Morrisons Marketing Strategy

Morrisons Marketing Strategy Morrisons is the biggest retailer and chain of superstores in the UK. Morrisons started it business long back in late eighteen century by William Morrisons having head branch at Bradford, England. Steadily it grew its business and operates almost 455 stores in the UK and is a part of stock exchange of FTSE 100 Index. It is operating under Public Limited company label of WM Morrisons. It is a big dealer of food and has won many Awards for best food for its meat, bakeries, frozen foods and many other food items and daily household needs. Definition of Marketing Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer (P. Tailor 7/00) Marketing is a long process which requires particular skill to co-ordinate, plan the activities and implement plan for the success of carrying out marketing campaign. This success comes from analyzing market and market research. Task 1. The role of marketing in Company and how it helps contribute to business objectives. Vision of Morrisons Different and Better than Ever It cares for the values of bringing improvement always. Business objectives of Morrisons To maximize its revenue and profit by focusing on being Food Specialist TO be the cheap provider of goods and services to the customers. Role of Marketing in Morrisons In Morrisons, marketing plays an important role in different contexts. Marketing has to deal different departments of the organization where it needs to bring improvements and changes. Role of marketing and sales are of great importance in marketing activity. Direct and indirect marketing are equally important to target the market for Morrisons. For the effective marketing role, Morrisons can take competitive advantage of modern technology which would bring corporate image and better turnover for Morrisons. With effective accomplishment of marketing role, it would be able to fulfill its corporate objective of being first in retail business with profit and sale maximization. An Analysis of the External Factors influencing marketing in Morrisons Markets are highly vulnerable to external market that has great influence on the companies. Proper analysis of external factors affecting Morrisons must be seriously evaluated and managed. PESTLE analysis will help Morrisons to understand impact of these external factors. Political Factors- Rules and laws governing authorities fall under political factors. These authorities put forward laws for the limitations of the company. For Morrisons, political factors like policies and procedures for the business to carry its operations. Economic Factors- are all important factor relating to profit and money. Morrisons is focused on profit maximization wherein it has to take more care of credit crunch and economic downfall. Technological Factor-Â  It relates to use of modern technology and techniques in use for production and sales. Prior concern for Morrisons is to make sure that it uses World Wide Web for its business strategies. Environmental Factors- This factor has become top concern for the world due to global warming issues. Thus for Morrisons, it is important to make use of non polluting machines, technologies and techniques. Legal Factors- It is about issues and difficulties coping up with laws. Morrisons would like to handle legal affairs while planning its growth and expansion activities. Morrisons being in the retail sector faces many more problems due to effect of its external factors. (Bookrags.com, 2006) An explanation of how marketing is used to achieve business objectives Achieving business objectives is possible by possible achieving four levels of objectives. Companies is able to achieve it goals and objectives when it analysis its external and internal factors and focus on the strategy and aims of corporate and marketing level. Corporate Objectives- The overall objective of a company in terms of its vision and goals for coming 5 years is known as corporate objective. Morrisons corporate objective for next five years would be increasing profit by 5% which can be significantly achieved by marketing activities. Marketing Strategies- Corporate objective is straight linked to marketing objectives which is designed by marketing department of the company. Marketing objective should go hand in hand with corporate objective which helps to achieve corporate goals ultimately. Marketing Strategies and tactics- Strategies on marketing expenditure and type of advertising activities, all should be linked back to corporate activities which help company to be successful. Whatever is marketing activities and strategies, it should be focused in the line of companys ultimate goals achievement which is either to maximize profit or to be brand popular. Morrisons can achieve both together with marketing activities. (tutor2u.net.com, 2012) Elements of the marketing process The different element included in the marketings Ps is product, price, place, promotion and price. These are also known as marketing mix which rightly analyzed can bring profit to the organizations. Product- Expanding its customer base through acquisition of more customers is important to Morrisons. This can be done through improving its existing product and introducing more products for new demands. Sale is expected to improve with expansion of its product line. Price- Customers would always like to pay negotiable price for the products that has substitute in the market. Morrisons has always been ahead in offering goods at cheaper price than its competitors. Giving discounts, coupons and best reduced prices. Promotion- Numerous promotion techniques promoting the brand need to be adopted which promotes the product not only nationally as well as internationally. Promotional activities like direct and indirect marketing and advertising needs to be carried out by Morrisons. Promotion needs to be carried out intensively. Place- Right market for right customer is very important. Morrisons needs to understand right market for its product. It has to carry out research on market segmentation and distribution