Type of paper: Report

Topic: Business, Company, Market, Marketing, Customers, Products, Strategy, Environment

Pages: 10

Words: 2750

Published: 2021/01/07


Market environment refers to the forces which impact a business or a firm’s ability to customer satisfaction and ensuring that their relationship remains healthy. There are three levels of the environment which are; macro environment, microenvironment and meso environment Aras (2011).These forces can be within the company itself or originating from outside the company. The primary market environment in the UK is characterized by the continuous price increasing which significantly affects the various firms. The various retailers in the UK market usually react differently to the general increase in price. The reason for their varying response to the changes in price is dependent on the particular firm’s position in the market. The well-developed retail businesses in the UK are not significantly affected by the increase in price because they are well established, and they do have the necessary countermeasure to the increase in price. In short they are the contributing factor to the increase in price in the UK because they are the major game players in the economy. Smaller retail firms are the ones that are significantly impacted by the increase in prices and for these reason they will have to adapt (Belleflamme, Peitz 2010). Those that adapt properly to price changes are the ones that usually survive. My case will be based on two companies in the UK, one doing well (Boots) and the other not doing so well (Morrison). Boots Ltd is the leading fitness and magnificence retailer with approximately fourteen hundred branches in the UK and Ireland. It has most of its outlets in high streets. The Boots brand is instituted on legacy, trust and skill that come with its longevity in the market. It has three principal businesses; Boots the Chemist, Boots Opticians, and Boots Retail International. Morrison, on the other hand, is the UK’s 4th biggest retail supermarket. The company has around 120 supermarkets and larger superstores. The company is mainly based in the north. The company has been going down in recent times. My analysis will be on analyzing the two sets of companies and trying to see what has brought about the difference in performance.


Marketing strategy is the various strategies plans or patterns that an organization implements to ensure that its goals policies and action sequences are cohesive as a whole. The market strategy is concerned with the four Ps i.e. product strategies, promotional strategies, placement strategies, and pricing strategies Blythe (2006). The entire marketing strategy must be based on the objectives the organization intends to achieve and not the process of planning. A market analysis causes the business to become acquainted with all aspects of the market so that its objective market is identified, and thus the company is in a position to garner its share of sales. There are four principles of marketing strategy in the modern days Chernev (2007); this are described below. First ensure that your business objectives have been clarified. Secondly, employing innovation teams to identify and activate emerging opportunities. Thirdly, decouple strategy and innovation. Fourthly, building open assets in the marketplace. There is an importance of marketing strategies to firms doing business all over the globe. Below is some of the main importance of the marketing strategy for a business. It aids in streamlining the product development; a proper marketing strategy helps a firm create products and services that do have a best chance of attracting customers hence revenue generation Britton (2006). It’s because marketing strategy starts with marketplace research, by taking into consideration the optimal target customer preferences. By knowing all this an organization will be able to differentiate its products and services from its competitors hence gaining a competitive advantage.
Marketing strategy helps determine optimal prices; from the findings of the market research then the organization would be able to determine the optimal prices Oldroyd (2007). If the results show that your customers what high-end products then the firm will have to sell at prices that create high-end perceived value. By being able to determine the best price, and then the firms will be in a position of competitive advantage over firms in the industry.Marketing strategy aids in establishing efficient distribution; once the firm knows its target customers then it means that it will be able to sell in areas where it maximizes its market effectiveness.
It assists in marketing communication i.e. the marketing strategy helps firms in creating its brand or image (Vitale, Giglierano 2011). Through a proper marketing strategy, the business will be able to advertise its products appropriately and hence be in a position to reach its target customers.
Ensures healthy working environment; the marketing strategy ensures that workers of a given firm work in tandem since the policy provides the plan under which the employees will be able to follow as a whole.

