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Developing and Managing a Strategic Marketing Plan on Morrison Food sector

Executive Summary

The assignment is all about the effective strategic and marketing plan of Morrison on their food sector. The assignment has been dealt with the brief regarding the internal and external environment analysis so that the company may adopt the correct strategic marketing plan. Morrison has been taken the initiative to use the low price ranged facility to become the leader in the retail market. At the same time, the effective CRM adaptation also has been helped them to analyse the taste and preferences which are the greathelp to the company for the proper STP process for their successfulness. The collaboration and the strong promotional activities using the Facebook, and the Twitter medium also have been helped them to attract the new customers.

Introduction:

The organisation that has been chosen is Morrison. The company has been founded in the year 1899 by William Morrison. It the fourth largest chain of the supermarkets in the United Kingdom. The chain of the supermarket was able to open 68 stores I the financial year 2014 / 2015 (Morrison, 2015). With their efficient offers to the customers in the market, they can open 667 stores across the UK. They are also able to maintain the strong workforce base with more than 117,000 employees. They are the second largest fresh food manufacturer of UK. So for the current assignment, the food sector of the company has been chosen. The assignment will discuss the strategic marketing management of the company based on the strategic operations of the company on the food offered b them to the market. The internal and external analysis of the company along with the opportunity growth in the UK market also will be analysed in the assignment.

1: Understand the principles of strategic marketing management

AC 1.1: Discuss the role of strategic marketing in Morrison

As per the view ofWilson & Gilligan (2012), strategic marketing is all about selling the products or services of Morrison in such a way that it will help the organisation to achieve the goal. On the other hand, Tactical marketing is all about the implementation of the strategic marketing plans for the organisation to achieve the established goal for the organisation. Morrison is quite capable of positioning them as the low-priced supermarket with the best food quality. Morrison also has their farm for the production of the quality fresh food so that they will be able to position their food among the UK market in an influential manner.

As per the company, the fresh food offering is the key role of the food sector of the company. To increase the revenue of the company, they aimed at the strategy of creating their farm with the collaboration with Farmers and by offering the low price to the customers of the company. The intermediary cost is not involved in their operation, as they are using the ingredients from their fresh farm. In this way, as the low prices supermarket, they can target the large customers and also able to increase the revenue. So, the tactical marketing and been associated with the strategic marketing of the company.

AC 1.2: Explain the processes involved in strategic marketing

There are three important phases those are involved with the strategic marketing process.

Planning Phase:

The internal analysis is done in this phase about the organisation. It is called the SWOT analysis. With the help of the SWOT analysis, the weakness and threat factors can be controlled, and the strength factors can be focused more on the future development. After the proper SWOT analysis, it is required by the company to plan for the 4Ps of the marketing program within the specific budget of the company. At the same time, it is required to establish the goal, and also is required to set the price strategy, Place, Promotion, and the product strategy(Grunert & Traill, 2012).

Implementation phase:

After setting the goal, it is required to implement those established strategy in the practice field. It is the action phase of the strategic making process. There are four distinct components those are followed in this phase(Proctor, 2014). They are Procurement of the resources for Morrison’s food sector, Establishment of the marketing hierarchy to closely monitor the functions of the different department, developed of the planning schedule with the effective time management and execution of the proper marketing plan of the company.

Evaluation and controlling phase:

After the implementation of the marketing plan for the food sector of Morison, it is of utmost importance to check the proper evaluation so that the sustainability act will be strongly maintained. There are few ways regarding the evaluation of the strategy(Becker, et al., 2013).

  • Evaluation of the tactical strategy on the strategic marketing plan
  • To check the achieved milestone as per the schedule
  • The effective marketing strategy should be changed or maintained as per the evolution of the effectiveness.

AC 1.3: Evaluate the links between strategic marketing and corporate strategy

There is the link between the strategic marketing and the corporate strategy. The Corporate strategy of Morrison is: Driving the topline, enhancement of the efficiency, and the capturing of the growth. On the other hand, the strategic marketing priorities of the company are: being into the concept of the competition always, serving the customers with the better offer, identification of the local solutions, simplification and the speed up the operation with the modern technology.  And the improving the shopping experience of the customers to meet their demand(Turnbull & Valla, 2013). So, the corporate strategies of the company are required to be fulfilled with the help of the strategic marketing objectives of the company. The strategic marketing use to focus on the development, pricing and the effective distribution of the products(Grant, 2015). The corporate strategy is solely based on the probability enhancement of the company rather than the development of the products and services. So, with the help of both the strategies, the company like Morrison can maintain the sustainability of the market.

