Morrisons Marketing Fundamentals: Environment & Strategy Analysis

This report provides a comprehensive analysis of Morrisons supermarket's marketing fundamentals. It begins by outlining the overall marketing process and stages, emphasizing the importance of customer needs and a customer-driven marketing strategy. The report then delves into the role of the marketing environment, utilizing PESTLE and SWOT analyses to evaluate external factors and internal strengths and weaknesses. Key findings include the impact of COVID-19 on consumer behavior and the importance of adapting marketing strategies to current trends. The report also examines Morrisons' strengths in supply chain management and weaknesses in geographical reach. Furthermore, it explores the significance of market segmentation, targeting, and positioning (STP) in developing an effective marketing strategy for Morrisons. The analysis concludes by highlighting the necessity for Morrisons to remain proactive and customer-focused in its marketing efforts to maintain competitiveness and brand loyalty.

Marketing Fundamentals
Analysis and Evaluation

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAINBODY....................................................................................................................................4
Understanding the overall process and stages of marketing.......................................................4
Understanding the role of marking environment and other situational analysis.........................7
SWOT Analysis of Morrisons.....................................................................................................8
STP analysis of Morrisons .......................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing refers to overall activities that consist and help in promoting products and service of
an organization. This allows an organisation to effective attract customers and enhance their
overall brand awareness in the market. Marketing also allows an organisation to target a specific
audience and deliver product and service in an effective manner. For the following report
Morrison has been taken into consideration, which is the fourth largest chain of supermarket in
the UK along with being headquartered in Bradford. The following report will consist of optimal
understanding of process along with stages within marking. Moreover, the report will highlight
the role of marking environment along with the utilization of other situational analysis models.
In addition to this, The report will evaluate and determine aspects related to making segment ,
targeting along with positioning and marking strategy.
MAINBODY
Understanding the overall process and stages of marketing.
Marketing an a crucial aspect for an organisation in order to effectively promote their
products and services to customers in an effective manner. The concept of marketing allows a
business to effectively attract customers and build a loyal following relative to the business. In
context to Morrisons, making is vital as it allows the organisation to promote its products and
service effectively within the market (Parowicz., 2019). In addition to this, it allows the
organisation to market specify products and service to their targeted audience which enhances
their customer engagement in a positive manner. In order to have effective marking the
organisation must ensure that the profess of marketing is effective as well as efficient in its
process. This will allows the business to gain productivity and performance in its marking
operation. The process of marketing is elaborated below in context to Morrison.
Marketing process:
Identifying customer needs and wants:
This step of the marking process consists of effective identification of the overall needs
and wants of the customers in order to provide satisfaction. In context to Morrisons, this stage
allows the organisation to develop specific product that will be effective in marking and attract
large customer base. In addition to this, it allows the organisation to ensure that their customers
reach a higher level of satisfaction from their specify product and service.

Customer driven marking strategy:
This step of marking process is focuses on developing a marking strategy that is customer
oriented in order to attract customs in an effective manner. It allows the organisation to select a
target market and understand the overall behaviour of customers. In context to Morrisons, the
management is able to understand the desires of their targeted customers base can develop
suitable making strategy that will be aligned with customers needs in order to provide them with
high level of satisfaction (Gilmore and Carson., 2018).
Marketing plan:
This step of marketing plan involves taking into consideration the needs an wants of
customers along with the necessary strategy in order to develop a optimal plan that will be
aligned with organisation values and objectives. In context to Morrisons, the organisation in this
stage of the process can develop effective plans that will enable them to be proactive when
encounter with external environment factors. Moreover, it allows the organisation to make its
marketing operation highly productive.
Profitable relations:
This step of the marketing process focuses on the overall aspect of establishing positive
relations with employees and maintain it in the long term in order to provide high level of
satisfaction relative to product and service. In context to Morrisons, this step of the process
allows the business to develop a loyal following of customers for their organisation through
offering of products at least cost possible without reducing quality.
Evaluating customer feedback:
This step of the marking process consist of evaluating the feedback from employees
relative to marketing products and services. It allows the organisation to ensure it is able to
understand the behaviour of customers and changes in trend accordingly. In context to
Morrisons, this step allows the organisation to understand the perspective of their customers and
make necessary changes within their marking strategy along with to their products and service to
provide optimal level of satisfaction to their customers (Ford., 2021).
Discussing the stages of marketing
The concept of marking involves various stages that are essential to be identified in order
for a business to have optimal marketing strategy relative to their products and services. The
structures and systematic stages of marketing helps an organisation to keep its marking

