Principles of Marketing Report: STP and Marketing Mix of Morrison

This report analyzes the marketing strategies of Morrison Supermarkets, a UK-based supermarket chain. It delves into the company's STP (Segmentation, Targeting, and Positioning) approach, examining how Morrison segments its market demographically, psychographically, behaviorally, and geographically. The targeting section identifies the key customer groups, focusing on household women and middle-class families. The report then assesses Morrison's positioning strategy, highlighting its efforts to build a strong brand image through product quality, reasonable pricing, and advertising. Furthermore, the report provides a detailed analysis of Morrison's marketing mix (4Ps): product (fresh food offerings, quality, packaging), price (affordable pricing, bundle pricing), place (physical stores, online presence, distribution centers), and promotion (advertising, price comparisons, discounts, and social media). The report concludes by summarizing the key aspects of marketing, STP, and the marketing mix, emphasizing their importance in attracting customers and driving sales.

Principles of marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
STP ..................................................................................................................................................1
Segmentation...............................................................................................................................1
Targeting.....................................................................................................................................2
Positioning...................................................................................................................................3
Marketing Mix.................................................................................................................................3
Product .......................................................................................................................................3
Price.............................................................................................................................................3
Place............................................................................................................................................4
Promotions..................................................................................................................................4
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................6

