strategic marketing managent with example of morrisons UK

ContentsEXECUTIVE SUMMARY.................................................................................................................................3

1. Introduction.........................................................................................................................................4

2.Marketing audit........................................................................................................................................5

2.1. The micro internal analysis...............................................................................................................6

2.1.1 Competitors:.............................................................................................................................6

2.1.2 Customer segmentation and targeting.......................................................................................7

2.1.3 Brand..........................................................................................................................................8

2.1.4. Distribution................................................................................................................................8

2.1.5 Product.......................................................................................................................................9

2.1.6 Public:.........................................................................................................................................9

2.2 Micro External Environment............................................................................................................10

2.2.1 Threats Of Substitute Product..................................................................................................10

2.2.2 Threats Of New Entrance.........................................................................................................10

2.2.3 Bargaining power of customer..................................................................................................11

2.2.4 Bargaining Power Supplier......................................................................................................12

2.2.5 Rivalry......................................................................................................................................13

2.3.Macro environment.........................................................................................................................14

2.3.1 Political Factor..........................................................................................................................14

2.3.2 Economical Factor.....................................................................................................................14

2.3.3 Social Factor..............................................................................................................................14

2.3.4 Technological factor..................................................................................................................15

2.3.5. Legal Factor..............................................................................................................................15

2.3.6 Environment factor...................................................................................................................15

2.4 Internal analysis...............................................................................................................................18

2.4.1 HR and skills..............................................................................................................................18

2.4.2 Physical resource......................................................................................................................18

2.4.3 financial resources....................................................................................................................18

2.4.4 competences............................................................................................................................18

2.4.5 Capabilities...............................................................................................................................18

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‘Food Specialist for Everyone’ PINKESH PATEL

2.5 SWOT Analysis.................................................................................................................................19

3 Marketing plan.......................................................................................................................................22

3.1 objective......................................................................................................................................22

3.2Gap analysis..................................................................................................................................22

3.3. Strategy.......................................................................................................................................23

3.1.1 Growth Strategy :......................................................................................................................23

3.3.2 Competitor strategy..................................................................................................................24

3.3.3 Positioning strategy......................................................................................................................24

4.Implementation plan..............................................................................................................................26

5.Budget and control.................................................................................................................................28

APPENDIX..................................................................................................................................................29

1. The Boston Matrix........................................................................................................................29

2. customer segmentation and targeting..........................................................................................29

3. achievements.................................................................................................................................29

4. Distribution:...................................................................................................................................30

5. Porter’s 5 factor model :................................................................................................................32

7. market share of morrisons / money.............................................................................................34

8. Human resource and skills.............................................................................................................35

9. market street concept :.................................................................................................................35

10. CEO’s view on online shopping..................................................................................................35

11. competition.................................................................................................................................36

12. Environmental factor...................................................................................................................38

15. competitor strategy.....................................................................................................................38

16. 7P’s marketing implementation...................................................................................................39

17. Gantt chart :.................................................................................................................................43

References :..............................................................................................................................................44

Turn it in :.................................................................................................................................................45

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EXECUTIVE SUMMARY

This report observes the marketing strategies of Morrison one the market leader of retail the

grocery sector in the UK. Research has presented that in this oligopolistic marketplace,

Morrison is adopting various marketing strategies to remain market leader. Morrison has been

emphasis on focusing in different marketing strategies by continuously subsequently the report

highlights the different marketing strategies adopted by Morrison, specifically market

penetration, product development, market development and diversification have been analyze

in order to understand in which ways Morrison is competing beneficially in the retail grocery

market. For the research I took interview of manager of Morrisons store name situated at

Queensbury.

The following section discusses how operates in the competitive environment of the retail

grocery industry. Morrison competes by increasing market demand, increasing market share

and protecting market share with strategies such as fewer margins, proactive or mobile. On the

other way the main players of retail i.e. Tesco, Asda and Sainsbury’s are aggressive the market

leader by attacking strategies such as frontal, edge or bypass, in order to improvement in

market share. Morrison comprehends the customers as well as its strong defensive marketing

strategies compared to competitors assure them the leading position in the market.

