Sarto's Gourmet Pasta Financial Review: A Pathway to Success

The provided assignment content is about Sarto's Gourmet Pasta's marketing plan, which aims to achieve a double-digit growth rate and break even at $45,000 per month. The company must gather more budget for developing its marketing strategies and products to achieve a sustainable competition advantage. The report highlights the importance of a marketing audit in understanding the organization's strengths, weaknesses, opportunities, and threats, and provides recommendations for measuring marketing productivity.

Conduct a Marketing
Audit and Report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1. EXTERNAL AUDIT...................................................................................................................3
a) External macro-environmental factors....................................................................................3
b) External micro-environmental factors.....................................................................................4
2. INTERNAL AUDIT....................................................................................................................4
a) Identifying criteria...................................................................................................................4
b) Organisation............................................................................................................................5
c) Marketing systems...................................................................................................................6
d) Marketing productivity............................................................................................................6
3. MARKETING AUDIT................................................................................................................6
Situational analysis......................................................................................................................7
Marketing strategy.......................................................................................................................7
Financials, budgets and forecasts.................................................................................................8
Control.........................................................................................................................................8
CONCLUSION ...............................................................................................................................8
RECOMMENDATIONS.................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Sarto's Gourmet Pasta is a restaurant that operates in Graceville, Australia. This report
shall provide information regarding external and internal audit which are conducted for
developing better understanding of functioning atmosphere of the company. A marketing audit is
also performed and reported in this assessment for deeper understanding of company's
operations.
1. EXTERNAL AUDIT
a) External macro-environmental factors
The external business environment factors which influence functioning of Sarto's
Gourmet Pasta are evaluated as follows: Economic factors: The restaurant has been functioning well currently but certain
decreases in interests rates have increased profits of the company. People have gathered
more disposable income and this has led them to explore more opportunities in spending
this income (Abshire, 2014). Demographic factors: Steady growth of this restaurant depicts that there is continuous
demands of products and services. A large number of families have been contributing
their household income to get their specific needs fulfilled by Sarto's. 7% growth rate has
been witnessed for this restaurant in region. Mostly young individuals from the age group
25-50 have shown interest in eating at such restaurants. This depicts Sarto's can increase
its customer shares by targeting these customers. Technological factors: Technologically advanced equipment can be implemented for
better delivery of products and services. This feature can be utilised by Sarto's restaurant
for attracting customers. Internet facilitation has enabled companies to market their
products all over the place without any extra expenditure (Ayala and et. al., 2016). This
factor has a positive influence on the functioning of restaurant.
 Political/legal factors: Business activities of Sarto's Gourment Pasta restaurant are
completely aligned with political actions and government strategies. Current focus of
legislative party is to develop work/life balance which has influenced the employee
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working structure of the company. It has helped in enhancing employee satisfaction
(Banterle and et. al., 2014).
b) External micro-environmental factors
Sarto's internal business environment is made up of certain micro factors which have
effective influence on the operations and functions of the company. These are explained as
follows: Market characteristics: Sarto's Gourmet Pasta is an emerging brand. The strategies and
decisions which are developed by the company are completely in accordance with market
characteristics of Graceville. There are various attributes which are considered in this
category which include the basic profile of consumers that are purchasing or demanding
food items from Sarto's. Current functioning of the company depicts that it has an
increasing share in target markets. Customer needs: The aim to provide exotic pasta experience to consumers shall help
Sarto's in developing effective strategies and meet customer requirements and needs.
Since, new trends and better competitor strategies keep on replacing the current demands
of customers; Sarto's Gourmet Pasta has to develop plans for meeting set aim.
 Competitor factors: Despite of smooth functioning in the local markets till date, there is a
growing threat from competitors across Graceville. Henceforth, it is essential for Sarto's
to develop and evolve its products and services constantly. This shall help in maintaining
existing market share and also attract potential customers (Baumgarth, Kaluza and
Lohrisch, 2016).
2. INTERNAL AUDIT
a) Identifying criteria
The company Ready-Made marketing has utilised internal sources of data which include
finance reports, sales figures and certain other reports for getting information regarding Sarto's
business functioning. It has been evaluated that the company has not accomplished any
objectives which were led down for future growth. Internal marketing audit has been performed
on the basis of primary research for getting information (Boelsen-Robinson, Backholer and
Peeters, 2015). Entire supply chain management and logistics data has been gathered through
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these sources. Any marketing strategy can be developed only when appropriate information has
been gathered and interpreted correctly.
Criteria used by Ready-made marketing company is internal informative sources which
will depict the basic operations of Sarto's Gourmet Pasta and its relevance in the current markets.
The reliability of these sources is more as compared to the information collected from external
sources. Organisation benefits lie only when authentic information is gained and interpreted
wisely (Dao Quang, 2016). The supply chain data depicts that restaurant gains its raw materials
from local farmers and industries. Moreover, information from logistics records and reports
demonstrates the efficiency level of Sarto's when it comes to distribution and collection of goods.
