Starbucks Marketing Audit Report: Macro, Micro, and SWOT Analysis

This marketing audit report analyzes Starbucks, a global coffeehouse company, examining its background, mission, products, and organizational structure. It delves into macro-environmental factors using PESTLE analysis, considering political, economic, social, technological, legal, and environmental influences. The report also explores the micro-environment, focusing on internal factors such as procurement, human resources, and organizational structure. Furthermore, it includes a competitive analysis and a SWOT analysis to assess Starbucks' strengths, weaknesses, opportunities, and threats. The report concludes with an overview of Starbucks' financial performance and strategic initiatives.

Marketing Audit Report
Starbucks

Executive Summary
This report is specially based on the marketing audit report of Starbucks organisation that
is situated at USA. It provides coffee and other products to its potential customers. It will contain
this organisation's background in detailed form and describes its mission, products,
organisational structure and turnover. Further, it will describe the macro and micro
environmental analysis with different factors that may impacts to this organisation. This report
will also discuss about this organisation's competitive environment and reviewing its
competitor's strategies. It describes the internal impact with using the model of SWOT analysis.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Organisational background.........................................................................................................1
Macro analysis............................................................................................................................2
Micro or internal analysis............................................................................................................6
competitive analysis of Starbucks...............................................................................................8
SWOT Analysis for Starbucks....................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing audit refers as a systematic, independent and comprehensive examination of
an organisational marketing activities. It is creates for evaluating all assets and marketing
condition that use for expansion of business (Akisik and Gal, 2017). Marketing audit cover all
related informations of a company. This report is based on the Starbucks that is situated at the
Seattle, Washington, United State. It provides baked goods, coffee beverages etc. for the
worldwide area. In this report, it will describe a detailed information about the company's
background. Further, it will discuss about the macro and micro analysis and competitive analysis
with using strategic groups and perceptual mappings. Lastly, it will consider SWOT
investigation for the Starbucks.
MAIN BODY
Organisational background.
Starbucks company is established in 1971 by Gordon Bowker, Jerry Baldwin and Zev
Siegal at the historic pike place market in Seattle. These founders are coming from the academia
and they all like tea and coffee. Another entrepreneur name Alfred Peet was a main inspiration to
the founders of the company Starbucks. In the early 1980s, management team of this
organisation opened four branches in Settle that stood out from its competitors. Its major
competitors have top quality fresh roasted tea and coffee beans. Owner of the company
privileged to connect with several consumers every day continuously in more than 80 markets.
Mission of Starbucks – To nurture and inspire the human spirit with one cup, one person and
one neighbourhood at a particular time frame.
Branches or stores – Its major stores are a neighbourhood gathering destination for meet out
with relatives, family and friends (Boiral and et.al., 2018). All stores of Starbucks also use for
office meetings and events. Its potential customers enjoy an inviting atmosphere, its basic quality
service in more than 28100 stores.
Products – This organisation provides several types of cold and hot drinks, micro grounded
instant coffee that is known as VIA, whole bean coffee, Espresso, Caffe latte. In tea products, it
offers loose and full leaf teas and Teavana tea products. In Merchandise, it provides accessories
& mugs, gifts & packaged goods, verismo system by Starbucks.
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Fresh food – Salads, Sandwiches, Porridge, Yogurt parfaits, Baked pastries, Protein boxes &
bowls and several types of fruit cups.
This organisation focuses on the major four sectors that are its commitment and measure
its impacts. It is describes as follows:
 Management create and operates the world's largest business in green retail, make
inspiration for others and reduce its environmental footprint.
 It makes strengthening to communities with introducing all other firms and creating an
impact on problems that can matter for the company (Elad, 2016).
 Its production department make coffee by using world's first sustainable agricultural
goods and make improvement in the lives of around one million persons in coffee
communities across the globe.
 It also investing different pathways and development by using its main plan to train,
educate to its potential employees and increase job opportunities.
Its headquarter is situated at 2401 Utah Avenue South, Seattle, Washington, US. It chief
executive officer and president is Kevin Johnson, chairman is Myron E. Ullman and vice
chairman is Mellody Hobson. Management made an audit report in 2017 and according to this
report, its total revenue 23 billion US dollars, operating income 5 billion US dollars, net income
3 billion US dollars and total assets is 15 billion US dollars. In this organisation, there are more
than 240000 employees are working in different countries across the world.