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The first part is marketing audit, here deliberate about the marketing audit of Morrisons and its

features and benefits and benefits that can be obtained by acting a marketing audit.

The second part is the marketing plan is based on analysis of all the data collected which consistent

with the current company’s vision strategy objectives responsibilities and opportunities

1. Introduction

As competitive strategies have the ability to create the business stands out between the seas of

competitors within the same sector. So, competitive strategies can eventually help business in growing

their productivity, profitability and help to achieve goals. The following tasks of the assignment will be

arguing on the basis behind competitor analysis. In addition, how competitor analysis can help in

ensuring the survival of a business organization will also be tackled.

For keeping things simple: Morrison’s vision is to be the ‘Food Specialist for Everyone’ is now well

advanced. Our constant focus on freshness, great value and outstanding service is appealing to more

and more people. And we’re now closer to customers having opened 43 new stores last

year(www.morrisons.co.uk/Official_Home;.acess time 5.20 pm;o6 June’11 ).

Situation analysis

As the current situation there are more than 370 Morrison’s stores across the UK. They welcoming

around million customers each week. The company presently employs more than 114,000 members of

staff in stores, factories, and distribution centers and head office administration. As Morrisons provides

fresh food with fewer prices. More than 20,000 different foods are exposed in stores. As well as

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many desired top varieties labels there is an extensive own label range.

(www.morrisons.co.uk/Official_Home;.acess time 5.13 pm; 06 June’11).

2.Marketing audit

A marketing audit is a broad, efficient, autonomous and periodic assessment of a company's

marketing assets. It is an active tool in appraising the capability of a marketing strategy,

studying the objectives, rules and strategies of the company's marketing division as well as the

methods and the profits engaged in getting these goals.

Through Marketing audit Morrisons can continuous get, reflecting evolution, a reference point,

from internal business environment, external business environment. From these they can

develop strategies and marketing plan.

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2.1. The micro internal analysisThe micro environment includes the actors close to the Morrisons that marks its ability of functioning

its customers- Morrisons, competitors, and public, brand, product etc.

2.1.1 Competitors:

In retail industry Morrisons competes with other retail stores such as Tesco, ice land, co-

operative foods, Asda, Sainsbury, are the major competitors though they are using different

strategies for marketing. Not only have these but M&S. waited rose corner shops are also the

competitors of Morrisons following perceptual map help to retail food industry the rivalry and

where Morrisons stands surrounded by the market by preparing use of marketing strategies.

By using this map it’s easy to understand the situation of Morrisons in the market. Through

Perceptual map it can be used to plan the interrelationships of customer foodstuffs as well as

populations.

Following map can be use to understand the situation of Morrisons:

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This perceptual Map helps to identify the industry rivalry and where Morrisons stands out within market

with their competitors. One of the useful tool of marketing called BCG matrix also help to Morrisons .

*( see appendix 1)

2.1.2 Customer segmentation and targeting

A market segment consists of costumers who respond in a similar way to a given set of marketing

efforts. Morrisons provides a different food for their customers with the wide range of variables that

differentiates Morrisons’ target customers with their : age sex socio-economic grade, marital status,

type of job type of job, and their nationality *(see appendix 2).

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Target marketing includes calculating each market segment’s attractiveness and selecting one or more

segment to enter These target market includes middle level people who consume normally buy food for

weekly basis, with knowing the importance of these target market to Morrison, treats each target

people who need their food as per their taste and preferences. For example Morrisons offers a wide

range of yogurt-based products with different flavors.

2.1.3 Brand A strong brand identity of Morrisons can position above its competition all by itself. Brand

identity is the reason that offers customer to choose different food instead of your competition.

Morrisons has won different awards which shows its brand image and customer’s perception

about its brand (Appendix 3)

Morrisons always focusing on their customer’s need they believes “Our Values are at the heart of

everything we do, defining what we expect of each other and what our customers can expect of us as

we aim to deliver our vision of becoming the ‘Food Specialist for Everyone’.” Morrisons strive to

forward this message to the customers.

