Relationship Marketing Strategies for Morrisons: A Report

This report provides a comprehensive analysis of Morrisons' relationship marketing strategies, focusing on customer relationship management (CRM) practices and loyalty programs. The report begins by defining relationship marketing and its significance, emphasizing the goal of building long-term customer relationships. It then delves into Morrisons' specific strategies, including the 'Match and More' card, and evaluates these strategies using the IDIC model (Identification, Differentiation, Interaction, Customization). The report also examines the role of loyalty schemes in customer retention, discussing their benefits and factors contributing to their success. Furthermore, the report analyzes the customer value chain to understand how Morrisons can enhance its customer relationships. Overall, the report offers valuable insights into how Morrisons leverages relationship marketing to gain a competitive edge and foster customer loyalty in the retail industry.

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Relationship Marketing
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Contents
Introduction......................................................................................................................................1
Question 1........................................................................................................................................1
Concept of Relationship Marketing.............................................................................................1
Application and Evaluation of Current CRM Processes in Relationship Marketing..................3
Conclusion of question 1.............................................................................................................5
Question 2........................................................................................................................................5
Role of Loyalty Scheme and Factors making it Successful........................................................5
Customer Value Chain Analysis..................................................................................................7
Conclusion of question 2.............................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
The objective of the report is to analyse the case of Morrisons given in the assessment. The
below mentioned paper analyse details about the customer relationship management practices of
the company Morrisons. The case study analyse that the company Morrisons that was found
around 100 years ago as a stall in the Bradford market. The company was converted from the
market stall to superstore in the year 2008. The organization is currently fourth biggest food
retailer present in UK market. The organization aims to make use of effective relationship
market so as to increase the satisfaction and eliminate the level of competition from the
environment. The paper is divided in two parts, first question of the paper evaluate details about
the ways in which Morrisons relationship marketing activities can help the organization to retain
the customers in the business environment. Further, question two of the report highlight the ways
in which the organization can work with the suppliers to increase the effectiveness of Match and
More cards among customers in the business environment.
Question 1
Concept of Relationship Marketing
Relationship marketing refers to the process of customer relationship marketing that focuses on
attaining loyalty of the customers and initiating long term relationship with them as well rather
than focusing on shorter goals for the business. The aim of relationship market is create a strong
connection of the brand with of the customers that can help the business to lead in the target
market. The aim of relationship marketing is to create a strong emotional bond with the
customers in such a way that differential image of the company is maintained in the eyes of the
customers (Nyadzayo, and Khajehzadeh 2016).
This type of market is a modern approach of marketing that focuses on the increasing the number
of individual sales in the environment by maintaining a strong bond with the customers in the
environment. The customers present in the environment might initiate sales for the organization
for the organization, but it is difficult for the organization to implement repeated sales in the
environment. Repeated sales can be attained only if the customers get satisfied from the products

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and services of the company at the first time. If the brand image of the company is not efficient
in the environment then it will not insist the customers to implement repeated sales in the
environment (Soltani, and Navimipour 2016). This concept of relationship marketing is linked
with the Match and More card activities implemented by the organization. As the main focus of
relationship marketing activities helps the company to focus on repeated sales instead of initial
sales, thus the Match and More card activity will help the organization to effectively market use
of services in such a way the company attains profitability in the business environment. Further,
it should be noted that the concept of relationship marketing is based on customer experience
management practice under which the organization focuses on improving the interactions with
the customers in such a way that the communication activity foster the better brand loyalty
practices in the environment (Greve, and Schlüschen 2018).
Under this type of practices, the marketers of the company should initiate communication with
the customers of the organization so as to attain an idea of the expectation and reality of product
or service delivery in the environment. This type of communication will help the organization to
understand the queries of the customers and their expectation from the brand. This will help the
management of Morrisons to attain details of the Match and More cards and how they can use it
to attain greater benefits from the organization. Relationship marketing will also help the
organization to attain higher customer lifetime value as this process increases loyalty among the
customers in the business environment that leads to implementation of repeat purchase in the
external environment (Navimipour, and Soltani 2016).
Loyal customers of the company will also become word of mouth marketing agent for the
organization. This process will also help the organization to reduce the cost of marketing and
advertising for the business. This type of activities will make the customers as the brand
ambassador of the company Morrisons and implementing buzz marketing as well. Lastly, the
benefit of this process is that it helps the organization to align the business functions around the
customers of the company. The organizational alignment becomes strong with the
implementation of relationship marketing activities in the business (Taylor, et. al., 2015).