2: Understand the tools used to develop a strategic marketing strategy

AC 2.1:  Assess the value of models used in strategic marketing planning

Two models have been discussed here for the proper strategic marketing planning. They are Porter’s five forces and the Ansoff matrix of the company.

Porter’s five forces:

Figure 1: Porter’s five forces

 Developing and Managing a Strategic MarketinSource: (E. Dobbs, 2014)

Threat of the Rivals:

The high competition from the rivals is faced by the company. The retail market of the company is Oligopoly. The big four supermarkets already have occupied the retail market. They are Tesco, ASDA, Sainsbury, and Morrison. So, the tough competition is between these companies. To maintain the competitive advantage, Morrison uses to change their strategic steps.

Threat of the new entry:

The threat of the new entrants is high for the company. There are many global competitors those have already penetrated the UK market. ASDA is the American based company. Lidl is the German based company. So, the threat of the new entry is relatively high for the company(Morrisons, 2016).

Bargaining power of the buyers:

This is the psychology of the customers to check the process of the products with the different supermarkets before the purchase(Rothaermel, 2015). So, the prices of the company are relatively kept as low to satisfy the need and demand. Based on this concept, the bargaining power of the company is medium, so that there arefewer chances that the customers will switch over to the other companies.

Bargaining power of the suppliers:

Morrison has their farm for the production of the raw materials required for the food to be offered to the customers. So, the suppliers are with strong collaboration with the company. Based on this fact, the bargaining power of the suppliers are low(Morrison, 2015).

Bargaining power of the substitutes:

The threat of the substitutes is medium for the company. Morrison uses to replace many food items with their baked fresh food items. As an example, they have replaced the sausage roll with their made products.

So, after the analysis of the Porter’s five forces, it is required by the common to focus on the customer centricity with utmost importance so that the strategic goal of the company regarding the revenue generation can be met.

Ansoff matrix:

Morrison also uses to take the important technique of the product and market diversification for the accomplishment of the strategic goal of the company. Four strategic approaches have been sued by the company for the generation of the sales growth(Hussain, et al., 2013).

Market penetration in the UK:

More stores have been opened in with additional space so that more customer can visit the store. As per the Annual Report of 2014 / 2015, there are altogether 667 stores of Morrison with 153 convenience stores (Morrison, 2015). Apart from that, there is Online shopping mode of Morrison, to attract more customers with their prime food category with large discount. With the help of the market penetration strategy, the economic situation of the company has been regained in an effective manner.

Figure 2: Customer confidence

Developing and Managing a Strategic Marketin1Source: (Morrison, 2015)

At the acquisition of the competitors is another important step that has been sued by the company for the perfect penetration of the company in the UK market such as Co – op/ Somerfield.

Market development in new country:

With the help of the extension in the overseas market, the company can perform the perfect market development. As per the annual report for the year 2014/ 2015, new 68 stores have been opened in the overseas market. In this way, the large customers have been targeted for the accomplishment of the strategic goal of the revenue generation(Morrison, 2015).

New product development for the UK:

The new product development is done for the expansion in the existing market. I this manner the online shopping tool has been launched so that more customers will be able to shop from this portal without any problem as per their convenience. The online shopping uses to give the numerous varieties and the numerous discounts with the added information which cannot be gatheredfrom the normal visit to the stores. As an example, it is stated that the kids and the recipe section are quite impressive like the other sections.

Diversification in products:

The diversification is products in the new market keeping the fact in mind regarding the cultural preferences is the important steps that have been followed by the company. It also has open the “M – kitchen” approach. The approach is based on the concept of the launching more recipe so that the high street restaurants also will become the rival of them. So, these are the steps uses by the company to meet the strategic targets.

AC 2.2: Discuss the links between strategic positioning and marketing tactics

As per the view ofWest, et al. (2015),Strategic marketing is based on the three step process such as Segmentation, targeting, and the positioning.

Segmentation:

As per the view of Chernev (2014), segmentation is the definite process of targeting the similar characteristics group with the similar need and demand. Based on the organic growth and the proper acquisition of the correct segmentation has been identified for the company.

