Assignment on Principles of Marketing Management

Principles of Marketing
Management

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.......................................................5
Macro analysis of Starbucks in UK through pestle analysis .......................................6
Micro analysis of Starbucks........................................................................................ 8
Competitive analysis for reviewing Starbucks closest competitors............................9
SWOT analysis of Starbucks..................................................................................... 10
Conclude with the strategic priorities for the coming year, based on analysis of the
current situation....................................................................................................... 10
REFERENCES............................................................................................................. 11
ONLINE..................................................................................................................... 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