Macro analysis
Macro environmental factors may affects to the Starbucks because in its business
activities, it operates globally (Hurley, 2017). Its management team has already made some steps
to jump on the emerging revolution by deal with the Apple and introduce its discounted coupons
in the application utilize in the iPhones. This strategy has been completed by the cross selling
and co branding of the Starbucks.
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In this context, the impact of external environmental factors is defines according to
PESTLE analysis, that are as below:
FACTORS IMPACT TO ORGANISATION
Political Factors Such factors globally have a deep impact on
the organisations and on their strategies, plans,
earning abilities and profitability. Politics can
affects different things from rates, values and
taxes to the company's environment. The
political condition of Starbucks is not better
than it should be (Jochim, Ottenbacher and
Harrington, 2015). Its management team is
being blamed for the violation of hour and
wage laws. The other political acts and laws
that its management faces is the requirement to
adhere to the regulations in different countries
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Illustration 1: PESTLE analysis of Starbucks
(Source - PESTLE Analysis, 2018)

from where it sources its inputs. There are
management also face many problems from
most governments across the globe and it
ensures for the organisational improving
infrastructure. It must creates the opportunity
for Starbucks to access more suppliers or
markets.
Economical Factors Its management department also affects from
several economical elements such as inflation
rate, income of customers and many more.
There are major issue for price demand curve
for the utilization of coffee beans, it shows
increasing demand of coffee (Ojasoo, 2016).
So for this reason its management team must
careful for looking up at the pricing plan and
consumption rate in different market segment.
However, the bureaucratic red tape persists in
several companies. There is a critical situation
that rapid fluctuation in different nation and
economic turmoil.
Social Factors This factor has a deep impact on the production
capability and profitability of an organisation.
In this factor, there are changing demographics
can influence to the Starbucks business
activities. In this context, socio cultural factors
includes consumer needs & preferences,
changing work patterns, life style & values of
population, level of education, changing family
patterns in worldwide and many more. So for
this reason, Starbucks has an opportunity to
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expand its revenue which is based on the
demand of specific coffee products and it is
increase due to growing culture of coffee and
middle class family across the world.
Technological Factors In this factor, Starbucks has been developed a
better position to enjoy all benefits related to
technology expansion (Quesenberry, 2018). Its
management team made a partnership with the
Apple group so that it has a profitable situation
because several person use Apple's products
and services. This organisation also has
additional opportunity to improve its supple
chain efficiency based on the technological
coffee farmers. In this organisation, there are
several techniques and element of technology
are being used to reduction of overall expenses
and labour cost with time saving.
Legal Factors In such aspect, it consists licensing regulations
and laws that relates to the industry or firm.
This external factor is a threat because it makes
business expansion more difficult for
Starbucks. In this context, Starbucks has an
advantage for improvement in its performance
by satisfying outputs safety acts and laws for
several ingredients from genetically modified
organisms. Its management department must
ensure for regulations of different countries
followed by it (Reinhard, 2015). It also
contains safety & health consideration,
consumer law, international human right acts,
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fluctuation in trade laws and different
governmental policies that may influence to the
organisational activities of Starbucks.
Environmental Factors There are many elements about the business
practices of Starbucks from the international
advocacy groups and activists themselves. In
its stores or branches, management is try to use
the fuel efficient appliances that will minimise
the consumption of natural gas (Shank and
Lyberger, 2014). This organisation has been
partner of the environmental defence fund and
multinational conservation and accompanying
with them. Company must follow the corporate
social responsibilities for growth and
development of society.
Micro or internal analysis.
For the internal analysis of Starbucks group, its micro environmental concerns with all
market segments in which this company runs and operates its business. All internal factors are
controllable and have direct effect on the success, performance and profitability of Starbucks. So
for this reason management should consider all factors such as preference and need of its
potential customers. It also focuses on the environmental conditions, changing life style of
population and health & safety issue that measure by its management (Sherman and Young,
2018). Its main product is coffee that is an American and United Kingdom's tradition and the
organisation coming up with new coffee shops and trends. According to the National Coffee
Association it may estimates that coffee market of US will exceed by $30 billion. It must
influence on the organisation and its internal environment. The Starbucks corporation has an
immense capability to produce vast products to fit in with their supportive strategies. It may
allow derived primarily from the superior consumer service operations. Its management
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department has traditionally relied on the preferences of customers and its main goal is to
promote the organisational experience in which the consumer may exposed to sensory stimuli. In
this context, there are certain internal factors that can have influence to the organisational
strategy and profitability. These factors are describes as follows:
 Procurement – The company must procures its special products and services from a
group dynamic strategic allies. Management department of this organisation is look
different improvements in its services and products continuously (Shin, 2014). In this
context, it may consists a series of processes and activities which are necessary for this
company to get several necessary products as well as service from the suppliers at the
low rate. It is must effect on the organisational internal environment.