Boots Marketing Strategy

Boots has a marketing strategy that aims at increasing its turnover. The examination of boots marketing strategy involves studying its 4ps. As for price, Boots decides its prices of products as per local market conditions and customers. As for the place, it entails location, access and distribution channels. Here, Boots has opened its outlets at opportunities market at initial stages. From the promotional point of view, Boots uses advertising majorly and also public relations, personal selling, and sales promotion. In terms of the product, Boots has a distinct brand name of all its products and offers efficient after sales services. Boots usually value their customers so much such that they are the heart of their business. The entity is focused provides exceptional customer and parent care and hence striving to be the first choice for pharmacy and healthcare. Boots also attracts and retains the most talented employees thus the provision of better products and services. Their strategy is aimed at internationalizing their product brands so as to create a third dimension. Their strategy is aimed at ensuring that there is customer loyalty to their products at all times. Innovation is also a factor that has been put into practice at Boots Ltd that provides that products are better quality hence attractive.

Morrison Marketing Strategy

Morrison has three distinct strategies as below; Value- the company does keep costs low so as to ensure that prices are low. It is achieved by offering all its consumers’ best price.
Freshness- It is achieved through vertical integration. The company makes all of the dissemination of products to customers. Service, the company, strives at ensuring that the right products are always available i.e. the system of high selling and service for customers.
There are differences in their market strategies and, as a result, reflects on their various performance. Boots Ltd is doing better that Morrison because the company marketing strategy is a bit flexible, and that is has incorporated technology into itself. The fact that Morrison does all the distribution to its customer has contributed heavily to its costs that resulting to it performing badly as compared to Boots.

Environmental Factors Affecting Each Business

Environmental factors are divided into two main categories this are, macro environment and microenvironment (Blair, Hitchcock 2001). It consists of much larger all-encompassing influences from the broader global society. Cultures, political issues technology demographic are but a few of the macro environmental factors that affect most firms.
A microenvironment is made up of individuals and organizations that are close to the company and directly impact the customer experience Cherunilam (2010). Examples include the company itself, its merchants, other promoting input from the market and segments in which the business trades, publics. Microenvironment, the microenvironment is the business itself and all the contests that come from inside the business transactions. Firms can, therefore, take charge of these contests and impacts in the microenvironment. Another name for the microenvironment is also identified as the internal environment. The micro environmental factors usually do affect the firm ability to serve its customers (Hoyer, MacInnis 2001). For organization to succeed, it needs to have the necessary plans and techniques for ensuring that it adapts to the ever-changing environmental conditions. Globally, the most successful organizations are the ones who are flexible and do adapt to the ever changing environment at any time. It is essential that the business develops the necessary techniques for ensuring that it has all the firepower to combat any changes in the environment.

Boots Ltd Microenvironment

This environment does influence Boots Ltd directly. These factors include suppliers that deal directly or secondarily with the company, users and customers, and other resident stakeholders. Micro defines the connection between Boots Ltd and the driving forces that control tis relationship. Boots Limited has control over these factors. All this factors that are internal to Boots are known as the internal environment. Audit of the microenvironmental factors affecting Boots involves the application of the five Ms. they are Men, Money, Machinery, materials, and markets. The internal environment is as important as managing change as the external (Jeannet, Hennessey 2004). Essentially, marketing approaches are used to aid communication and change management. The primary microenvironment factor affecting Boots Ltd is human resource. They form an important component of the success of the organization. The fact that Boots has been able to focus more on the personnel it hires means a lot. Their efficient and competent staffs have contributed heavily to the success of the organization as seen by its recent rise in revenues.

Boots Ltd Macro Environment Factors

Includes all the factors that can influence but out of the direct control of Boots Ltd. These factors are continuously changing, and thus Boots need to be flexible so as to adapt. There may be very efficient competition and rivalry in a market. Globalization always represents that there is a threat of substitute products and new entrants to the market being dominated by Boots Ltd. The wider environment is also changing and, for this reason, the marketers of Boots Ltd need to change. Audit of macro environment factors affecting Boots is more detailed, and various approaches may be employed in this process. The methods include PESTEL Analysis, Michael Porter’s Five Forces Analysis or SWOT Analysis. Using the PESTEL model, I will be able to classify the external factors that affect Boots Ltd. First, political factors affecting Boots include government policy, legal issues, employment laws, trade policy legislation among others. Secondly, economic factors affecting Boots Ltd include employment problems, exchange rates, condition of the stock market, changes in international trade policy, inflation among others. Thirdly, social factors affecting Boots include minimum wages, changes in lifestyles, earning capacity, ethical problems, and consumers’ attitude. Fourthly, technological factors affecting Boots Ltd include the arrival of new technology, research, and development activity.