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Application and Evaluation of Current CRM Processes in Relationship
Marketing
The Match and More cards introduced by the company Morrisons have successfully
implemented the relationship management strategies in the environment to attract the customers
and eliminate high degree of competition from the environment. The card is formed by the
organization to match the prices of the German discounted chain stores maintain the level of
sales a well. This card would be formed online and the company will post it to customers.
Swiping this card will help the customers to compare the prices of goods with other competitors
like Tesco, Lidl, Aldi etc. If the prices of the goods served by the organization is more than the
price offered by any other company then the business will add that much points on the Match
and More card that the customers can any time use to get discount on their purchases. With this
card, the customers will initiate sales with the Morrisons with a thought that the company will
provide best price goods to them and if the prices are not optimum then they can redeem the
balance amount using the card. Thus, this type of process will implement initial sales as well as
repeated sales in the environment (Dewnarain, Ramkissoon, and Mavondo 2019).
However, the company also faces several issues in the marketing process. Further, below
mentioned is the implementation of the IDIC model that will help in understanding the ways in
which relationship marketing activities is implemented by the supermarket Morrisons. The IDIC
model of CRM was developed by Peppers and Rogers, this model explained that companies
should make use of four actions to build, keep and retain the employees for long term
relationship in the environment (Santouridis, and Veraki 2017). The four factors considered in
this model are identification, differentiation, interaction and customization.
 Identification refers to the process in which the business should identify the actual
customers of the business and they should knowledge of their details in the environment.
It is important for the company Morrisons to identify the type of customers present in the
environment and whom they should target to implement sales for the business. Secondly,
they should attain details about the preference of the customers and changes occurring in
their behaviour as well.
 Differentiation: according to this process, the management of Morrison should
differentiate the customers on the basis of two segments that are value and needs. On the

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basis of value, the company should segregate the customers who are loyal towards the
brand and should be focused by the organization. The feedback of this type of people can
be valuable for the organization as they are concerned towards growth and performance
of the company. Further, on the basis of needs, the company should make use of these
customers to strategies the promotions in the environment. Apart from identifying the
people who add value to the brand image of the company, these are people who are
segregated by the company on the basis of their needs from the organization.
 Interaction: The business needs to focus on the interaction with the customers in the
environment so as to make sure that relationship with customers is maintained while
satisfying them in the environment as well. The company Morrisons need to interact with
customers so as to realize how they relate with the brand and what they expect from it in
the environment. Direct interaction with the customers increases the trustworthiness of
the organization (Peppers, and Rogers 2016).
 Customization: After initiating the identification, differentiation and interaction activity
in the environment, the organization can easily analyse the new strategies and product
customization activities required in the environment. Customizing offers for the
customers on the basis of above mentioned facts will help the organization Morrisons to
attain more sales in the environment and increase the satisfaction of the customers as
well. Customization of services through the Match and More cards will help customers to
attain differentiated services in the environment resulting in which their level of
satisfaction will subsequently increase (Chen, and Huang 2015).
Thus, it should be that although Match and More cards of the company provide efficient services
to the customers in the environment but implementation of above mentioned model will help the
organization in increase their sales as well. With the help of relationship marketing, the
organization would be able to attract customers to purchase products from the environment even
if there are more Tesco Plc. stores in the environment. The Match and More cards will make the
company to attain trust of the customers in the environment and provide them best services as
well. The IDIC model is a sound framework that would effectively help the company Morrisons
to engage the customers in their business activity and would be able to meet their expectations as
well (Soltani, et. al., 2018).

