Starting a Business and Fundamentals of Marketing

This document discusses the importance of marketing and the process of starting a business. It focuses on Morrison, a UK-based retail firm, and their plan to launch a herbal make-up kit. The document covers the external environment, competitive advantage, and financing opportunities.

STARTING A BUSINESS
AND FUNDAMENTALS OF
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
ASSESSMENT 1.............................................................................................................................3
About Company...........................................................................................................................3
Overview of proposed plan..........................................................................................................5
External Environmental...............................................................................................................6
Competitive Advantage...............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is the best way to promote the business by using effective tools and techniques
and in the same way, the report will help to determine the importance of marketing. The chosen
firm for this report is Morrison which is UK based retail firm that provide range of products and
services to their customer. Further, report will describe the business idea which is offered by
Morrison i.e. to launch a herbal make-up kit containing Foundation, Concealer and Primer.
Further, report will develop a business idea which includes goals, vision, objectives and
background and expertise. Further, report will describe the internal and external environment of
the company by using SWOT and PEST analysis. Moreover, report will describe competitive
advantages by using Porter generic strategy.
ASSESSMENT 1
About Company
Morrison's has been operating in UK since 120 years and is one of the top food and
fashion retailers in the country.
Vision: The vision of the company is that “Old stakeholders should enjoy and new ones wish to
join.” and they try to fulfil their vision by the variety of products that they produce.
Objectives: The objectives of the company is to become a leader of the retail industry and make
the products easily available and accessible to the majority of the targeted customer segment
(Jazayeri and Park, 2019). Addressing the needs and wants of the consumers by integrating them
with the recent technological changes and modifications in the industry, the company tends to
modify themselves with changing environment.
Goal: The goal of the Morrison's is to become a world leader in the retail market segment by
constant innovation and meeting the changing needs and desires of the customers so that every
requirement can be fulfilled at Morrison's.
Background and Expertise: The company was first started and an egg and butter stall and with
time the company began to expand itself in the entire United Kingdom as the convenience stores
which ultimately led to the establishment of the company as a successful retailer (Envick, 2018).
Their expertise lies in the fact that they are able to cater to multiple wants of the consumer by
providing an assortment of product.
SWOT: SWOT Analysis helps in analysing the internal environment of the company and
therefore can be used to analyse the current operations of Morrison's:

Strengths
 It has a large share in the grocery
market of UK and is extremely reputed
for the quality and pricing of their
products.
 It encourages the local brands and
companies by buying directly from the
local farmers and producers.
 The supply chain of Morrison's is
strongly integrated and therefore the
company is able to provide fresh food
at all times as compared to other
retailers (Jazayeri and Park, 2019).
Weaknesses
 The company does not exercise a strong
online presence in the current era of
digitalisation where everything is done
online.
 There is inconsistency in the
satisfaction level of the consumers and
this is a major problem since it creates
ambiguity regarding the company's
position in the market.
 The marketing activities of the
company are to strong and despite
having some unique qualities, the store
has not highlighted them properly
which tends to decrease the
opportunities for the store.
Opportunities
 It is expected that the market of retail
and cosmetics is growing and will
continue to grow in the future.
 The progressing economy of UK is
another benefit and the increasing
expenditure ability of the company
adds to the opportunities of the
company.
 The company can further expand into
many other sectors as well and develop
supremacy in the existing sectors by
launching the latest quality products.
Threats
The biggest threat is the three other eminent
retailers of UK i.e. Tesco, Asda and Sainsbury
which are evading the market and Morrison's
fall way behind these three in the retail market
segment.
Another major threat s that Morrison is limited
to the UK and there is no international
expansion of the company.

