Starbucks Evolution from a U.S. to Global Company

Normally I focus my articles on marketing ideas and case studies but today's post is a little different. I'm a big fan of Starbucks, not only because it's such an iconic and successful brand but because I have a personal interest (ok, I did spend 12+ years of my life contributing to its success around the world in various brand & marketing leadership roles). Oh and I do have a little stock - full disclosure :)

So what are they up to and why am I excited?

Starbucks announced a number of strategic changes this week that will continue to position the company for strong growth. All of these, in my opinion, are really smart changes.

The most important change is in the underpinnings of the company– a leadership restructuring that signals the move from Starbucks operating as a U.S. company doing business internationally, to Starbucks becoming a truly global company. This is good news for the brand and business.

The company will be divided into 3 regions – The Americas, EMEA and Asia Pacific/China. This is a big shift from the prior model which was split in two - a U.S. Division and the rest of the world under SCI (Starbucks Coffee International) . Leading each of the new divisions are familiar faces:

• The Americas: Cliff Burrows (President U.S. and former President UK - a dynamic operations leader, motivating leader and storyteller)
• EMEA: Michelle Gass (President Seattle's Best and former head of marketing/category as well as global strategy - super smart, long time trusted leader and confidante of H. Schultz who grew up in Starbucks - also has an engineering background and P&G pedigree)
• APAC: John Culver (President SCI, former head of Food Service - smart business leader, highly personable and great team leader)

These changes will help Starbucks build global consistency while balancing local relevance. The new structure will also bring more focus and improve the leadership's ability to leverage regional opportunities.

In addition, the structural changes include additional responsibilities for Annie Young-Scrivner, CMO. She has a CPG background (PepsiCo) and loads of international experience and while fairly new to Starbucks ( Sept 2009) has made impact. Annie will now take on the leadership of Tazo Tea. Since Starbucks acquired Tazo in 1999, this little gem of a brand has been under-leveraged so it will be interesting to see what innovation comes out of the tea business with Annie at the helm.

The other change is the addition of Seattle's Best Coffee to Jeff Hansberry's portfolio which currently includes CPG and Food Service. While I don't know much about Jeff, I hear positive things from ex-colleagues who work in his group. He's also a relative newcomer to Starbucks joining the company in June 2010.

All in all, smart and strategic changes that will see the continued success of Starbucks, a brand that is barely tapping it's opportunitites in the rest of the world.

I'm excited! What are your thoughts?

McSweden

The advertising coming out of McDonald's Sweden continues to both amuse and baffle me. It is so quirky and so un-McDonalds-like that if you took away the logo, you'd never guess that it was from McD's. This print ad is composed of a bunch of one-liners - obviously scripted in the wee hours after a night on the town. When have you come across McDonald's copy such as "What's your name? Can I sleep with you?" or "Anyone that sleeps with me gets a free DVD".

And in case you missed these 2008 beauties, you have to take a look. These ads are a Swedish mashup of Dunkin Donuts meets Burger King meets IKEA meets the Brothers Grimm (ok, they were German). It's even weirder than that - you be the judge.



So how does McDonald's Sweden get away with these ads? I understand that you cannot advertise to kids in Sweden, so your communications and brand messaging strategy will be different. Global brands are constantly trying to strike the right balance between global brand consistency and local relevance. Yet, these seem way off the core brand positioning and personality.

I'm not sure what the folks in Chicago at McD's corporate are saying about their colleagues in Sweden. (Would love to be a fly on the wall for that conversation!)


Here is some McD's Sweden trivia in case you are interested:


McDonald's Sweden recently introduced charging posts for electrically powered vehicles.



McD's Sweden is known for their environmental responsibility leadership in the QSR world - no small feat in Europe.

I think my favourite, though, is the first Ski-thru located in Lindvallen. Even Starbucks doesn't have that that.

Brand in glove

When you think of global brands, you usually think of Dove, Coca Cola or Heineken. But TV shows and movies have also become “global brands”, spawning off trends, products and certainly shared experiences and social networks.

A current global success is “Desperate Housewives” which is viewed in over 50 countries and has made billions for ABC. A classic soap, millions of fans sit glued to their TV or interact with fellow viewers to discuss the latest episodes or flaws of their favourite characters.

I loved this quote describing the show that I found in The Independent. “Behind its white picket fence, Desperate Housewives can often be insulting and demeaning. It is, after all, a smart satire about materialism, which exposes the foibles of women who are outwardly racy, smart, and prosperous – yet in reality selfish, weak, and Machiavellian. The show's tone is part suburban pantomime, and part sexist cliché. But that, of course, lies at the heart of its appeal”.

Clever marketers and retailers are able to tap into the zeitgeist of a show and create products that catch the imagination of followers.

One such product that is making its way around the world are “Glovables”, diva-worthy gloves created by a smart entrepreneur from Chicago. These gloves, it seems, are not only gaining popularity in North America but are a hot new trend in Japan. These gloves strike the right note between brand badge and sophistication. Who needs to wear boring gloves washing dishes or gardening when instead you can gear up like Bree on Desperate Housewives, who has worn Gloveables on the show. What would the neighbours say!

Furthermore, these gloves have a heartwarming backstory. The idea was conceived by a woman entrepreneur who has bravely championed debilitating cancer. In addition, Gloveables’ parent company, Grandway, has built a wooden fabrication facility and a sewing factory to employ residents in Cholutecca, Honduras, a rural city with few employment opportunities. So by purchasing these gloves, you are helping to support the community where they are made.

A great example of the changing definitions of creating and of leveraging a global brand.