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Conclusion of question 1
Thus, concluding the above mentioned statements, the fact should be noted that the above
mentioned report highlight the concept of relationship management in the business environment.
Relationship marketing is a crucial concept that is important for the growth and survival of the
business. In the given report of Morrisons Company, the organization aimed to implement the
customer relationship management practices in the environment. With the use of IDIC model,
the company would be able to effectively target the right type of people for the business who
would seriously initiate sales for the company.
Question 2
Role of Loyalty Scheme and Factors making it Successful
Loyalty card is a type of customer loyalty scheme that helps the organization in attracting the
interest of the customers in the business environment. Customer relationship management and
loyalty programs go hand in hand in the retail industry as this process helps the organization in
attaining details about the background and preference of the customers and providing habits to
them accordingly (Yeh 2016). The knowledge attained from the loyalty cards helps the
organization to easily reward the customers on the basis of their level of interest. Rewards helps
the organization in retaining the customers in the business environment and encouraging the
potential customers to try the products and services of the organization. For the company
Morrisons, the loyalty cards will play the role of eliminating competition from the environment
and increasing the market capitalization as well. The loyalty cards help the organization in
attaining information about the customers and linking them with the activities of the company
(Calvo-Porral, Faíña Medín, and Montes-Solla 2016).
This scheme helps the organization to analyse the needs of the customers and customize their
products and services accordingly. Loyalty customers are the people who are more likely to
spend on the organization as compared to other random customers of the company. Customers
that are rewarded appropriately in the environment for their loyalty towards the brand are less
likely to get affected by the promotions of competitor brand. Loyalty scheme provide several
benefits to the loyal customers in the environment with every purchase so as to motivate them to
purchase more with the organization (Joseph 2016). Several points are credited in the cards of

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the customers that they can use any time to attain discounts while purchasing goods in the
environment. The loyalty scheme makes the customer relationship process more effective in the
marketplace as it implement a regular conversation with them in the environment. This process
helps the organization to focus on repeated sales in the marketplace as the repeated sales itself
drive initial sales in the market. The loyal customers of Morrisons will be a marketing tool of the
organization. These customers of the company will implement word of mouth marketing strategy
in the environment and will attract their friends, family and colleagues to implement sales for the
organization. Thus, it should be noted that in this way the loyalty scheme would help the
company Morrisons to implement effective customer relationship management strategy in the
business environment (Frow, et. al., 2015).
The factors that will make the loyalty scheme of the company Morrisons successfully in the
international competitive environment are discussed below:
 The company introduced an innovative way to make use of competence of other
companies to favour the sales of the organization. The Match and More card of the
company will help the customers to attain the difference amount of prices of two goods in
the form of credit points in the loyalty card. Resulting in which the customers of the
company would surely implement sales so as to identify whether there is difference in the
prices offered by Morrisons as compared with other competitors prices (Ieva, and Ziliani
2017).
 This card would help the organization to consider the interest of audience first in the
market and work according to their interest level in the environment. This process will
help the business to increase the level of revenue by attaining crucial information about
the customers from the external environment. This process will help the organization to
retain the existing customers and attain the interest of new customers in the business
environment. This process will help the organization to setup adequate considerations and
planning for the loyal customers and compensating them effectively for showing their
loyalty towards the brand in the market (Youssef, et. al., 2018).
 The less complicated system of the company would increase the level of satisfaction of
the customer. The consumers of loyalty brand are less patient in the environment as they
need all the benefits as early as possible. Thus, the money voucher system would help

