Assessment–2

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Assessment–2

Assessment Task 2

Chosen Organisation:

Starbucks

  • Explain how you will prepare for marketing audit for your chosen organisation
  • A Starbucks marketing Audit will look at six areas of the marketing function: strategy, organization, systems, productivity and specific functions or decision areas. In summary, the Marketing Audit will help to examine all the process within or out of an organization and enable to draw clear picture of the further development of a company.

    I will critically review Starbuck Coffee Company`s marketing environment, objectives, strategies and activities. To identify difficulties, problems and opportunities, produce a marketing strategy and make recommendations for improved operation.

  • Identify and explain the forms of a Marketing Audit you could use as part of your audit.
  • 1. Marketing Environment Audit

    Marketing Environment Audit consists of the external environment of company. It includes natural environment, economic environment, political environment, demographic environment, etc.

    2. Marketing Strategy Audit

    Marketing Strategy Audit is a critical analysis of marketing objectives and strategies. It finds out whether the company’s marketing objectives are clear and proper.

    3. Marketing Organization Audit

    Marketing Organization Audit is a systematic study of the company’s organizational resources like manpower, organization, structure, employee training and development, Research and Development facilities, motivation, communication and working relations.

    4. Marketing Systems Audit

    Marketing Systems Audit finds out the company’s ability of collecting and analyzing data. It looks for the company’s ability to plan and control the marketing activities.

    5. Marketing Productivity Audit

    Marketing Productivity Audit finds out the profitability of the company’s products. It examines the markets. It also examines the measure to improve cost-effectiveness.

  • Conduct external marketing audit on your chosen organisation using different external audit form. Document your findings.
  • The competition between competitors in Australia will be very competitive. This is because Australia already has their major Coffee shop chains which are regarded as the “Australia Starbucks”. The big competitors in the coffee shop industry are Gloria Jeans, The coffee club, and small local coffee houses and cafes.

    The buyers of Starbucks have the power of bargaining the prices down because there are so many other companies with the same or cheaper prices. The number of customers an important thing for Starbucks because more customers means more profit which can lead to better facilities which can then gain even more customers. There must be a good balance between price and quality. Starbucks is known to use the best quality coffee beans to make their coffee.

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    Assessment–2
    Last updated: Feb 2024

    Page 1

    to better facilities which can then gain even more customers. There must be a good balance between price and quality. Starbucks is known to use the best quality coffee beans to make their coffee.

    As a beverage retailer, Starbucks is threatened by many substitute beverages. For example, soft drinks, juices, sports drinks, tea and water. These beverages can substitute any beverage that Starbucks sells. However the main reason people buy coffee is because it will keep them awake because of the caffeine in the coffee. However, caffeine can be found and many other drinks such as coke and energy drinks. Caffeine pills could also be used.

    Suppliers of the coffee beans that Starbucks need have very high bargaining power. This is mainly because coffee beans are in very high demand at the moment. This high demand is due to the specific growth conditions that coffee beans require. This makes them grow in only some areas of the world. There have been complaints and protests about some coffee bean producers in Africa who have been mistreated by some large global companies. This has also raised the prices and bargaining powers of coffee bean suppliers.

    New entrants entering the global coffee shop industry is not threatening to Starbucks. This is because Starbucks is the top coffee shop in the industry and has spread to over 60 countries. Local coffee shops are being opened frequently but they do not have the promotional and publicized power that Starbucks has. The coffee house market is filled with many different companies so the customers have a wide range of choice. This is why the small companies can still survive but most people will still prefer the larger global companies, such as McDonald’s coffee.

    Political

    Australia is trying to develop their country and start new relationships with countries such as US, Europe and other Asian countries. The country is now on a stable political government and Asian countries will benefit from relationships. Australia has to accept agreements of Starbucks to use their coffee and purchase their coffee.

    Economic

    Local exchange rates in Australia will definitely affect the business of Starbucks because they fluctuate. Australia is the second biggest exporter of Coffee beans. Australia is starting to open to the world to WTO to invest in the country. Prices must adapt to the Australian market so they will change their price according to the number of sales. The average salaries of Australians in each area is different. The overall population is low due to the farms and villages. The buying power of the customers is quite weak but can still affect the Starbucks strategy and prices and of course the level of taxation is a very big factor on the prices and sales of Starbucks coffee.

    Social

    Australia used to be a very agricultural country. Everyone worked in farms and plantations. After opening to the world, Australia became more developed and businesses began to increase. The family patterns in Australia began to change and this can either increased the sales of businesses. Old people like to drink the traditional coffee. Now younger Australian people are buying branded coffees from commercial companies such as Gloria Jeans and Starbucks Cafe. Some families like to have breakfast together however some are too busy and buy coffee outside the house. It is then up to the preferences of the Australian people to decide if they are…

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    Assessment–2
    Last updated: Feb 2024

    Page 2

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