Marketing Management Report: Morrison's Thailand Market Entry Strategy

This report provides a comprehensive marketing analysis for Morrison's planned expansion into the Thai retail market, specifically focusing on Bangkok. It begins with an overview of the retail industry, the company's background, and the economic landscape of Thailand. The core of the report involves a detailed marketing audit, including both external factors (macro and micro-environmental analysis) and internal factors, culminating in a SWOT analysis to assess Morrison's strengths, weaknesses, opportunities, and threats. The report highlights Thailand's market potential, consumer behavior, and competitive environment. Furthermore, the report proposes a new marketing mix strategy to bridge the gap between the company's current approach and the external environment, aiming to capitalize on opportunities like the demand for organic products. The report concludes with actionable recommendations for successful market entry and expansion, emphasizing the company's unique selling propositions, distribution channels, and promotional strategies to achieve a strong market position in Thailand.

MARKETING
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. Background of industry, company and country. ....................................................................1
2. Marketing audit including both external and internal factors.................................................3
3. New Marketing mix to achieve gap in between company's present strategy and external
environment...............................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing Management is the process of developing strategies and planning for goods
and services. The process consists of advertising, promotions and sales to reach desired customer
segment. It facilitates the functions and activities which are involved in distribution of products
and services. The main purpose of marketing management is to achieve organisational goals and
objectives. When companies plan to launch new products in new or existing market, marketing
functions plays a vital role in successful expansion plan of business. Further, it also increases the
productivity of existing products (Shaw, 2016).
In this present case scenario, Morrison Company is chosen for assessment which operates in
a retail industry. It is fourth largest supermarket chain in United Kingdom. Addition to this,
Morrison’s is planning to expand its business in Thailand which is 50th largest country by the
area and is ranked 21st for population across the world. This report will cover background of
company, industry and country. Moreover, internal and external analysis of company will be
done to analyse potential for market growth.
MAIN BODY
1. Background of industry, company and country
Retail is one of the most emergent and dynamic industry. It is considered as fast paced
sector due to the rapid entry of new players. It is one of the most important industry as it is
responsible for distribution of consumer products. It is retail sector which consists of general
retailers which are managed and control by individuals/group, speciality departmental and
discounted stores. It is a process of selling consumer goods or services to customers with the
help of multiple channels of distribution to earn profit. It has contributed up to 12% in country's
economy and has generated almost 8% of employment. Retail trends to changes every year with
the addition of new stores and innovative products into the market (Olson, 2018).
The retail sector is vital for the economy of all the countries. There are so many areas in
retail industry that enables opportunities for a person to choose between dynamic services that is
fashion, entertainment, food, general merchandise, health and beauty, home, technology, sports
and leisure. There are many companies which are leading successfully in retail industry such as
Tesco, Marks and Spencer, Morrisons, Aldi, Asda, etc. However, Morrison is fourth largest
chain of supermarkets in United Kingdom. It was founded by William Morrison in 1899. Its
revenue is £16,317 million and about 132,000 people were employed with till 2017. This
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company is famous for its products which are food and drink, books, clothing, Magazines, CD's
and DVD's.
Morrison’s at present has 498 stores across Scotland, Wales and England. In this present
scenario, company is going to expand their market in Thailand which is 50th largest country by
the area and 21st rank in population. Bangkok is the capital of Thailand and it is one of the largest
city as well as special administrative area. This is a country which is most preferred tourist area.
In 2008, there was drastic loss in retail sector because of global financial crisis and in 2011 there
occur flood and a military coup in 2014 which distract the entire structure of retail industries. But
in 2017 it settled up track and it grew by 2.5% with strong growth in the second half of the year.
This growth has continued in 2018. The retail sector of Thailand is expected to maintain its
potential growth and development (Sargeant and MACQUILLIN, 2016).
The people of Thailand spends enough percentage of income in food and non-alcoholic
drink, clothing, footwear, alcohol, health and many other retail items. It is expected that
Thailand's retail sector will maintain growth potential as well as future retail development. The
middle class, youngsters and urbanization is increasing retail sales as well as are increasing the
growth. Thus, for Morrisons, Thailand is the best country to expand its market.