Figure 3: Segmentation process

Developing and Managing a Strategic MarketinSource: By author

Targeting:

As per the view ofChernev (2014), targeting is closely associated with the evaluating the attractiveness of one segmentation and adding value to them. There are three different targeting strategies. They are Differentiated, Undifferentiated, and concentrated. The undifferentiated targeting strategy is based on the concept of sending same promotional messages to everyone for the expansion of the brand name. The differentiated targeting strategy is based on theconcept of the designing of the specific promotional activities with the added valued information for the segmented community. The Concentrated targeting is based on theconcept of the promoting the message based on the single community. At the stage of the market expansion and the enhancement of the market share, it is required to take the undifferentiated targeting strategy for the food sector of the company so that the same promotional message can be conveyed to all. As the supermarket is not targeting the niche market, so the other targeting strategy is not applicable for Morrison(Morrison, 2015).

Positioning:

As per the view ofPeck, et al. (2013), positioning is such a strategy with the help of which Morrison use to place the product in the market so that it will be able to compete with the competitors in the market from the aspect of the mind of the customers. The appropriate advertisement strategies are used by the company for their food sector. The brand name of the company itself is the differentiator of the company from the competitors. They use to offer the hot deals on their food items based on the seasons. They also use to offer the high level of the advertisement for their newly open stores and at the same time, they offer the excellent customer service at their existing stores.

The advertisement is not only done by the company through the Television, radio, and print media but also, use to get highlighted with the help of the social media advertisement. The Facebook (Facebook, 2016)and the Twitter(Twitter, 2016)are the most effective tool of advertisement that they use in an effective manner. With the help of this positioning strategy, the companycan target the huge number of the customer base in an effective manner.

AC 2.3: Analyze the merits of relationship marketing in a given strategic marketing strategy

For the proposed strategic marketing strategy of Morrison’s, the relationship marketing is the most crucial section to be considered. The advanced usage of the CRM (Customer relationship management) is the key success area of the company(Peck, et al., 2013). The CRM activity capability they have earned for Capgemini. With the help of the strong CRM activities, the company can meet the taste and preference of the customers. The huge database helps for the proper maintenance of the perfect analysis of the preferences of the customers. With the help of this CRM activity, the companycan target the customers with the effective promotional activities and also increase the revenue of the company. The Sales force CRM is at the heart of Morrison’s success. The expansion of the new markets and also the expansion of the new products after the proper analysis of the customer preference use to meet the strategic goal of the company. The data of the customers are collected via phone, email, and then it is analysed with the help of the CRM tool offered by Capgemini and then is converted to the most useful information for the development of the promotional activities(Capgemini, 2013).

3: Be able to use strategic marketing techniques

AC 3.1: Use appropriate marketing techniques to ascertain growth opportunities in a market

Morrison is based on the concept of the retail management. So, it is importantto the organization to use the most innovative techniques to compete with the other competitors in the market. The market that has been selected is the Retail market of UK. There are three distinct stages for ascertaining of the growth opportunities of the company. The stages are as below:

Stage1:Before the marketing activity which is redirect towards the market research

Stage 2: During the effective marketing activity which is redirected to the effective development of the marketing mix

Stage3: The activities of the company after the effectivedevelopment of the marketing mix which is redirected to the proper evaluation of the potential of the market. The important techniques for the appropriate evaluation of the growth of the company can be identified with the help of the effective segmentation, targeting, and positioning.

Segmentation:  it is important for Morrison to segregate the market based on the categories, such as  Geographic segmentation which is based on the concept of the cultural aspects of the region, nation. After that, there is demographic segmentation which is based on the preferences of Age, gender, and others. Next is psychographic which is based on the concept of the lifestyle and the personality of the customers. The last segmentation is the Behavioural, which is based on theconcept of the Benefits to be offered to the customers, and the loyalty rate ofthe customers(Chernev, 2014). It is important by Morrison to take care of this segmentation in a proper manner so that the different deals and offers will be provided to the customers for the effective growth of the Company.

Targeting: To sustain in the competitive market it is important to use the correct targeting strategy for the company. As already discussed, the correct targeting strategy to be used is the undifferentiated strategy for the food that are offered to the customers of the company. The targeting of the company should be in such a way with the effective promotional activity so that the offered message will be accepted by all the targeted customers(Grant, 2015). The offered product should be measuredregarding the features, accessibility, and full of characterises with super quality.

Positioning: the effective marketing mix of Morrison is as below:

Price: The low price range in followed in Morrison to attract the new customers and also to maintain the loyal customer base than the competitors.

Promotion: the effective promotional strategy with the proper advertisement on Facebook, Twitter, and trough the other social media platform are used for the company.

Product: the fresh quality food products are offered to the customers as the company has its farm to offer the fresh foods.

Place: The correct placement strategy in the stores and also in the website for the display of the offers are maintained in Morrison.

