Analysis of Marketing, Sales, and Negotiation Skills at Morrisons

This report provides a comprehensive analysis of Morrisons' marketing, sales, and negotiation skills within the UK retail industry. It employs the PESTEL model to assess the macro environment, examining political, economic, social, technological, environmental, and legal factors influencing the company. A SWOT analysis evaluates Morrisons' internal strengths and weaknesses, as well as external opportunities and threats, including competition from Aldi and Lidl and the growth of e-commerce. The report also delves into the marketing mix (7Ps), discussing product strategies, pricing approaches, promotional activities, place or distribution channels, people management, physical evidence, and processes. The analysis highlights Morrisons' competitive pricing strategy, promotional techniques like customer rewarding schemes, and efforts to create job opportunities for local people. The report concludes by emphasizing the importance of adapting to changing customer needs and leveraging technology to enhance customer experience. Desklib offers more resources like this to aid students in their studies.

MARKETING, SALES AND
NEGOTIATION SKILLS

Table of Contents
EXECUTIVE SUMMARY........................................................................................................3
INTRODUCTION......................................................................................................................4
MAIN BODY.............................................................................................................................4
PESTEL and SWOT Analysis...............................................................................................4
Discussion and analysis of Marketing Mix............................................................................9
Sales and negotiation skills applied within Morrisons.........................................................12
CONCLUSION & RECOMMENDATION............................................................................13
REFERENCES.........................................................................................................................15
Online...................................................................................................................................15

EXECUTIVE SUMMARY
Marketing is one of the most important activity performed within every business as it
bridges the gap between the place of origin and the place of consumption with regards to the
goods produced by the business. Marketing department undertakes to analyse business
environment in order to assist management in devising marketing & sales strategies, so that
overall business objectives can be met. In this report, PESTEL model has been used to
analyse the macro environment of Morrison’s while SWOT model has been used for
analysing micro environment of the company. Also, 7 P’s of marketing mix has been
discussed with reference to Morrison’s in order to analyse the marketing strategies of
Morrison’s. The company has adopted different pricing strategies for its wide range of
products along with using several promotional tools to generate potential customer lead.

INTRODUCTION
In every organization there is a separate department known as a marketing department
which carry out the role of marketing for every organization. The role of marketing is like a
face of the company within the market which involves coordination and production of
materials that is core for representing the business among target audience. Accordingly, it can
be said that the marketing department within every business plays an important role in terms
of promoting organization’s mission and overall business within the market. Certain activities
performed by marketing department are definition and management of brand, marketing
campaign management, producing materials that assists in marketing and promotion of
organization’s products and services and reaching out to customers and community in order
to build positive brand image of the business.
The present report is based on Morrisons which is known as the fourth largest
supermarket chain of United Kingdom founded in 1899 by William Morrison. The industry
within which the company is operating is the retail industry of UK.
With the help of unique marketing strategy framed by its marketing department,
Morrisons is successfully able to position itself in a competitive position within the UK retail
market which helps the company in meeting their goals and objectives from time to time
(Miklosik and et.al., 2019). They consider their marketing team as the company’s voice for
targeting households. The marketing plays vital role in enhancing Morrisons reputation
through creation and implementation price plans, building understanding of their target
audience and accordingly, delivering their advertisements through media which talks to their
target market directly.
MAIN BODY
Marketing environment consists of both internal as well as external factors that are
supposed to be influencing the organizational decisions with respect to its marketing
activities either directly or indirectly. Internal factors can be controlled by businesses but
external factors are out of the control of the organization.
PESTEL and SWOT Analysis
In macro environment refers to the existence of those external factors that are
supposed to be influencing the business decisions and the business have no control over the
same. To understand the macro environment, PESTEL model is being used to determine what

are those factors existing in the business environment of business like Morrison’s that could
affect its performance both in the long or short run.
PESTEL analysis
With the help of PESTEL analysis, deep insights have been developed regarding the
macro environment of the UK retail industry for Morrison’s (Sadchenko and et.al., 2020).
Factors understood through this model are categorised into political, economic, social, legal,
technological and environmental which plays a vital role in determining the strategy for
businesses like Morrison’s through they can overcome challenges which they are facing such
as changing customer needs, tastes and preferences, loss of market share and cut throat
competition from rivals such as Tesco, Asda, Sainsbury’s, etc. The following section of the
report will reflect the PESTEL analysis of Morrison’s:
Factor Impact
Political The UK Govt has come
under pressure to adhere to
the WTO regulations
concerning the grocery
industry.
Unlike most of other
countries, in the UK, local
governments play an
important role in the
regulation and policy
making.
Reduced cost of production and
accordingly prices of finished
goods. This led to high competition
for Morrison within the
supermarket industry of UK.
Economic The liquidity in the market
after 2008 recession can lead
to inflation in the economy
of the UK.
Morrisons can leverage the
highly skilled workforce in
the UK’s services sector to
improve services (Upadhyay,
Morrison’s can improvise their
service quality and performance.