Company has followed unique selling proposition to attract different types of consumers.
The services and quality of products of Morrisons is incredible (Morrison's Shareholders, 2018).
Because of its unique feature, organisation is leading in UK and has 4th rank. The strong
performance of company makes it different from others. Addition to this, the promotional
techniques of Morrison is also very amazing, they give less focus on calling brand ambassadors
for advertising its products and services. They promote their goods by giving discount offers, gift
vouchers, buy one get one free and trip tickets, etc. By offering these, the promotion of goods
and services are very impressive as well as effective (Market Positioning of Morrisons, 2018).
Apart from this, the selling and distribution system of Morrisons is also incredible. Its
features of selling will surely lead and achieve the great position in Thailand as well. They have
online presence which makes easy for consumers to buy goods and services. There distribution
channels of company are also very fast and convenient. Thus, these all are the unique features of
company that will surely win the market of Bangkok (Chernev, 2018).
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Illustration 1: Morrison's Shareholders
Source: (Morrison's Shareholders, 2018)

The market positioning of Morrison's is on 4th quadrant of growth matrix as it is providing low
cost product in the market.
2. Marketing audit including both external and internal factors.
When any company is planning to start a new business in any country. They have to
conduct analysis to track the environment of the particular country. External and internal both
analysis will be conducted by the organisations. Both micro and macro analysis outline the
overall market attractiveness as well as potential for market growth. If the result of analysis is
good, then company plans to establish its business in particular market. In this present research
study, Morrisons is going to establish its market in the city of Bangkok which is the capital of
Thailand. Thus, company is going to analyse the external factors in the country that affect the
functions, operations and position of organisation. On the other hand, Morrison’s is also going to
analysis its strength and weaknesses as well as it opportunities and threats (Kotabe and Helsen,
2014).
Here is the SWOT Analysis of Morrisons.
The SWOT Analysis is the best model to study the internal strength and weaknesses as
well as its external opportunities and threats. It is an analytical framework. This model is best for
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Illustration 2: Market Positioning of Morrisons
Source: (Market Positioning of Morrisons, 2017)

both internal and external analysis. Both macro and micro has great impact on viability if a
product, place or person. Addition to this, it also evaluates the competitive position of company
by identifying its strength, weaknesses, opportunities and threats. With the help of this model
Morrisons can measure what company can do or cannot do as well as its expected threats and
opportunities. This model is used by almost all the companies once in a year, some organisation
used it twice in a year. Morrisons use this tool to identify its strength and weaknesses as well as
it also helps company in decision making activities of business.
STRENGTH- Morrison is one of the leading company in United Kingdom. The supply
chain and distribution channels are the major strength of company. Strengths are the backbone of
company as by effective use of strength, protect the share of market in existing market as it also
assists in penetrating new markets (Marshall, 2014). By these strengths, Morrison can grow its
market in Thailand easily without putting so many efforts. Here are following strength of
company -
Outstanding performance in new markets- This is one of the best strength of company
that it has outstanding performance in new markets (UK, Australia, China) as well as in existing
markets. They have built expertise at entering new markets and making success of them. With
the huge expansion of firm, revenue and profit of company is increasing with high rates. The
goods and services that are liked by all people where company has established its business.
Strong Brand Portfolio- Morrisons is known and famous for its brand name. The
investment of company in building brand portfolio is incredible. With the help of brand portfolio
company can expand its business in any market without any complications and efforts. Brand
portfolio will be highly beneficial for firm at time of expansion in Thailand.
Powerful free cash flow- The financial position of company is very strong and it is
sound. The free cash flow of company enables them to expand their business in part of world
easily. Like Morrisons is going to expand its business in Thailand, so it is easy for the firm to
invest fund assets and other resources to set up successful business operations organisation
(Hutchinson, 2015).
Powerful Networks for distribution- The distribution channels of Morrisons are diverse
and are capable enough to reach its products and services to end users. They build reliable
networks for distributions.
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High level of customer satisfaction- Morrison is on the 4th rank, it is not only because of
its products only but it is because of high level of customer satisfaction. The department has able
to achieve a high level of customer satisfaction (Morrison's Shareholders, 2018).