The perceptual maps below shoes hoe each target market is seen by the company from a customer’s

brand image and value to the business aspects

2.1.4. DistributionMorrison’s distribution channel is very smooth. its easy to understand . Morrisons buy their product

from different continent for different people as per their taste and preferences and sell to their end

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users. (*Appendix 4 )

2.1.5 Product Morrisons is offering families great value for money on lots of fanciful fresh British produce and

everyday essentials. It take good attention in the way it drive about its trade and are dedicated to

making a modification. So whether customers are after 100% British fresh meat from our expert

butchers on Market Street or customers are collecting Let’s Grow vouchers so your child’s school can get

their hands on lot s of free gardening equipment – there’s something for everyone

Morrisons have new strategy which called Market Street in which customers can fine all food

what they need as their requirements. In Market Street we have more highly trained and

experienced colleagues with craft skills on hand than any other supermarket. Whether our

customers are looking for recipe ideas, advice about what’s in season, or a certain cut of meat

for their family Sunday roast, our expert staff will be happy to help. We’re able to respond

quickly to changes in demand, which means we can cut down on unnecessary waste while

giving more of our customers what they want. Morrisons stated on their official side that: “The

best thing about being a butcher for Morrisons is that we offer the full traditional butcher’s shop

service. We don’t just sell meat, we offer advice and help on how to cook it.” Morrisons provides

all foods from different continent like Asian food such as Indian, halal, Irish food etc.

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2.1.6 Public:

Morrison’s marketing environment involves various publics which mean a group of people who real or

likely involve and impact on its ability to achieve Morrison’s objective, such as media public. Financial

public, general public, local community, shareholder, and government. The core point for the marketing

tactician are first to acknowledge the reputation of such publics to the process of the planning and then

to ensure that connections with essential publics are effectively managed.

2.2 Micro External Environment

The micro External environment factors like customers ,shareholders employees, suppliers and media

affects business and the attractiveness of Morrisons; so it need to be recognized with the intention of

the Morrisons can actively address each of them during expansion of marketing planning and

development of choosing a sound marketing strategy.

The marketing tool helps the imagining and understanding of the environment that Morrisons can

attract their customers, one of the tool called Porter’s 5 factors model is useful tool to analyses

environment. (For Model see appendix 5).

2.2.1 Threats Of Substitute Product

Factor Level of

threat

Implication

Substitute

products

High Most of the food which is different taste and preferences of different

customer which is sold by lower price

(Conclusion: Substitutes could be observed as several separate groceries, off licence, specialist

outlets and franchised store chains such as Londis, Budgens, Cost-cutters, etc. At the moment,

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the threats are submissive. However the idea of smaller franchised store chains are gathering in

popularity and could become a considerable threat in the future for store.)

2.2.2 Threats Of New EntranceFactor Level of

threat

Implication

Product

diversification

High Product can easily differentiated with the taste of customers but

before this its necessary to see the reviews of customers. And their

needs, but the brand name andimage have greater impact on sales.

Economic scale Low New entrance of food market would have to entry in large scale to

compete within this market with different food , who have big

competition with

Product

differentiation

Medium Its easily differentiate but its taste and food quality will take great

impact.

Capital

requirement

low For food retail they need massive requirements to set up new area

with different equipment.

Distribution

channel

low There is good distributing channel of Morrisons

(Conclusion: The threat of the new entrance in food industry is relatively profitable nature of the food

industry, the threat of new entrants is high. German super market chains such as Lidl have

opened up retail stores in major British cities. In addition, major North American market chains

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might also comes in order to decline U.K players and thereby challenge prospective threats in

home markets. )

2.2.3 Bargaining power of customer

Factor Level of threat Implication

Quality of product High There equal quality, taste ,

durability of food offered by

competitor

Brand identity Law For food, customers are very

dependable

Deliberated buyers Medium Customer have vast area of

choice

Low switching cost High Customer can change thie

mind for other food retail

shop to get similar product.

(Conclusion The bargaining power buyers of Morrisons are very high because there are lots of

choice for alternatives. However customers have number of choice if they are not are not

satisfied, they can simply alterative options and the switching costs are very low. Because of the

hyped evidence of awareness the customers have full information about demand and actual

market prices.)

