Business Report for Morrison Supermarkets Marketing

Morrison Supermarkets
Name
Institution
Morrison Supermarkets
Morrison is the fourth largest chains of supermarkets in England with an annual turnover of £16.1 billion as of the year ending 2016. This was a decline of 4.1% compared to the year 2015 (Allen, Piecy & Piotrowska, 2017). Such figures reflect the general good health of Morrison supermarkets which has been experiencing stiff competition over the last four years from the cost leading rivals such as Aldi. However, the CEO has been working all rounds to reverse the declining turnover rate through devising an ambitious plan to deal with the low-cost rivals (Mintel, 2016). The intent of this paper is to examine the wider environment in which Morrison supermarkets operates in, in-depth examination of the financial performance relative to competitors, main competitors and to make a recommendation to the supermarket’s management on the possible changes to adopt so as to regain their competitive advantage.
Part I: Market Analysis
Background information of Morrison Supermarkets
Morrison supermarket was established in 1899 by William Morrison who began as a merchant of egg and butter. He began with a small stall in Bradford market in northern England and led the way into a big hypermarket retailer in the later years. After opening the stall, Morrison opened other small chains in the nearby markets. In the year 1920, Morrison’s businesses had flourished and earned him enough capital to allow him to open a personal retail stores that provided counter service to the customers (Metzger, 2014).
In 1950, Morrison transferred the ownership of the business to his son who approached the business with a different perspective. He decided to transform the business from the small urban centre shops into a larger-scale supermarket in suburban and exurban locations. At this time, the developments of self-service shopping alongside branding of grocery products and packaging were increasingly becoming popular among the retailers. After realizing that the idea worked out, Morrison's son began to open up new stores in 1962. In 1967, the company went public by registering with the London Stock Exchange. The company raised more capital through offering shares and expanded becoming the largest supermarket in the region as of the 1970s.
During the 1990s, Morrison supermarkets began experiencing stiff competition from rivals who engaged in the promotion. Morrison did not adopt the idea of promotions and went on with its discount formula as well as clinching to the idea of displaying price tags on its products throughout the distribution stores. Prices were the same throughout the stores which gave it a competitive advantage over the competitors who varied product prices in stores. The company went international in 2004 with the successful opening of a store in Scotland. As of then, the company was having a total of 403 stores and employing more than 100,000 employees. As of 2016, the company operates 498 stores (Toms, 2015).
Products and Services
Morrison supermarkets deal in a wide range of household products. In its market street, the supermarket offers oven-baked, Deli, butchers, fish, fresh prep, bakery products, and cakes. It also offers pre-packed foo...