channels for its product. Finding right agents and franchisee internationally becomes a challenge for Morrisons. Morrisons focus on 4ps will help it to find new markets and right price from its right customers. (Antiessays.com, 2012) Task 2-Understanding the principles of marketing through detailed analysis of the marketing mix and segmentation Marketing Mix is an effective strategy for putting up right products and services at the competitive price at the right place in the market. Market segment is another tool that helps to put the product and services to the right targeted customers by segmenting them on the basis of their taste, style and needs. These both tools are considered to be top and effective tools in marketing due to its significance importance in marketing. This both strategies help to put products in the right market due to segmentation and positioning. For marketing of product and for the best sale, right market for the product which can be done through communication which demands advertising. Market segmentation will help to target customers based on geographic, behavioral and psychographic segmentation. This division helps to catch the customer as per their needs and demands. Growth and expansion strategies of the business can be carried out with market segmentation tool. Morrisons has been performing well with its sales, expansion, and diversification and segmentation strategy so far. It just needs to explore more of its stores in international countries which really need diversification and segmentation. As it is a new market, product and market diversification are both essentially important. (scribd.com, 2012) An analysis of the positioning of Morrisons in the market in comparison with other supermarket chains. Positioning of Morrisons in the UK market is very strong due to its strong history and strong marketing strategies. The best thing about Morrisons is its price promise to offer goods and services at reasonable and comparatively lower price. In highly competitive and price war market. Morrisons has positioned itself on the top among the list of other superstores like Asda, Tesco and Sainsbury. Price Promise- It has launched guarantee work by Morrisonss Price Check where it claims to be cheapest superstore. If customer compares the price list with other stores customers find the products very cheaper and better. Thus when supermarkets were surveyed , it was noted that Morrisons was in the lead in its positioning in the market with compare to other superstores due to its price promise, loyalty schemes and various other promotional schemes. .(ceibs.edu.com, 2012) A review of Morrisons main market segments and an explanation of how they have been segmented e.g.: demographic, geographic. Review of Morrisons Main Market Segments Morrisons has already created a strong market in grocery and superstore segment where the products have become customer favorite. For few next coming years, Morrisons would like to expand the market segment of its non-food items into new geographical segments. Morrisons Online-Morrisons has covered huge market in the UK and operates it business with many superstores in various regions. It has showed good increase in revenue in each year. The company is still further planning to increase its revenue stream through maximization of use of Morrisons online with its customers. After capturing good share of supermarket, Morrisons is further developing its strategy to maintain and increase its market geographically. (Morrisons Annual Report, 2011) Market segmentation Market Segmentation is the tool that divides market into segment based on some divisional factors like geographical, demographical, psychological and behavioral segmentation. This segment helps distribution and marketing departments to sell their products and services based upon its demands. Behavioral segmentation- This is based upon behavior, nature and attitude of customers. Morrisons has identified choice of its customers based upon customer database and surveys. It has identified purchasing behavior of its customers into Finer foods, healthy foods, traditional foods and thus have formulated new products range based on this. Psychological Segmentation- This segment focuses on the basic psychological needs of the customers which is based on lifestyles and motives of the customers. Morrisons customers are strongly associated to the brand due to Morrisonss ability to meet its customers requirement which demands cheaper prices and the best services. Morrisons has been proved very effective to deliver products that best suits customer lifestyles and fulfill their motives. Thus its has been successful with meeting its psychological segmentation. Demographic Segmentation- Its about focusing on more locations and market coverage. Morrisons has been strong holder in the UK market but has captured great share of market but it has to more focus on new places and countries which are unexplored but people will value its products and services. Morrisons has segmented its market quite systematically and need more focus on geographic segmentation so as to be strong leader in the market. (Joseph. 2010) An evaluation of the benefits of Morrisons of segmenting markets. 1. Competitive position- Segmentation process helps to identify potential customers to its products. The company is able to derive competitive advantage because of positioning and segmentation. This can be done through proper direct and indirect advertising and marketing. 2. Growth Opportunities- To attract new customers and retain older ones is the main objective of the business. Market can grow only if segmentation is right. Thus growth is possible only through finding right customers. 