Kumar and Akter, 2021).
Social The customers in the UK are
preferring experiential
products and Morrisons can
leverage this trend and offer
products that provide
enhanced experience.
The society in the UK is
different from home market
of Morrisons and hence the
company should build a
local team that understands
the society and attitudes to
serve the UK customers.
Better product quality and features
for enhanced experience to
customers.
Technological Morrisons should leverage
the advancements in
information technology to
transform customer
experience in the grocery
industry (Morrison’s SWOT
& PESTLE analysis. 2021).
Technology has also
shortened the life cycle of
products and hence it has
pressurized the marketing
team of Morrisons to keep
the suppliers happy by
promoting a wide range of
products.
Protection to intellectual property
rights in overseas nations.
Environmental UK has incentivized the
renewables and hence
Morrisons should leverage
Encourage healthy and safety
environment through offering
products in paper bags rather than

the trends in the sector.
Awareness among the people
towards the environment
means businesses have not
only to adhere to the legal
standards but also be a
responsible stakeholder in
the society.
in plastic bags.
Legal The company needs to
carefully consider how the
changes in the employment
laws, health and safety
norms, environmental laws
and IPR regime would affect
its operations (MOST and
et.al., 2018).
Also, whether its practices
are consistent with the WTO
and EU norms.
Provision of products as per the
laws and regulations prevailing in
the country such as provision of all
the product related information on
their packages (Morrison (Wm)
Supermarkets Plc PESTEL &
Environment Analysis. 2021).
SWOT
Micro environment consists factors, forces and individuals that form part of the firm’s
internal environment and accordingly affects its performance directly. The factors involve,
clients, suppliers, competitors, etc. which allows for determining the strengths & weaknesses
of the business. accordingly, the SWOT model will be applied for analysing the strengths and
weaknesses of Morrison’s in order to analyse its micro environment.
With the help of this analytical tool, the strengths, weaknesses, opportunities and
threats of the brand will be identified. The first two elements are meant for indicating brand’s
internal factors while the latter two elements are meant indicating external factors which can
affect their operations in some or the other way. The following is the SWOT analysis of
Morrison’s:

Strengths Weaknesses
 Morrison’s is the fourth largest
supermarket having a market share of
9.8% of grocery industry in the
United Kingdom. A specialisation in
the food products and fresh products
made by the company itself
(Vasiljevic and et.al., 2018).
Morrison’s has the largest number of
skilled and trained specialists to
prepare fresh food products and
around 9000 craftsmen such as
bakers, cheese mongers, butchers, fish
mongers etc.
 For over 100 years in supermarket,
and about 500 stores along with home
delivery service online.
 Every week around 11 million
customers visit Morrison’s and shop
online.
 Nowadays many customers
commonly prefer companies that buy
products from local vendors.
Morrison’s also buy many of the
products from farmers and fishermen
directly (Morrisons SWOT Analysis,
Competitors & USP. 2021).
 Morrison’s online presence is weak
compared to competitors. It has its
operations mostly in the UK and this
overdependence on a single market may
prove costly during the economic downfall
in that market.
 Customer satisfaction is also poor. The
surveys have voted it as one of the worst
supermarkets in the UK and ranked as 9th
(out of 10).
Opportunities Threats
 Better growth prospects for
food & grocery market of UK.
 Diversification to organic
products line.
 Cut throat competition from Aldi
and Lidl.
 Growth of ecommerce platforms
within grocery products.

