Relatinship Mark

References

As with all of your assignments you should seek to make effective use all available resources to help

develop the essay. These resources include those available via Moodle, including resources and

tutor support from the Centre for Academic Success - see link http://library.bcu.ac.uk/learner/

All sources should be cited and referenced using the Harvard Referencing system. The principles of

the Harvard Referencing system are detailed in the leaflets available in the library.

Extensions: There are no extensions granted on the module. Any claim for extenuating

circumstances must be made through the official University channel via your Programme Manager.

More information could be found in: https://icity.bcu.ac.uk/StudentServices/Complaints-and-

Appeals

Marking Criteria

The following marking criteria applies specifically to this module’s assessment only

70%+ Good or excellent answers would normally be based upon the effective use of course

frameworks, etc. to develop evidence from which to draw insightful conclusions. An excellent and

clear set of conclusions based upon, and making full use of the case and wider research. Using

evidence to justify a set of clear and creative conclusions that will then underpin their broad

strategic approach for Morrisons.

60-69% Similar elements as the preceding range, but at a lower level including: a fair analysis of

Morrisons position, using all of the materials provided by the case; demonstration of a clear

understanding of why they have chosen specific issues as being the strategically most important;

highlevel application of these concepts and a sophisticated interpretation of these concepts; leading

to the development of conclusions which enable them to demonstrate critical strategic thinking in

their arguments and conclusions.

50-59% The student will have effectively used many of the appropriate frameworks already

mentioned and will have clearly demonstrated an understanding of Morrisons situation, and what

outcomes they expect from the use of these concepts.

Appendix A

MORRISONS CASE STUDY

Introduction

Morrisons was founded over 100 years ago, as a stall in Bradford market. It has been a family

business for most of the time since. Under Sir Ken Morrison’s 55-year leadership, until he retired in

2008, the company grew steadily ‘from market stall to superstore.’ With over 450 stores, it is now

the UK’s fourth largest food retailer.

Differentiating the business

Amongst the large supermarkets, several features make Morrisons stand out and differentiate it

from competitors. By promoting its ‘fresh approach’ and commitment to sustainability, customers

become aware of the freshness of its food and its concern for the environment. Morrisons holds

great control of its supply chain known as the ‘field to fork’ approach. As a result it possesses more

control over the quality of its produce.

This helps create a competitive advantage. Fresh produce is sourced locally wherever possible,

which is then processed in Morrisons’ own manufacturing facilities. Fresh produce is delivered into

its own temperature-controlled warehouses and packing plants in the UK and abroad. Produce is

then carefully transported to stores nationwide. This vertical integration allows Morrisons to support

local producers and UK farmers.

Achieving competitive advantage

Morrisons employs more specialist butchers, fishmongers and bakers than any of the other UK

leading supermarkets. Morrisons’ fresh and innovative business focus is reflected in its approach to

recruitment. In 2010 it employed more than 131,000 people who served over 11 million customers

each week. It offers career opportunities in a variety of areas including logistics, manufacturing,

specialist trades, IT, marketing and finance.

Morrisons prides itself on its dedicated approach to career advancements through its ‘shop floor to

top floor’ approach. Morrisons is passionate about creating careers for fresh new talent. This is

reflected in its aim to attract 1,000 new young people to join the team next year. Morrisons won the

Employer of the Year Award at the 2011 Grocer Gold Awards. This demonstrates the focus it places

on colleagues and their ability to deliver fresh produce and exceptional customer service.

This case study shows how Morrisons uses customer service to differentiate itself from its

competitors, motivate its colleagues and help the business to grow.

Customer service

High quality customer service is a key way in which a business can differentiate itself from another.

Morrisons’ customer service strategy is simple: to provide the best customer service by developing

the best-trained and motivated colleagues within an environment where the top large supermarkets

compete for market share. Its specialist in-store butchers, bakers and fishmongers work on

Morrisons’ Market Street to ensure customers get a personalised service from a trained

professional. By building high levels of customer satisfaction, Morrisons creates a significant

competitive advantage.

Delivering customer satisfaction

To provide the best customer service, a business needs to know what its customers expect of it and

then meet these expectations. Customer satisfaction is vital for keeping customers happy and loyal

to the business. It can often be much more costeffective to retain customers than to attract new

ones. Morrisons achieves this by offering products and services, through its Market Street, that are

not offered by its competitors therefore maximising customer retention.

