Detailed International Marketing Plan for Morrisons' Brazil Entry

This report presents a comprehensive international marketing plan for Wm Morrison Supermarkets PLC (Morrisons), focusing on its potential expansion into the Brazilian market. It begins with a company background, highlighting Morrisons' current position and strengths. The core of the report utilizes the SOSTAC framework to analyze the situation, define objectives, formulate strategies, outline tactics, detail actions, and establish control mechanisms for market entry. A SWOT analysis and PESTEL analysis provide insights into the micro and macro environments of Morrisons and the Brazilian market. Strategic options, including the Ansoff Matrix, are explored to determine the most suitable approach. Tactics related to product, price, and place are discussed, along with the product life cycle and pricing strategies. The report emphasizes the importance of physical distribution in Brazil. Finally, the report considers the implications of standardization, adaptation, and a glocal approach to the marketing strategy. References are included to support the analysis.

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Table of Contents
1.0 Company background..........................................................................................................3
2.0 Task 1 – Introduction...........................................................................................................4
3.0 SOSTAC.................................................................................................................................4
4.0 Situation Analysis (S)............................................................................................................5
4.1 Micro Analysis..................................................................................................................5
4.2 Macro Analysis.................................................................................................................6
5.0 Objectives (O).......................................................................................................................7
5.1 Mission Statement...........................................................................................................7
5.2 Aim and Objectives..........................................................................................................7
6.0 Strategy (S)...........................................................................................................................7
6.1 Ansoff Matrix....................................................................................................................7
7.0 Tactics (T).............................................................................................................................8
7.1 Product.............................................................................................................................8
7.2 Price................................................................................................................................10
7.3 Place...............................................................................................................................11
8.0 Action (A)............................................................................................................................11
9.0 Control (C)..........................................................................................................................12
10.0 Task 2................................................................................................................................12
10.1 Introduction of SOSTAC in the UK................................................................................12
10.2 Current SOSTAC strategy of Morrisons........................................................................13
11.0 Task 3................................................................................................................................14
11.1 PESTEL impact on Morrisons........................................................................................14
11.2 Standardisation, Adaptation and Glocal......................................................................16
11.3 Suitable strategy..........................................................................................................17

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References................................................................................................................................18
List of Figures
Figure 1: SOSTAC........................................................................................................................5
Figure 2: Product Life Cycle........................................................................................................9
Figure 3: Boston Matrix............................................................................................................10
Figure 4: Pricing Strategies.......................................................................................................11

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1.0 Company background
Wm Morrison Supermarkets PLC (Morrisons) is a major supermarket chain in the United
Kingdom that operates in the retailing industry. It is the fourth biggest supermarket chain in
the retailing sector of the United Kingdom because the company has established 498 stores
throughout the United Kingdom (Scott, 2018). The location of the global headquarters of the
company is situated in Bradford, West Yorkshire, England. The corporation was founded in
1899, and it was started by William Morrison. The company started its operations by
launching an egg and butter stall in Rawson Market, Bradford, England. The corporation had
expanded its operations by taking over Safeway in 2004 before which it only operated in the
North of England. However, after this acquisition, the corporation expanded its operations
in the South of England, Wales and Scotland (Morrisons, 2019a).
The company is a part of the stock exchange FTSE 100 Index which shows that it is a major
enterprise in the United Kingdom. The mission of the company is to offer the best value to
its customers while managing their day-to-day operations and offer high-quality products.
The vision of the company is to help in creating a positive brand reputation by offering new
products in its industry while creating a better world for its customers (Morrisons, 2019b).
The corporation has implemented policies which are targeted towards achieving its vision.
For example, the company has created a positive brand reputation in the market by offering
high-quality products at relatively low prices to its customers which provides a competitive
advantage to the company. The company has also implemented various initiatives and
policies which are targeted towards uplifting the lives of its customers, employees and local
communities in which the organisation conducts its operations (Morrisons, 2019b).
The company has not implemented any policies to expand its operations in international
markets. Morrisons has extensively established its stores in the United Kingdom; however,
the company has not implemented any provisions to expand its operations outside the
United Kingdom (Scott, 2018). The policies of the company are targeted towards ensuring
that it expands its operations outside the United Kingdom in order to increase its customer
base. There are many emerging and developed markets in which Morrisons can expand its
operations to make sure that it is able to reach out to a diverse range of customers. Other

