Marketing Plan for Morrisons

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Contents

Page 3.........................................................Executive Summary

Page 4.........................................................Introduction

Page 4.........................................................History of Food Retailing

Page 6.........................................................Analysis of Present Market

Page 7..........................................................Key PEST Factors

Page 9..........................................................Morrisons Position

Page 10........................................................Key SWOT Factors

Page 11........................................................Key Competitors Positions

Page 13........................................................Porter’s Five Forces

Page 15........................................................Recommendations

Page 16........................................................Conclusions

Page 17........................................................Bibliography

Page 19………………………………………………………Appendices

Page 20........................................................PEST Analysis

Page 21........................................................SWOT Analysis

Page 22........................................................Action Plan

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Morrisons-Competitive Analysis

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Executive Summary

Morrisons is the fourth largest grocery retailer with a market share of 11.2%. In 2004 Morrisons took over Safeway in order to enter the convenience store market and increase market share, although this is proving to be a success, it left the company with a £313 million pre tax loss in January 20006.

In order to increase their profitability after their huge loss and to respond to the changes in the market Morrisons revitalised their image by promoting the freshness of their products in their recent campaign of “Fresh Choice for You.”

The economic downturn is of increasing threat to key players in the industry as it has seen the rise of discount stores such as Aldi, who have developed a strategy based on cost leadership. In response to this Tesco launched their newest campaign of being “Britain’s Biggest Discounter” to deter the growing competition, however, this campaign has not been as successful as hoped.

Many supermarkets have diversified into other industries such as Tesco and Sainsbury’s who have expanded into the financial sector, along with other stores such as M&S and ASDA highlighting their extensive range of non-food products.

In these cases Morrisons seem somewhat behind in responding to these changes, as they have not expanded into either the non-food market or the financial sector, however, they are still a strong brand and with recommendations such as partnering with Universities and providing them with a lunchtime range and developing a loyalty scheme Morrisons can reach out to a newer audience whilst maintaining their old customers.

Introduction

This report will focus on the food retailing industry, Morrisons in particular and how the external environment is changing around them. It will look at how key players in the market are responding to these changes and what marketing strategies have been implemented to keep up with the times. In order to make effective recommendations it will be essential to evaluate the competitions competitive advantage and that of Morrisons. This will be concluded through the use of a PEST and SWOT analysis along with Porters Five Forces framework.

History of Food Retailing

There is an ongoing battle within the food retailing industry as multiple grocery stores aim to be the best, whether it is on price or quality. Nevertheless this industry is dominated by four key players. Tesco, ASDA, Sainsbury’s and Morrisons.

Tesco is the number one food retailing outlet that currently holds a market share of 31.4%. In terms of...
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