After all these steps, SWOT analysis, and the Porter’s five forces are required to be identified for the proper evaluation of the success factor of the company.

AC 3.2: Plan how to use marketing strategy options in a market

To become the leader in the retail market of UK, it is required to target the market for the offering of the best products so that the need and the demand of the customerswill get fulfilled. As per the view ofChernev (2014), the marketing strategy should be in such a way that both the offensive and the defensive actions should e took so that the company will be able to compete in the market with the competitor. Following are the different options so that Morrison will be able to implement their strategies in the correct manner.

Cost leadership strategy:

Morrison is famous for offering the low price range to the customers so that they can compete with the competitors in the market. This is called the cost leadership strategy. With the help of this cost leadership strategy, the company can maintain the strong customer base for the food sector a well(Morrisons, 2016).

Differentiation strategy:

Morrison maintains the innovation in the foods offered. They are quite successful in bringing the new recipes at their store corners and also use to offer the food recipe on their website this is the differentiation strategy that isused by the company to sustain and develop in the market more.

AC 3.3: Create appropriate strategic marketing objectives for a market

Based on the services and the products to be offered to the market, there are few strategies regarding the foods sector of Morrison as follows:

  • Being more competitive in the market by offering the fresh and quality foods to the market.
  • The capability to offer the additional services regarding the cafes, pharmacies, and also the petrol pump stations for the customers.
  • The introduction of the “fresh look” refit program so that more customers will be attracted towards their stores (Morrisons, 2016).

4: Be able to respond to changes in the marketing environment

AC 4.1: Report on the impact of changes in the external environment on a marketing strategy

The external environment those are impacting on the marketing strategy of Morrison are as below:

Political factor: The UK, and EU legislation have the strong impact on the strategies for the food sector of the company. The legislation of the usage of the health conscious food ingredients uses to impact on the strategies of the company(Morrison, 2015).

Economic factor: The global economic recession and the change in the inflation rate use to impact in the strategies of the company.

Social factor: The change in the preferences of the customers regarding the health conscious foods are likely to impact on the strategies of the company for their foods sector to use low-calorie food in their menu.

Technology Factor: The self-checkout option, the loyalty card program are the useful technological advancement hat impact on the change in their strategic planning. The online shopping also uses to impact on them.

Legal Factor: The employment laws, health and safety laws use to impact on the maintenance of the manpower and also on the strategic move of the company.

Environment factor: the biodegradable substances are used for the maintenance of the food supply so that the waste of Morrison will not hamper on the environment. Also, the close warehouse location near to the shops is maintained.

AC 4.2: Conduct an internal analysis to identify current strengths and weaknesses in a marketing strategy

The internal analysis based on the strength and the weakness factor o the organization is meant for the changes in the market strategy. They are as below:

Strength factor:

  • The efficient supply chain is the key success factor with the help of their farm house to support the food sector in a large
  • Large range of the products in the product portfolio.
  • One of the most branded supermarket due to the quality product in the low price range.
  • Opening more stores in the UK to target most customers(Morrison, 2015).

Weakness factor:

  • The limited geographical expansion is the key weakness factor of the company on which Morrison is required to focus.
  • It also uses to suffer from the product recall(Morrison, 2015).

So, it is required by the company to change the weak factors to the strength factor for more usefulness.

AC 4.3 Propose strategic marketing responses to key emerging themes in a marketing strategy

With the help of the key emerging issues, it is important for Morrison to respond to the market to sustain in the competitive market of the retail management. The key emerging themes are:

Advanced technology usage:

With the advanced technology, it is important for Morrison to focus on the adoption of the technology as they have recently done. Very recently they have adopted the CRM application developed by Capgemini(Capgemini, 2013).

Continuous innovation in the food recipes:

Continuous innovation of the food recipesisimportant to be adopted by Morrison so that they will be able to target more customers.

Effectiveutilization of the human resource team:

With the help of the effective human resource team, the customer service will be offered by the company in a more effective way.

Increment in their product base:

The increase product base with the low-calorie food will be able to meet the legislation set by the EU and the UK and also, more customers will be attracted towards them.

Conclusion and recommendations:

Based on the entire discussion, it can be stated that the prime strength factor of the company is the low price and the good supply chain management. The key weakness factor is the low range of the food recipe. So, it is important for the company to use the innovative techniques with the establishment of more recipes to attract the new customers. At the same time, it is also recommendedto the company to respond to the demand of the market using the Facebook and the Twitter application and also with the help of the internal grievance handling the team. So that the company will be able to compete in the most competitive manner in the retail market of UK.

References

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