Morrison Supermarket: SOSTAC and Marketing Mix for Indian Expansion

This report provides a comprehensive analysis of Morrison Supermarket's potential entry into the Indian retail market, focusing on international marketing strategies. It utilizes the SOSTAC model to assess the situation, objectives, strategy, tactics, actions, and control measures necessary for successful market penetration. The report includes a SWOT analysis to evaluate Morrison's strengths, weaknesses, opportunities, and threats within the Indian context, and a PESTEL analysis to understand the political, economic, social, technological, environmental, and legal factors influencing the business. The marketing mix (product, price, place, and promotion) is also examined, with a focus on differentiation and penetration pricing strategies. The report recommends that Morrison target metropolitan areas, focus on fresh foods, and leverage online channels to reach consumers. The Boston Matrix is also used to analyze the product portfolio. The report concludes with recommendations for control mechanisms and further actions to optimize the company’s expansion strategy in India.

Morrison
Report
System04104
5/8/2019

Introduction
Every country needs a separate marketing analysis and strategy to operate business in other
countries. The customer choice, needs, preferences, traditions, and demand in every country
are different from other country. To encounter these different needs of customers each
companies applies a separate marketing strategy that is called international marketing mix. In
every country, company applies a separate product, pricing, promotion, and distribution
policy that are part of international marketing mix.
(Bauner, and Wang, 2016)
International Marketing mix is a process of using different marketing mix strategy in
different countries based on the customer demands and preferences. The four Ps of marketing
mix product, price, place, and promotion applies differently with a different policy and
strategy in the international marketing. For expansion of the Morrison Supermarket, we are
considering here Asian Country India because it is one of the growing markets for retail
industry. India is a developing country and a huge population (1.3 billion approximately)
provides a larger market for Morrison retail stores. Apart from this, the political and
economic scenario will also allow other foreign brands and retail stores to invest in India.
From last few years, Wal-Mart is trying to enter in the Indian retail market because of India’s
larger market and increasing population. Morrison Supermarket can consider its international

strategy to enter in the Indian retail market for its broader expansion in the global market
(Benoit, Evanschitzky, and Teller, 2019).
What is SOSTAC ?
The SOSTAC model was given by PR Smith. SOSTAC is a planning model that was
originally developed in 1990s and it is consisting six factors such as Situation, objectives,
strategy, Tactics, Action, and control etc. SOSTAC model is helpful in planning marketing
strategies or campaigns. SOSTAC model is one of the easy models that help a company to
structure plans for different panning activities. SOSTAC helps in digital marketing strategy,
individual marketing strategy, or any international marketing strategy. If Morrison
supermarket wants to introduce itself in Indian market, the SOSTAC model will help to
analyse the market and formulating strategy to launch its business in Indian retail market. The
advantage of this model is that it is easy to understand and also easy to use (Bauner, and
Wang, 2016).

SOSTAC Analysis of Morrison
SOSTAC analysis helps the Morrison supermarket to implement the strategies for business in
the other market. SOSTAC Analysis is known for best analysis model that can help the
Morrison supermarket to understand the situation of international market. It is a logical order
that will help Morrison to tackling its plan and the company can also assess their process.
Situational Analysis
Situational analysis helps to understand the present situation and future opportunities for the
companies. It helps to understand the business environment of Morrison Super Market and its
strength and weakness to enter in the Indian Retail market. It also helps to understand the
micro and macro factors that affect its business in different country.
SWOT Analysis of Morrison
SWOT analysis is the analysis of internal and external factors or situation of Morrison
supermarket that are explained below:
Strength: The fast growth rate of the company is its key strength. The quality of foods,
vegetables, and their own packaging facilities provides strength to the company and reduce
the costs of products. Morrison charges low prices to its customers. Apart from this, company
sells more than 12000 non-food products as well.
Weakness: Company lacks in strong infrastructure of information technology. The company
also deals in some unattractive segments such as beauty products and electronic music
products. Electronic music products are almost replaced by mobile phones and i-pads.
STRENGTH
1. Fast growth rate.
2. Dealing in low prices products with
high quality
3. Focus on food items
4. Own packaging facilities
WEAKNESS
1. Lack in Information Technology
2. Dealing in some unattractive
technology
OPPORTUNITIES
1. Few Competitors in Asian Retail
THREATS
1. Large number of local un-organised