 Human resource department – In this company, all employees and staff members get
better services for their health and safety issue. Employees must deliver their potential
abilities and improve their production capacity. So for this reason the management can
achieve their desired goals and objectives in competitive market.
 Organisational Structure – It is also influence on the business activities of an
organisation's and impact to the profitability of firm. In this context, it will depend on the
management planning that an organisation makes different strategies and it also
influences to its internal environment (Sikdar, 2017). So for this reason whole
management team must consider to its structure.
 Members and Employees – It can be says that all organisations are operates its business
activities with utilizing its employee's potential abilities in their business. Starbucks fully
use efficiency of its staff member and make high growth and turnover for the
organisation.
 Customers – Customers are the king of market. They can change the market trend by
their preference and impact to the organisational turnover. Starbucks also consider on
several things that is important to have a better relationship with their potential
consumers. So for this reason, the company can able to maintain the high quality services
and products (Sikka, 2018). Further, they are understands to be recognise of several
groups of people in their target market segment because they can convey in notes for
growth and development prospect.
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 Suppliers – An organisation also affected by its suppliers because those persons can
increase decrease their products that are purchases by the Starbucks (Wald, 2014). This
company would not be as successful as they are now because the management team must
consider its policies for its suppliers and diversity as they pride it.
competitive analysis of Starbucks
An organisation needs to formulate its business planning and strategies for its competitors
and customers. So for this reason each departmental manager must consider the plans and
strategies with its basic market plan. For analysis the competitive market, management makes
assumptions and objectives that must drive its competitors (Akisik and Gal, 2017). For all
companies, competitive analysis is the critical part and if a marketer may evaluate it than he or
she can establish the production system of its service and products. It may utilize for develop
strengthen of output of a company. In this context, management of the Starbucks use it for
understanding the strategies of its competitors and make more profits for the company.
Management of this company has refocuses on their attempt onto the market of middle class and
they also have planned for expand its business by using additional distribution channels that are
includes grocery, online stores and joint-venture. Management has a vision is to establish the
respected coffee retail brand globally and become a multinational company with guiding
principles and values so that their staff member would be feel proud. In this context, its major
competitors and their strategies are discusses as below:
1. Costa Coffee – It is the second greatest coffee house in the world coming after
Starbucks. It is also a greater exporter in Asia. Starbucks is the most delicious flavoured
and rich coffee and the greatest coffee in house chain across the globe (Boiral and et.al.,
2018). In this context, the Costa Coffee has been expands its business within more than
32 nations and established its 3200 stores in that countries. It has also moved up with its
coffee roaster to Essex and made an investment of 40 million pounds. According to its
management team, it acquires a 155 million pounds as its net income and 2 million
pounds as its revenues. It operates its business activities with a slogan that is “A coffee
for every Mile” with aim is to have reach to several coffee shops as possible. Its all other
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brands and products have a perfect combination of products to offer. So for this reason
management of Starbucks should aware its strategies and earn competitive advantages.
 Cafe Coffee Day - It is a multinational company and stands at the first position in
Arabica beans producing. Promoters of this company start its business in 1996 and now it
is coming in world's top most brand in coffee. This organisation is well known for its
vertically cutting down strategy for reduction the costs and it is from an owning Arabica
coffee plantations in different countries. This will make better furniture for its outlets and
also making several types of coffee machines. Management of this organisation, also
starts its business in Asia and then go for the other countries such as Nepal, Czech
Republic and Africa.
 Dunkin' Donuts – It is a donut producer organisation and also provides different types of
flavoured coffee. It opened in 1950 and prior focuses on the donuts that is food product.
It operates its business with 12000 restaurants in more than 36 countries. It also provides
its different services with sports marketing, point of purchases and special events. In its
product category, there are 66% of drinks, 7% of donuts and 27% of another food items.
It also introduced its new drink brand that is rich product line and better quality product.
These are the major competitors of the Starbucks company so that its management team
should consider its competitor's strategies and make its own plan for growth and development.
SWOT Analysis for Starbucks
STRENGTHS
Starbucks is the best coffee which has been
retailed in the nation which increases its
profitability constantly in market.
It's growth is wide which leads in higher
financial status and performance level too
WEAKNESSES
They lack in maintaining cost of product which
brings fluctuation in market price.
Promotion and publicity is not reviewed
effectively.
Starbucks lack in category of different items of
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