INTRODUCTION
Marketing refers to all those activities which is related to promoting an product. It consist
of increasing consumer awareness, analysing marketing environment, promoting sells of
products, increasing reputation of company and many more (Ing, Osman and Tze-Yin, 2020). In
simple words it refers to those actions of a company which consist to attract their targeted
audience by conveying high quality message. Its a very wide concept with main purpose to
attract customers and increase overall sale by influencing customers that offered products or
services are best than other brands in market place. Morrison is a supermarket chain in UK
which is founded by William Morrison in the year 1899. Its headquartered in Bradford, UK. The
following report covers STP and Marketing Mix (4Ps) of mentioned company.
MAIN BODY
STP
The main outcome of STP is to target required customers by segmenting market into
smaller groups and studying each group and analysing which segment is more profitable to target
according to offered product. Last component of STP is positioning which refers to create a
brand image in market to gain customer trust. Every company plan for STP as it is one of basic
and important activity to grow in market.
Segmentation
It refers to making or dividing whole market in smaller groups and each group has
different features and characterised features form other group but the customers fall in a single
group has similar characteristics(Othman and et. al., 2019). In context of Morrison, they divided
their markets into various type which is explained below-
Demographic segmentation- It refers to divide markets on the basis of age, gender, income and
many others. Demographical segmentation of Morrison are mentioned below-
Age- Morrison segmented their market in two different groups in age and they are 20- 40 year
old customers and 40-60 year old customers.
Gender- Morrison segmented their customers in both gender males as well as females but they
focus more on segmenting market for female customers.
Income- Morrison did not have high prices products. Hence, they divide their market for all type
of customers high income, moderate as well as low income customers.
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Location- Morrison segmented market mainly in those areas where there are high crowd and
permanent residential customers.
Psychographic segmentation- This refers to divide market on the basis of customers personality
and their characteristics. Below are some factors of psychographic segmentation-
Attitudes- Morrison have segmented their market related to all attitude type of customers.
Lifestyle- Mentioned company segmented their market for those who is willing to increase their
lifestyle and adopt new changes as soon as trend changes.
Interests- Morrison divide customers in context of interest also those who is having high interest
level of purchasing new and good quality products are settled in a single group and those who
has little low interest in purchasing new and qualitative goods are settled in another group.
Behaviour Segmentation- It describe the behaviour of customers(Kazibudzki and Trojanowski,
2020). Factors of this segmentation are mentioned below-
Purchasing habit- Those having high and regular purchasing habit is segmented by Morrision.
Loyalty to brand- Morrison offer better options like discounts and voucher cards to their reguklar
and loyal customers. Hence, they segmented their customers for both loyal as well as non- loyal
customers but their main focus is on loyal customers.
Geographic segmentation- It includes dividing customers on the basis of their physical location.
Factors of this segmentation type is explained below-
Country- Their main market is presented in UK but instead of UK they also segmented in other
Asian and European countries to expand their business.
Religion and culture- Morrison offer their products to each cultural customers with every
religion type.
Targeting
It is the process of selecting one or two best groups in segmented market which is
beneficial for companies. After targeting companies are clear about their customers that to whom
they have to sell their products and services (Karunarathna and et. al., 2020). In context of
Morrison, they targeted 25- 45 year old people specially household women because they are
retailing sector and most the products of supermarkets are purchased by household ladies. For
income, they target middle class families whose having moderate income. Morrison target those
customers mainly who is willing to increase their lifestyle by regular purchase of qualitative
goods from their stores. They offer voucher cards to their regular customers. Hence, this shows
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that they mainly target loyal customers who is interested to buy products from Morrison only. In
context of religion and culture, Morrison target all religion and cultural people. Their main
targeted country is UK. Their primary aim is to provide best service to UK customers. They also
target high crowded areas where local residential people live.
Positioning
Positioning refers to creating better image and reputation of brand in customers mind.
There are many activities which can create a good reputation and they are advertising adds on
TVs, flexible availability of products, offering good quality of products and etc. It is very
important to make a good reputation of company to gain customer loyalty and it also help in
expanding internationally(Goh and et. al., 2019). In context of Morrison, they have created their
good image by offering best quality of products in reasonable prices. They advertise their brand
on TVs, newspapers, pamphlets, social media and many other source of promotion. Their stores
are available in mid of the cities where most of the residential live which help easy availability of
their services to customers. This also help them to create goodwill among customers.
Marketing Mix
It refers to adopting those tools and models which is useful for companies to attract
customers and adopt opportunity to expand business. It can be describe by explaining 4 P's of
marketing which is explained below-
Product
Product element of 4P's describe the characteristics and varieties of products which is
offered by a company(Iwu-James, Haliso and Ifijeh, 2020). In context of Morrison, they mostly
have fresh food items in their supermarkets. They offer high quality offerings with reasonable
prices. They have their own manufacturing production facilities. Hence, the quality of products
are in their hand to maintain. They also focus on appearance and packaging of their products. In
Morrison shops products are easily visible because their proper arrangement in stores and on the
other hand they use their own packaging packets and labelling procedure which means packets of
Morrison has their company name with labelling all necessary details.
Price
Price is the monetary value of any merchandise. It is the main factor to attract customers
and to retain them for longer period of time. In context of Morrison, their affordable prices are
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the main reason for their customers to choose Morrison stores for shopping. At every year they
introduce new prices of their products which is lower than previous one with better quality.
Morrison use product bundle pricing strategy which states that offering reasonable prices to
bundle of same products which attract customers to purchase more quantity of product with main
customers aim of saving few amount of money. They offer cards which is having prise
comparison of Morrison with other supermarket brands to aware customers that they have less
prices then other supermarket brands.
Place
It refers to all distribution level and availability of products offer by
companies(Hockenberry, 2019). In context of Morrison, the have more than 650 stores across
UK. They sold their food products in their physical stores as well as through online mode. The
have one national centre and seven regional distribution centres. They use their own tractors or
vans for transportation of goods from their warehouses to stores and Morrison also have
agreement with Ocado, which is a company of automation system for online retailers. Ocado
help Morrison to handle their online orders. Their stores are available in crowded and in between
of permanent residential customers which help in convenient and easy availability for customers.
For shopping with Morrison, customers are not supposed to travel a long distance.
Promotions
This is the strategy which is opted to aware customers for offered product. The main aim
of promotion is to influence people to buy the product which further help the company to
increase their sells (Malchyk and et. al., 2020). In context of Morrison, they offer low prices of
product with good quality and they advertise it through TVs, newspapers, social and etc. They
offer match cards which has prices comparison of Morrison with other supermarkets and help the
customer to choose them. They offer discounts and voucher cards to attract their customers and
to make their customers more loyal. They have their own social media account on which they
upload time to time pictures and videos of their new products.
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CONCLUSION
From the above information it is clear that marketing is one of the main activity of any
company to attract customers and influence them to buy products from particular company only.
Segmentation of markets refers to divide markets into smaller groups which is having different
characterised customers. Targeting is the process of selecting a group after segmentation which
further help the company to understand who are their actual customers. Positioning is the activity
which consist of making good reputation of brand in consumers mind. 4P's of marketing have 4
elements. Product is the first which describe the main features and characteristics of a product
which is offered by an organisation. Price is the monetary value of a product which is offered by
seller and buyer agrees to buy the product in that amount. Place element of marketing mix states
that services of company must be offered in a fixed and appropriate location so that customers
should not supposed to travel long distance to buy any offerings. Promotional activities further
help to attract customers and increase the overall sale of company.
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References:
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