3. Proper Allocation of Resources- Companys resources are very important and needs to be properly utilized. With segmentation, company would be able to save on its investment due to proper allocation of resources and less in wastage. It ultimately gives good returns on investment. Many more benefits can be derived from market segmentation and some of them are very much potential in achieving business objectives and goals. (Ries and Trot, 1972) Product distribution at Morrisons Efficient methods of marketing and distribution play an equal role in helping company to reach prime position. Many benefits can be derived if company is applying the best techniques to its distribution channel. Morrisons has introduced new transportation technique that aims at low carbon emissions and be eco-friendly. It has been actively working to have the best distribution technique which includes battery-operated vans for deliveries and fuel efficient transportation technologies that emit less of carbon in the environment. Analysis of pricing and promotional strategies at Morrisons Morrisons Pricing Strategy Morrisons is very good at offering its customers products at very low and cheap prices comparatively and offer reduced prices offers. It has proved to be giving the best price by it Price check test and also the big price drop campaign which bring heavy reduction to the products for its customers .(dummies.com, 2012) Morrisons Promotional strategy The biggest promotional technique of that Morrisons needs to bring in is its loyalty scheme club card which brings in great business o the company. The other promotional techniques are directly focuses on the customers which are voucher exchange, coupons at till, petrol promotions, advertising channels and offers on no food items. (dummies.com, 2012) Impact of current technology on marketing activity Businesses are left far behind if they do not use modern techniques. Marketing without modern technology cannot be effective due to its benefits and wide use among customers. Following sure some benefits of modern technology on marketing. 1. With modern techniques businesses can bring great change in products marketing due to creativity. 2. Bring brand awareness at global level due to world wide use. 3. Develops online presence as almost all company are on new technologies like online and internet marketing. 4. Online marketing has been cost effective with great benefits in term of revenue and sales. 5. Modern methods offer various approach to advertise the products due to multi marketing method approach. (Marketingmethods.net 2012) Task 3. Developing Marketing Plan for a new range of products. Methods for researching different market for a new range of ready meals. Primary and secondary methods are the techniques to find new markets for ready meals. Primary technique is a method that will collect data on first in hand with new research and surveys whereas secondary data is the one which is already tested and approved with results. Some techniques are- 1. Data base from companies already selling ready meals. 2. Direct Surveys and Questionnaires-This proves to be expensive and time consuming but gives right knowledge about customer choice. 3. Desk Research-will help to further research on the product and would test the product and send samples in the market which will be reviewed. (Euromonitor.com, 2012) Strategic aims and objectives for the plan. Aims for ready meals marketing is very clear and are as mentioned 1. Aims at customers convenience and costs. 2. Aims at providing better taste with new varieties of spices. 3. Aims at time saving for students, singles and busy and occupied people. 4. Target Market for Marketing activity and reason for choice Target market would be based upon market segmentation for customers. 1. Singles, bachelors, working couples and busy occupied professionals. 2. Market and customers that wish for trying new spices and are time savers. 3. International students and people who wish to work hard and saves money by having ready meals with good taste and spices. Micro and /macro environmental factors affecting the planning- PESTLE analysis of ready meals will help to understand external factors that might affect planning. Political factors- Health and hygiene factors is very important considerations. Policies regarding manufacturing and packing labeling for international level needs also to be taken into focus. Social Factors- Traditional foods are very popular in market, thus it is important to present nutritional part of this ready meal for future focus. It should be like by household and working women. Technological Factor- Ready meals needs to use new packing and labeling techniques with modern techniques so as to ensure safety and modern technology marketing will ensure good business. Marketing Mix for the ready meals Product- Ready meals newly introduced needs to be tested and reviewed by sampling distribution by checking spice level, nutritional elements and salt factor. Price- Customers expect new products with little reasonable and cheaper side on price part. With new products, price factor needs to be satisfied by the customers. Place- As targeted customers are placed in line, place would be promoting it to customers wishing to save time and costs. Promotion- New promotional strategy which adding it to existing product line of micro wave food and easy to cook food. With more effective strategy, Ready meal will prove a big success. Factors relevant to the implantation of the plan Advertising and marketing- For ever new product, it is me too scene when new product takes time to get along with other products wherein marketing and advertising activities plays an important role. Engagement- Customers need to be continuously engaged by means of samples distribution, promotional offers and coupons so as to keep product selling and bringing awareness. Monitoring- Customer follow-up is essential to find out review, suggestions and recommendations which will help to improve product and made better. Conclusion All the companies are concentrating great on marketing activities and strategies as it is the only way to reach customers and bring awareness about the brand. Morrisonss has been a strong brand in the market from quite along time. But in competitive market and competitors like Asda and Morrisons, it is important to retain customers and focus on new through marketing strategies only.