FY028 Inquiry Project: Analysing Customer Behaviour in Retail Industry

This report investigates the significant shifts in customer behavior within the retail industry, attributing these changes to the increasing influence of digitalisation. The report focuses on the case of Morrison's, analyzing its history, identifying areas of failure, and examining current market trends and competitive pressures, particularly in the context of the COVID-19 pandemic. The analysis employs SWOT and PESTLE models to evaluate internal strengths and weaknesses, as well as external political, economic, social, technological, environmental, and legal factors. The report emphasizes the rise of e-commerce and the importance of innovation in maintaining a competitive edge. The conclusion highlights the critical need for retail businesses to adapt to technological advancements and changing customer demands, offering recommendations for future strategies. The report emphasizes the importance of adapting to technology and social factors to meet customer needs.

Module: (FY028) Inquiry Based Learning
Topic:(To analyse the impact of changing in customer
behaviour due to digitalisation in Retail Industry.)
Student’s Name:
Student ID:
Lecturer’s Name:
Due Date:
Executive Summary
The main purpose of the report was to analyse how the customer behaviour is changing due to
digitalisation and its impact on Retail Industry. It has focuses on the retail industrial Trends and issues which is

faced by Morrison’s. Customer behaviour is the main factor that has impact on the company productivity and
profitability. Due to rise in online purchasing and deliveries, consumer behaviour is changing towards
traditional modes of purchases. The report has identified the environment of industry through internal and
external analysis. Also, it shows high competition in availability of substitute and similar kind of products which
are affecting the customer behaviour in retail sector.
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Table of Contents
Executive Summary.................................................................................................................................................2
Introduction..............................................................................................................................................................5
Company history background..............................................................................................................................5
Identify areas of failure and why..........................................................................................................................6
Current trends and competition at that time.........................................................................................................7
Models of Analysis (at least two).........................................................................................................................7
Conclusion................................................................................................................................................................9
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Introduction
The report aims to analyse the impact of changing in customer behaviour due to
digitalisation. Internet, online services are growing rapidly in the Retail Industry which brings
changes in customer behaviour. People are now becoming more demanding from the
businesses as the required effective services convenient deliveries easy payment and check
out. They give focus on Advance services which become a trend in the Retail Industry to
attract customers and full fill their demands. Customer behaviour is changing due to
modernisation and frequent trends which impact on retail sector. This report is based on a
leading organisation that is Morrison’s (Andreassen, 2020). The company was established in
1899 in United Kingdom. This report is going to emphasis on key industry trends competition
and environment analysis which will help in identifying issues and provide recommendation.
The company has expertise in selling grocery and Merchandise goods across all over the UK.
It has 497 stores in the country which provide great services and quality goods to the
customers.
Company history background
Morrison’s is a leading Supermarket chain established in London, UK. The company
provide varieties of grocery and Merchandise goods across the country to satisfy each
individual demand and needs. It is a well brand name which has become 4th largest
Supermarket in United Kingdom. The company sell food, clothing petrol, books and other
consumer goods of daily Essentials. The company is founded by William Morrison in 1899
as they started selling egg and butter in England. It was started as a small shop as a retail
outlet and now has become a largest Supermarket chain with having wide varieties of goods.
Morrison’s has 110000 employees in all over there 475 stores across UK. The company
provides all the goods and services through both offline and online platforms. They sell
products through their website and supermarket stores which give convenient experience to
the customers. Morrison’s is known for their quality goods due to which they are able to take
customers for long time (Dasgupta, and Grover, 2019). The company has take over the other
brands like Safeway from which they are able to connect to the large number of customers.