operations productive. In context to Morrisons, the stages of marketing are crucial as it enables
the organisation to develop marketing plans and conduct research relative to their product and
services based on customer demand. This allows the organisation to attain valuable data that is
essential while developing target oriented products and services. Given below is the marking
stages in context to Morrisons.
Production orientation:
This stage of marking focuses on increasing the production of products and services
along with high level of control in order to reduce cost. It pays emphasis on increasing
probability by sales volume (Baack, Czarnecka and Baack., 2018).
Product orientation:
This stage of marking pays emphasis on developing high quality products and services in
order to enhance as well as control quality. This allows the organisation to increase it
profitability through quality of products.
Sales orientation:
This stage of marketing focuses on stock clearance by aggressive sale and promotional
activities. It consists of increasing profitably through quick sales in high volume.
Marketing orientation:
This stage of marking pays emphasis on decision as well as planning that is relative to
needs of customers. This stage allows in understanding customer satisfaction and coordination
through set activities.
The management at Morrison pay emphasis on marking orientation stage within their
marking operations as it enables the organisation to effectively engage with a large customer
base in an effective manner. The marketing orientation stage enable the organisation to
effectively develop and engage with a loyal customer base which increase the performance of
their marking operations. In addition to this it allows the business to develop a positive brand
image in the market. In addition to this, market orientation stage allows Morrisons to promote
their products and service in an optimal manner (Yesiloglu and Costello. Eds., 2020).

Understanding the role of marking environment and other situational analysis.
The marking environment of an organization has a crucial impact on its making
operations as well as strategy. There are various factors in the environment that have high level
influence on marketing activities along with marketing operations. In context to Morrisons, the
understand of marketing environment can allow the organisation to be proactive when
developing marking strategy along with activities. It can help the organisation to negate various
factor in the environment that can negative impact and influence its marketing functions. In
addition to this analysing marking environment will allows the organisation to take structured
decision relative to their product and service along with selecting an optimal target market. In
order to understand marking environment PESTLE and SWOT analysis have been utilized and
elaborated below in context to Morrisons.
PESTLE analysis:
This framework is essential for an organisation to understand various factors in the
environment that can influence its marking operations. In context to Morrison, the framework
will help in identifying and evaluating various external factors that can impact its marketing
operations. Given below is the PESTLE analysis in context to Morrisons:
Political:
This factor focuses on the rule and regulation established by the government and how
they can influence operations of an organisation. In context to Morrisons, the regulations
established by the government due to the situation of COVID – 19 pandemic have influenced the
marking operations of the organisation. It has reduced the number of customers within their
stores which has reduced the effectiveness of their marking operations (Das., 2021).
Economical:
This factor of the environment pays emphasis ion aspect such as rate of unemployment
and inflation that can impact operations of a business. In context to Morrisons, the situation of
COVID – 19 pandemic has reduced the overall purchasing power of customers which has
negative influenced that marketing efforts of the organisation. This has resulted in reduced
profitability and engagement with customers.
Social:
This factor is concerned with market trends relative to the taste and preference of
customers along with aspect such as customer demographics. In context to Morrisons, the

situation of COVID – 19 pandemic has impacted the behaviour of customers as they have
focussed on purchasing low price products. This makes it esseantial for the organisation to
develop a marking strategy that is aligned with the current trend of customers.
Technological:
The technological factor pays emphasis on introduction of innovation and its impact on
the overall operation of an organisation. In context to Morrisons, the situation of COVID – 19
pandemic has allowed the organisation to expand its online presence and develop positive
engagement with their customers during the situation of lock down (Sayal., 2019).
Legal:
This factor focuses on laws that are established within the industry relative to
employment and legal obligation to process manufacturing waste products. In context to
Morrisons, the situation of COVID -19 pandemic has forced the organisation to pay emphasise
on keeping their employees safe who are essential components in marking for roles such as sale
and customer service.
Environmental:
This factor of the analysis pays emphasis on the impact of business operation on the
surrounding environment and its impact on an organisation. In context to Morrisons, the
organisation has developed its online presence at a large scale in the COVID – 19 pandemic
which has resulted in larger carbon footprint. This can negatively impact the brand image of the
business and lead to ineffective marketing.
SWOT Analysis of Morrisons
SWOT analysis refers to the strategic planning and management technique that helps a person or
an organisation in order to identify strengths, weaknesses, opportunities and threats. Which is
related to project planning and competition(Asseraf and et.al., 2019). SWOT basically stands for
Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is a kind of framework which
is used to evaluate company's competitive planning. This kind of analysis also assesses the
internal and external factors and also identifies current and future potential as well. SWOT
analysis also designed to facilitate a realistic, fact-based, data driven in order to look at strengths
and weaknesses of an organisation. It is that kind of analysis which is a strategic planning
technique that provides assessment tools as well.

