Marketing Management Strategies of Morrisons plc

This report analyzes the marketing management strategies of Morrisons plc, the UK's fourth largest leading supermarket retail company. It examines the company's branding strategy, 7P's of marketing mix, and recommends several favorable marketing strategies the company can benefit from.

MARKETING
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
CONCLUSION..................................................................................................................................12
REFERENCES.....................................................................................................................................1

INTRODUCTION
Marketing refers to the activities that a company/brand undertake to promote the buying and
selling of a product or service. It includes advertising, selling, and delivering products to customers
or retailers. Affiliate marketing is done on behalf of the company, its personnel, and the
management team. Marketing management on the other hand refers to the organizational directive
measures and techniques which are carried out for applying various orientation tools using
marketing supplies. This helps target the selected audience with the potential purchasing power and
promotes the company's brand (Deepak and Jeyakumar, 2019).
The following report will analyze the marketing management strategies and its associated
factors in the context of UK's fourth largest leading supermarket retail company 'Morrisons plc'. It
has a strength of more than 130,000 employee workforce in over 500 retail stores and a market
share of around 9.8% in the UK grocery enterprise. Morrisons offers a wide product range which
consists of farm produced organic foods & beverages, clothing, music, etc. The report will examine
the company's branding strategy illustrating its market positioning system. It will further determine
the 7P's of marketing mix of Morrisons. The report will also recommend and explore several
favourable marketing strategies the company can benefit from.
MAIN BODY
The STP model – SEGMENTATION, TARGETING & POSITIONING
STP Marketing: The STP marketing analysis stands for Segmentation, Targeting, and
Positioning processes. These three steps benefit a firm/company in breaking down broad markets
and in targeting them. This analysis model helps segment the appropriate market for product/service
placement and target the selected audience for the proper positioning of the business organization in
the marketplace. The STP analysis model is commonly used by many busines organizations in their
market management approaches. It helps win diversified customers and efficiently streamlines the
target market sectors (Romppanen, 2021).

Marketing refers to any actions which a company takes to attract their targeted audience to
company's product or service. The purpose of marketing is to research and analyze the ideal
customer wants by sending surveys and follow up timely their need to fulfil customer wants. There
is a marketing manager in every organization who oversees all marketing campaigns for the
company, implements strategies for the promotion of business, product or service. The STP model
is one such market management tool that can be applied to the retail organization of Morrisons too
for identifying its market segments and target audience in order to strengthen its branding strategy.
MARKET SEGMENTATION STRATEGY
Segmentation is the first stage in this target marketing strategy development. It is informed
by customer research data and market trends analysis. Identification of customers and their needs
and choosing the market segment for investment is included in this stage. Morrisons ranks high on
the London Stock Exchange market and has a vast distribution network. The company has a good
network of both traditional and digital marketing platforms. Besides its strengths, it has a very low
customer satisfaction level.
For a leading supermarket position, Morrisons has a poor global reach as its geographical
target zones are mainly in its homeland UK. This lack of public attention is becoming expensive for
the UK market in a recession prone economy. In addition to it, due to some conflicts regarding the
rights of British farmers, the UK based retail giant has become unpopular among its natives with a 9
out of 10 ranking in the Top 10 list thus negatively affecting brand image. This calls for a strategic
application of the segmentation approach towards the identification of the company's market
segments (Morgan and et.al., 2019).
For instance, the segmentation criteria for Morrisons can be categorized into geographic
distribution beyond UK zones, purchasing capacity of buyers, convenient location for sales and
promotion, and qualitative service of fresh products. This will significantly increase the organic
growth of this retail business along with the available and surplus options of new market
acquisitions and diversifications. Currently the company has promptly recognized the need to
segment its various markets based on the changing trends in demographics. It uses the approach of
segmentation effectively by fragmenting its store outlets in a consumer centric sustainable manner
(Dolnicar and et.al., 2018).
Furthermore, Morrisons plc can segment its products based on the latest market researches
to help identify its required market size which can help formulate the where and how of its
marketing efforts. Market segmentation needs to be done on a well outlined demographic depending
on the age-sex, socio-economic, and branding factors. This means that a wide range of resources
such as campaigning, outward advertising, infomercials, and capital inputs are required in

