Direct and Interactive Marketing Essay Example | Topics and Well Written Essays - 2000 words

Direct and Interactive Marketing - Essay Example Nonetheless, there is need for a market analysis in a bid to ascertain whether launching an on-line shopping facility later in 2013 will be profitable. Situation analysis Situation analysis is a collection of strategic tools for understanding both the internal and external market of W. M. Morrison Supermarket. Situation analysis tools include 5C analysis, SWOT, and Porter’s five forces amongst others (Kotler, 2009). The following is a situation analysis for W. M. Morrison Supermarket on the basis of the aforementioned three tools. A. 5C Analysis The 5C analysis of W. M. Morrison Supermarket includes the company, competitors, customers, collaborators, and climate (Kotler, 2009). It is important to note that W. M. Morrison Supermarket is supermarket chain that operates with a specific environment hence influenced by the above mentioned aspects. Company: W. M. Morrison Supermarket is considered as the 4th largest supermarket chain within the UK markets. Since 2002, Morrison has b een able to deliver 3000 varieties of perishable food as well as 600 brands of readymade meals to approximately 250,000 customers thus attracting a turnover of approximately $400m annually. In addition, Morrison enjoys the experience of click and collect sector, which it has a command of approximately 10% in the Fresh Direct, a New York-based entity. The enterprise’s main objective is to increase its sales through adopting new technologies that include internet or on-line selling (Davis & Reilly, 2010). In addition, W. M. Morrison Supermarket has experienced poor performance over the last period with sales reducing by approximately 2.5%. Nonetheless, W. M. Morrison Supermarket continues to enjoy its position within the market. Competitors: Morrison continues to face competition from some of the market leaders within the UK’s grocery retailers such as Tesco, Asda, Waitrose, and Sainsburys amongst other competitors. Whereas Tesco is regarded as the market leader, Sainsbu rys has an 18% market share and covers 88% of the UK’s grocery market, Asda has 33% of the online market and has 3 dark stores, and Waitrose sells online though Ocado, which is the biggest online only grocer in the UK (Davis & Reilly, 2010). These retailers within the UK’s grocery continue to offer stiff competition to Morrison especially taking into consideration that whereas the formers have online shops, the latter is yet to launch some online shops. Customers: Morrison targets the UK’s grocery market, which is believed to one of the fastest growing areas in retail. Amazingly, the UK’s grocery market accounts for approximately ?5.6 billion of a ?156.8 billion market, which is 3.57% of the total UK’s market (Kotler, 2009). However, positive trends have indicated a likelihood that the UK’s grocery market is likely to double to approximately ?11 billion in the next five years. It is this market that Morrison supermarket chain is targeting. I n addition, it is important to note that online customers have continued to increase. Online sales indicated a growth rate of 17.8% in 2012 during the Christmas seasons, which is the fastest ever experienced. Collaborators: Morrison continues to operate within the industry and market through the help of collaborators such as the Fresh Direct, which is a New York-based enterprise for distributing fresh farm produce in New York (Jones, 2012). In addition, Morrison has already