STRENGTHS: Morrisons is a company who has efficient supply chain and distribution
network as well. It also offers a large product portfolio to its customers such as food, beverages,
clothes, music etc. It is one of the biggest supermarket companies in the UK country and also has
over five hundred stores with employee strength of over 130,000. The company is also listed on
London stock exchange & FTSE index as well(Baack and et.al., 2018). Morrisons has
established itself with prominent acquisitions in the past and the business for the company has
been increased through online retailing and shopping. Morrisons has successful record of
developing new products and also provides high level of satisfaction to its customers. The
company has performed very well and superbly into the new markets and also have expertise in
terms of entering into new markets.
WEAKNESS: It has been observed that Morrisons has limited geographical reach as
compared to other big brands. The brand image of the company has been affected through
alleged past issues pertaining to farmer rights. Morrisons is not very highly successful in terms of
integrating the firms with different work culture but it has to face failure in terms of merger
which have different kind of work culture(Cardoso and et.al., 2015). The company is also not
very successful in terms of tackling the challenges in the context of new entrants in the segment.
Morrisons also has high attrition rate in terms of the work force and also have lower level of
investment in the context of research and development. The company is also not very good in
terms of product demand forecasting which lead towards the higher rate of missed opportunities
as compared to its competitors.
OPPORTUNITIES: Morrisons has growing market for organic products that can be
easily tapped by the company. The company also has large number of stores which boost the
business in the overall manner at international level. There is rising demand for private labels
that can be catered by the company and also help the business in terms of growth through
acquisition of smaller companies and strategic partnerships. The new trends in the market also
open opportunities for Morrison Supermarkets Plc. It also provide opportunities for an
organisation in terms of building new revenue streams and also diversify into new product
categories too. Stable free cash flows also act as opportunity in order to invest into adjacent
product segments.

When there is more cash in the bank then company has opportunity to invest into new
technologies as well as new product segments. There is a government agreement which will help
in terms of opening up the new markets and the adoption of new technology has provided the
company with an opportunity to enter into new market.
THREATS: Morrisons margins have been affected through increasing market share of
competitors. It has also been observed that company has to face challenges when there is
increase in taxes and also observed change in terms of government policies. The physical retail
stores business have been affected through increasing number of business of e commerce
companies(Das., 2021). There are also tough competitors of Morrisons which include Asda,
TESCO, Sainsburys, Boots, Walmart, ALDI, Debenhams, Amazon and Wait rose. As the
company provides its services in different countries so it is exposed to currency fluctuations
specially given the volatile political climate change in number of markets on the world wide
basis. There are some products which are highly profitable and also seasonal in terms of nature
and any unlikely event during the peak season impact the profitability of the company.
STP analysis of Morrisons
STP Analysis: It is basically a three step process which allows for the development of a
particular and actionable marketing strategy. STP basically stands for segmentation, targeting
and positioning. STP analysis has been used in such a manner that first of all market has been
segmented after that market has been targeted into positive manner. At the end, it has been
identified that in which manner products positioning needs to be done on the basis of personality
and behaviour of the target market.
Segmentation: In the marketing context, segmentation is basically the process of
dividing the broad consumer or consumer market as well which is normally consist of existing
and potential customers(Ford., 2021). In context to Morrisons, they have identified the choice of
its customers which is based on the customer database and surveys as well. Company has also
identified customers purchasing behaviour in the context of finer foods, traditional foods, healthy
foods and also have formulated the new products range as well. The company also segmented its
customers on the basis of price, freshness and convenience as well.

Targeting: It is basically refers to the strategy which breaks a large market into smaller
segments in order to concentrate on a particular group of customers within that audience. It also
defines the customers segment which is based on unique characteristics and also focuses towards
serving them(Gilmore and Carson.,2018). In context to Morrisons, the target group of company
is basically the households. Under household group there are certain specific people which
includes young adults, old age people, children, working professionals etc. It basically targeted
all kinds of customers of all age group and in this manner Morrisons has targeted its customers.
Positioning: It basically refers to the place that a brand occupies in the minds of their
customers and in which manner they are distinguished from the products of their competitors and
different from the concept of brand awareness(Ilona and Yana., 2017). In context to Morrisons,
they have revealed a new kind of positioning which shows that the supermarket as lower-priced
retailer as it seeks to take back market share from the likes of Lidl and Aldi. Company has
position itself as “I'm you are new cheaper Morrisons” which will feature the retailer cutting the
cost of more than 1200 items in-store and online as well. Morrisons has position itself as the low-
priced supermarket with 'love it cheaper ' strategy. In this way, Morrisons has position itself into
the international market.
It has been observed that STP analysis help in terms of company's further growth and
development and also contribute in terms of properly targeting and positioning of the brand into
this international market (Kumar and et.al., 2018).This kind of analysis act as support system in
terms of identifying the potential customers into the market.
CONCLUSION
The above stated report concludes that marketing fundamentals plays a very important
role at the organisational level and for further growth of company as well. It has been concluded
that there is a procedure of marketing that every organisation has to follow and there are also
different kinds of stages of marketing. It has been determined that marketing mix plays a very
important role in terms of entry of new product and service into new market at international
level. It has been analysed that there are certain frameworks which act as support system in terms
of identifying the proper decision and further actions of the company for positive development of
the company. These certain frameworks include SWOT analysis, PESTLE analysis and STP
analysis as well.

These analysis help in terms of identifying strengths, weaknesses, opportunities and
threats of the company so that strengths can be converted in terms of opportunities for the
company. Weaknesses contribute in terms of converting threats as their protecting parameters.
PESTLE analysis act as support system in terms of identifying all kinds of factors which needs
improvement according to changing environmental conditions and situations as well. It has been
observed that STP analysis is very important for an organisation to further target, segment and
position it into positive spectrum. So marketing fundamentals plays a very important role for
company's growth as well.

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