International Marketing Strategies and PESTLE Analysis: Morrisons PLC

This report provides an in-depth analysis of Morrisons PLC's international marketing strategies within the retail sector. It begins with an executive summary and an introduction to international marketing, focusing on Morrisons as a UK-based firm. The report delves into key international elements, including competitive advantages gained through pricing and differentiation. A crucial component is the PESTLE analysis, evaluating the impact of political, economic, social, technological, environmental, and legal factors on Morrisons' business processes. The report also examines international marketing strategies like direct investment and franchising, and it concludes with an overview of STP (Segmentation, Targeting, and Positioning) marketing strategies employed by Morrisons. The analysis highlights how these strategies and external factors influence Morrisons' ability to compete and succeed in the international market.

INTERNATIONAL
MARKETING (COURSE
WORK 1)

EXECUTIVE SUMMARY
The present study is based on the international marketing where Morrisons public limited
company is to be selected which operates in the retail sector worldwide. The report helps to
identify different kinds of external environment factors which affects to the firm which are such
as political, legal, environmental, economic, social and technological. Apart from this different
international marketing strategies and tactics adopted by Morrisons Plc are analysed in the better
way. It can be said that in the international market there are various kinds of elements plays main
role in order to gain competitive advantage and survive in rivalry environment. It can be derived
from the respective analysis that such external environmental factors impact on the business
process of Morrisons in adverse and positive both ways.

INTRODUCTION
International marketing is a term used by the companies to increase better presence in
another country where it not operates in the current time. This helps the business entity to
increase global presence as well as sales and revenue. Further, to analyse about the international
marketing, Morrisons Plc Company is selected for the current study which is the UK based firm.
The company operates in retail sector and have market share is 11% of the overall UK's retail
sector. The present report focuses on the PESTLE analysis of the selected firm which affects the
business process in positive as well as negative manner. Moreover, it emphasizes on different
kinds of international marketing strategies which are adopted to enter in the international market.
BACKGROUND
Key international elements
In the international business there are various kinds of elements as well as factors plays
important role and which helps to the firm in order to react in the different markets. Among
various markets one area is related to competitive where two or more companies provide same
products and services to the customers. The firm which able to offer better quality of goods and
services then buyers wants to purchase its items (Czinkota and Ronkainen, 2013). The Morrisons
public limited enterprise provide different range of products and among them it offers food
products at the low cost which lead to increase its market share at the year ending 2015 which is
11% of overall retail industry of UK. Cost and price these are the main factors of the firm which
helps to gain competitive advantage in the international market. Lower the cost of production
helps to charge low price of such items from the users and sustain them into firm. Further,
ultimately the firm able to shape and operate in the competitive market properly.
Apart from above elements there are some competitive policies also followed by the
company in order to enter in competitive market and survive as well. Policies and rules of
competition are one of the important part of international elements because it helps to operate in
such market and generate revenue. The Morrisons able to gain competitive advantage in the
overall retail sector of the world with help of some differentiate strategies which includes in such
kinds of elements. It provides very hygienic and nutritional dishes of food products at the better
level and very low cost which is the main differentiation of it. Hence, it can be said that by using

such kind of international elements the Morrisons able to survive in the competitive market in
the retail segment (Berthon and et.al., 2012).
 Direct investment: In this strategy the company such Morrisons Plc invest sum of
money in the new and emerging country and operate business at there. Here the firm
establish a new branch for the company with the help of same kind of products and
services. When it enters in the developing country then provide same type of retail
products which helps to enhance market share as well.
 Franchise: Another strategy and technique for entering in the emerging market is such as
franchise in which Morrison establish new firm by using same production process,
management structure, staff etc. While operating in the new market the training and
developing programs are also not change. Furthermore, in short production and operation
process, delivery system etc. remain constant. There is key difference is changing the
market or economy.
PESTLE Analysis
In the business world, there are many types of elements are comes into consideration by
which sometimes firm become more profitable and sometimes its performance reduce. In order
to analyse and understand such impacts various models and theories are used by the organisation
properly. Different theories or models are PESTLE, Porter's five forces, SLEPT etc. In the
present case, PESTEL analysis is chosen which stands for political, economic, social,
technological, environment as well as legal elements. It is tools which help the firm to evaluate
the business process and its impact as well. Analysis of the respective model with reference to
Morrisons is described below: Political factors: Those factors are related to the government and helps the firm to run in
the market are known as political elements. Various political factors are such as tax,
tariffs on trade, fiscal policies and other government rules and regulation relating
business. By such kinds of factors the business environment sometimes become
profitable and at some point net income reduce (Terpstra, Foley and Sarathy, 2012). For
instance, if the taxation rate increases by government then the Morrisons has to pay more
which will increase the indirect expenses and declines net income at the end of FY. Apart
from this, when when the government of country make rules that company cannot export