2.2.4 Bargaining Power Supplier

Factors Level of threat implication

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Cost of supplier Low Morrisons have supply in bulk

so cost will be low for them

Supplier concentration High Rare suppliers of particular

brands in market

(conclusion There is partly due to its policy in house finding of major percentage of its products.

However with its market extension, particularly in relationship of geography has required the

search for new suppliers.so Morrisons has up to now been not threatened by the bargaining

power of suppliers greatly. Therefore future bargaining power of suppliers is highly impulsive.

On the other hand Morrisons will be able to use its economies of scale advantage to moderate

the suppliers.)

2.2.5 Rivalry Factor Level of threat ImplicationBrand identity High Competitors have strong brand

and direct competition with Morrisons

Fixed cost High High fixed costs and other r competitor strive for reduce it to provide cheap product

Diversity of competitor Medium Diversity of competitor is high but compare to them Morrisons have aggressive for diversity.

Industry growth High To maintain market share it is important to have growth in store .

(conclusion: the competitive rivalry is high with Tesco and Asda and the major retail shops as street

market also competitors of Morrisons )

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2.3.Macro environment

2.3.1 Political FactorFactors Effect on Morrisons ImplicationEmployment legislations the government inspires retailers to

offer a mix of job prospects from flexible, lower-paid and locally-based jobs to highly-skilled, higher-paid and centrally-located jobs

Morrisons with a classically high staff turnover, these workers offer a higher level of loyalty and therefore represent desirable employees.

Federation of Government Unpredictable legislation on taxation Need to be active towards government actions

Unions Its growing broad way acceptance of union rules and obligations

European Union has opened national obstacles to entry to European competitors and also to foreign employees from other European countries.

2.3.2 Economical FactorFactors Effect on Morrisons Implications Inflation (Appendix 6)

The Government’s target measure – was 4.5 per cent in May,

Impact on customer’s

Currency fluctuation .of exchange rate is Demand and price is decreasing

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(Appendix 6) highPopulation migration trend(Appendix 6)

important driver of population change and the most difficult component to estimate

Increase market for food

Employment rate (Appendix 7)

During feb .2011 it was 0.1% it increased up to 0.4% in jun

It increases the market for morrisions

2.3.3 Social FactorFactors Effect on Morrisons Implications Lifestyle trends It concerned with standards of

people who interested eat verities of food

Requirement of environmental standards and chance to grow market.

People People of the UK who are from different countries which influence Morrisons

It has become a necessity to provide with more products to meet this category of customers.

Social economic grade It divided in to different category

It can be easily divided in different category and Morrisons can provide food.

Olympics 2012 International tourism increase Promotion and sponsorship to improve brand awareness of Morrisons

2.3.4 Technological factorFactors Effects on Morrisons ImplicationWireless devices The adoption of Electronic Point

of Sale (EPoS), Electronic Funds Transfer Systems (EFTPoS) and electronic scanners

improved the effectiveness of distribution and stocking doings, with essentials being communicated almost in real time to the supplier

Internet usage Majority of people are like to by online shopping

Increase marketing with promotional activity through internet

E-security Secure important information of Morrisons, online security set by the government

Can increase market share and awareness and satify customer’s needs.

2.3.5. Legal FactorFactors Effects on Morrisons Implications Government rules and regulations

Application of rules and regulation of government for business.

Need to keep up date for all rules and regulation of government

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2.3.6 Environment factor Factors Effects on Morrisons ImplicationPollution control a key area for Morrisons to act

in a socially responsible wayNeed to be social and environmentally and clean environment

Clean environment Reduce the wastage sustainable consumption and production to cut waste, reduce consumption of resources and minimise environmental damage

Society Trend of society becoming very sensible for environment

Good future for marketing by using strategy that mark the market

(Conclusion : Meanwhile Morrisons participate within the U.K food retail sector and has not

branched out globally, this analysis has been restricted to the U.K conservational allegations

specifically for food sector. However on the occasions, where a Global perspective is required it

has been analyzed so. The broad analysis existing above offers the foundation for the expansion

of future strategies of Morrisons. )(appendix 9 )

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2.4 Internal analysis

It consists of categorizing resources and competencies finding competencies, and defining what

competitive advantages the organization has.

