Implementing Marketing Plans and Strategies

This report discusses the importance of implementing marketing plans and strategies in businesses. The SOSTAC model is used as a framework to guide organizations in developing effective marketing strategies. The six key elements of the SOSTAC model are situation analysis, objectives, strategy, tactics, action, and control. These elements help organizations effectively implement their marketing plans and achieve desired results.

PRINCIPLES AND
PRACTICES OF
MARKETING 2

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Company Overview....................................................................................................................1
Application of SOSTAC model in marketing strategy and analysing its each element.............2
TASK 2............................................................................................................................................7
Evaluation of the effectiveness of the current marketing strategy..............................................7
TASK 3............................................................................................................................................8
Critical evaluation of both past and current marketing management concepts and theories......8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing principles and practices helps business organisation to build effective business
strategies that guides to sustain in competitive environment. Marketing is also considered as the
crucial and complex part of business organisation. Morrisons is one of the largest supermarkets
in United Kingdom. Morrisons provides products and services such as books, magazines,
clothing, DVDs, CDs, food and drinks. The organisation aims at using SOSTAC model to focus
on moving the supermarket to a different country outside the UK. In the following report,
SOSTAC model is applied to the marketing strategy of business and its emphasis is on macro
environment is also done. The report explains effectiveness of the SOSTAC model applied on
the business. The report further provides recommendation for improvements to the retail
business organisation.
TASK 1
Company Overview
Morrisons is a public company that deals in chain supermarket business and stands the
position of fourth largest supermarket in United Kingdom. There are 498 retail stores across
England, Scotland and Wales. Morrisons provides employment to around 132,000 people
through its largely spread business. Its headquarters is situated in Bradford, West Yorkshire,
England. The organisation was founded in the year 1899 by William Morrison. The company is
also listed in the London Stock Exchange.
Morrisons deals in retail market business and provides products such as food, drinks,
toiletries, groceries, clothing and books (Yu and Ramanathan, 2016). The organisation aims at
being more competitive and providing value to the money of customers through satisfying them.
Company ensures that it provides brand and quality products at the best possible cost price.
Morrisons makes changes in its operations according to need and demands of customers,
employees and overall community. The motive and aim of Morrisons is to offer services to
customers with one-stop-shop by providing them with whatever they want. The organisation
focuses on simplifying and speeding up to build culture based environment with consistent and
clear way of working. The organisation aims at developing its marketing strategies in a way that
brings effective results of expansion of business in different country or markets. The SOSTAC
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model is used by Morrisons in its marketing strategy in order to get the best results and outcomes
of expansion of retail stores in different markets.
Application of SOSTAC model in marketing strategy and analysing its each element
SOSTAC model is the marketing model that helps in effective planning for overall
marketing and digital marketing strategy (Widya Yudha, Tjahjono and Kolios, 2018). Morrisons
uses this model in order to build a structured marketing plan that as it is a logical process by
which its every element and relevant factor is considered while build marketing plan or strategy.
SOSTAC stands for:
Situation: Refers to Where is company now?
Objectives: Refers to Where the company wants to go?
Strategy: Refers to How is company going to get there?
Tactics: Refers to Details of the strategy?
Actions: Refers to Implementing and putting of plans and strategy to work?
Control: Refers to Measurement, review, monitoring of plan and also updating and modifying of
plan or strategy.
Morrisons uses SOSTAC model for developing effective marketing plan and strategy as follows:
Situation analysis
The first step of model focuses on identifying internal (SWOT) and external (PESTLE)
factors that affects and bring influences in the working of organisation. The situation refers to
answering of the question “Where is company now?”, therefore, internal and external factors
needs to be analysed properly to get the perfect picture of situation. Morrisons uses SWOT
analysis to identify its strength, weakness, opportunities and treats which is given as follows:
Strength:
 It has Strong distribution channels and
networks as well.
 Effective food making skills and
feature of customization
 Good quality and fresh food items are
key strength of Morrisons.
 It has Large product portfolio that acts
as a strength for Morrisons.
Weaknesses:
 Geographic presence is limited in UK
only that limits the market share and
productivity of company.