products to another market then it lead to reduce level of sales in new market. Further, it
cannot enter in the emerging and international and market share also affected negatively. Economic factors: Other elements which affect the business environment of Morrisons
are related to the economy. It can be said and analysed that if the economy of the UK
country increases then business able to perform well. On the other side, if growth rate of
the economy reduces then it impacts on the per capita income of local community.
Further, lower the per capita income lead to reduce buying behavior of consumers and
affects financial performance adversely. The UK business depends on the growth rate of
the country and currently GDP of UK is low by which the Morrisons affects. Further,
they are unable to purchase products and services offered by Morrisons. Apart from this,
it consists of exchange rate and inflation rate etc. by which profit level of the selected
retail company reduces. Social factors: Along with the political and economic factors, there are social elements
which have negative and positive impact on the firm. As per the social factors local
community of the country as well as customers plays an important role. It includes tastes
and preferences of users, demographic factors, wants and needs of the buyers etc (Akaka,
Vargo and Lusch, 2013). When the Morrisons is able to meet with the taste, needs as well
as wants of potential customers then they can sustain in firm. Further, asnother more
number of customers attracts to purchase its food items, retail products etc. On the other
hand, when their needs changes then management has to produce that types of products
by which overall operation process of Morrisons will hamper Further, by this the level of
profitability goes down and performance in the retail industry as well.
In the market there are customers are always seeks towards the low cost of products and
services and wants to purchase them at lower prices. Further, it is common culture in every
market that the firm which provide same kind of goods as lower prices as compare to
competitors then they will purchase from previous company. As per this, the consumers of retail
products are switch towards Aldi and Lidl which are provides goods at the lower prices in
comparison to Morrisons Plc. Hence, this thing highly affects to it in negative way and reduces
selling and profit at the end of financial year.

 Technological elements: In the technical sector, many types of new and innovative
techniques and technologies coming in the new market within some period of time. It
always helps the firm in a positive way and improves quality of food products and
services up to better level. When the Morrisons employ innovative and advanced
technologies in the production and operation process then the firm able to produce better
products. However, when firm adopt new techniques then it is required to pay more cost
which lead to increase in expense of business. Environmental factors: According to the respective elements, the Morrisons Plc affects
by the different environment related elements by positive and negative manner. In this
different factors such as pollution, global warming etc. are includes which lead to impact
on the business environment in adverse way (Yang, Su and Fam, 2012). For example: in
the environment if global warming is there then it impacts adversely to food items which
are produces by it. Further, local community don't want to purchase such affected items
which lead to impact on sales of Morrisons. Hence, productivity and profitability of the
Morrisons impact up to greater level.
 Legal factors: At last, another factor which affects the firm are legal elements. As per
this, there are many laws as well as legislations that impact the Morrisons to run
smoothly in the market and retail industry. Various laws such as consumer’s laws, health
and safety regulations, and discrimination act etc. influence the working environment of
Morrisons. The company needs to follow such laws in the firm by which it able to
provide safety to the employees and make the workplace better and effectual. Further, by
this they will become more efficient at the workplace and help to generate more sales and
profit as well (Demangeot, Broderick and Craig, 2015).
International Marketing Strategies
Those kinds of strategies and tactics by which an organisation promote as well as
advertise in the country are known as marketing strategies. In context to this, there are different
types of marketing strategies used by the Morrisons while it enters in the new and emerging
market. It uses advertising strategies like as digital marketing with help of social media. In the
current scenario, there are major people use social media and networking sites due to which it is
the most effective method. When it uses the sponsorship system in those types of events where