abundance for such a vast retail organization.
MARKET TARGETING STRATEGY
The second marketing approach of the STP model is the targeting approach which is
informed by a comprehensive analysis of customer demands and requirements. Target marketing
extensively evaluates the shortlisted market segments and selects online targeting along with
traditional and digital marketing for increasing its customer base. This helps raise revenue
collection and contribution from each segment of the business. Morrisons can target its segmented
customer bases with the help of various targeting methods such as Differentiated, Undifferentiated,
and Concentrated, and Customized.
There is an array of opportunities for Morrisons' growth, for instance establishing a strong
online consumer presence. The retail organization also has a good amount of scope for expanding
its international reach falling outside the UK postcodes zones for increasing its clientele. In order to
boost brand image and business, it can also make its mark by covering sales in the growing 'organic
products' market. The UK based retail giant is currently on the look-out for considerably raising its
overall market share. In this regard, out of the above mentioned targeting approaches the company
can effectively make use of the undifferentiated targeting strategy for upgrading the sales of almost
all its stores (Di Cataldo and Monastiriotis, 2018).
The central purpose behind using the undifferentiated target strategy is that the superstore
has good strategic relations with smaller brands and companies which can prove helpful in its
business acquisitions. This is where the unstructured targeting will help convey the company's
message to its widespread multiple connections that it is looking for more potential investments
rather than any irrelevant niche market. In this way Morrisons can set up joint campaings and
promotional events to target its desired customers. The company has also addressed the global
pandemic issue in a tailored manner by placing its products strategically through social media
platforms and other online channels.
MARKET POSITIONING STRATEGY
Market positioning makes up the third stage of the STP process and is instructed by intrinsic
and competitive analysis. It includes identification of segment proposition wherein the core brand is
placed decisively in the market share. Here the focus is on communicating and developing brand
value by gathering consistent information about the functioning of industrial rivals in order to
strategize a company's market positioning approach. The Morrisons plc views its market positioning
in two aspects namely brand functionality and its methods and channels of communication.

The UK based retail organization has witnessed a 7% annual increase in its outlet sales for
the past 3 years. This has been made possible as the company believes in establishing a socially-
conscious and customer friendly brand with a suitable market positioning method. It can be further
solidified by locating the segmented end users at their precise targeted segments with the
implementation of suitable advertisements and informational messages. The element which stands
out in the organization is its sole brand name which acts as an excellent determiner of its market
positioning approach (Iyer and et.al., 2019).
As already mentioned above that this third stage of the STP market analysis model is
informed by a company's competition and the same can be observed in the case of Morrisons plc.
The company faces certain powerful threats from some huge dominating retail businesses such as
Sainsbury's, Asda, Lidl, Tesco, Co-op, etc. The retail industry is expanding and dynamic in nature
which presents a risk of socio-economic instability if Morrisons' products are not placed
successfully in its consumer markets. One such rival is the supermarket company 'McIver' that
presents a threat to the retail superstore. Also, the rising trend of e-commerce markets can be
detrimental to the company.
These issues can be addressed and efficiently managed with the adoption and application of
and effective market positioning strategy starting with a value proposition in which the company
can issue a promising statement to its consumers. The retail superstore Morrisons has taken the
initiative to learn the peculiar needs of their customers hence offering them products that are
suitable for each. The organizational brand understands the different needs of each customer thereby
putting emphasis on product placement that can suit their needs.
Some noteworthy tactics that Morrisons can use to reshape its product placement techniques
include the provision of unique offers and reasonable deals at reduced prices, focused promotion of
new store openings in its localized marke segments, etc. It goes without saying customers should be
given the top priority with meting out responsive and responsible services. Another one of the major
elements while setting up a positioning strategy is the development of an efficacious
communication plan with which the targeted customer base can be offered rightly placed products.
MARKETING MIX
The marketing mix consists of the multiple various factors that focuses on the part of the
marketing plan. Marketing mix refers to the classification of 4p's: product, price, placement, and
promotion (Lahtinen, and et.al, 2020). Effective marketing makes the business touch the broad

range of the areas opposed in fix markets on one single message.
When the consumer go for the services the marketing plan consist of 7p's of the marketing
mix which are product, price, promotion, place, packaging, positioning, and people. As of the
product market, customers, and needs gets change on the rapid pace, the business of the Morrison
should try to continuously visit the 7p's of the marketing for the surety of the business entrancement
and what type of achievement it is getting with the maximum possible outcomes. The marketing
mix will help the business of the Morrison to understand what type of product or services can they
offer to their customers.
The 7p's of the marketing mix in context with the Morrison are:
 Product: when the business provides the services rather than the products, the product
become intangible, perishable, and heterogeneous. With this the production and the
consumption becomes become inseparable (Wacker and Samson, 2021). The offerings can
be customized as per the needs of the customers and particular significance is being assumed
by the customers encounter towards the services. In the business like of Morrison, too much
customization will also set of on the standard delivery of the services offered by the business
and it will adversely affect the quality. Therefore, the business of the Morrison should take
care for designing the service offering to the customers. Company can provide the
convenience goods, shopping goods, unsought goods, and the speciality services to the
customers of their targeted markets.
 Pricing: Pricing in the marketing mix gets tough when it is in the context of the services as
compared to the pricing in the process of the products (Caliskan and et.al, 2020). The costs
in the service attendant costs-like the labour costs or the overhead costs are need to factored
for the successful operations of the business. Like the business of the Morrison, should not
only consider the price of the services provided but also look about the ambience and all the
miscellaneous costs incurred in providing the best. The final price of the services provided
by the company should be decided on the basis of the marking the adequate profits levels
(Kumar and et.al, 2020). The business of the Morrison will be generating the profits when
the services provided by them is priced lower than that of the services of their competitors.
 Place: The service delivery is not the concurrent with the production and it cannot be stored
and can't be transported, the location was the business provides the services plays an
important role in it. The place selected for the services should give the special thought to the
providers of the services for their selected market's development (Bush, 2018). Thus, the