 Weak loyalty programme and low
customer recall has brought negative
impacts.
 Delayed response while adopting to
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 Effective supply chains maintained by
Morrisons.
 The company is listed in London Stock
Exchange and FTSE Index.
 Online and Retail stores has created
strong customer base.
changes (Sica and et.al., 2015).
 Alleged issues of past regarding rights
of farmer has affected the brand image
of company.
Opportunities:
 Online and convenient channels are
fastest growing sectors which can bring
opportunities for Morrisons.
 Establishment of global and
international presence will bring
effective benefits for Morrisons
(Alserhan, 2017).
 Moving in non-food retailer in UK may
lead to increase market share and
customers as well.
Threats:
 Changing and increasing regulations
and rules affects operations of business.
 Retails markets faces great competition.
 Technological risks are increasing
which may bring affects to Morrisons.
 E-commerce business may affect the
business of physical stores.
After analysing the internal factors, Morrisons aims at analysing its external factors in
order to get the analysis of current situation of business. External factors are analysed by using
PESTLE analysis which is explained as follows:
Political Factors: UK and European Union brings great influences on the food retailers in UK.
Rules and regulations are made according to licensing, pricing, planning, competition and
customer experience and brings influences on the retail business. Various rules and regulations
that affect Morrisons are Competition Commission law, Food Standards Act, 1999, British Retail
Consortium, etc. Rules and regulations made by government focuses on limit the out-of-town
developments which makes it difficult for obtaining planning permission to new stores and it
provides benefits to existing supermarkets such as Morrisons (Bowie and et.al., 2016).
Economic Factors: This factors are always fluctuating and includes global economic recession,
increasing energy cost, raw material costs, cost of transportation, etc. Various economic factors
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may bring influences in the working of Morrisons as increasing raw material cost or situation of
recession in UK may brings huge impacts on supermarkets and also on supply chains.
Social Factors: Lifestyle of people, culture and trends, buying patterns of target markets are
considered as socio-cultural factors which brings great impact on the retail supermarkets
business of Morrisons. Consumers likes to adopt health eating habits that is met by providing
quality and fresh food items by Morrisons. Social factors if not considered well can decrease the
organisational efficiency to the minimum as these factors are important to be considered in order
to understand the needs and demands of the organisation's consumers.
Technological Factors: It is increasing and constantly changing and business organisation needs
to adapt to it in order to sustain in competitive markets (Dictionary, 2016). Morrisons focuses on
constantly monitoring to it and brings required changes in business operations and activities. It
adopts to self- scanning, loyalty cards and internet selling. Technological factors make the
organisations operations smooth. It is important that these factors are considered well by the
organisation before making any required decisions. It makes it easy for the organisation to
achieve its desired set of goals and objectives.
Environmental Factors: This factors include sustainability, carbon footprints, pollution control
and reducing wastage. Morrisons closed its warehouse locations in order to cut down the travel
miles. It also aims at reducing environmental damage and reduce the wastage. Environmental
factors impact the decision making of the organisation and in what ways the organisation face
difficulties in making its decisions.
Legal Factors: Employment laws, health and safety laws, regulations for merge and acquisition
are various legal factors that affect retail business and Morrisons (Gürel and Tat, 2017).
Therefore, Morrisons focuses on to keep monitor on the rules and regulations and accordingly
brings changes in business organisation. Legal factors are important factors that needs to be
considered while considering important laws.
Objectives
The step two of SOSTAC model explains that organisation needs to create business
objectives after analysing the situation. The marketing plan and strategy of the business needs to
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answer the question “Where the organisation wants to go?”. Morrisons aims at developing its
market outside the UK. The objectives of business needs to be SMART as it needs to be realistic
and measurable. The Morrisons creates its objectives as Specific, Measurable, Actionable,
Relevant, Time-Related. The main objective of using SOSTAC is to bring effective changes in
business operations and developing supermarkets stores out of the markets of UK.
Morrisons aims at moving its supermarket stores in Japan so that it can also adapt to
updated technology and brings innovation and creation in business activities leading to provide
satisfaction to customers. The new markets and global presence will also provide opportunities
of increased market share and profits.
