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ILSC Business College



Business Report: Sartos Gourmet Pasta

June 2014

Prepared for: Mario Sarto

Prepared by:

ILSC Business College
213 Adelaide St 4000

Contact: Dott.ssa Caterina De Filippo



1. Introduction 3
1.1 Purpose 3
2. Situation Analysis 3
2.2 Macro Factors (PESTLE) -External Audit 3
2.3 Micro Factors - Internal Audit 6
3. Marketing Strategy 10
3.1 Objective and Scope 10
3.2 Audit Type 11
4. Methodology 12
4.1 The main characteristic of the marketing audit 12
4.2 Marketing Organisation Audit 13
4.3 Marketing System Audit 14
4.4 Marketing productivity audit 14
5. Format and main elements of the marketing audit 15
6. Timing 15
6.1 Gant Chart details timing 16
*Data from these sources will continue to be gathered regardless of the
completion of the exercise. 16
7. Personnel 17
8. Elements of a marketing audit 17
9. Conclusion 18

1. Introduction

1.1 Purpose

The purpose of the marketing audit is to understand if the
assumptions made by the company Sartos Gourmet Pasta in its plan
reflect on the actual fundings.
It is stated that Sartos Gourmet Pasta has not achieved its
business objects and it is essential that the marketing audit focus on the
reasons and the issue that create this situation.

2. Situation Analysis

2.2 Macro Factors (PESTLE) -External Audit

Political and Legal environment

There is the need to focus on the future legislative direction of the
government which will be about work and life balance:
Employees working longer with emphasis on economic growth.
New legislation relating to labelling on take-away products delivered to

Economic Factors

Recessionary pressures globally impacted substantially on the sector,
with the period 2008- 2009 seeing many restaurants going bankrupt. In the
case of the maintenance, repair and overhaul sector (MRO), the recession
also impacted substantially.
The negative economic climate also resulted in much consolidation in
the sector, through alliances and merger as companies sought to try and
improve their positioning through the difficult time period.


Australian Treasury report

Treasurys current interest rates Findings: Rising incrementally
throughout the year.
Treasurys current levels of credit availability Findings: Tightening on
credit card limits.
Treasurys current unemployment levels Findings: Unemployment
falling due to more opportunities created by mothers leaving the
This states that even though there is a global economic crisis, based
on the economic forecast the interest rates are decreasing which means
that this reduction will create more disposable income which will create
more possibility (more money) for families and people in order to dine out.

Social Factors

In order to understand the social factors the ABS was analysed
declaring that over the last 5 years the working population has increased
which also increased the number of people who stated eating out because
they had no time to prepare their meal.
In details:
Australian Bureau of Statistics (ABS)

ABS statistics on age distribution Findings are the same as the
marketing plan.
ABS statistics on growth rates Findings: Growth in young families with
a government incentive on new
births and an increase in retirees.
ABS statistics on regional distribution of the population Findings:
Increasing in the Graceville area but were mostly retirees.
ABS statistics on the population size 130,000.

Technological Factors

In modern time technology is the key to success and a company who
is not update to the most recent technologies can be in disadvantage.
The fact that the owner did not accept the proposal to manage take-
away orders online is a disadvantage.

Environmental Factors

IBSA World Market research 2009

IBSA World industry report on strategies adopted by each of the major
competitors Findings: Expansion by the chains into interstate markets
Price war created due to reducing sales and fight for market share.
IBSA World industry report material shortages Findings: Drought
conditions in most states sees local produce from Queensland being
sent to Sydney creating local shortage.
IBSA World industry report on market demand Findings: Steady.
IBSA World industry report evolving needs and satisfactions being
sought by the buyers in this market
Findings: Growing need for healthy options like salads, and more
information on ingredients.
IBSA World industry report substitutes for this product Findings:
Supermarkets introducing a range of pre-packaged heat & eat pasta
Household Income survey Findings: Steady, no change.

2.3 Micro Factors - Internal Audit


Looking at the target market which basically includes Graceville
families it is knowledge that they are growing 10% per year which is very
positive for Sartos market.


In order to gather information about Sartos regular customers, a
focus group was organised. The following consensus was reached among
the participants:
Group want convenience products and more healthy options.
Take away and eat at home was the preferred dining option rather than
eat out.
Pasta products should be designed to be low fat. Tomato-based sauces
rather than cream.
Customers want to order via the internet and not be stressed out by the
phone system with its delays and difficult to understand accents and
Customers prefer fewer flyers which they saw as junk mail, and the flyer
should be more informative about the ingredients and offer a full menu.
Some customers questioned the ethics of Sartos Gourmet Pasta, who
charged more for delivery into the neighbouring gated estate than to
every other home delivery customer.
Comment They may be great cooks, but they dont know how to handle
telephone sales.


It is essential to make sure that Sartos prices are appropriate.
Pricing is one of the most important elements of the marketing mix, as it is
the only mix, which generates a turnover for the organisation. It is
important to remember that pricing is difficult and must reflect supply and
demand relationship. Pricing a product too high or too low could mean a
loss of sales for the organisation.