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them to maintain their level of satisfaction in the market. This process would also insist
the customers to implement frequent sales to attain money back voucher on the goods
purchased by them (Kemboi 2016).
Customer Value Chain Analysis
The company Morrisons can effectively make use of customer value analysis of customer
relationship management to maintain adequate relationship with the suppliers so that they can
implement sales for the business:
A value chain model refers to high level model that analyses the process that the business should
utilize in developing end product or service offered to the customers. The aim of this model is to
identify and focus on the valuable actions of the business in such a way that there is
improvement in the processes to attain competitive advantage for the organization in the
environment. The value chain model would help the Morrisons in increasing their customer
relationship in the environment (Ha, et. al., 2015). The four stages and activities required to
enhance relationship with the customers are discussed below:
Primary Activities
Customer Portfolio analysis: Just like the IDIC model, under this stage, the Morrisons need to
analyse and identify the interest of the customers of the company. The business needs to identify
the customers who create most value for the company.
Customer intimacy: Under this stage, the management of Morrisons need to engage the
consumers in building an original database of information. The company should collect the
details by personally contacting the customers and understanding their views and opinion in
better ways. The better the level of understanding the customers will initiate better
customizations of services in the environment for them (Jarvis 2016).
Network Development: The system of the company includes networks with several suppliers of
the company who help Morrisons in delivering services to the customers in the environment.
This system of the company include chain of partners, suppliers and all the other important
people of the company who make use of customer information to optimize the customer services

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accordingly. The goal of network development is to create a web with other partners of the
company so as to provide efficient services to the customers on time.
Value proposition development: After attaining all the crucial information about the customers,
the management of Morrisons should change the services of the company so as to increase the
value for the customers. The business should develop the idea to shift the focus from product and
service to customers of the business (Gandhi, Shaikh, and Sheorey 2017).
Relationship Management: This is the last step of the value chain model of the company.
According to this step, the company should manage the customer lifecycle and should introduce
their brand in the regular needs of the business. The business should start implementing
strategies that would significantly help them to increase the interaction with the customers. This
interaction would help them to attain the information about their experience from the brand.
Thus, in this way, this process should be used to implement after sale services in the environment
and maintain a strong bond with the customers as well (Makhitha 2017).
Support Activities
Leadership and culture: appropriate leadership will help the organization to implement the
business activities in a formalized manner. Leadership will help in prioritizing customers rather
than products.
Data and information technology: The CRM process and loyalty cards are quite reliable on the
use of IT practices in the environment. Use of technology would increase the value proposition
of the company and would help the organization to develop the value proposition of the company
(Mirghafoori, and Sharifabadi 2015).
People or employees: these are the most important people to support the decisions of the
business and provide services to the people in the environment. These are the people who
interact with the customers in the environment.
Processes: the company should change the process according to the changing requirement of the
customers. They should implement customer centric activities in the environment to satisfy them
and upraise their level of interest in the activities of the business.

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The company along with its suppliers should make use of above mentioned customer value chain
analysis model to increase their sales in the environment. This practice will help the organization
to change their focus from product centric to customer centric and drive the strategies
accordingly. Management team of Morrisons should employ the suppliers to perform customized
actions according to the expectations of different consumers present in the environment (Colicev,
Malshe, and Pauwels 2018).
Conclusion of question 2
Thus, concluding the statements mentioned in question 2, it should be noted that it is important
for Morrisons to adequately understand the customers and their requirements from the
organization. The company should change the process according to the requirements of the
customers in the environment. The suppliers of the company should analyse the loyal customers
in the environment and should provide loyalty schemes to them so as to increase their level of
satisfaction.
Conclusion
Thus, by concluding the above mentioned facts, it should be noted that the paper highlighted
details about the case of Morrisons company present in the UK market. With the increasing level
of competition in the environment, the organization was unable to maintain its pace. Use of
relationship marketing activity will help the organization to analyse and attract right type of
customers in the environment. This activity will help the management to maintain fixed
relationship with the loyal customers. Further, the loyalty card scheme of the company
Morrisons will help the management to attract the customers towards the activities of the
business and provide them offers and discounts as well. Thus, the customer value chain analysis
will help the management along with the suppliers to analyse the market appropriately and
implement strategies to provide them adequate facilities in the environment. This process will
effectively reduce the level of competition for Morrisons in the business environment.

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