Strategy
This needs to answer the question, “How is company going there?”. Morrisons aims at
developing its business in Japan and increasing its supermarket stores (Lee and Kotler, 2015).
Effective strategy needs to be made as it guides organisation to how to get there for fulfilling
objectives made. The key strengths of Morrisons are effective supply chain and good distribution
channels which will allow company to gain advantage in new markets. The large product
portfolio has created strong customers base which will again act as a strength of organisation.
Morrisons needs to make its marketing plan by considering its current situation and future
objectives. It also needs to entails efforts and contributions that goes into for introducing new
products or entering in new markets.
Marketing strategy is the actual plan of organisation in SOSTAC model in which
company aims at formulating plan regarding how to communicate objectives with target market.
Following are given the elements that are considered in marketing strategy of Morrisons:
 The message which is communicated conveys the actual objectives effectively to
customers.
 The Mode of marketing and its strategy needs to provide quality information and also
avoids redundancy of information.
 The strategy of marketing needs to emphasis quality and also adds value services to
target customers (Mainali, Mahapatra and Pardalis, 2018).
Therefore, Morrisons needs to focus on formulating effective marketing strategy and
reflect upon objectives and also needs to effectively utilize the market potentials for increasing
market share and profits of the company.
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Tactics
This refers to defining specific details and answering the question, “ What are details of
strategy?”. This Tactics steps covers the marketing mix that organisation uses to implement the
strategy and objectives of organisation. Following is given the marketing mix plan that provides
checklist areas on which Morrisons needs to focus on:
Product: Morrisons provides fresh and quality food items and it is the key strength of company.
It also pays attention to quality of products, its features, appearances and packaging. Every day
essentials are also offered by Morrisons and aims at making modification in business operations
and activities (Serrat, 2017). Morrisons has developed its marketing strategy for new markets of
Japan in a way that customers can find all items at one place which will lead to meet their needs
and demands.
Price: Morrisons aims at providing quality products at affordable prices therefore focuses on
bringing innovation and improves effectiveness of operations. The marketing strategy of
Morrisons focuses that price never becomes the reason for customers to shop anywhere else.
Therefore, it chooses promotional pricing in new markets in order to attract customers and build
their trust.
Place: Morrisons operates its retail supermarket in UK and have 498 stores and provides
employment to around 132000 employees. It makes its marketing strategy for Japan markets to
have both retail stores and online markets as this will provide main hub for stock movements that
will also benefit courier organisations to maximise efficiency and deliver stock to final
customers within shortest period of time.
Action
This refers to bringing plans and strategies into actions. This step answers to the question,
“How to implement plans and strategy to work?”. Morrisons uses this SOSTAC model for
effectively building a marketing plan and strategy that helps in developing its business in global
markets by entering in new markets of Japan and also for introducing new product (Sica and
et.al., 2015). At this step, marketing plan defines the responsibilities of employees, management
structure, provides guidelines and direction regarding procedure to be followed and also provides
training before implementing.
Control
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This involves the measurements of the action and marketing plan which is implemented
by Morrisons. Control step also aim at modifying tactics or strategy if required and needed for
obtaining better results and outcomes. Consumers and employees satisfaction level may be
monitored for taking further modification or changes. The final step of SOSTAC model
considers that overall marketing plan of company brings effective and desired outcomes.
TASK 2
Evaluation of the effectiveness of the current marketing strategy
Morrisons uses SOSTAC model which focuses on most essential elements of the business
organisation. The different elements of SOSTAC models are related to different steps in
implementation of marketing plan. The first element of SOSTAC model guides organisation for
implementation of marketing plan and strategy (Song, Sun and Jin, 2017). Situation analysis is
the first element that guides organisation to identify the current situation of Morrisons. The
second element is objectives that guides organisation to list the goals and objectives that needs to
be achieved. Strategy is the third element which helps in providing guidelines for achievement of
goals. Tactics element breaks down the marketing strategy and plan in smaller details. The action
element helps in assigning roles and responsibilities for doing certain tasks for implementing the
marketing plan. Last element of SOSTAC model is control that guides organisation to measure
the results and outcomes of marketing plan and make changes if required. This model helps in
easily tackling the plans and policies made by the business organisation and it can be used for
critically assessing the process as well.
