Marketing Report: Analysis of Morrison's Supermarket Marketing Strategies
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This report analyses the marketing strategies of Morrison's Supermarket, including SWOT analysis, SLEPT approach, Porter's Five Forces, and integrated marketing communication. It also discusses the integration of online and offline media in their marketing campaigns.
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Contents INTRODUCTION...........................................................................................................................3 MAIN BODY..................................................................................................................................3 TASK...............................................................................................................................................3 Company profile..............................................................................................................................3 Marketing Environmental analysis..................................................................................................4 Swot Analysis..............................................................................................................................4 Slept Approach............................................................................................................................5 Porter five forces..........................................................................................................................6 Integrated Marketing Communication.............................................................................................8 Integration of Online and Offline Media.....................................................................................8 Advertising:...............................................................................................................................10 Sales Promotion:.......................................................................................................................10 Direct and Digital Marketing:...................................................................................................10 CONCLUSION.............................................................................................................................11 REFERENCES..............................................................................................................................12
INTRODUCTION This report aims to analyse various area of marketing which is necessary to take vital decisions(Hartley,Routon, and Torres, 2019). Marketing is an important activity which create plan for product, price, promotions and place that helps the company to grow in the marketing. It attracts customers and retain them for long time. This report is based on Morrison’s supermarket to analyse their internal and external market forces for building plan for communication, offline and online media channels. This will show how to interact with the people and engage them towards company’s strategy and products. Also, the discussion will be supported through Swot, Pestle and Porter framework to gain understanding about the company’s market. MAIN BODY TASK Company profile Morrison’s is one of the largest supermarket market of UK which is scattered at many locations in the country. The company was established in 1899 and running their operations since 123 years(Homburg, Theel, and Hohenberg, 2020). It is serving great consumer products in each and every store in England which flourish the company with high revenue performance. It is a part of retail industry which is known for high competition and large number of buyers. The core purpose of the company is to provide products which can be used and experience by everypeopleandtheycangethealthyandsatisfactorylifestyle.Thecompanymainly manufacture fresh food varieties in the store and sell them under one roof with other brand products as well. They deal in grocery and food related substances which are highly sourced with quality ingredients. The organisation also has online delivery channels which is become a highest attractive factor for the Morrison to engage and keep customer happy. They are located in almost 497 place and customers are satisfied with the product quality and less pricing policy of the company. The company was first established as the cake and bakery products and headed to become a largest supermarket in UK. This has become possible with the great efforts and strategies to be trustable for the customers. Morrison’s has achieved brand name through serving what their customers wants. They keep varieties of food items, preparing breakfast trough opening a new kitchen concept in which the breakfast will be made by the colleague as per the
customer desired menu. It has almost 110000 number of employees in the year 2021. The revenue reflects in 17536 million. the organisation also has implementation of big data analytic due to having an online presence, delivery portals and serving through digital technologies. Morrison has experts and professional workforce which are specialised in producing high quality goods and maintain customer relations at supermarket and online channels as well. This shows that, Morrison has capability to bear risk and uncertainties into market of better strategies will be prepared by undertaking modern business solution. Marketing Environmental analysis Swot Analysis Marketing environment includes all the external and internal factors which which directly impact the organisation in the positive and negative way. Swot analysisisa tool which helpsthe organisationto assesits strengths, weaknesses, opportunities and threats(Benzaghta, and et.al 2021). These four factors basically impact the company to deal with new emerging trends which is evolving in the market.Various factors are described below: Strengths –This factor helps the organisation to asses their strengths in the market. It can be any service or product which they are offering to the customers. Morrison is one of the most popular super market chain. The organisation provides quality products to the consumers in the market at a very reasonable price. The organisationhasestablishedtheir entityin themarketby acquiringdifferent companies in the past year. The business of the organisation is improved with the new technology implementation in the workplace. Weaknesses –This factor suggests that the organisation could asses their weaknesses with the new trends in the market. Morrisonssupermarketlacksinthegeographicalareacomparedtodifferentbig competitors in the market. The company brand image is destroyed because they are not following the proper code of conduct and policies in the workplace.