In order for the organisation to be effective, it is very important to
determine that Sartos is using the right channels. The distribution is a
critical element of marketing because marketing is about getting the right
product, in the right quantity, to the right place, at the right time.


Understanding the right promotion strategy is very important for the
business. Promotion is used to spread the word about the products and
services to customers, stakeholders and the broader public.
It is necessary to identified the target market, in order to have a good idea
of the best way to reach them, but most businesses use a mix of
advertising, personal selling, referrals, sales promotion and public relations
to promote their products or services.
For Sartos it is recommendable to use:
advertising: is a form of communication designed to persuade potential
customers to choose the companys product or service over that of a
competitor. Successful advertising involves making the products or
services positively known by that section of the public most likely to
purchase them. It should be a planned, consistent activity that keeps the
name of the business and the benefits of the products or services
uppermost in the mind of the consumer.

public relation: is about building good relations with the stakeholders
(public) of the business by obtaining favourable publicity, building a good
corporate image and handling or heading off unfavourable rumours,
stories and events. By building good relationships with the stakeholders,
particularly customers, a positive word of mouth is generated and
referrals from satisfied customers.

Operating costs

It is essential to understand how much the business is costing to
Sartos. In order to obtain the operating costs, there is the need to
calculate the break-even volume for a product from the product's variable
costs and the total operating costs of the company. Sales must be greater
than the break-even volume to make a profit.


To understand the majors competitor the marketing plan was
analysed to better comprehend the micro factors.
Pasta Buzz: offers
consumers their choice of
noodles, sauces, and
ingredients, allowing the
customer to assemble their
dish as they wish. Food
quality is average.
Stellas: This is an upscale Italian
restaurant that has a limited selection of
pasta dishes. Although the selection is
limited and pricey, the dishes are quite
Pasta Bite: has a limited
selection but the dishes are
assembled with high-quality
ingredients. The price point
is high, but the food is quite
Peri Pasta: An Italian restaurant with a
decent pasta selection, however quality is
Pasta Mia: offers pasta that
is reasonably fresh,
reasonably innovative and
at a lower price point. The
company was sold a few
years ago, and
consequently the direction
of management has been
stagnant lately and has
resulted in excessive
employee turnover.
Niccolo: An upscale restaurant with a large
wine selection and good salads. Everything
else is mediocre at best and over-priced.
Service can be often poor.
Verdi Pasta: has medium-priced pasta
dishes that use average ingredients, no
creativity, and less than average store


3. Marketing Strategy

3.1 Objective and Scope

The scope for this marketing audit is to review the internal marketing
operation (strategy) and researching:
the Graceville trading area
the pasta restaurants in Australia
Variations from Sartos Gourmet Pasta - December 2008
Marketing Plan will be identify. To be successful this marketing audit will
be done once every 6 months.
The following table identifies the marketing objective of Sartos
Gourmet Pasta-December 2008 Marketing Plan and demonstrate that they
have not been reached.

Objective Strategy from the marketing
Objective being met
1. Maintain positive, steady,
growth each month.
create customer
awareness regarding their
services offered, develop
that customer base, and
work toward building
customer loyalty and
2.Generate at least $45,000
in sales per month.
providing new food
choices and services for
the customers

3. Experience an increase in
new customers who are
turned into long-term
quality service
friendly attitude
quality meals
promotion for new
costumers (10% off and a
voucher of 20% for the
next order)
friendly survey
4.Realise a growth strategy
of one store per year.
direct mail campaign: use
ads and inserts in the
BMag. This will be
particularly effective
because the BMag is a
popular local paper that is
consulted when people
are looking for things to do
in Graceville.

3.2 Audit Type

In order to achieve these object the internal and external audit type
have been chosen, because, there is the need to look at the key risks
facing the business and what is being done to manage those risks
effectively, to help the organisation achieve its objectives.

4. Methodology

In this marketing audit the outside auditor method was chosen in
order to obtain an objective view of Sartos Gourmet Pasta situation
With this method, the company can appoint an outside auditor to
conduct a marketing audit. An outside-auditor must be professional, a
consultant or an agency. Outside auditors conduct marketing audits for
many companies. They have enough skills and experience. They are also
more independent, impartial and objective oriented. They give good
suggestions for improvement. Therefore, in this particular scenario, it is
better to use an outside auditor.
The method is composed by the following steps:
1. identify the problem, interviewing the staff members (internal factors)
2. understand research data, using secondary data from
Australian Treasury Reports
3. SWOT Analysis
4. one to one interview with the personnel
5. customers focus groups

4.1 The main characteristic of the marketing audit

The marketing audit will state the following characteristic:
Comprehensive: it covers the whole marketing environment including
objectives, strategies, organisation and system.
Systematic: the audit plan will be prepared in advance and it will be
detailed with the questionnaires.
Independent: this audit will be conduct independently as the company
has not previously achieved the majority of their objectives.
Periodic: it is important to repeat the audit at least every 6 months.

4.2 Marketing Organisation Audit


Does the person charged with the responsibility for
the delivery of the marketing plan have the authority
and understanding to di so?
In the past the owner of the company was in
charged of the marketing strategy without having the
knowledge or the understanding.