more number of public gathered, then it attracts higher customers towards it. Along with the
respective marketing strategies, it allows customers higher quality of food items with high
nutritions. Each and every customer wants hygienic and nutritional food products to keep away
diseases. Due to this higher number of local community attract towards it (Wilson and et.al.,
2012). With providing nutritional items, it allows at the low and affordable costs which lead to
attract higher number of customers in order to increase revenue and profit.
In order to marketing its products and services there are different strategies are used and
among them STP is the best which shown as below: Segmentation: According to this the Morrisons divide overall market into small areas on
the basis of various demographic factors and then provide services. With the help of
segmenting the firm able to easily cover whole industry and market properly. Various
demographic factors on the basis of which Morrisons segmenting its market are such as
age, income, marital status, living standard etc. Targeting: In the targeting the management of Morrisons will target a particular market
from the above segmented. After doing targeting it able to aware local community of
country in easy way. For instance: if the firm target to the kids where it offers kids wear
then can marketing its such products in the whole market.
 Positioning: At the last it creates a better image in the whole industry using specific
product or other aspect such as quality, cost, uniqueness etc. For example: providing high
quality of goods and services will lead to create a high brand image in the retail industry.
Marketing mix
It is a component of marketing which helps to the company in order to promote its
services and products as well. It includes mainly four factors such as product, price, place and
promotion. Further, there are another three elements are also included but those are relied with
the service industry. The additional another elements are like as people, physical evidence as
well as process. Marketing mix in order to advertise products and services are given as below: Product: It is the ever best strategy used by the company Morrisons in order to increase
its sales as well as market share in the retail industry. The firm provides better and highly

hygienic food products to the customers at the affordable prices which lead to attract
more number of customers. Price: According to the another element of marketing mix i.e. price, which highly affects
to the buying behaviour of the potential customers. Higher the level of price reduce
attraction of the consumers while lower the pricing of products and services helps to
increase more buyers. The Morrisons already provided high quality of services at the low
price rate by which it able to increase customers in the market (Koschate-Fischer,
Diamantopoulos and Oldenkotte, 2012). Place: It is criteria through which the company sell its products and services is known as
place. The company can sell its products and services with help of retailers, shops, online
etc. In context to this, when business entity sell its products and services through online
then it able to aware more local community. Further, advertise is easily done and
customers attracts at higher number as well.
 Promotion: As per the marketing mix strategy, the Morrisons enterprise promotes its
services and food items through sponsorship. Along with this, it promotes using social
networking sites in appropriate manner which lead to enhance level of sales and profit in
the industry.
Hence, it can be said that there above mentioned marketing mix is adopted by the
company such as Morrisons in order to marketing and advertising its food items and services in
national and international both the markets.
Strategies to enter in new market
The company enters in new and international market such as Taiwan in order to expand
its business as well as increase markets share in the world. For that it uses different strategies,
some of them are described as below: Market development: Very main strategy which is adopted by the Morrisons in order
enter in the international area is market development. It is one of the best and widely used
strategy of Anosff's generic model. According to the respective strategy the company
enter in the new market by offering and providing current and existing products and
services (Korey, 2013). The Morrisons enters in the emerging market like as Taiwan

which is the best strategy of business expansion. With this it able to develop its market
range and enter in the Taiwan country.
 Competitive advantage: Another tactic adopted by the respective firm of retail sector is
competitive advantage where it provides very differentiate food items and services in the
new market. Along with the differentiate goods and services it offers at very low as well
as at the affordable cost by the consumers. When the company provide very differentiate
products and services in comparison to competitors then it able to enter in the Taiwan
marker easily. Furthermore, along with unique services it allows customers at the lower
prices and costs which is the best strategies used by the Morrisons for entering the
Taiwan retail industry.
 Competitors advantages and analysis: When the business entering in the new as well
as emerging market then there are several numbers of rivalry businesses are available
which impact on the new business. In context to this, when the Morrison Plc going to in
other market place then it has to analyse several aspects which are associated with the
competitors. Furthermore, such aspects are like as pricing strategy, quality of retail items,
marketing and promotional techniques etc. Because if the rivalry entity has lower prices
of the products along with higher quality then Morrison should give response according
to the analysed competitors. Moreover, when Morrison provide retail items at the lowest
cost and the highest quality then it can easily gain the competitive advantage in the
overall retail industry.
CONCLUSION
From the above analysis it can be concluded that different international elements helps to
Morrisons in order to survive itself in the competitive market. Further, there are many types of
political, legal, economic, social, environmental and technological factors impact on business
environment in positive and negative way. Moreover, in order to advertise or promote its
products and services in the international market the Morrisons uses different strategies.