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Morrisons has sterling strategy

Posted in Advertising, Marketing March 16th, 2007 by Branwell Johnson

Is there a new turnaround king in town? Morrisons has just posted an impressive set of full year results and announced a new store programme, rebrand and advertising assault.

Can CEO Marc Bolland manage to emulate Stuart Rose of Marks & Spencer and restore a once much-loved homegrown retail brand to prominence?

Morrisons has been a wounded tiger since it tried to gobble up Safeway in March 2004. It underestimated the challenge of bringing together back end systems, distribution, two different company cultures and keeping customers loyal.

The tight grasp of Sir Ken Morrison, while giving continuity and an overview, could be seen as stifling initiative and the chain’s ability to respond nimbly to the demands of today’s more savvy shoppers. The ranks of those who are now concerned more with provenance, quality and environmental issues are growing. Sir Ken is to step down at the beginning of next year giving former Heineken executive Bolland a free run.

Morrisons is to change its logo and to introduce a new strapline positioning the chain as the “The food specialist for everyone.” No doubt recently appointed advertising agency Delaney Lund Knox Warren has devised some inventive ways of promoting this message to customers.

The strategy is to move Morrisons from being perceived as a budget food retailer to a company that cares about its produce, its suppliers, its customer service and how its food is packed and presented. As the strategy presentation says “Great food which is great value for everyone.”

Of course, there’s always someone ready to trip you up and before Morrisons could even broadcast its news, charity Christian Aid was lobbying outside the presentation venue. The charity was calling Morrisons to task for not being transparent about its carbon emissions.

Christian Aid said: “Morrisons has been selected as an example of inaccurate reporting in leading areas of business. Morrisons excludes the emissions from its transport fleet and supply chain.”

Morrisons was unfortunate that it was the first London Stock Exchange listed company to post results after Christian Aid announced it would start a campaign targeting perceived environment abusers.

But this just highlights how careful a company has to be if – as most are now doing from easyJet to M&S  – they begin to present themselves as aware of the growing public concern about climate change.

It will be a responsibility of Morrisons’ yet-to-be appointed marketing and communications director to make sure that the new company values and positioning are fully embedded in the company culture from board room to till. Otherwise it’s empty posturing and the shopper will soon spot the reality.

There is a reserve of goodwill for Morrisons, especially in its Northern strongholds. If it has found the right positioning and can develop the right way of putting this message across then it might have a chance of boosting its current 11 per cent share and giving its competitors a run for their money.