business of the Morrison located in the crowded and the busy-upscale market will give more
customers as compared to the business set up on the outskirts. Like, when the resort is set up
on the country side will attract more of the customers and provides the benefits to the
customers as it is not in the noise of the city and Is away from the rush of the cities.
 Promotion: The adoption of the best promoting strategies like planning and tactics
implementation in the marketing plan will help the business to grow the demand for the
product and the services. Service offerings identically like the airlines and banking
companies or insurance companies invest on high shares in the advertisement for their
services to gain more customer approach. Investing in the advertising, for the business like
Morrison will be helpful for the company to grow its share and to attract more of the
customers towards the service segment they provide. This promotion model will be crucial
for attraction of the customers towards the business and the service providers will be having
the identical offerings.
 People: people in the growth of the business works as the defining factor in the
ascertainment of the service delivering, as the services are inseparable from the people who
provide the services to the customers (Solimun and Fernandes, 2018). Like in the business
of the restaurants is known for the food but also for the service provided by the staff. This
fact is same for the different organization like banking and the departmental stores. Business
of the Morrison while providing the services to their customers must focus on the customers’
needs and value the time for the best engagement with the consumers. The best Morrison
can take is that it can provide the customer care training to the staff members and should
help them adopt the best out of them to treat and guide the customers in the good way to
attract more of the customers.
 Process: when the services are being provided to the customers the company must focus on
the service delivering process in the stores implemented by them. The Morrison should
make the process for them by making them know about how and what to do with the
customers and how to behave with them to make them constant towards the firm. They
should define how the staff should be behaving with the upcoming customers, and they
should say some greeting message to the customers, these all things should be in the daily
use of the staff of the company so that the customer's approach will increase with the
development of the company.
 Physical evidence: services that a company provide is intangible and the company must
enhance their tangible assets offering for the enhanced customers experiences (Viriyasitavat
and et.al, 2019). Thus, the company must invest in increasing the brand image by giving

their customers the loyalty towards their brands and must also invest in decorating and
interior designing. So, with the hand-full of the great environment the come would be able
to create and give their customers a unique experience. The business of the Morrisons
should develop the well and good environment for their customers so that the reviews given
by them on the website of the company and other social media platforms will give company
more of the customer base.
For every organization that is serving in the economy, it is very crucial to have right
marketing strategies in order to give a good competition and sustain longer in the market.
Marketing strategies are the game plan of any business through which it can meet its desired
objectives and reach to the maximum customers possible (Mukonza. and Swarts., 2020). This
involves segmenting the consumers according to their needs, targeting those segments by the
promotion techniques and then finally monitoring and evaluating the entire plan. Morrisons is
giving its best by advertising its products in the UK market but is lacking in digital areas of the
marketing. The brand has a competitive price for its products and 500 retail stores with a very good
market share of 9.8% in the UK. This already is a great established strategy to rise above the
competition.
But, for the coming generation who tends to get things done online and who prefer using
online platforms more, for them the brand is not doing enough in its marketing areas. Morrisons has
a lot to cover and make online marketing strategies that can help, shift the interests of the youth
towards the brand (Trivedi. and et.al., 2018). One of the best recommended marketing strategy is
the digital marketing, which is also named as social media marketing. It refers to connecting and
engaging various kind of potential customers on various online platforms. This marketing involves
email marketing, web based marketing and social media marketing. Here are few best networks of
the digital marketing, where Morrisons can show its existence and attract the large no. of customers
from.
EMAIL MARKETING
Email marketing is one latest way of advertising that is used by no. of businesses these days.
Adopting this practice of emailing can benefit the businesses in a much bigger manner, as they can
use it for the advertising by sending different emails to their targeted customer base and also,
sometimes may even send emails asking for the feedbacks of the products and services that were
delivered to the customers (Gunelius., 2018). Morrisons by using Email marketing can send no. of