Overview of proposed plan
The company Morrison's, now intends to expand their cosmetic market segment and
keeping in mind the desire of the consumers to use herbal cosmetics, the company plans to
launch a herbal make-up kit containing Foundation, Concealer and Primer. This will help in
entering a new segment and this herbal cosmetic products will attract many more customers to
the company.
Target Market: The targeted market for the company is women and girls from 15 years and
above and these involve women belonging to different regional backgrounds. They are
increasingly becoming conscious about the safety of the cosmetic products they use and whether
they contain chemicals or not (Watson, McGowan and Cooper, 2016). Thus, by presenting the
range of herbal cosmetics to this targeted market segment, they will be able to target and capture
the market correctly.
Marketing Plan: The 4P's of marketing can be used to analyse the different factors and aspects
of the product:
4P's of Marketing Basis
Product The product will be launched for the women of all age group and
colour having different shades and tints for different skin types
and further the herbal make-up kit would be made available in all
the stores of Morrison's.
Price The price of the product will be adequately placed at an average
price of £50 including all the three herbal products i.e.
Foundation, Concealer and Primer (Bhadury and et.al., 2017).
The company is exercising penetration pricing because they
intend to launch their product successfully in the market and with
this strategy, the company would be able to garner the attention of
the public.
Place The product will be launched in all the stores that are operating in
UK under the Morrison's company brand. This will help in
making the product available to customers all over UK.
Promotion The promotional activity will be carried out by all the major

mediums such as TV, Radio etc. and also various discounts etc.
would be given by the company initially. Additionally, the
packaging of the kit would be done in an attractive manner and
this will help in attracting the attention of targeted consumer
segment.
Investment and Financing Opportunities: There are various measures through which financing
of a company can be done and in order to launch their herbal beauty product, the best strategy
that the company can adopt is financing through venture capitalists (Swanson, 2017). Since the
growth potential in this market is extremely high, they would invest in the company and in return
claim a stake in the equity shares of the company. This will help them in gaining the necessary
funds by the means of equity shares and this is the best financing option that is available for the
company. This is the best financing opportunity for the company and will assist in raising funds
in a simple and yet effective manner.
External Environmental
To determine the external environment, it is essential to use PEST model which helps to
determine which external environment affect the overall business in opposite or positive way.
Therefore, it is as mention below:
Political factor: In order to develop the new business idea, company should make sure
that there should be a political stability so that it will it will not affect the business in negative
way. Further, in UK, there is sudden change in the policies by the government and as a result, it
will be more difficult for the company to cope up with such changes, which in turn affect the
financial performance of the firm in negative way (Christodoulou and Cullinane, 2019).
Moreover, as company developing new business to launch a herbal make-up kit containing
Foundation, Concealer and Primer and for that company should make sure that it comply with all
defined laws.
Economic Factor: This factor deals with the inflation, recession and the currency
exchange. As Morrison offer new product and if there is any fluctuation in the economic factor
then, as a result, it creates negative impact upon the business. Such that customers will not spend
their money for purchasing the product. Therefore, it is also analysed that quoted firm is operates
at global level for that it requires stability in the currency exchange rates (Zahari and Romli,

2019). Further, Morrison should also make sure that of the economic situation of the country is
stable, then the company will easily offered the new product because it will not affect the offered
price in adverse way. Therefore, after considering proper economic stability, company should
invest.
Social Factor: The factor deals with the belief and notion of people and customers
changes their preference as per changes in market. But on the other side, Morrison also comply
with the same and that is why, it launches the same new product after analysing the needs and
wants of customer. People in UK, are more conscious about their health and skin, that is why,
launching a herbal make-up kit containing Foundation, Concealer and Primer will help to attract
wide range of customers towards it and sustain the brand image in the international market as
well (Nandonde, 2019). From the secondary research, it is analysed that youth of UK mostly
prefers to use herbal products and that is why, by analysing the needs, company also offer the
same i.e. a herbal make-up kit containing Foundation, Concealer and Primer.
Technological Factor: In this modern era, technology plays a crucial role in the market.
In the same way, Morrison also uses the same in order to attract the wide range of customers.
Further, as the company wants to launch new product and that is why, it may use social media as
a marketing tool so that it may attract wide range of customers towards them. Additionally, it
may offer the new product in online mode as well, so that people may easily enjoy the services at
international level too.
Competitive Advantage
Competitive advantages mainly refer to the capacity and ability of the company as
compared to its rivals in which the firm sell the products at low rates by providing the greater
value through differentiation (David and David, 2019). In the same way, Morrison also wants to
launch a herbal make-up kit containing Foundation, Concealer and Primer which is unique in
itself and to gain the high competitive advantage, company uses Porter generic strategy in which,
company uses Cost leadership and differentiation strategy.
Such that to stay competitive in the market and launch new business idea, it uses cost
leadership strategy which strive towards cutting the cost in order to minimum possible level so
that customers get the product at low and reasonable rates. As a result, it also helps to boost the
savings, through this strategy, Morrison gain high productivity, also use the effective production
process with distribution channels as well (Cost and differentiation strategy, 2018). On the other