Highly skilled workforce- This is one of the most beneficial strength of company that its
employees are highly skilled and knowledgeable. The firm organises regular training and
development programmes for workers which helps in increasing their skills and knowledge.
WEAKNESSES
Weaknesses are the areas when company is lagging behind. Once company identified its
weaknesses than company work on it and change it in a strength. By using this tool company
improvise its business operations which helps in building competitive and strategic positioning.
The major weakness of Morrisons is its geographical reach is limited as compared to other big
brands such as Tesco and Sainsbury. By identifying weaknesses, Morrisons can grow and
expand their business in Thailand in effective way. Here are the following weaknesses which are
as follows-
Technologies are not developed- The infrastructure and networks related to information
technology is not very well developed which is the biggest weakness of company. By this
weakness, the net contribution percentage and profitability ratio of company is below the
industry average (Bresler and Lubbe, 2014).
Need of expert training session-- This is also one of the major weakness of Morrisons
that there is high rate of attrition in employees as compare to other companies in retail sector.
Management have to spend lot of amount of fund on organizing training and development
programmes.
High rate of missed opportunities- Morrison does not focus on opportunities that are
available in the market and this is the reason why company is on 4th rank for many years. These
opportunities are captured by their competitors like Tesco and Sainsbury. Both the companies are
leading at top as because of networks and distribution channels as compared to Morrisons. If
company take initiatives in expanding market, that it will able to manage successful growth.
Structure of company is not up the mark- Morrison structure is not effective as well as it
is not efficient. Because of ineffective structure company is limited or restricted in expansion and
development.
OPPORTUNITIES
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It is an external strategic factors. Opportunities are those which involves a packaged
investment of businesses that allows the proprietor to start the business. It is chance for growth
and development or expansion of company. Morrison is going to expand its business in Thailand
as because there are numerous opportunities in retail industry. The yielding opportunity for
company is in Thailand there is a great demand of organic products Thus, Morrisons can grab or
captured growth opportunities by introducing organic products in international market (Foxall,
2014). Here are the following opportunities that company can captured are as follows-
International expansion- Expanding market in Thailand will help the firm increasing
geographical area. Bangkok is the capital of Thailand and it is one the biggest city as well as it is
an emerging market in whole over the country. Thus, company can grasp the opportunities and
expand their business to the large extend.
New consumers from online channels- Morrisons can invest large amount of fund in
making its presence on internet platforms. Nor in the era of digitalisation, people are highly
attracted towards online marketing. New doors of sales will open by having online presence in
market. Now people buy their products sitting at their home. In Thailand, people are also very
aware of digital technology so company can promote its expansion via online marketing
techniques.
New trends in the behaviour of customers- By new trends in the behaviours of
consumers, a new market can be start up for company. It provides a great opportunity for
Morrisons to build new streams of revenue by diversifying product categories.
Advancement in technologies- The new technologies provides a great opportunity to
Morrisons to practices differentiated pricing plan of actions. By using innovative technologies
company can increase their market share to large extend as because people are very technology
oriented.
THREATS
Threats are also external strategic factor. Threats sometimes cause damage to entire
business of company. Thus, it is very important for company to identify the threats and take
relative actions (Möller and Parvinen, 2015). Morrison is also facing threats in the present
market they are operating but now company is going to establish its business in Thailand. So
company has to identify the factors that may cause damage to the company. Here are the
following threats-
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Competition is at peak level- In Thailand, there are other retail companies that may give
tough competition to Morrison. Profit of company is decreases as well as market share is also
largely affected by heavy competition.
New policies and regulation of country- In country there are various regulation and laws
that changes by the government of nations. Thailand government also come up with changes in
their laws and policies which affect the activities and function of company. For example,
increasing of taxes, rebate etc.
PESTLE ANALYSIS
PESTLE Analysis is a tool or framework that used by the company to analyse and
monitor the external environment that has a great impact on company. When any company takes
any tactical plan regarding business it is very important that company should conduct Pestle
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Illustration 3: SWOT Analysis
Source: (SWOT Analysis, 2017)

Analysis. Morrisons is planning to establish its company in Thailand, so organisation will
conduct Pestle analysis to track the environment. Pestle stand for P-Political, E-Economical. S-
Social, T-Technological, L-Legal, E-Environmental.