2.4.1 HR and skills

Morrisons have good management and they have well trained employees in all branch in the UK in

Queensbury ----- with good friendly and social work environment with good communication.

They are well trained they have own academy named Morrisons academy retail for training and

development they offer equal opportunity to all.(*appendix 8)

2.4.2 Physical resource

Morrisons has develop its chain. They have around 455 store within UK with large and huge physical

evidence. Last year they opened 43 new stores within uk.

2.4.3 financial resources

Morrison gets its finance from the different its earnings and from its shares revenue.(appendix 7)

2.4.4 competences

Competencies are able to finish by assessing the organization’s wealth and competences and

benchmarking.

2.4.5 Capabilities Capability of Morrisons can be assed by its valuable chain of operation which imcludes

Men(human) HR skills(see appendix- 8)Machine For maintain good quality they need good

equipments and good electricity equipments Money (Appendix-7) Need money which is back born of

any business Material Good quality of food and other customer services. Market Morrisons is on of the market leader of retail food

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industry.

2.5 SWOT AnalysisAnalysis Level of implication

Strengths

one of the largest supermarkets in the UK

offer branded and own label products.

focus heavily on their market street concept (appendix 9)

Better usage of technology in marketing and distribution. (Appendix 4)

High

High

High

High

Weaknesses

No online shopping, however this could be a possible strength at

the same time

Reliance upon the UK market.

Medium

High

Opportunities

Moving into different markets. as insurance and banking.

Olympic 2012 sponsorship

Increasing migration in UK from different countries

Online arena for selling and marketing of products and services

High

Medium

Medium

High

Threats

Any possible takeover/ mergers

Competition (2.1.1)

Government regulation and policies

high unemployment economy shrink rate

High

High

Medium

High

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UK structural change could spark a price war High

Conclusion:

AS Morrisons’ vision to be the ‘Food Specialist for Everyone’ is well advanced. From swot analysis it concludes that the constant emphasis on freshness, great value and exceptional service is attractive to for customers. Morrisons should emphasis on weakness and threats.

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3 Marketing plan

3.1 objective

As discussed in market audit which helps to create marketing objective which supported by company’s

strength and opportunity within the market. (appendix 13)

To increase online marketing

To increase market share from 12.8 (July2011 ) to 15 by august 2012

Divert their market in different fields such as banking, insurance and mobile.

3.2Gap analysisThe main objective of the marketing plan is to improve its market share by 3 % by within a two year.

Due to high competition in food industry it might be chances for loosing markets hare (say to be by 2 %)

then there will be gap of5% .

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3.3. Strategy

3.1.1 Growth Strategy : Ansoff made growth strategy matrix which defined the combination of business activities in existing

and new market; all together with new products and existing product can be lead to growth

There are four strategies which improving market of Morrisons from the matrix :

Market penetration: which increase market share of Morrisons.

Market development: where a business seeks new markets for its product its abilities.

Product development: the launch of new product to existing markets.

Diversification: in which a business decides to offer new products in new markets.

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(Source :www.morrisons.co.uk )(appendix 14)

3.3.2 Competitor strategy

One is to straight high switching barriers in which. Consumers are less influence to shift to

alternative supplier when this would include high capital costs, high search costs, or the loss of

loyal customer discounts. (appendix 15)

3.3.3 Positioning strategyThrough online shopping strategy will be the result in to customer’s view as a convenience and time

saving and affordable. This will be positioned in different people with different culture and life style.

Morrisons need to :a

Construct and need to launch a strong web application

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Need to familiarize with marketing drives.

Contract a distribution network of vehicles and staff.

As internet there is market street which is very famous. over 100 people target people will be

named simply market street. Morrisons will point the new product line marketed as being a taste of

people ,consumption power etc.