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Opportunities –Companies can capitalise on different opportunities which are present in the market. The main focus of organisation is to generate more revenues from their product or service. There are various opportunities on which Morrisons could capitalise The company could tap the market of the organic products which could be beneficial for the customers(Shtal, and et.al 2018). On the other hand they can capture huge share in the market with this opportunity. The company can expand their business in different areas which helps them to boost the sales in the market. Morrisons can invest in different new companies to minimize the competition in grocery products. Threats –There are various new threats which are present in the market. The company has to implement new strategies to counter different threats. Morrisons is affected by different problems which stops the company's growth in the market. Various big competitors like Tesco, Sainsburry's is affecting the product margins over different products. New government policies like Brexit affect the working of the organisation. Different e-commerce websites and online grocery delivery services is snatching the customers of the Morrisons. Slept Approach This approach helps the organisation to make a strategic decisions on several factors (Teoli,Sanvictores,andAn,2019).Itincludessocial,legal,economical,politicaland technological factors which affect the company. Social factor –It includes the demographics and culture which affect the business. The organisation needs to implement various ethics in the workplace to create a healthy working environment. Foe example there are different types of social factors like religion and ethics, demographics, consumer buying patterns etc. Morrisons provides quality products to the consumers in the market. This helps them to attain maximum customer satisfaction. Due to these practices they are growing at an exponential rate in the market. Legalfactor–Thisfactorsgenerallyeffectsboththeinternalandexternal environments of the company. Various policies and regulations can affect the business
operations of an organisation. It includes employment laws, environmental regulations etc. Morrisons is following all the laws and regulations and implementing different policies in the workplace to carry out the operations effectively. Economical factor –This factors affects the company's long term goals and objectives in the market. The organisation has to change the prices of the products according to the customers preferences. It includes inflation rate, Unemployment rates, Interest rates, etc. Morrisons follow a systematic pattern to deal with all the economic factors. The management work according to the new market trends which helps them to have efficient growth in the market. Political factor– This factor includes all the government policies and regulations which influence the particular industry. For example various factors are trade tariffs, conflicts, tax policies etc. After, the implementation of Brexit policy in UK the company has to change their working style in carrying out operations. Morrisons cop up with the new market trends and the company is fulfilling the laws and regulations in an systematic manner. Technological factor –This could influence the organisation both in positive and negative way. New technological innovation is a key factor which helps the company to achievesefficientgrowthinthemarket.Itincludescommunication,information technology,researchanddevelopment,automationetc.Morrisonsisusingthe technological factors effectively(Vallati, and Grassi, 2019, July). The supermarket store has introduced a new way of shopping the products for the consumers. They can pay the amount of the products from the mobile. This technology could revolutionise the market due to this technology Morrisons are giving tough competition to different brands in the market. Porter five forces It is model which help to identify the competitive forces which are present in the market. These forces shape the industry and the organisation can analyse their strengths and weaknesses in the market. Competition in the industry –This is the first force which helps the organisation to understand the competitiveness in the market(Bruijl, 2018). If the competition in the market is more then the customers has the benefit to choose their products from different
brands. On the other hand, Morrisons understand the market competition in retail industry. As a counter to that the company is targeting new audience in the market. This helps the company to gain a competitive edge. Potential of new entrants in the industry– There are various new companies are small business which are coming in the industry. They are attracting different new target customers which is threat for the big companies. Morrisons is acquiring new companies and small business to decrease the competition in the industry. The organisation has seen a potential threat of new entrants which are coming in the market. Threat of suppliers:This factor emphasize on the supplier bargaining power tin the in industry. In UK, the retail industry has low threat of suppliers due to having large number of suppliers present in the market. Therefore, it shows that the company Morrison also has low threat of this force as the company maintains good relations with suppliers and they could not get exploited by rising the price of suppliers. They may switch to different suppliers if one may raise the prices. Threat of substitutes:This is also a major threat for the retail industry of UK in which there is large availability of similar products which give same level of satisfaction to customer. This threat involves high competition for the company by having similar products into market. The Morrison also has threat of this factor due to having similar kinds of consumer goods into market. The company may attract customers through giving discounts and schemes to retain them. Competitive rivalry:This market force emphasise on the competition threatening in the retail industry. This industry is surrounded with high competition due to having large number of sellers. Competition affects the strategy and growth of the company in order to be market leader. This shows that, the Morrison has high threat of competition in UK through Tesco, Asda, Siansbury's and Walmart. All these organisations are giving tough competition to the Morrisons due to which they bear problems in expansion. The above analysis shows that, Morrison have low threat of many factors but has some affected factors which needs to be minimised. Therefore, the company needs to focus on availability of substitutes and competitive rivalry through making strategies to be one step ahead from the competitors. For that instance, the Morrison must maintain pricing and promotional decision.
