International Marketing Strategy for Morrisons in Brazil

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Table of Contents
1.0 Company background..........................................................................................................3
2.0 Task 1 – Introduction...........................................................................................................4
3.0 SOSTAC.................................................................................................................................4
4.0 Situation Analysis (S)............................................................................................................5
4.1 Micro Analysis..................................................................................................................5
4.2 Macro Analysis.................................................................................................................6
5.0 Objectives (O).......................................................................................................................7
5.1 Mission Statement...........................................................................................................7
5.2 Aim and Objectives..........................................................................................................7
6.0 Strategy (S)...........................................................................................................................7
6.1 Ansoff Matrix....................................................................................................................7
7.0 Tactics (T).............................................................................................................................8
7.1 Product.............................................................................................................................8
7.2 Price................................................................................................................................10
7.3 Place...............................................................................................................................11
8.0 Action (A)............................................................................................................................11
9.0 Control (C)..........................................................................................................................12
10.0 Task 2................................................................................................................................12
10.1 Introduction of SOSTAC in the UK................................................................................12
10.2 Current SOSTAC strategy of Morrisons........................................................................13
11.0 Task 3................................................................................................................................14
11.1 PESTEL impact on Morrisons........................................................................................14
11.2 Standardisation, Adaptation and Glocal......................................................................16
11.3 Suitable strategy..........................................................................................................17

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References................................................................................................................................18
List of Figures
Figure 1: SOSTAC........................................................................................................................5
Figure 2: Product Life Cycle........................................................................................................9
Figure 3: Boston Matrix............................................................................................................10
Figure 4: Pricing Strategies.......................................................................................................11

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1.0 Company background
Wm Morrison Supermarkets PLC (Morrisons) is a major supermarket chain in the United
Kingdom that operates in the retailing industry. It is the fourth biggest supermarket chain in
the retailing sector of the United Kingdom because the company has established 498 stores
throughout the United Kingdom (Scott, 2018). The location of the global headquarters of the
company is situated in Bradford, West Yorkshire, England. The corporation was founded in
1899, and it was started by William Morrison. The company started its operations by
launching an egg and butter stall in Rawson Market, Bradford, England. The corporation had
expanded its operations by taking over Safeway in 2004 before which it only operated in the
North of England. However, after this acquisition, the corporation expanded its operations
in the South of England, Wales and Scotland (Morrisons, 2019a).
The company is a part of the stock exchange FTSE 100 Index which shows that it is a major
enterprise in the United Kingdom. The mission of the company is to offer the best value to
its customers while managing their day-to-day operations and offer high-quality products.
The vision of the company is to help in creating a positive brand reputation by offering new
products in its industry while creating a better world for its customers (Morrisons, 2019b).
The corporation has implemented policies which are targeted towards achieving its vision.
For example, the company has created a positive brand reputation in the market by offering
high-quality products at relatively low prices to its customers which provides a competitive
advantage to the company. The company has also implemented various initiatives and
policies which are targeted towards uplifting the lives of its customers, employees and local
communities in which the organisation conducts its operations (Morrisons, 2019b).
The company has not implemented any policies to expand its operations in international
markets. Morrisons has extensively established its stores in the United Kingdom; however,
the company has not implemented any provisions to expand its operations outside the
United Kingdom (Scott, 2018). The policies of the company are targeted towards ensuring
that it expands its operations outside the United Kingdom in order to increase its customer
base. There are many emerging and developed markets in which Morrisons can expand its
operations to make sure that it is able to reach out to a diverse range of customers. Other

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competitors of Morrisons such as Tesco, ALDI and others have expanded their operations
outside the United Kingdom which provides them an edge over Morrisons (Felsted, 2018).
Therefore, the company should focus on using its effective supply chain and distribution
strategy to make sure that it offers its products to an international customer base by
expanding its operations in international market.
2.0 Task 1 – Introduction
International marketing mix is referred to a strategy in which multinational corporations rely
on different marketing instruments with an objective to achieve positive financial results
(Huang and Sarigollu, 2014). In this strategy, the companies evaluate instruments including
product, price, distribution and promotion. This strategy also takes into consideration the
legal and social-cultural circumstances of countries in which the company expands its
operations. Another relevant concept in this regards is the international marketing which is
referred to the application of marketing principles by a company that varied needs and
wants of different people that live in different countries (Vellas, 2016). In this report, Brazil
is selected as the international market for the business expansion of Morrisons where the
company has not established its operations.
3.0 SOSTAC
SOSTAC is referred to a marketing model which was developed by PR Smith in the 1990s; it
is an acronym for situation, objectives, strategy, tactics, action and control which are
referred as the six fundamental facets by Smith (Reed, 2014).

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Figure 1: SOSTAC
(Source: Eglesdigitalmarketing, 2019)
4.0 Situation Analysis (S)
The situation analysis focuses on analysing where the company is currently by evaluating
micro and macro factors that affect the operations of the company.
4.1 Micro Analysis
SWOT
Strengths
 Morrisons has implemented an
effective supply chain and
distribution network facilities.
 The product range of the company is
diversified, and its portfolio contains
products such as clothes, food,
beverages, music and others.
 The corporation has established over
498 stores throughout the United
Kingdom and hired over 130,000
employees (Scott, 2018).
Weaknesses
 As compared to its competitors,
Morrisons has a limited geographic
area.
 Due to a conflict with farmer rights
and lawsuits, the brand image of the
company has suffered (Ruddick,
2015).
Opportunities
 International expansion in developed
and emerging markets provides an
opportunity for the company to
Threats
 The growing number of local as well
as international competitors
increases the profitability of the