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4.Implementation planAfter tactical objectives have been identified for online marketing, the target market selected, and the

desired positioning, product or brand has been determined, marketing managers’ focus on how to best

implement the chosen strategy. conventionally, this has involved implementation planning across the

"7Ps" of marketing: Product management, Pricing , Place ,promotion, People., process and physical

evidence. (appendix -16)

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5.Budget and control There are lots of activities depends on budget through the marketing plan .

Total estimated budget is £ 24,840,000

Contingency budget : £ 2,484.000

. Total budget is distributed as per marketing mix which is given below :

During the marketing project is the millstones’ stage getting will be used as control tool which is helps

to mark down weather we are on right track or not and to evaluate the performance. For this Gantt

chart is good for budget estimation.(see appendix 17).

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APPENDIX

1. The Boston Matrix

2. customer segmentation and targeting.Customer ‘s segmentation and target is depand on age and material and its standard of living it also

depends on their socitail grade the main customers are depend on indian chinese irish greek, east

eropean, etc which includes all age of people with different

3. achievements .

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Morrisons is a retailer that prides it on having the best operators and buyers in the industry. We

are therefore delighted to inform you that we received four major awards at this year's

prestigious Retail Industry Awards – more than any of our competitors.

Award in 2011

National Fish & Chip Awards, January 2011:.Winner - The Best Foodservice Outlet Serving Fish and

Chips.

Retail Industry Awards, October 2010

Winner - Fresh produce retailer of the year and Winner - Meat retailer of the year and

highly commended - Seafood retailer of the year category

4. Distribution:

1

From selection...

Being closer to source means Morrisons can

better control the provenance and quality of

their food. Sustainable and responsible sourcing

is important to us and Morrisons work with the

producers to develop a relationship that is

reasonable and fair to all parties.

2

To pack house...

Morrisons have own manufacturing facilities,

which means Morrisons reduce our supply chain

lead times, allowing us to maximise the

freshness in-store and reduce waste and costs.

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Many of these facilities are situated close to its

distribution centers, enabling us also to reduce

our food miles. The majority of our fresh food is

prepared by our production plants providing us

with security of supply.

3

Distributed and

delivered to...

Morrisons have own and operate a very modern

transport fleet, ensuring freshness and cost

control. Morrisons believe Morrisons have the

quickest turnaround time between order and

delivery compared to any other supermarket.

4

Queensbury store

Because store prepare food in-store, it can react

to customer trends throughout the day, only

producing what the customer wants. This

reduces waste, makes us cost efficient and keeps

our prices low to the customer, as well as

ensuring our products are always freshly made.

(sourcewww.morrisons.co.uk; accessed: 20/06/11)

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5. Porter’s 5 factor model :

(Note :This diagram is made in power point presentation help by all research from books and websites)

As a result of using this model there are different opinion suggested to Morrisons which are given bellow table :

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6 http://www.statistics.gov.uk/cci/nugget.asp?id=19

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http://www.statistics.gov.uk/cci/nugget.asp?id=19

7. market share of morrisons / money

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(source:www.morrisons.com)

8. Human resource and skills Forllowing thing need for morrisons :

Human resources

1. Physical a. Plants

b. Equipment

c. Natural resources …

2. Human a. Managerial Know-how

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b. Talented key employees

c. Friendly staff …

3. Intellectual a. Specialized knowledge

b. Collective learning

c. Cutting edge technology knowledge …

9. market street concept :Morrisons is based around the 'Market Street' - a route through the store with individual 'shops' on it. It

usually starts with Morrison's Fishmongers, then carries on via Greengrocers, Pizzeria, Bakers, Cake

Shop, Pie Shop, Deli, Take-Away, etc. There are also the Wine and Spirit merchants, and of course the

normal selection of groceries you would expect at any supermarket. On concept, Morrisons wins hands

down - far more imaginative and friendly than any of the other supermarkets.

10. CEO’s view on online shoppingMarc Bolland(ex- CEO) said that by having online shopping, it will ruin Morrisons¶ vision.

Customers willlose the feeling of picking fresh fruit and vegetables or smelling the bakery when

they walk past.