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Integrated Marketing Communication Integration of Online and Offline Media It is important to note that Morrison’s is the fourth largest chain of supermarkets in the United Kingdom. The company works of enhancing the brand image by using right promotional techniques. There is need of understanding the best techniques that will help a company to enhance their image in market. At the present time it is necessary for the company like, Morrison’s to use both offline and online marketing to enhance the image in market. There is integration of both offline and online channels of marketing as it enhances the image of customers in the market (Ugolkov and et.al., 2020). The company uses advertising on print media and uses special discounts and offers at their stores to attract the customers. At the same there is need of using online channels of marketing. The use of digital marketing is necessary for success and growth of company at the present time. There is integration of both online and offline media that assists the firm to work in effective manner. The social media campaigns launched by the business enterprise make them successful in market. One of the campaign launched by Morison’s on social media is discussed below: Morrisons #makeitmagical social campaign The campaign was launched to engage the customers at the time of Christmas. It is done to gain lead in this competitive world. There is good rush at the time of Christmas and is considered as vital trading period for the retailers. At this time, the customers were made aware about the special discounts being provided to them through the use of social media. The use of social media helps to engage more and more customers. The TV ads were also shown that clearly shows the integration in offline and online media used by Morrison’s. This was successful campaign launched by the company that enhanced their followers and impacted the sales of business organisation in positive manner. It was a magical make done by the company on Facebook, Instagram and Twitter. The same has great impact on the on the viewers that will help them to attain successful position in market. It is necessary to manage the working by launching the campaign on right time for benefit of the company. The idea of launching the same of Christmas eve impact the customers and it was time when the customers prefer shopping (Chiang, yi Lin and Huang, 2018). The video launched by them was so impactful and it excited the kids as well. The sale of
premium products got enhanced due to the campaign of the company. There were three videos launched by the company and all were creative and innovative. Figure1https://imcontent.co.uk/casestudy/morrisons-makeitmagical-social-campaign/ social media metrics The social media metrics for the Morrison's shows that their videos get popular on the Facebook by gaining millions of views. For example,a recipe for Marmalade carrots has been played by 2.2 million times. Also, the other videos has gained social hype in the market by counting on the like, comments and shares on the video.The aufdience are enegaged with the Facebook by 20%. The readers were engaged due to high quality campaign launched by the company. This created a positive impact on the customers. There were high sales seen by the company. The readers were engaged and got converted by looking at the campaign. Marketing communication Mix Marketing is an integrated concept which helps in interacting with the customers and leave positive insight about the company into market(KHOA, 2020). Marketing communication mix works as a tool which focus on promoting and selling products across large number of customers. It helps in building relations through advertising, direct and personal selling, sales
and promotions. The Morrison is working in retail industry in which the company is surrounded with number of substitute products and new market players. Therefore, communication mix will be effective to keep customers towards the favour of company for long period. Advertising: It is the highly required tool of communication mix which needs to be used in appropriate manner. There are a lot of platforms like Television, books, magazines, online platforms and other traditional methods to put advertisement. These platforms enable large people engagement that will remain aware about the company products(Mitrović, Jakšić, and Spajić, 2020). The Morrison is required to use public relations and advertising through television and social media. This strategy will work best for the company that will secure long term existence of the firm. Sales Promotion: This is another technique of the communication strategy to engage large number of customers. It includes discounts, schemes, coupons, free vouchers and other effective deals that will helps in reaching to more sales target. The Morrison needs to enhance their sales by giving huge discounted offers, buy one get one free schemes cards and loyalty points. The company already use this technique on festive occasions. Direct and Digital Marketing: This marketing concept shows that direct and digital promotions are growing in the modern era(Galak, and Kahn, 2021). People gets easily attracted towards digital campaigns and shows interest in campaigns and giveaways. Morrison’s perform digital promotion through third party involvement and seeks customer attention by receiving online orders. With the integration of all these communication mix strategy, it has analysed that the company needs to be focused about choosing the right option. Promotions are crucial but may also lead high cost and resources. The Morrison’s has used these strategies in below presented manner. DRIP model Differentiate:The company use this strategy by differentiating their products from other seller for which, the company use advertising strategy to keep customer aware about their unique quality products and services. Reinforce:The Morrison convey their messages about how they are sustainable and freshly produce products in the market which keeps their brand at high position.
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Inform:this shows that, the company inform the customer about the brand through interacting with direct selling, social media platforms and sue Emails, Texts to inform customer about new product launch or offers. Persuade:this strategy is not used by Morrison as they are not active in engaging customers through sharing blogs or share product details, CONCLUSION The report has concluded that, marketing planscrucial role in achieving organisation gaols and objectives. This shows that, the company must focus on the internal and external marketforceswhichimpactontheirdecisions.Thereporthasshownproblemswith technological, social factors as well as threat of competition and substitutes. Therefore, the company needs to look for the better strategic formulation for promoting product and services into market, therefore, the company must assures that it is require for taking decision about digital media to secure a well position of company in the market. This will enhance customer engagement and satisfaction by delivering right product through right place for the right customer.
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