side, company uses differentiation strategy which means that by focusing on the customer's
needs, company will provide the best products with its uniqueness. Moreover, both the strategy
helps the business to seek the competitive advantage in the broad range of market and also helps
it to meet the market demand as well. In addition to this, when the new product is launch in the
market, company offer the products at low rates so that customers will easily attract and in turns,
the sales also increases (Öz, 2019). Further, these two method, cost leadership and differentiation
strategy will help the business to grow in new segments and also assist to improve the financial
performance as well.
CONCLUSION
By summing up above report, it has been concluded that by developing good business
idea, will help the business to extend its market segment. Through the report it is concluded that
Morrison have strong brand image and by launch a herbal make-up kit containing Foundation,
Concealer and Primer will help the business to attract wide range of customers towards it.
Further, report also concluded that to implement any new business idea, company should analyse
the external environment by using PEST and to implement the business idea, company has to
determine the competitive advantage and report concluded that Morrison uses Cost leadership
strategy under porter generic strategy.

REFERENCES
Books and journals
Bhadury, P. and et.al., 2017. Case Studies and Business Plan Development Workshop on
Strategies for Creating a Program for Paid Student Internships/Assistantships in the
Digital Humanities.
Christodoulou, A. and Cullinane, K., 2019. Identifying the Main Opportunities and Challenges
from the Implementation of a Port Energy Management System: A SWOT/PESTLE
Analysis. Sustainability.11(21). p.6046.
David, F. R. and David, F. R., 2019. Strategic management: A competitive advantage approach,
concepts and cases. Pearson.
Envick, B.R., 2018. DESIGN THINKNG METHODS FOR BUSINESS PLAN
DEVELOPMENT: A STRUCTURED APPROACH TO IDEA GENERATION THAT
PROMOTES CREATIVITY. Copyright 2018 by Institute for Global Business Research,
Nashville, TN, USA, p.98.
Jazayeri, A. and Park, K.T., 2019. How to Write an Effective Business Plan in
Medicine. Gastroenterology. 156(5). pp.1243-1247.
Jazayeri, A. and Park, K.T., 2019. How to Write an Effective Business Plan in
Medicine. Gastroenterology. 156(5). pp.1243-1247.
Nandonde, F. A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence.38(4). pp.54-61.
Öz, Ö., 2019. The Competitive Advantage of Nations: The Case of Turkey: Assessing Porter's
Framework for National Advantage. Routledge.
Swanson, L.A., 2017. Business Plan Development Guide. OPENPRESS. USASK. CA.
Watson, K., McGowan, P. and Cooper, S., 2016. Reimagining the extracurricular business plan
competition through the incorporation of effectuation.
Zahari, A. R. and Romli, F. I., 2019. Analysis of suborbital flight operation using
PESTLE. Journal of Atmospheric and Solar-Terrestrial Physics.192. p.104901.
Online
Cost and differentiation strategy. 2018. [Online]. Available through:
<https://consilue.com/en/competitive-strategies-cost-strategy-vs-differentiation-
strategy/> .
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