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competitors of Morrisons such as Tesco, ALDI and others have expanded their operations
outside the United Kingdom which provides them an edge over Morrisons (Felsted, 2018).
Therefore, the company should focus on using its effective supply chain and distribution
strategy to make sure that it offers its products to an international customer base by
expanding its operations in international market.
2.0 Task 1 – Introduction
International marketing mix is referred to a strategy in which multinational corporations rely
on different marketing instruments with an objective to achieve positive financial results
(Huang and Sarigollu, 2014). In this strategy, the companies evaluate instruments including
product, price, distribution and promotion. This strategy also takes into consideration the
legal and social-cultural circumstances of countries in which the company expands its
operations. Another relevant concept in this regards is the international marketing which is
referred to the application of marketing principles by a company that varied needs and
wants of different people that live in different countries (Vellas, 2016). In this report, Brazil
is selected as the international market for the business expansion of Morrisons where the
company has not established its operations.
3.0 SOSTAC
SOSTAC is referred to a marketing model which was developed by PR Smith in the 1990s; it
is an acronym for situation, objectives, strategy, tactics, action and control which are
referred as the six fundamental facets by Smith (Reed, 2014).

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Figure 1: SOSTAC
(Source: Eglesdigitalmarketing, 2019)
4.0 Situation Analysis (S)
The situation analysis focuses on analysing where the company is currently by evaluating
micro and macro factors that affect the operations of the company.
4.1 Micro Analysis
SWOT
Strengths
 Morrisons has implemented an
effective supply chain and
distribution network facilities.
 The product range of the company is
diversified, and its portfolio contains
products such as clothes, food,
beverages, music and others.
 The corporation has established over
498 stores throughout the United
Kingdom and hired over 130,000
employees (Scott, 2018).
Weaknesses
 As compared to its competitors,
Morrisons has a limited geographic
area.
 Due to a conflict with farmer rights
and lawsuits, the brand image of the
company has suffered (Ruddick,
2015).
Opportunities
 International expansion in developed
and emerging markets provides an
opportunity for the company to
Threats
 The growing number of local as well
as international competitors
increases the profitability of the

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increase its customer base (Scott,
2018).
 The corporation can include organic
products into its portfolio as the
demand for health foods increases.
 Morrisons can form partnerships or
acquire small corporations for
increasing business growth.
company (Felsted, 2018).
 The expansion of the business of e-
commerce companies has affected
the market share of Morrisons.
4.2 Macro Analysis
PESTEL
 Political
Brexit is a major political event that resulted in bringing uncertainty regarding changes in
political and legal practices in Brazil which creates challenges for Morrisons (Scalzaretto,
2019).
 Economic
Brazil has a large population and the potential of growth is considerably high as the gap
between rich and poor is declining steadily which creates opportunities for foreign
companies (Resende, 2014).
 Social
As per Hofstede model, the power distance score is high in Brazil (69) than compared to the
UK (35) whereas individualism is substantially low (38) than compared to the UK (89). Thus,
Morrisons has to consider these factors while directing employees and advertising to
customers (Hofstede, 2019).
 Technological
The technological infrastructure of Brazil is lower than compared to the UK based on which
Morrisons might find it difficult to reach out to its customers through an online medium
(Resende, 2014).
 Environmental