Morrisons has invested heavily in training and developing colleagues to generate its high quality

customer service and has attracted more customers this past year than ever before. This shows that

Morrisons’ customers are becoming more satisfied with its focus on personal service, efficiency,

reliability, quality and freshness. Quality customer service adds value as it improves customers’

experience, making them feel valued and therefore more likely to become a repeat customer.

Customers expect to be valued and to be assisted by helpful and friendly colleagues. They need clear

information and good aftersales service. They also want their queries dealt with competently,

quickly and accurately. They seek value for money and high levels of colleague knowledge and

expertise.

Elements of customer service

Four key components of customer service are:

• Information - this includes information given directly to customers by colleagues and details given

on published material such as websites, packaging, catalogues and leaflets. In-store, directions and

signs to products allow customers to navigate through the store more effectively.

• Specialist attention - advice must be accurate, available when and where customers need it and

from colleagues who know what they are talking about. At Morrisons, this includes expertly trained

specialists such as butchers and fishmongers who advise on the best meat or fish for different menus

as well as how to cook it appropriately.

• After-sales service - this refers to all areas of customer involvement once the sale has taken place.

It includes packaging, guarantees, complaints, refunds and exchanges. At Morrisons, helpful and

friendly colleagues deliver an exceptional checkout experience to help retain customers

• Convenience - this includes the location of stores, ease of access and car parking, availability of

public transport and convenient ways to pay, such as cash, card and ‘chip and pin’ facilities. At

Morrisons, 5% of all car parking is dedicated to blue badge holders to enhance accessibility for those

with recognised disabilities.

Measuring customer service

Morrisons measure its customer service in a number of ways. Quantitative measurement often takes

place through exit surveys in every store each month. Qualitative measurement often takes place

through methods such as mystery shops, which allows the gathering of customer opinions and

comments.

The ‘Morrisons miles’ card rewards regular petrol station users who collect points from fuel

purchases with shopping vouchers to spend in-store. This helps to retain loyal customers by

rewarding them regularly for repeat purchases.

Morrisons focuses on customer service through an initiative called ‘HOT’ which stands for ‘Hello,

Offer, Thank-you’. The focus of ‘HOT’ aims to bring Morrisons’ colleagues and customers closer

together with its principle aim to: ‘Establish rewarding experiences which create an emotional

relationship between the customer and the store.’

Encouraging customer-focused behaviour

The behaviour of Morrisons' colleagues has a direct influence on the level of customer service

received in store. To ensure that colleagues perform to the best of their ability, Morrisons offers

extensive training and development opportunities and recently won the title of ‘Employer of the

Year’ at the 2011 Oracle Retail Week Awards for its dedication to colleague skills development and

training. Training is the process that directly benefits the business. Development benefits individuals

through enhancing their skills. Morrisons’ philosophy of ‘learn while you earn’ means that existing

colleagues and new recruits can gain qualifications and experience whilst working. This benefits both

themselves and the business.

The 'one-team' approach

Everyone at Morrisons from store colleagues through to head office and throughout the supply

chain are part of ‘one-team’. This approach prevents inter-departmental competition at the expense

of customers' experience. Instead, everybody works together to help provide the best service

possible. Rewards for team members range from colleague discounts and long service awards to

profit sharing.

Everyone has the opportunity to share in the success of the business over the year with a lump sum

payment related to earnings.

The benefits of customer service

Morrisons focuses on developing colleagues in order to satisfy customers in the best way possible.

Colleagues are encouraged to engage with customers and help them to feel that they are a part of

the Morrisons’ family. This helps create loyal customers by offering the best fresh produce and

excellent customer service. Colleagues are trained to help play a key role in delivering good

customer service. Colleagues are therefore an integral part of the customer service offering and

their training helps them to deliver this. The high levels of customer service at Morrisons leads to

satisfied customers and repeat trade, with the number of customers visiting the store up from 10.5

million to 11 million per week.

Supporting business objectives

It can be seen that good customer service feeds directly into strategies for improved business

performance and business growth. The emphasis placed on customer service also helps with

colleague motivation. When colleagues receive positive customer feedback, this makes them proud

which in turn motivates them to deliver even better customer service. Praise from customers fed

back to colleagues is one of the key positive outcomes of delivering quality customer service for any

colleague at Morrisons.

Making a difference

Morrisons has launched the latest attack in the escalating supermarket price war with its new

“Match & More” card. The scheme aims to match the prices of the German discount chains Aldi and

Lidl, which have soared in popularity in recent years, enjoying double-digit growth in sales, while the

“big four” – Tesco, Asda, Sainsbury’s and Morrisons – have continued to lose market share.