 Expansion to global market.
 The industry forecasts say that
the food and grocery market in
the UK is expected to reach a
value of around 220 billion
pounds by the next year
(Veleva and Tsvetanova,
2020). Also, the focus on
leveraging the online delivery
of grocery (covering about
95% UK postcodes) would be
immensely useful.
 Morrison’s is challenged by
supermarkets like Aldi and Lidl
that can overtake it in the near
future.
 The economic crisis may also have
a devastating impact.
Discussion and analysis of Marketing Mix
Marketing strategy helps in analyzing brand where the tool that is, marketing mix is being
applied and accordingly, marketing strategy from seven different aspects are analyzed such as
product, price, place, promotion, people, physical evidence and process. Following is the
marketing mix of Morrison’s which signifies the marketing strategy of Morrison’s.
Marketing
Tactical Tools
Current Strategy (based on each P)
applied by your chosen
organisation (add some related
theories/concepts to underpin
your understanding when
needed)
Your evaluation/argument on the
effectiveness of each marketing
tool currently applied by your
chosen organisation
Product There are five categories of product
that Morrison’s sell which have
five different product lines. The
highly focused product line is fresh
food and their key to success is
high quality. The different brand
name under which the company
sell their products are NuMe, Just
for Kids, Morrison’s cellar, M
signature and M Kitchen. The
Helps in standing above the
competition by appealing different
customers in different manner.

products are served at shops and
factories of Morrisons (Marketing
mix (7Ps) of Morrisons. 2021).
Price Morrisons resort to competitive
pricing strategy which they set
through large data available related
to competitors. Products that are
costlier to make and also for which
no information is available are
priced as cost plus pricing strategy.
Furthermore, bundle pricing is
being used by Morrisons for those
products that are bundled together
at the time of sale which leads to
selling products at lower prices as
compared to the total price for
individual items.
Getting minimum profit margins
from all categories of products.
Promotion For the purpose of promoting their
brands, Morrisons resort to offering
high quality products at lower
prices to its customers on
permanent basis. Other
promotional techniques employed
by Morrisons are match and more
cards and customer rewarding
scheme through which they are
able to attract more customers.
Also, multiple media is being used
by the company to promote their
products such as traditional and
social media channels.
Customer rewarding schemes and
social media channels are helpful
in targeting and attracting potential
customers (Morrison’s Corporate
Strategy. 2021).
Place There were around 700 stores Provide for greater access to
customers both at domestic and

across UK where 200+ are
convenience stores which led to
wide geographic presence of the
company and thus, is considered to
be the second largest producer of
fresh food within UK. Further,
selling took place through retail
and online stores (Sadchenko and
et.al., 2020). With the help of 600
tractors and 1700 trailers, efficient
deliveries are made.
global level through physical and
online platform.
People By creating job opportunities for
local people, they try to make them
part of the community which serves
customers in a tailored way on the
basis of their preferences. As per
the research conducted, it has been
found that around 12 million
customers visit Morrisons shop per
week along with 120000 workers
working in the Morrisons
supermarket.
By serving and benefiting
community in which the company
operates, it could ensure better
brand image among that
community which in turn is helpful
in generating lead.
Process Through online and convenience
stores of the company, it is able to
serve multi-channel experience to
their customers (Kengar and et.al.,
2018). Also, they maintain
consistent communication with
their customers which helps in
performing focused delivery within
a distinctive shopping environment
and as a result, customers are able
to choose right product at the right
With its effective process,
Morrison’s is able to provide better
customer satisfaction. In addition
to this, appropriate delivery system
allows for overall efficiency within
the company.

price.
Physical
evidence
There were around 700 stores,
seven regional and one national
distribution center through which
they are able to ensure their
physical evidence. Different
channels through which the
company ensure their presence are
online coverage, supermarket,
Morrison’s M local, manufacturing
units and distribution center. Also,
the products are displayed over its
website.
With its effective physical
presence, Morrison’s can establish
reliability among customers
through tangible cues. In this way,
greater customer satisfaction with
the company’s services could be
ensured.
Sales and negotiation skills applied within Morrisons
The Gibbs reflective model will be used for reflecting on learning experience pertaining to
sales & negotiation skills.
Description: While going through the session meant for sales and negotiation, I have learnt
communication skills which allow me to communicate with the right audience in the right
manner.
Feeling: With this skill, I was able to communicate the features to the target audience which
acts as a helping hand in promoting the product in the market.
Evaluation: Also, skills such as good listening and reduced misunderstanding has been learnt
during the sales and negotiation session which are considered to be the key for successful
negotiation. Accordingly, I was able to listen to the target’s preferences and needs which is
the core of any marketing or sales effort (Miklosik and et.al., 2019).
Analysis: After learning sales and negotiation skills, I undertake to apply my learning on how
Morrisons applies certain sales and negotiation skills at the time of marketing their products
such as building relationship with clients and customers through which the company is able
to establish better level of understanding and trust and accordingly, the targets are attracted
and retained with them. Also, the marketing professionals within Morrisons used to quantify