Marketing environment audit: The business environment is composed of two types of factors
i.e. internal and external. These include political, economical, social, legal, technological and
environmental factors as the external factors while employees, suppliers and shareholders as the
source of internal factors. The level of competition and the suppliers or distributors that are
currently in touch with the company also affect the marketing strategies and other business
operations. The changes or influences of these factors brings in a lot of changes in the
governance of business.
Marketing Strategy audit: Marketing strategy audit is based on the marketing objectives and the
strategy that has to be deployed for meeting these objectives. Following are the objectives which
have been defined by the company as follows:
 To develop better customer share with at least $45, 000 as the minimum criteria for
obtaining sales.
The internal marketing audit is performed using the SWOT tool which helps in determining the
strengths, weaknesses, opportunities and threats for Sarto's Gourmet Pasta
Strengths:
 Market share is increasing continuously which is a very good position for the company.
 The company offers a wide range of products and excellent services to the customers. It has been fulfilling customer demands efficiently.
Weaknesses: The company has not acquired effective marketing skills for promoting its strategies and
brand name.
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Opportunities:
 The company should explore new opportunities related with business expansion for
enhancing the market share.
 New varieties of dishes and salads can be introduced for turning repeat purchasers into
brand loyal customers. Imbibing new technologies into the functioning for enhancing operations.
Threats:
 Increasing number of competitors is one of the greatest threat to the company.
 Sarto's Gourmet Pasta has to beware about the new entries and the entrepreneurial
ventures that are being initiated in the current operational markets.
b) Organisation
Sarto's Gourmet Pasta has consulted Ready-Made marketing company for conducting the
research and developing an efficient marketing plan. Whenever an organisation distributes or
outsources its internal or external functions, then there are two outcomes which are experienced:
 Increase in profitability and profit margins of the company.
 Little or more expenditure of organisation over maintaining outsourcing relations.
The internal interface of these two organisations is the owner of Sarto's Gourmet Pasta
i.e. Mario Sarto. Once, certain functions are outsourced, then possibilities of accomplishing
anticipated goals and objectives increases. This causes better decision making and sharing of
load from employees of the restaurant (Harris, 2013). It helps in increasing efficiency and the
restaurant owner will not have to develop a separate marketing department to conduct such
researches and planning.
Ready-Made marketing here plays the role of business process outsourcing firm which is
currently handling the marketing research and planning operation of Sarto's Gourmet Pasta. This
company's functional efficiency must be high so that future strategies and the products of
restaurant do not suffer any sort of negative impact. The organisation has to develop its
interfacing platform with at-most efficiency so that no further delay or inconvenience is caused
in dealing with customers. Ready made marketing has to develop a market research report which
will contain basic information about restaurant's current position in the market and its situation
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with certain measures and steps that will shall be helpful in gaining profits (Lipnická and Dado,
2013).
c) Marketing systems
Marketing information systems are initialised by a company to get well-informed
decisions on certain aspects of marketing. All the data or information that is gathered by
marketing research team has to be interpreted without committing errors. Hence, a separate
marketing system is formulated that will perform these operations smoothly. This process of
gathering and interpreting information is continuous as sources are completely linked to the
organisation (Nguyen, 2013). Planning and control activities are also implemented through this
system with a set of procedures which are regularly revised.
Sarto's Gourmet Pasta restaurant can get efficient information regarding its marketing
plans and researches if Ready-Made marketing team uses this marketing system. It helps in
presenting the set of information that is collected from various sources in an efficient manner.
Once all the information is collected, a plan is formulated according to analytical information
and this plan is then sequentially executed.
d) Marketing productivity
Every business strategy is implemented with an aim to get more profits or increase the
efficiency of employees. Marketing productivity in terms of profitability is the measure which
yields information regarding the profits which are gained by the company. Sarto's Gourmet Pasta
should implement its marketing strategies in such a way that productivity and profitability of
restaurant and its employees is increased (Nijssen and Frambach, 2013). It also helps in
understanding that the activities which are involved in implementing a strategy are effective
enough to save capital and utilise maximum of the profits.
Ready Made marketing company has to perform this function for Sarto's Gourmet Pasta.
Since, this company is going to perform marketing research it has to implement a system which
will help in developing marketing plan with great cost effectiveness and more profitability.
When actions are taken in a strategic way with minimum expenditure and increased profits then
the strategy is said to be marketing productivity.
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3. MARKETING AUDIT
Following marketing plan has been proposed by Ready-Made marketing for Sarto's
Gourmet Pasta.
Situational analysis
The situational analysis of the company has been conducted using SWOT tool which
depicts the following findings:
 Sarto's restaurant has strong relationship with suppliers which automatically assures that
raw materials and resources involved in developing the product are of good quality.
Moreover, it reduces the bargaining power of suppliers.
 Great amount of customer loyalty has been gained by the restaurant in short period of
time which is again beneficial for future strategies (Roseman, Mathe-Soulek and
Krawczyk, 2017).
 Brand equity of restaurant is quite less which weakens its strategic position in the market.
 Growing markets and increase in number of target customers is a great opportunity for
Sarto's to expand its business.
 Multiple revenue centres can be established by the restaurant owners for generating more
profits and managing the overhead expenses.