Political Factors- This factor refers to the pressure and opportunities brought by political
parties as well as impact of government policies on business. Political factors include
government policies, terms and condition of authorities, policies regarding trade, funding,
initiatives and grants, pressure groups and lobbying, conflicts, wars, issues inside political
parties, bureaucracy. These are all the elements that affects the function and operations of
company (Huang and et.al., 2015). The political condition of Thailand is stable as government do
changes in their policies and laws slowly such as taxation, trade and fiscal policies. Thus, it is the
best country for Morrisons to establish its business
Economic Factors- This factor refers to the economic policies, structure as well as
economic impact on the businesses (PESTLE Analysis, 2017). Economic factors include taxation,
inflation, interest, economy trends, industry growth, import or exports trade, international trade
and international exchange rates. These all factors lay great impact on the performance,
expansion as well as on profitability of company. Thailand is the fastest growing economy in the
world as gross development production contributes by retail sector is about 15.4% from total
55.9% GDP. Thus, Morrison can easily invest in Thailand as it one of the fasted growing
country.
Social Factor- This is the factors which refers to the cultural aspects, belief, attitudes that
has great impact on the demand of the goods of company. Addition to this, social element also
includes how company operates in the society. This factors include demographics, work ethics,
brand, company, technology image, lifestyle trends, consumer perception and attitudes, ethical
issues, advertising and publicity. The purchasing power of consumers is high in Thailand which
is the biggest benefit for expansion plan of company. People are educated in this country. Thus,
the social status of Thailand is also sound which is very good and effective for company's
survival and growth of company. Morrisons is leading in United Kingdom and it is only because
company concern about the belief and attitudes of their potential customers as well as entire
society (Moore, 2015).
Technological Factors- This factor refers to the rate of advancement and innovation in
technology which has great impact on the industry. In the world of advancement and innovation,
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today no company is able to sustain without the use of technologies. Technological factors
include emerging technologies, maturity of applications, legislations of technology, research and
innovation, communication, information, intellectual property issues and development of
technologies among competitors. Thailand is rapid growing country in terms of innovation and
creations as because it is one of the famous tourist point in the world. The people of Thailand are
adversely engaged in development and growth of technologies. In order to satisfy the needs and
wants of users, it is very important that Morrisons will be aware of advancement and creation in
their technologies they are using. For example, in terms of communication, Morrisons will be
able to use the best channels for transmitting their products to end users to satisfy needs and
wants of consumers.
Environmental Factors- This is the factor that affects surroundings and has great impact
on ecological aspects. With the emergence of the significance of Corporate Sustainability
Responsibility (CSR), environmental factor is becoming very essential. Environmental factor
includes laws, regulations of environment, ecological regulations, reduction of carbon foot print,
impact of adverse weather and climate, sustainability, recycling and disposal of waste (Lindgreen
and Di Benedetto, 2017). The environmental conditions of Thailand are good as it is island that
is covered with greenery and water all around and it will influence market growth if Morrisons
during its expansion in the country. But after industrialisation, there are some climatic and
environmental issues that are causing serious hazard to the society or environments. There are
various issues that country is facing only because of air and water pollution, deciding wildlife
population, deforestations, soil erosions and many other issues related to waste. Thailand is
becoming a famous tourist junction across the world, so there are many hotels, resorts and
restaurants has open up that are disposing their waste in water and that are causing serious hazard
to people. Still the environmental conditions are stable in Thailand which will influence the
growth of market during its expansion. Hence, the focus of retailer will be on complying with
CSR activities and environmental policies to manage successful expansion.
Legal Factor- This factor refers to laws, regulations, legislations and these all affected
the business operations and functions at large. Legal factors include current and future
legislations, international laws, regulatory bodies, employment laws, consumer protection, health
and safety laws, taxation, competitive regulation and many others. Trade agreement laws and
International Trade Agreement are the tow laws that are very essential for Morrison to expand
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