Market
2. Huge customer demand
3. Large population
4. Can focus on non-food products
competitors
2. High level competition
3. Number of retail companies are
looking for expansion in Indian
market
Opportunities: In the Asian market, especially in China and India, there are very few
competitors of Morrison. Even Wal-Mart is still looking for investing in India. The huge
market of Indian retail market and the large population of the country provide opportunities
for the company to expand its market in Asia. However, the company can also focus on non-
food market in India, as it is one of the growing markets for non-food market.
Threats: The major threat for the company in India is that it has to face number of
competition in the retail market. However, an un-organised retail sector in India is a major
problem for it. Apart from this, every retail company want to expand its market in India retail
market.
PESTELE Analysis
PESTEL analysis provides an overview of different environmental factors that effects the
business operation of any company.
Political Force: The current BJP government in India is providing large numbers of
opportunities for foreign countries. The BJP government is known for the liberal policies and
the present government has good relationship with UK government. It provides a platform to
Morrison to Invest in India. The current PM of India “Narendra Modi” provides large number
of opportunities to business world for growth and expansion in Indian market (Thomassen,
Smith, Seiler, and Schiraldi, 2017).
Economic Force: There is a huge demand of food products in India because of poverty and
large population. Apart from this, the current government imposed very few barriers on entry
of foreign retail companies and other market players. The income of Indian people is
increasing every day and the increasing GDP growth rate of India also helps to other
companies to invest in India in form of FDI or launching business in Indian Market.

Social Influences: India has cultural society and the increasing population of the country
may have favourable influence on the Morrison Supermarket. The different types of
customers, their different demands, large number of youth population, and people’s belief in
ethics and God may force the Morrison to divide the customers in a different segmentation,
targeting, and positioning strategy (Trebbin, 2016).
Technological Influences: Indian people are focusing on digitalisation in current days in the
BJP government. The Prime minister of India, Narendra Modi is encouraging people towards
digitalisation and online marketing. Therefore, if company deals in online market and online
delivery of products, then it will be superb in Indian retail market.
Ecological Factors: In Indian market, people are not more aware about the environmental
safety. However, government imposed several laws on both people and business organisation
to care about their environment, such as not using polybags, focus on CSR activities,
imposing tax for CSR, and focusing on environmentally friendly activities.
Legal Influence: Morrison has to take permission from the central government as well as
some other regulatory bodies in India that provides permission to operate business in India.
Apart from this, there is some difference between UK and Indian laws ad it should be
considered by the company.
Objectives
The major objective of the organisation is to expand its market in all over the world. The
company’s mission is to provide best quality products in low prices on their weekly
shopping, wherever they live. It means company is mainly focusing on its expansion strategy
with providing best foods and products to its customer by providing them best value of
customer’s money. The vision of the company is to become ‘food specialist’ for everyone as
it has packing and manufacturing facilities (Martinez, et. al., 2018).
Strategy
India is a growing economy and people are not believed in high investment value. Although
there are numbers of un-organised player already in the market and it has to be established in
the country, the Morrison should use ‘Differentiation strategy’ in India. People in India are
more attractive towards different products and offers. If it focus on providing something
different, then it will be effective. However, the other strategies of the ‘Ansoff Matrix’ are
not as effective as differentiation strategy in India. However, there are many competitors will

try to enter in the market in the future, the Morrison can also adopt the Focus strategy, but
differentiation strategy will be the best strategy to enter in the Indian retail market
(Bronnenberg and Ellickson, 2015).
(Source: Bogomolova, Szabo, & Kennedy, 2017)
Tactics
The marketing mix techniques or tactics will be more effective in Indian retail market. This
can be explained below:
Product: The main focus of Morrison is on fresh food and vegetables. Company provides
best quality products in cheap prices and Morrison is also manufacturing and packaging
products by their own. The product life cycle of the food products are showing below.
However, it has been seen that food products have very short-term life and easily perishable
(Dholakia, Dholakia, and Chattopadhyay, 2018).