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Policies are implemented by the government to reduce deforestation and emission, and
these guidelines are also implemented on companies such as Morrisons when they expand
their operations in the country.
 Legal
The legal framework of Brazil is flexible and beneficial for corporations such as creditors did
not have the right to crease their assets if they are not able to pay off their debts (Resende,
2014).
5.0 Objectives (O)
5.1 Mission Statement
The mission statement of Morrisons is to provide its customers the highest value for their
money in weekly shopping and providing specialised help from bakers, butchers and
fishmongers than compared to its competitors (Morrisons, 2019b).
5.2 Aim and Objectives
The aim and objectives of Morrisons are to expand its operations and make profits for
investors by selling affordable and high-quality products to its customers by offering them at
the lowest possible prices. This is beneficial for the company while expanding its brand in
Brazil since the demand for cheaper and high-quality goods is high (Morrisons, 2019a).
6.0 Strategy (S)
6.1 Ansoff Matrix
 Market Penetration
Morrisons has established an aggressive strategy to expand its operations in the UK by
opening more than 498 stores. The company can rely on a similar strategy to make sure that
it is able to expand its operations in Brazil by opening stores at convenient locations (Clarke,
Kirkup and Oppewal, 2012).
 Market Development

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Morrisons can develop its market by expanding it in an emerging country such as Brazil
which will increase its customer base. The company can build relationships with local
retailers and acquire smaller companies to implement effective supply chain operations for
market development (Stones, 2016).
 Product Development
Morrisons can offer affordable products to customers in Brazil since the demand is high and
it can also use the online platform to reach out to a larger customer base by offering food
and grocery home delivery option (Clarke, Kirkup and Oppewal, 2012).
 Diversification
A wide range of products should be included in the portfolio of Morrisons which include
electronics, clothing and music related items to make sure that the company attracts more
customers in Brazil (Clarke, Kirkup and Oppewal, 2012).
7.0 Tactics (T)
7.1 Product
Product Life Cycle
The product life cycle is referred to the progression of an item in the market which goes
through four stages including introduction, growth, maturity and decline (Sharma, 2019).

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Figure 2: Product Life Cycle
(Source: Sharma, 2019)
The product portfolio of Morrisons includes a wide range of products which includes food
and drink, DVDs and CDs, clothing, books, magazines and groceries.
Boston Matrix
The Boston matrix is a tool that is designed in order to assist in long-term strategic planning
by helping corporations in considering growth opportunities by reviewing their product
portfolio in order to make the decision regarding whether they should develop or
discontinue products (Hanlon, 2018).

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Figure 3: Boston Matrix
(Source: Hanlon, 2018)
In the case of Morrisons, the company has created a positive brand image by offering high-
quality products at reasonable prices which should be further developed by the company
when it offers them in Brazil since the demand of these products is considerably high in the
country.
7.2 Price
The pricing strategies assist companies in deciding the price of their products by taking into
consideration a wide range of factors such as market condition, trade margins, competitors’
actions, salaries and input costs. Five common price strategies include cost-plus,
competitive, price skimming, penetration pricing and economy pricing (Wang et al., 2016).

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Figure 4: Pricing Strategies
(Source: By Author)
Morrisons should use economy pricing strategy to expand its operations in Brazil by keeping
the price of its products low and selling large quantities for generating profits.
7.3 Place
Organisations can choose physical and digital distribution strategies while offering their
products to customers. In physical distribution, they choose traditional methods such as
brick and mortar stores, maintaining physical stock and others. In digital distribution,
companies rely on online platforms to offer their products (Karimi and Walter, 2015). Since
Brazil is not a technological advance country and the market of online shopping is limited,
Morrisons should choose physical distribution strategy.
8.0 Action (A)
The management of Morrisons has also focused on aggressive expansion when it comes to
expanding the operations of the company. Although the company has not expanded its
operations outside the UK; however, its management focuses on changing policies to
improve the supply chain operations by ensuring that they rapidly expand the operations of
the company in the country. These plans assist the organisation in reaching at convenient
5 Common
Pricing
Strategies
Cost-Plus
Competitive
EconomyPenetration
Price
Skimming