Morrison Ltd Microenvironment

The microenvironment is the factors originating from the operations of Morrison Ltd and is usually under the control of the organization (Worthington, Britton 2006). The company has a long-standing management team that handles all its activities. The primary microenvironment factor is the consumers of products. They do significantly affect the performance of the company. The recent decline in the performance of Morrison is attributed to the factor that it does not satisfy its customers well. The fact that it has fierce competition from e.g. Tesco does not help at all because its customers are departing for better services and products. Suppliers also form a very critical factor on the microenvironment factor because Morrison Ltd depends greatly on its suppliers

Morrison Ltd Macro Environment

Analysis of the macro environment factors affecting Morrison are through examination of the political, environmental, social, technological, environmental and legal factors Foxall (2005). PESTEL approach is the most appropriate one when carrying out an audit of the macro-environment of Morrison. Political forces affecting Morrison Ltd are the government new set of laws regarding environmental protection. Morrison is significantly affected by these factors and, therefore, need to adapt so as to survive. Economic forces affecting Morrison include the impact of the British food industry; the weak economy of Europe is also a factor affecting Morrison. The social influences are such as the aging population of UK, which has a considerable influence upon Morrison. The aging population has necessitated the company to produce products that best serve this population also the aging population brings about a threat to the future human resources in the industry Oldroyd (2004). The growing variety of Indian and Chinese food is substantially reflected by its entrance in the company menu. Technological influences have a great impact on the activities of Morrison. The need for specialized trucks which guarantee quality has brought about Morrison employing well-trained labor workforce.

Marketing mixes for both companies

Boots Ltd
The marketing strategy of Boots limited is aimed at improving its turnover. The main components of a marketing mix that I will base my research are the four primary ones i.e. price, place, promotion, and, products. These four items are important that even marketing as a wholePrice; it is what customers pay for products and services. Boots offers are ranging alternatives such as the actual selling price, profitability and credit terms. The prices being changed by Boots for their products are usually as per the local market condition as well as the customers. They price products as per the capabilities of its customers Place; it entails location, accessibility as well as distribution channels Paley (2005). The stores of Boots Ltd are usually located at the convenience of the customer and thus easily accessible to them. The various outlets of Boot Ltd provide the best avenue for the increase in turnover.
Promotion; it refers to how an organization is visible in the industry as a whole. Boots Ltd usually uses an advertisement as the primary tool of promotion. The others that are used include sales promotion, demonstrations, personal selling and direct marketing.Product; it entails what Boots provides for its customers. There are various aspects of their products that make it more attractive to the customers. It includes brand name, after sales services, product life cycle and many more.

Morrison Marketing Mix

Price; customers would always like to pay a negotiable price for the products that do have substitute Solomon (2003). The fact that Morrison is in an industry that has fierce competitors then it means that its prices need to be appropriate. Morrison is often ahead in offering cheap goods than others. They do give discounts, coupons and appropriate prices in the eyes of consumers.
Place; an appropriate market for the right customer is very necessary. Morrison has to understand the relevant market for its products. The marketing team of Morrison has carried out various research aimed at ensuring that it has the right location for its productsPromotion; numerous development techniques on the brand aids in creating the market for their products Saito (2009). Intensive promotion is to be adapted by Morrison. Advertising, direct and indirect marketing are some of the promotional techniques adopted by Morrison Ltd. Product; Morrison is on the mission of expanding its customer base. It is improving its existing products and introducing more products for the new demands it is facing. The company expectation is that the sale would increase; however, this has not been the case.