Is any training needed to bring staff up to a
benchmark level to ensure functional efficiency?
From what was outlined in the case study it is clear
that the owner should benefit from some marketing
training in order to understand and agree with the
marketing specialist.

Are there any coordination problems between the
various department charged with ensuring sales and
marketing plan outcomes?
The are several coordination problem between the
staff members:
the owner and marketing specialist which do not
agree on the marketing strategy
kitchen members and phone orders


4.3 Marketing System Audit

What information system could be use to gather
ongoing market research for Sartos Gourmet
In order to collect more information about the market
and conduct a complete market research trends
magazines should alway be consulted. Sartos
Gourmet Past receives several of them but they do
not use them which gives them a disadvantage
How are new product development at Santos
Gourmet Pastas?
The problem with Santos new products are
the numbers and the timing. In order to
satisfy a wide range of customers Sartos
changes his product vary often which in
some cases it is not beneficial. This
strategy confuses the customers.
There is also a timing issue. Server times the
promotion is previous to the stock and it causes a
lack of image of the company when the customer
does not find the ported product in the store.

4.4 Marketing productivity audit

What product is not performing to profit expectation? The overall products are not performing weel but the
pasta product in particular because it is not seen as
healthy as it should be.
What unit costs have exceeded the the plan by a
significant amount?
None unit costs have extremely exceeded

5. Format and main elements of the marketing audit

The following elements will be use during the audit:
Marketing environmental: Macro and Micro factors will be use. The
macro factors will include business economic, market demography,
political and social factors. The micro factors will include competitors,
suppliers and costumers behaviour.
Marketing strategy: it will be use to achieve Sartos objectives.
Marketing function: the 4P of the business will be analysed as long as
advertising and promotion.

PRODUCT The marketing plan states the product as healthy
but it is not view like this by the customer who
demand more healthy options
PRICE The prices have to be review in order to gain more
DISTRIBUTION The distribution has to be review in order to contain
the prices.
SALES FORCE It should be taken under consideration to install an
online ordering website (even though the owner is
against it) because the customers are getting
stressed out by the under performing phone system
ADVERTISING The marketing plan states the flyer advertising
strategy effective but the focus group revel the
opposite. The customer prefer fewer flyer which the
say as junk mail and the flyer should be more
informative about the ingredients (health) and offer a
full menu

6. Timing

Project start date : 20th May 2014
Start collecting data: 1st July 2014
Structuring and analyzing data: 2nd October 2014
Deliver final report: 20th March 2015
Implement new strategies: April 2014

6.1 Gant Chart details timing
Problem description

Meeting with the owner


Define objective

Establish timelines

Present the proposal

Develop a detailed market
review plan

Establish plan of activities

Prepare surveys and

Data collection and

Survey at the store

Online questionnaire

Social media questionnaire*

Observation of the

Interview employees*

Research on internet*

Existing market research

Existing data from Sartos
Gurmet Pasta*

Industry and government

Data structuring and

Capture data

Analyse data

Present report

Report advances

Final report

*Data from these sources will continue to be gathered regardless of the completion of the exercise.

7. Personnel

The audience of Sartos Gourmet Pasta marketing audit will include:
staff members who have a relevant role in marketing activities
regular customers

Rose Ready Marketing Specialist no cooperation between staff
no big issue but small factors
Mario Sarto Owner difficult from the start
small parking space
many competitors (Stellas - Pasta Bite)
Eric Yeung Accountant big increase in flyer unit costs
Sales and Promotion /
Kitchen Supervisor
phone order system creates logistic
problems in dealing with take away
no research magazine consulting
no coordination between the timing
of the promotional flyers and the
stock preparation

8. Elements of a marketing audit

To be effective a marketing audit has to be comprehensive,
systematic, independent and periodic. In addition, in order to be complete
and focus it needs to have six major elements which are:
Marketing environment audit: Economic Factors,Demographic
Factors, Technological Factors, Social Factors, Political-Legal Factors,
Market, Customers, Competitors, Suppliers and Distributors/Dealers
Marketing strategy audit: Marketing Objectives and Strategy
Marketing organisation audit: Formal Structure,Functional Efficiency
and Interface Efficiency
Marketing system audit: Marketing Information System, Marketing
Planning System, Marketing Control System and New Product
Development System

Marketing productivity audit:Profitability Analysis and Cost-
Effectiveness Analysis
Marketing function audit: Products, Price, Distribution, Salesforce and

9. Conclusion

This audit is made in order to understand the global situation of Sartos
Gourmet Pasta. In addition, it is essential to knowledge:
new marketing strategy
increase of cooperation between the staff members
increase of technology
better understudying of the targets needs
auditor to be independent from Ready-Made Marketing and Sartos
Gourmet Pasta
covering macro and micro environmental factors that have impacted on
business objectives
reviewing internal marketing operations
researching the Graceville trading area, and pasta restaurants across
identifying variations to Marketing Plan Sartos Gourmet Pastas
December 2008
In addition, recommendations will be make in the audit report.