(Source: Haleem and Jehangir, 2017)
The product portfolio of Morrison supermarket includes vegetable products, food products,
non-food products, electronic gadgets, etc. Apart from this, there are other products brands
are available in the supermarket such as M Kitchen, just for kids, M signature etc.
Boston Matrix: The Boston Matrix provides an analysis of Portfolio of business brands. It is
helpful in understanding the marketing and business strategy of Morrison Group.
(Source: Trebbin, 2016)

If we consider, the Boston matrix then we found that Morrison has to start its business in
Indian market and it has very low market share, However, the opportunities of market growth
is very high. The people in Indian are still using physical currencies instead of cash cards or
credit card. After all these analysis, it can be said that Morrison fall under the “problem
child” category.
Price: The Morrison can implement various pricing strategy in the India. But if they
consistent with the low prices strategy in the market then it will be good for the company.
There are various types of pricing strategies found in the market, but if Morrison implement
penetration pricing strategy where prices of products will be low and quality of products will
be good, Company can easily targets its customer.
(Source: Trebbin, 2016)
It is because people in India are more prices sensitive and it is impossible to attract
customers in India on high prices or premium prices in retail industry. However, if we
consider other pricing strategy such as skimming pricing strategy, then Morrison cannot
compete with its competitors in the Indian market. However, the economic pricing where
price and qualities both are low, will be meaningless in the Indian market.

(Source: not Aschemann-Witzel, 2018)
Place: The Company should target the Metropolitan areas or city of the country such as
Delhi, Bangalore, Mumbai, or Chennai. Here, people can afford the products of the company.
However, the company can also target the semi-urban population as they can promote
themselves in newspaper, TV, and local FM radios (Richards, Hamilton, and Yonezawa,
2018).
Action
The top management of the company should focus on providing quality products on low
prices if they expand the business globally. Apart from this, there are several other points that
are beneficial for the company to expand its business in international market:
1. Company should also focus on non-food products.
2. Company can promote its business through online channels.
3. As India is large population company, they can target middle and upper middle-
income class for their stores.
4. Targeting customers in semi-urban and urban areas in India will be a good option.

Control
The company can take reviews and control the activities of its business process in various
methods. The organisation can take the feedback of customers about future change or
possible business up gradation, they can also collect data from various surveys and online
opinion polls that what people feel and say about the services of Morrison. Apart from this,
Morrison can also conduct staff meetings to promote sales and increase foot prints in the
stores, and review sales target on regular basis that target meet or not (Aschemann-Witzel,
2018).
TASK-2
SOSTAC in UK
Morrison is known for its strategies and quality products in low pricing strategy. SOSTAC
model shows how Morrison uses this technique to establish itself in UK. SOSTAC model
helps the company to prepare its plan and strategies for increasing its market share. The
situation of Morrison in UK is very strong as it operates its business more than 491 stores
across the country. The objective of the company is to provide best products in low prices.
However, people in UK are more trendy and choosy, so the Morrison should care their choice
(Moor and Lury, 2018). However, the Morrison predominately operates its business in north
and south part of the country. However, if we consider technology part, then we found it is
lacking in technology, this is a major problem in providing best customer experience to the
customers. The company can review its performance under the survey, performance
monitoring of every store, setting and evaluating sales target, and taking feedback of the
customers as well. However, the marketing mix of the country has been discussed under
following points:
Product
Morrison provides best quality food products through its retail stores to the customer.
However, the food products are very easily perishable. Thus, the maintenance cost of the
food products in the stores is very high. Morrison Supermarket cares about the food quality,
because there is a strong impact of weather conditions on food products. Thus, it focuses on
preserving the products in such a way that will not affect its quality (Machado, et. al., 2017).

The product portfolio of the supermarket includes food products, non-food products,
electronic items, and some health and beauty products. Apart from this, Morrison deals in
various brands such as M Kitchen, just for kids, M signature etc.
(Source: Qu, et. al., 2017)
If we consider Boston matrix, then we found that Morrison belongs to Star quadrant because
it has high market share, high market growth, charging low prices for its quality products.
Price
Morrison charging low prices for its quality products, which means it applies penetration-
pricing strategy in the UK market. However, there are many other alternatives of Morrison in
UK that are giving strong competition in retail sectors such as Mark and Spencer, Wal-Mart
etc. (Russo and Goodhue, 2018).
Place
The Morrison target north and southern part of the country. However, the country target those
area where people belongs to middle class and have income to spend on grocery and keen to
visit daily in Morrison stores. It also provides its product through online channel “Teamed up
with Ocado” which is completely an online retail channel. It was opened by the company in
2013. However, Morrison covers only few areas of UK market, as there are many players in
the market who covers wide area in the country (Bei, Gielens, and Dekimpe, 2018).