Both companies are using advertising as the primary promotional tools aimed at ensuring that that they increase their market share. Here, their main objective is to increase their market share.
Both companies pricing strategies are dependent on their customer specification. They are pricing in relation to the way that the market provides. It is because both firms are in an industry having fierce competitors.
Both companies’ product specifications are aimed at ensuring customer satisfaction. These products are made in a way that it ensures that the customers are satisfied after consumption.


Boots Ltd usually price products as per customer capabilities on the other hand Morrison Company does price its products through giving out discounts to customers in order to gain competitive advantage. Boots Ltd has an extensive range of promotional techniques while Morrison Ltd has limited forms of promotional techniques.

Improvements to be made

Boots Ltd critical areas of improvement
The organization may engage in online sales. It will be able to grow in future days. In recent days online sales usually contribute to revenues; therefore, it’s advisable that the organization does online transactions so as to boost its sales revenue. The organization may also invest in a property. A property is one of the major components in the economy that is on the rise. The company may go ahead and invest in property hence being able to benefit from opportunities it presents. Merging with Alliance Unichem is a perfect opportunity for Boots Ltd to make over 100million pounds in terms of savings. It is because the merger comes as a result of the market gap in the South East Asia.
opportunity to increase their market in the ethical market which would results to increase the sales volumes since people view their items as being appropriate. The male healthcare and beauty products are also an opportunity for boots Ltd. It’s because this particular market has not been explored and present the best opportunity for the future success of the organization.Boots may also continue with its core activity which is the development of new products in the healthcare. By doing this, then it means that the company will be able to specialize and be in a position to further influence the entire industry.
Booths should also redesign its marketing strategy such that it focuses on the young customers in the society. An opportunity for the firm to develop appropriately and thus influence the market share. The advantage card needs also to be launched so as to aid the male customers. By doing this, then it means that the core business of the organization significantly improves.

Morrison Ltd Critical Areas of Improvement

There is room for further diversification. Morrison may venture into new product lines that are greatly demanded by the market. By doing so then it means that the organization would improve its sales revenue, hence the bad performance it is currently experiencing is eliminatedThe Company may also explore opportunities involving merger Wheeler (2003). Many organizations that have been on the decline have merged with superior companies hence leading to their revival. Morrison should explore the possibilities of combining with Safeway.Convenience store expansion; the company may expand its stores at various locations hence resulting in more sales. By doing so, then there will be an increase in the company’s performance.
The company may also open up small stores in the local towns and shopping centers. When this is done then, it means that there will be more sales taking place and hence improvement in its performance in general. The Company may also start working with its suppliers on the various ways of improving the efficiency of the farming system this would result in improvement in biodiversity on farms and raising the bar on animal welfare.Venturing into the global market also presents an opportunity that Morrison may use in order to improve its market share and gain competitive advantage. Global opportunities represent a market gap that can improve performance of the company.


Introduction provides overview of the market environment and its effects on the various firms. Here, classification of the two market environment is briefly introduced stating their impact on the organization. A brief introduction to the UK market is given showing that the market is characterized by products and services of high price. The impact of the prices on different level and size firms are outlined in brief. The entire report is based on the marketing strategies of Boots Ltd, a company based in the UK doing well. The other firm is Morrison Ltd and is not doing well at the moment.
An explanation of the marketing strategies and its importance is also established at this point. There are four principles of marketing strategies in the modern days. It is established that Boots Ltd marketing strategy is based on ensuring that turnover is increasing. The 4Ps prominent in the market mix are product, price, place and promotion. Boots limited is viewed to be having the better marketing mix than that employed by Morrison, hence performing well while Morrison is on the decline. Morrison focuses on three aspects that are value, freshness and service provision. The fact that the strategies implemented by Boots are flexible than that of Morrison is reflected on their respective performance.
PESTEL model was used in carrying out an audit of the macro environment and microenvironment factors. The political, economic, social and technology are viewed as the primary environmental factors that do affect both firms, in general, Patten (2008). There are some similarities in the marketing mix employed by the two companies such as price.


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