Morrisons was hit particularly hard this year, with sales falling by 3.8% in the 12 weeks Sept-Dec’14.

To combat this, its loyalty card has been designed to encourage customers to shop more frequently

as they try to build up their points to earn a £5 money-off voucher. The card also enables the

company to gather more customer data to help it target shoppers with loyalty offers.

Morrisons is the first grocer to include Aldi and Lidl in a price-matching offer. Andrew Stevens of

Verdict, a retail consultancy, said that Morrisons’ decision to match the discount retailers’ prices was

“incredibly bold”.

“Whether shoppers will be enamoured with the scheme remains to be seen; with a slow roll-out

initially and such ubiquitous price-based marketing out there already, it may take some time for

Morrisons to see decent levels of participation,” he said.

How does the card work?

Shoppers must first register online to start earning points on the loyalty card. You will have to fill in

an online form, giving details such as your date of birth, how many people there are in your

household and your postcode. Your card will then be posted to you.

When you have done your shopping, the card will be swiped at the till and the cost of your goods

compared with products at Tesco, Asda, Sainsbury’s, Aldi and Lidl. If they would have been cheaper

elsewhere, points are added to your Match & More card, with 10 points equal to 1p. So, if the shop

would have been £1 cheaper elsewhere, you will get 1,000 points.

When you reach 5,000 points – the equivalent of £5 – you will be handed a £5 money-off voucher to

use the next time you shop.

The “more” element of the card gives shoppers additional points on “hundreds of products in store

and online”, as well as 10 points for every litre of fuel bought from Morrisons petrol stations.

Is it any good?

If you don’t normally shop at Morrisons, there may be little point taking out a card. With only 500

Morrisons stores across Britain, compared with about 3,000 Tesco stores, for instance, Morrisons

isn’t a local supermarket for most people, so travelling farther to earn some points is hardly

worthwhile.

Also, products in the chain’s 129 “M Local” convenience stores will not be eligible for price-

matching. Price-matching is available if you shop at Morrisons online, however . Shoppers also have

to spend a minimum of £15 to qualify for price-matching. If you do smaller, more frequent shops,

this could be a drawback.

One big bonus of the card is that it price-matches against branded and own-brand goods, as well as

items on promotional offer. This differs from Sainsbury’s pricematch offer, which doesn’t include

comparisons against own-brand goods.

Customers will also be able to use their £5 money-off voucher for up to 56 weeks after it is issued.

Vouchers from Tesco, Sainsbury’s, Asda and Ocado expire much sooner.

Will my basket of goods be cheaper at Morrisons?

Asda is the cheapest supermarket, according to an analysis of 89 branded products by Which? This

suggests that price-matching at Morrisons on certain goods will result in points being accrued when

equivalent products at Sainsbury’s and Asda were cheaper.

Other price match promises

• Asda - If Asda isn’t 10% cheaper on your comparable grocery shop, it will give you the difference.

Price matches against Morrisons, Sainsbury’s, Tesco and Waitrose

• Tesco - If grocery shopping would have been cheaper elsewhere, Tesco will give you a voucher for

the difference, up to £10. Matches against Asda, Morrisons and Sainsbury’s

• Sainsbury’s - Matches only against Asda. If you could have paid less at Asda, you receive a coupon

for the difference. You need to buy a least 10 different products to qualify.

• Ocado - If shop isn’t cheaper than Tesco.com, Ocado will give you a voucher for the difference, up

to £10

Conclusion

Morrisons aims to be the best supermarket for fresh foods to give it an advantage over its

competitors. This is achieved through its unique ‘field to fork’ integrated approach which allows it to

control its own supply chain to ensure that food is fresh and of the highest quality.

With the bold move to launch the new loyalty card, Morrisons needs your help to ensure the scheme

is fully integrated into their CRM strategy.

Case Study Questions

You are required to answer BOTH of the following questions. Each question carries equal marks.

Following the recent launch of the “Match and More” card, you have been appointed as the

Marketing Manager of Morrisons to ensure their new loyalty card is fully integrated as part of their

CRM strategy. Making use of the information from the Morrisons case study as well as your further

research, you are required to address the following two questions as in a single report to senior

management.

Question One

Using the CRM Buttle Value Chain Model, produce a report to show how the various stages in the

model are incorporated and used to design the “Match and More” card so as to effectively retain

customers.

Question Two

Identify opportunities for using sales force automation to enhance the ‘Match and More’ loyalty

programme offered at Morrisons.

Your answers should provide evidence of wider academic reading and this must be appropriately

referenced using the Harvard Referencing style.