11. competition Waitrose which is owned by the John Lewis partnership, it is up- market supermarket chain that

currently has 228 branches in the UK .it has a market share of around 4%. It separates it self by high

quality of food and customer services .(source: www.waitrose.com)

Mark and spencer- it has over 700 stores in the UK. It is an up-market end of the grocery spectrum. In

addition food sales it has strong range of non food items(source www.marksandspenser.com )

Iceland- the owner of the iceland is Icelandic retail conloerate,Baugur. It has about 700 locations and

seels primaeily frozen products(source : www.iceland.co.uk)

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http://www.iceland.co.uk/

http://www.marksandspenser.com/

The Co-operative Group – the co-op has a total market share of around 8%. It is the world larget

community . it is the UK’s largest community retailer, specilising in conviniences strores and small

supermarket (www.co-operative.com)

LiDL – Owned by the German company Schwarz it has about 500 stores in the uk it is based heavily price

discounted formate (www.lidl.co.uk)

Aldi – german owned UK price

discounter owned by the Albrecht family.it

has 422 store in UK

Tesco the UK’s largest and most successful

supermarket chain, its has 2500 stores in the

UK .it has extensive range of food product

(www.Tesco.com)

Asda group Ltd : It is in the model of Wal-

Mart, the US retail gaint which bough it in

10999. It focus on hypermarkets and out-of

–own stores than the other UK chains (www.asda.co.uk)

Sainsbury plc. It has a good image in the UK and is seen a more up arket supermarket than Tesco and

Asda it has 537 superstores . it has online market and non food range. (www.sainsbury.co.uk)

MARKET SHARE AS PER REASERCH IN UK as per research :

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Stores’ Name Market share (%)

Tesco 31

Sainsbury 16

Morrison 13

Co-op 8

Waitrose 4

Aldi 3

Lidi 2

Iceland 1.8

Others(including marks

and spencer, budgens

costcutter spar, etc)

2

http://www.asda.co.uk/

http://www.lidl.co.uk/

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12. Environmental factor.

Morrisons’ environmental considerations fall mainly into two parts. First, is all that they have

do to ensure food is produced, moved and sold with minimal waste and help customers reduce,

reuse and recycle. This is about making the most of food.

Second, is the major issue of carbon emissions reduction, which is a key overarching benchmark

for environmental performance. When people think of emissions, they tend to think of energy,

but in fact refrigeration, transport and waste are also significant factors. Increasingly, attention is

turning to carbon in the wider supply chain, which commentators highlight as being the greatest

challenge. Morrisons agree, but from a practical point of view we believe strongly that our focus

should remain on our direct emissions where Morrisons can exert the most control.

13 http://www.morrisons.co.uk/Corporate/2011/annualreport/directors-report-and-business-review/

performance-review/operational-review/market-overview/Default.aspx

14. see appendix 5

15. competitor strategy

This makes it harder for competitors to overcome switching barriers by simply offering lower

prices or switching inducement. The task of creating strong customer loyalty is called

relationship marketing. Relationship marketing embraces all those steps that companies

undertake to know and serve their valued customers better to understand customer

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relationship marketing, the company must review the process involved in attracting and

keeping customers.

16. 7P’s marketing implementation.

Marketing mix element Operational strategy Tactics

Product It addressed different segment in to UK so it will be response by online sales.

-Conduct a marketing research to collect information about over 100’s audience lifestyle and preferences, and people’s suggestions, opinions and view’s regarding online purchase systems by July2011.

-Develop detailed specification for the new line of products by August 2011.

-Develop new detailed specification and standards for online purchase system by August2011.

-Develop and trial test the new line of products for over 50’s by October 2011.

-Develop and conduct test on the enhanced online purchase system by December 2011.

-Create and commercialize new line of product for over 50’s based on their preferences by November2011.

-Recreate online purchase systes

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on products and online system where necessary by May 2012.m system to reposition the company as differentiated within the market by November 2011.

-Post market research and sales analysis to evaluate the efficiency and acceptance of new products and online system by customer by May 2012.

-Conduct changes/adaptation

-

Price Efficient and effective allocation of money

Allocate money to each and every activities.