The Morrison’s has established use brand name in the retail sector by focusing on market
Trends and each customer demands in a frequent manner. The company has its mission to
provide the food across all the people to make their efforts worthwhile. They believe serving
every income class group of society to experience company’s product and list their life more
better. The company does not have much background about digital technology and its usage
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in giving Customer services. In the recent 1st year the Kuwait 19 pen the make has impacted
on all over the detail industry which boost rise in online selling and deliveries. There for
Morrison’s has provided online services across the website and other collaborative channels
that does not have much consistency into market. The company digitally provide product
information and its prices but does not have any particular website or application to give a
better customer experience of purchase. The company has started kids clothing in the year
2013 which has achieved the grocer Gold Award.
Identify areas of failure and why
In every business, company has to face some of the failures and challenges in their
business history. The organisation have to be aware about market Trends and competition to
get rid of business challenges came across unexpectedly. The Morrison is a well reputed
brand of UK but there are some issues which resulted in their failure mainly due to the co-ed
19 pandemic. The reason behind falling down is described below:
Change in customer behaviour: it is one of the area due to which the Morrison is falling
down in their growth and profitability. Change in customer behaviour brings many changes in
company products operation and strategies to make them retained for longer time. Customer
become demanding about many opportunities and advantages of digital technology. The
customer could not did not want any low quality products but also not ready to pay a high
price too (Dastane, 2020). Digital Technology has give rise to many choices into market for
the customers due to which everyday a new trend came and impacts on companies operations
and production. For example including people look for new designs and styles due to which
the old styles does not get properly sold and there is requirement of new ones which lead to
make in effective inventory management.
-lack of innovations: It is one of the causes of failure for the company in the dynamic and
changing market. The customer always requires new products with experience are which
demand for great innovation from the business. The Morrison’s is facing the client due to
lack of innovation as they believe in traditional protocols in delivery. The company is not into
much in regular innovation into their products or services that impact on customers demand
on Morrison’s products. Innovation is become important for every organisation to survive for
long time into market. Morrison’s does not innovate their products regularly or indulge any
innovative process which has made them less competitive in little industry as compared to
other supermarkets.
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-very slow or late entry into online shopping: There are a lot of reasons of failure in current
dynamic market for Mauritius in Retail Industry. The company is required to analyse the
need of customer in changing digital platforms. The company facing failure of slow entry in
online marketing which make the competitor much strong (Dunakhe, and Panse, 2021).
Online platforms are beneficial for keeping customers in touch and loyal towards the
organisation. The Morrison’s is not able to maintain customer trust and retention due to less
online engagement. The company not much often involved in online marketing and
promotions that resulted in UN awareness of customer regarding company’s product.
Current trends and competition at that time
The Morrison has faced much problem in the time of Covid-19 within recent past
years. In this days there were many Trends and competition revelling into the market that has
huge impact on the company success. At the time of endemic, the customers become service
centre and their demands are become a usual which is not a nominal thing for an organisation
in retail sector. Therefore these Trends are described below:
Trend of e-commerce: At to the time of company’s failure, E-Commerce is globally
trending into the market as people are connected to social media and online platforms to sale
and purchase. Online selling become a day today part of an individual life due to endemic
restrictions and fear of viruses (Gejke, 2018). This trend has impacted on retail sector to put
more focus on upgrading their digital platforms in order to attract and retain customers for
long time. Online deliveries become essential as customer get quick and fast delivery without
any Hustle.
Competition of similar products: it is also become market trend for Retail Industry as there
as similar number of sellers for similar kinds of goods. Customer has number of choices to
my dear products from different sellers. So they choose to get the quality goods at less prices
due to which written industry is getting rise in competition. In online selling, this competition
is getting wide due to having number of choices to explore the stores through website and
applications. This impact on the customer behaviour and there purchasing journey towards
the company. There for the Mauritius is facing issues and challenges with digitalisation as the
need to bring changes in their process and sales.
Models of Analysis (at least two)
SWOT analysis
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This analysis is helpful for analysing internal factors of company. It shows the good and bad
points which a company needs to consider while making any further strategies.
Strength: Weakness:
Morrison’s has Global reputed brand name
due to which they have large customer base
to maintain their profitability into market.