 The only threat Sarto's is facing is growing competition in local restaurant segments
which has given customers large number of choices.
 Threat of changing economy can affect the disposable income of consumers which
automatically decreases restaurant profits.
Marketing strategy
Sarto's Gourmet Pasta has less budget allocated for conducting its marketing program.
This has helped outsourcing organisation to develop a marketing plan which can work efficiently
without spending much money (Roy, 2016). It involves use of internet marketing strategies that
involves emails, local advertising and brochures or pamphlets which can be spread through
magazines. This will help in promoting the company in every aspect and also increase sales with
great speed.
Mission: Sarto's Gourmet has one mission to provide its customers with exquisite dining
experience through their dishes and servings.
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Marketing Objectives: To develop better customer share with at least $45, 000 as the minimum
criteria for obtaining sales. Moreover, the organisation aims to develop strategies which will help
in increasing growth by one store every year.
Target Marketing: The demographical segmentation of targeted markets has been focused on
families and people who prefer for take out options in restaurants. This target has helped in
developing marketing strategy which is more focused and efficient. Position is performed by
separating dishes or menu according to earnings of these families.
Marketing Mix: The marketing mix of Sarto's marketing plan is focused on four basic elements
that is price, promotion, distribution and customer service.
Product:
The product of the company is different varieties of pasta with regards to the preferences
of customers and the potential clients.
Price:
Prices introduced by the organisation are moderate i.e. not very high and not very low.
This should be the right strategy for bringing in effectiveness in the implementation because of
increasing competition. The company must keep strategic check over the pricing strategies
adapted by the competitors also.
Place:
The place is fixed that is products and services must be promoted in the local
communities and societies.
Promotion:
Social media marketing and digital marketing strategies should be used for promotion so
that every individual will be aware about the type of products and services that need to be used.
Marketing research: The marketing research that has been conducted for this plan is primary
research that is use of interview data that has been conducted by face to face interactions with
customer focus groups (How to Measure Marketing Productivity, 2017). While on the other
hand, secondary data research has been conducted through access of internal sources like reports
and financial statistics of the company.
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Financials, budgets and forecasts
Financial objectives: Sarto's Gourmet Pasta aims to develop by perceiving a growth rate in
terms of double digits.
Break-even Analysis: Since, the breaking point of the company is kept at $45,000 as the
minimum target for the organisation to reach every month which will ultimately help in
achieving set objectives.
Budgets and Forecasts: The company has allocated little budget and sales forecasts depicts that
within two years good amount of profit shall be achieved if minimum requirements are fulfilled.
Control
This marketing plan has to be evaluated and controlled effectively so that no more deflections
from objectives or aim is experienced.
CONCLUSION
This report helps in understanding the marketing audit and its importance for developing
a marketing plan for Sarto's Gourmet pasta.
RECOMMENDATIONS
The organisation must gather more budget for developing its marketing strategies and
products so that large customer share can be achieved with a sustainable competition advantage.
How to Measure Marketing Productivity. 2017
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REFERENCES
Books and Journals
Abshire, L., 2014. Restaurant Food Wastage at the National Level.
Ayala, G. X. and et. al., 2016. A restaurant-based intervention to promote sales of healthy
children’s menu items: the Kids’ Choice Restaurant Program cluster randomized
trial. BMC public health, 16(1), p.250.
Banterle, A. and et. al., 2014. Food SMEs face increasing competition in the EU market:
Marketing management capability is a tool for becoming a price
maker. Agribusiness, 30(2), pp.113-131.
Baumgarth, C., Kaluza, M. and Lohrisch, N., 2016. Brand Audit for Cultural Institutions (BAC):
A Validated and Holistic Brand Controlling Tool. International Journal of Arts
Management, 19(1), p.54.
Boelsen-Robinson, T., Backholer, K. and Peeters, A., 2015. Digital marketing of unhealthy foods
to Australian children and adolescents. Health promotion international, p.dav008.
Dao Quang, P., 2016. Restaurant offering innovation through service design.
Harris, D.N., 2013. Strategic Audit for the Lincoln Inn Family Restaurant and Bakery.
Lipnická, D. and Dado, J., 2013. Marketing audit and factors influencing its use in practice of
companies (from an expert point of view). Journal of Competitiveness, 5(4).
Nguyen, N. A. Q., 2013. MARKETING PLAN FOR EVENT MANAGEMENT COMPANY.
Nijssen, E. J. and Frambach, R.T., 2013. Creating customer value through strategic marketing
planning: A management approach. Springer Science & Business Media.
Roseman, M. G., Mathe-Soulek, K. and Krawczyk, M., 2017. The effect of psychological
empowerment climate on restaurant food safety, food quality, and financial
performance. Journal of Human Resources in Hospitality & Tourism, 16(2), pp.137-152.
Roy, T., 2016. Marketing Audit and Auditing: Diagnosis through Intervention. Global Journal of
Enterprise Information System, 8(1), pp.54-58.
Online
How to Measure Marketing Productivity. 2017. [Online]. Available
Through:<http://smallbusiness.chron.com/measure-marketing-productivity-24428.html>.
[Accessed on 28th February, 2017].
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