Marketing Audit of Starbucks in UK

This marketing audit provides a detailed analysis of Starbucks' operations in the UK market. It covers the company's background, macro and micro analysis, competitive analysis, and strategic priorities. Despite facing challenges like Brexit and negative image, Starbucks remains active in technology and environmental concerns. The audit suggests reducing pricing and offering healthy options for long-term sustainability.

MARKETING AUDIT OF STARBUCKS IN UK

Executive summary
Starbucks is a well-known coffee chain of America that started its operations in the year 1998
and from then it has been recording good growth within the nation. It has a presence of more
than 800 stores in UK and is regarded as second most popular coffee chain after costa coffee.
The operations in UK have been quite successful one but the recent brexit issue has reduced sales
in its stores. It further faced some taxation and gun policy issue that created a negative image.
Nonetheless, it is quite active in the area of technology as well as environmental concerns which
gives the company an edge over the competitors. But the high priced offering is posing a threat
for the company followed by the presence of Non-specialist shops and those who offer low
priced coffee than Starbucks. In this regard, the company is requited to reduce its pricing so as to
suit the needs of consumers and also offer healthy offering to them so as to maintain its future
sustainability in the long run.

Table of Contents
Introduction to the audit..............................................................................................................................4
Company/ brand background of Starbucks in UK.......................................................................................4
Macro analysis of Starbucks in UK through pestle analysis........................................................................5
Micro analysis of Starbucks.........................................................................................................................7
Competitive analysis for reviewing Starbucks two closest competitors.......................................................9
SWOT analysis of Starbucks.......................................................................................................................9
Conclude with the strategic priorities for the coming year, based on your analysis of the current situation
................................................................................................................................................................... 11
References.................................................................................................................................................12

Introduction to the audit
Marketing audit can be defined as the comprehensive interpretation of marketing
environment of business at internal and external level so as to analyze the problem areas and
opportunities for enhancing overall performance of the company (Sisson and et.al., 2017). This
helps any company in finding out about how well the marketing manager is carrying out the
activities and whether it is adding to overall performance of the company or not (Voigt, Buliga,
and Michl, 2017). The present audit has been carried out on Starbucks company so as to analyze
its operations within UK market. This will done by discussing the UK operations of the company
in detail followed by carrying out macro/micro and Swot analysis. Competitor analysis will also
be done with respect to two rival firms being costa coffee and café Nero. The report will then be
concluded with strategic priorities for the upcoming year on the basis of analysis carried out in
entire report.
Company/ brand background of Starbucks in UK
Starbucks is an American company as well as coffee house chain that started its UK
operation in the year 1998 by acquiring 65 Seattle coffee stores in the country. This was as the
two firms shared common culture and focused on great commitment in terms of offering
customized coffee as well as showing mutual respect to individuals and the environment (Snell
and et.al., 2017). UK is one of the most important European, Middle East and African (EMEA)
market for the company and it will continue to grow as per the needs and requirements of
consumers. Its working is based on the mission to inspire as well as nurture the overall spirit of
human beings. The firm further believes in serving the best possible coffee to the consumers and
goal is to serve it by adhering with high quality standards as well as utilizing ethical practices.
Other than serving coffee the company in UK further offers teas, pastries as well as other treats
that are there to please the taste buds (Harrington and et.al., 2017). The company keeps on
innovating with its products and it recently launched almond milk in the nation after its huge
success in US.
Market position of company in UK market stands out to be second which is after Costa
coffee. This clearly showcase that Starbucks in UK had been quite successful in its operations
but in the year 2017 it experienced economic as well as geopolitical slowdown that impacted its

sales as well as economic growth. It was all on account of the impact of Brexit as well as security
concerns that led to overall weakening of consumer confidence. This has led to a fall in pretax
profit 61 percent which accounts to 13.4 million pound (Starbucks says Brexit vote hit UK
profits, 2017). Still its overall progress will continue to take place which will lead to building of
a leaner and more efficient business. The company in this regard has improved its investment in
providing light food options such as seasonal fresh fruits, salads as wraps thereby satisfying the
needs and requirements of health conscious consumers as well. The stores within UK has been
designed to be cozy as well as intimate so as to provide personal space to people so that it can be
used by them. A well-furnished area in form of sofas, coffee tables, bar stools as well as meeting
room table has been kept thereby ensuring that Starbucks had something for everyone (Austin
and Wilson, 2017). The ones who want to enjoy a peace and away from home environment can
relax on arm chair and read a book while those looking for enjoyment with friends can do so by
huddling on the sofa with a cup of coffee, soft lights as well as background music so as to make
the experience a compete one.
Macro analysis of Starbucks in UK through pestle analysis
The present section is about carrying macro environmental analysis of Starbucks coffee chain
within United Kingdom. This has been done by making use of Pestle analysis in order to track
the overall environment in which the company is acting and how it can affect its overall
operations.
Political – UK political environment is stable enough to aid in proper operations of Starbucks but
on negative note, the Brexit vote has impacted the overall profitability of Starbucks within UK
which has resulted in fewer shoppers who are visiting high street where Starbucks stores are
usually present. It has further been found that the sales of stores that opened for more than a year
has dropped by 1 percent (Wood, 2017). In the same way, there was also a presence of Skip
Starbucks Saturday that was initiated on account of gun policy of the company where it allowed
consumers to carry loaded weapons into the stores. The overall performance can further be
impacted by the type of political relations UK maintains with Brazil so as to get access to coffee
beans. As of now, things are friendly between UK and coffee producing nation but coming future
is not known to anyone which may impact the overall operations of Starbucks.

Economic – in the economic front, UK tax rates has affected its overall tax paying system as it
was made to scrap its complex tax structures and pay corporation tax in 2015 as it did for its first
14 years within the UK market. It thus became of poster child in 2012 for avoiding the corporate
tax after the emergence of its details related to meager tax contribution (Davies, 2015). It has still
been criticism by the officials on account of not maintaining transparency that makes it difficult
to find out if it is paying a fair amount of taxes on its Frappuccino’s and espressos or not. The
increasing prices of raw materials further put an impact on the company. For example, in 2016
Starbucks increased the price of some products by around 30 cents so as to offset the rise in
coffee cost.

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