The company sells quality goods for all the
customer base ( Kraus, and Marchenko,
2021).
The week factor of Mauritius is that they are
not active in regular innovation which has
impact on their profitability.
The company loses many customer base due
to in effective digital performance
Opportunity Threats
The company has good financial position and
investment; they could invest in digital
advancement by using online platforms and
channels for attracting customers from
worldwide level.
The company has opportunity to innovate
products inorganic range as the customers are
becoming health conscious.
Morrison’s is facing high thread of
competition due to other supermarkets.
Company has thread of low worldwide
extension due to which they may lose their
brand name.
Pestle analysis:
The analysis helps in identifying as external market that impact on companies
environment. The company needs to identify this factors in order take much growth at
worldwide level.
Political: this factor shows that the Retail Industry has political interference in terms
of taxation terrorism and corruption (Sheth, 2020). The UK market has less political
interference is due to which the Morrison can easily enable their operations one of the main
political interference is of brexit due to which the Morrison’s could not work in European
countries.
Environmental: as per this factor ,nder retail Industries Highly Effective with
environmental crisis. The monitors has positive impact of this factor due to having
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sustainable operations while manufacturing and delivering products. The promote recycling
and reusing and avoid plastic packages.
Social: the factors of that the society has different beliefs culture and values due to
which the demand always differs. The Morrison does not have much great impact of this
sector as they do not provide products as per customer needs and do not involve in regular
innovation.
Technology: this factor shows that Technology is a great business opportunity for
little industry. The Morrison needs to update the technology means to attract large number of
customers in the current market.
Legal: this factor shows that the Retail Industry of UK has to maintain all the laws
and policies regarding equality and safety and discrimination (Tueanrat, Papagiannidis, and
Alamanos, 2021). The Morrison’s obliged with all the rules and regulation while serving
customers and staff welfare.
Economical factor: this factor shows that little industry has high contribution in UK
market which raises the economic GDP. The company has great impacts on Economy by
maintaining demand and supply and rate of interest through delivering their products all over
the UK.
Conclusion
The report has concluded that digitalisation is rapidly growing the people into the market
which has impact on business functioning. It has identified that various market Trends n
competition has impact on companies potential. These are online selling, Innovation and
digital marketing. Also the report has provided both internal and external analysis which
shows that the company needs to focus on technology and social factors in order to provide
customers as per their needs.
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References
Andreassen, R.I., 2020. Digital technology and changing roles: a management accountant’s
dream or nightmare?. Journal of Management Control, 31(3), pp.209-238.
Dasgupta, S. and Grover, P., 2019. Impact of digital strategies on consumer decision journey:
special. Academy of Marketing Studies Journal, 23(1), pp.1-14.
Dastane, O., 2020. Impact of digital marketing on online purchase intention: Mediation effect
of customer relationship management. Journal of Asian Business Strategy,
DOI, 10, pp.142-158.
Dunakhe, K. and Panse, C., 2021. Impact of digital marketing–a bibliometric
review. International Journal of Innovation Science, (ahead-of-print).
Gejke, C., 2018. A new season in the risk landscape: Connecting the advancement in
technology with changes in customer behaviour to enhance the way risk is
measured and managed. Journal of Risk Management in Financial
Institutions, 11(2), pp.148-155.
Kraus, N. and Marchenko, O., 2021. Innovative-digital entrepreneurship as key link of
Industry X. 0 formation in the conditions of virtual reality. Baltic Journal of
Economic Studies, 7(1), pp.47-56.
Sheth, J., 2020. Impact of Covid-19 on consumer behavior: Will the old habits return or
die?. Journal of business research, 117, pp.280-283.
Tueanrat, Y., Papagiannidis, S. and Alamanos, E., 2021. A conceptual framework of the
antecedents of customer journey satisfaction in omnichannel retailing. Journal of
Retailing and Consumer Services, 61, p.102550.
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