morrison would gather important customer data and specially dataof those customers who are loyal to Morrison’s. The data would also will gathered through formfilling regarding customer preferences and there choice for improving the overall business ofMorrison in this hyper competitive supermarket business. 3.Customer IntimacyCustomer Intimacy is defined as continuously customizing and personalizing the goods andservices in accordance with the customers demands on time to time basis. Its part of one of thethree core values developed in 1990’s in order to redefine the way company’s shall do businessin the newer customer oriented markets. Customer Intimacy is part of The values discipline model which was strategically developed byMichael Treacy and Fred Wiersema. Together they helped redefine the strategic management in order to win the customersmindset. The companies which could adapt customer intimacy in their product or service portfolio willgain competitive advantages on the companies which failed to adapt the customized approach. The more the products and services are customized to the needs of the customers better theintimacy the company would have with the particular customer. This would lead to long term
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relationship between the suppliers and customers and would bring the company in such a formthat it would be hard for competitors to snatch the market share from the companies customerportfolio( Treacy, M & Wiersema, F, 1993 & Customer Intimacy, 2017). The new loyalty card would be one step ahead towards building customer intimacy forMorrison’s. This new loyalty card would help in building closer relationships with customers forMorrison. The new loyalty card would be great step towards building ever closer ties with
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