emails to advertise their latest launch or advertise their seasonal sale on the products. It can send the
coupon offers which can encourage the people to buy products from the brand. Using this can be
very simple as the same mail can be sent to the thousands of people at the same time.
BLOGS
It refers to a kind of journal where the groups, individuals or any corporation present some
records of their thoughts, beliefs and activities. Blogging can also help a business attain online
visibility as it's a marketing channel that helps a business to achieve growth. By driving traffic to
the site, generating leads for the business, helping to develop those generated leads and deepening
the knowledge of the client-base, blogging appears to be a profitable measure for the business
(Özoğlu. and Topal., 2020). Morrisons by sharing its blogs on the online platforms can show
different kind of informations that can be helpful for the customer to buy that product. It can show
all the previous experience one had and what are the thoughts and beliefs set for that particular
product. This way, by showcasing the hand selected products and there features by uploading the
blogs on the site, can have a positive impact on the customers about the product and services.
ORGANIC SOCIAL MEADIA
This marketing refers to the content that every business or brand posts about them on their
feeds to attract the people for the services and products they offer. The content posted can be in
form of videos, memes, photos, stories etc. There are various platforms a business can choose to
show its marketing and advertisements. Morrisons should also start advertising about the products
and services it offers as the people these days are always gaining knowledge about the product first
and then buying that product (Olson. And et.al.,2021). By showing attractive advertisements and
content the brand can attract large no. of customers. These advertisements can be presented on
Twitter or Facebook, but to do it more effectively, the brand should first build a list of target
audience and the segments which it wants to attract. By adding different hashtags to different
products the brand can differentiate them in categories and thus can attain right customers base
online. Using these platform will benefit the brand as it involves no cost and there are almost 76%
of the people on these platforms who use their feed to search content of their interest.
PAID SOCIAL MEDIA
This technique of advertising involves paying a particular fees to the online platforms,
where the brand is willing to advertise. for example, YouTube, Facebook, Linked Inn, Twitter etc.
These platforms charge that fees and in return help the brand to gain a customer base by showing
their advertisements to the right customers and target them accordingly. As these sites have the
maximum traffic on their page so it becomes very helpful and the best way for advertising on such

platforms (Chaffey. and Ellis-Chadwick., 2019). Morrisons by showing its advertisements on the
well-established networks can help itself by creating some essential digital presence as it was
lacking in this thing. The brand can gain a customer base and spread awareness about the products
and services amongst the upcoming generation. Out of all the other platforms the best rated
platform, Morrisons can use for its growth is, Facebook and it is also the least expensive one, when
compared.
These were the few marketing strategies that Morrisons can use to enhance its awareness
and its sales. But, to actually prove that these were the best strategies justifying them becomes very
important. So, by showing all the benefits one can avail with these marketing strategies, here is the
justification of the above recommended strategies.
Good local reach
This factor is concerned with the awareness of a business in the local areas. Through digital
marketing strategy, Morrisons can drive more customers to its doors, as with the help of local SEO,
the brand can reach the entire neighbourhood.
Low costing
Whether a business is planning to promote nationally or internationally, digital marketing
has proven to be an effective way of advertising as it helps even small business to compete with the
large businesses. Some strategies under this kind of marketing involves no cost at all which makes
these strategies easy to access. Morrison can easily use these strategies and even purchase high cost
plans, as there is no budget issue to the company and that will help in the near future success.
Easy learning
his concept of digital marketing is easy to learn and easy to use. The only complexity it
holds is, choosing the right kind of strategy for the business as it involves various platforms and
various techniques of doing the marketing. When a business become aware of what kind of
marketing is right for its operations, there is no going back. Morrisons can indulge itself in paid
social media marketing as that can turn out to be the best platform where the brand can advertise its
products and get maximum leads.
Effective and efficient targeting
When there is no clarity of the customer base, digital marketing helps to extract data from
the interests that people have already shown in the similar businesses. It helps the business to
become aware of its target audience (Bizhanova. and et.al., 2019). Morrisons by using these tactics
can clearly determine the customers and section of the people who are interested in its products and

services both. This can be really helpful for the brand because now it can focus on the potential
segment.
Different type of content
People are driven towards the advertisements that look more attractive. Content can be in
any form, that the organization finds best to attract the customers. It can be in form of Blogs, E-
books, visual content, podcasts, white papers etc. Morrisons can also choose the best kind content
which can attract large no. of customers. The brand can use blogging as its way of advertising
because that can turn out in an efficient way.
Increase engagement
With the help of this marketing, Morrisons can keep its current customers engage with all
the upcoming sales and offers. The brand can show all the advertisements on the most common
online platforms or by simply uploading its content on the official page. Digital marketing helps to
keep the customer base engaged and also helps in making new customers for the brand.
CONCLUSION
From the above report it has been concluded that Morrisons being a great supermarket chain,
is using STP model to enhance its sales in the market. The brand is targeting customers on the basis
of their age, gender and purchasing power of the buyers. It offers products as well as services to the
UK market and has a very good pricing quality. It has also been concluded that the brand is lacking
in its advertising techniques so digital marketing can be one of the best way to advertise its products
and services as that can attract large number of customers towards the brand.

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