Use of this SOSTAC model brings effectiveness and benefits for overall Morrisons
organisation In following way:
 Use of SOSTAC model leads to meet needs and wants of customers in current and future
markets (Voehl, 2017).
 Helps in identifying new market opportunities and brings benefits of increasing
productivity and profits.
 Use of this model determines demands of product in new markets.
 This model helps in identifying new product areas for business organisation.
 SOSTAC model allows testing of the marketing plan and strategies if desired outcomes
are met or not.
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 The SOSTAC model helps in effectively analysing the internal and external analysis.
 SOSTAC model helps in identifying key strength and weaknesses of organisation.
 Use of the SOSTAC model aids in improvising current products and services so that it
can meet needs and demands of customers.
 This model helps in outlining the required measures for generating cash for day-to-day
activities and operations of organisation (Voehl, 2017).
 Effective use of the SOSTAC model brings benefits of repaying debts and increasing
profits of company.
 The SOSTAC model helps business organisation to review the business process and
activities.
 It guides organisation to implement the marketing plan step- wise and it is easy to use.
TASK 3
Critical evaluation of both past and current marketing management concepts and theories
The SOSTAC model is used by Morrisons in order to develop its markets and business
operations into foreign countries. The SOSTAC models is a marketing plan that guides business
organisation to implement plan and policies effectively and bring positive benefits and outcomes.
The SOSTAC model is a comprehensive marketing plan that describes steps for effectively
implement the marketing plan and achieve desired results and outcomes. SOSTAC is a step-
wise guidelines for implementation of marketing plan but it have certain drawbacks as well.
The current marketing strategy is SOSTAC which is used by Morrisons supermarket in
UK. This model is also used by Morrisons to implement the plan in to foreign markets of Japan
and brings effective benefits. There are many different approaches and models of marketing
which can bring effective results and outcomes (Widya Yudha, Tjahjono and Kolios, 2018).
SOSTAC model helps in making use of essential elements of marketing in strategies, therefore
brings effective results and accomplish overall goals and objectives. But, the SOSTAC model
also identifies weaknesses of the business organisation. This may lead to bring ineffective results
and outcomes if situation analysis is not done properly. The SOSTAC model may fail if strength,
weaknesses which are identified are faulty or inappropriate. This model may lead to create
ineffective decisions if one of the element is not held properly. It may also lead to create
unrealistic objectives which may bring failure for overall marketing plan. Therefore, Morrisons
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needs to focus on developing achievable and measurable objectives and also link them with
control and analytical process. In order to effectively implement the marketing plan and strategy,
Morrisons needs to focus on effectively perform the different steps of the SOSTAC model.
Integrating different essential elements will lead to bring positive and desirable outcomes.
Marketing plan is the essential part of the business organisation as it is the basis through
which management and operational plans are derived. Therefore, Morrisons needs to focus on
effectively developing and implementing the marketing plan that leads to bring effectiveness in
business operations and activities (Yu and Ramanathan, 2016). Comprehensive and effective
marketing strategy assists organisation to accomplish desired goals and objectives of the
organisation. Current market strategy of Morrisons is SOSTAC model which has brought
effective results and outcomes. This model has helped organisation to effectively implement the
marketing plan in foreign markets and achieve desired results. But Morrisons needs to focus on
effectively following each step and elements of the SOSTAC model in order to bring better
results.
CONCLUSION
Marketing practices and principles helps business organisation to effectively operate its
day-to-day activities and bring effective results and outcomes. Organisation uses marketing plans
and strategies in order to effectively manage the business operations and activities. In the present
report, SOSTAC model is used which have sic key elements of organisation. The six key
elements are situation analysis, objectives, strategy, tactics,action and control. These elements
guide business organisation to effectively implement the marketing plan and strategies. SOSTAC
model effectively reviews the business situation and process that guides organisation to develop
desired and achievable objectives. SWOT and PESTLE analysis is used to determine the current
situation of business organisation.
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SOSTAC® marketing planning model guide. 2019. [Online]. Available through: <SOSTAC®
marketing planning model guide>
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