Place Effectively and efficiently distribute products directly to customers and with no intermediates, either from the store branches or online system.

-Decide the location of the shop to sell the new products by April 2011.

-Improve warehouse activities and linkage with the online system to provide a faster delivery to customers through a set of standards by June2011.

-Conduct initial design of the shop that will display the new products by May 2011.

Conduct tests on delivery to check efficiency by June2011.

-Implement new design of the shop by August 2011.

Promotion Promote new line of product and online system on UK mass media alongside with below

-Initial development and design of the advertising campaign for new products

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the line promotion including trade shows, events, merchandising, direct mail and product placement.

and online system by August 2011.

-Develop opening event’s structure for the new products by October 2011

-Finalize standards and design of communication/advertising tools such as podcasts, direct mail letters, email, outdoors, release, etc by October 2011.

-Advertise future new line of products addressed to over 100’s on newspapers, specialized magazines, main stations, outdoors, buses, main hospitals in London, Manchester and Birmingham by November 2011.

-Conduct the new products opening event on 01st February 2012.

Update advertising content of new products and online system by July 2012.

People Allocate staff with suitable skills and capabilities to carryout daily tasks that will culminate on an increase of online sales anf loyalty of the over 50’s segment to the company’s products by May 2012, Making use of job rotation, transfer, training and development.

Assess staff’s skills, capabilities and experience by July 2011.

-Rotate, transfer and allocate staff for specific tasks and projects where needed by August 2011.

-Conduct training and development by September 2011

-Assess employee’s performance

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b y march 2012

-Provide performance feedback to employees and set up needs for future training programs by April 2012.

-Reallocate employees where necessary by June 2012.

Physical evidence Create a solid and efficient range of physical evidences such as up to date website, standard and original packaging and paperwork, and brochures for events, familiarizing customers with them by May 2012.

-Design specific online purchase packaging by July l 2011.

-Redesign online purchase structure and layout by October 2011.

-Design direct mail and loyalty cards to over 100’s customers by October 2011.

-Evaluate physical evidence tools and update/change them where necessary by July 2012.

Process Improve processes such as: personal shopping, warehousing, delivery time, staff’s new line products knowledge and online purchase bureaucracy.

-Assess issues on Personal shopping, Warehouse, delivery and staff’s knowledge about products by August 2011.

-Improve each of these processes according to customer’s expectation by October2011.

-Evaluate processes applied to the marketing plan by April 2012.

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Conduct change/adaptations on processes by august 2012.

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17. Gantt chart :

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References : Guiltinan,p., paul,G. Madden, T Marketing management Stratagic and

Programs, (6th edition),Mc Graw Hill.1997

Kotler P (1991), Marketing Management (7th Edn), Prentice Hall

Armstrong,G., Haker Michael,M. Kotler, P. Brennan,R;marketing: an introduction

London 2009,( p.p54)

Kotler,P., Armstrong,G, Wong,V., Saunders, J.; principles of Marketing, 5th

edition,itlay,2008.

Harding,S; Long,T. MBA Management models, gower,2008.

Websites.,

www.morrisons.com

http://www.bookrags.com accessed t 15/06/2011

http://www.marketingmagazine.co.uk/news/1015594/Morrisons-adopts-celeb-free-activity/ (accessed

19/06/2011)

http://www.inc.com/articles/1999/12/15966.html (accessed 21-06-2011)

http://www.bookrags.com accessed 22-06-2011

www.cim.co.uk (accessed 22-06-2011)

http://fmcg-marketing.blogspot.com/2007_10_01_archive.html (accessed 25-06-2011)

www.tutor2u.com (accessed 26-06-2011)

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Turn it in :

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http://www.tutor2u.com/

http://fmcg-marketing.blogspot.com/2007_10_01_archive.html

http://www.cim.co.uk/

http://www.bookrags.com/

http://www.inc.com/articles/1999/12/15966.html

http://www.marketingmagazine.co.uk/news/1015594/Morrisons-adopts-celeb-free-activity/

http://www.bookrags.com/

http://www.morrisons.com/

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