Starbucks is undergoing a significant shift in its creative strategy as it assigns U.S. creative duties to WPP, a global advertising and communications network. WPP will create a bespoke unit named Team Starbucks, which will bring together talent from various WPP agencies, including Ogilvy, VML, and Landor. This move is part of a broader effort under new CEO Brian Niccol to revitalize the coffee chain’s brand and reestablish its premium positioning.
A Strategic Change in Creative Direction
The appointment of WPP follows a competitive pitch process led by Joanne Davis Consulting, which saw participation from agencies including FCB, Anomaly, and the incumbent Spcshp (formerly Big Spaceship). Team Starbucks, the newly formed WPP unit, will take charge of Starbucks’ creative initiatives, drawing on expertise from across the network. VML, which resulted from the merger of Wunderman Thompson and VMLY&R earlier this year, will play a key role, particularly in areas like loyalty and customer relationship management — critical components of Starbucks’ marketing strategy.
Leadership Shakeup Drives Brand Transformation
The change in creative partners aligns with Starbucks’ recent executive shifts. In August, former CEO Laxman Narasimhan was replaced by Brian Niccol, known for his successful tenure at Chipotle. Since taking the helm, Niccol has reversed several of Narasimhan’s initiatives and is charting a new course for the company. Starbucks North America CEO Michael Conway will step down in November, and the company is actively searching for a global chief brand officer to lead its marketing, creative, product, and digital initiatives.
Niccol’s strategic vision for Starbucks focuses on four core initiatives: emphasizing the morning daypart, reconnecting with its roots as a community coffeehouse, regaining control over brand narrative, and improving working conditions and career opportunities for employees. By prioritizing these areas, Niccol hopes to restore Starbucks’ reputation as a “third place” — a comfortable environment where people can gather, work, and relax.
Challenges and Opportunities for Team Starbucks
One of the key challenges for WPP’s Team Starbucks will be to help the brand regain its identity as a premium coffee chain. Over the years, store redesigns and a focus on mobile ordering have led to congestion and employee strain. Niccol is now shifting away from frequent promotional offers through the Starbucks app, which were initially designed to boost sales but may have diluted the brand’s premium appeal. This strategic pivot comes just ahead of the crucial holiday season, a period when Starbucks typically sees a surge in sales of seasonal drinks and festive products.
For WPP, this partnership with Starbucks represents a significant opportunity. As WPP prepares to report its Q3 results on October 23, its integrated creative agencies are looking to bounce back from a 2.4% decline in Q2. Success with Starbucks could enhance the network’s creative credentials and pave the way for future growth.
As Starbucks seeks to rekindle its brand and customer loyalty, Team Starbucks has a tall order to meet. With new leadership at the helm and a fresh creative approach, the coffee giant is positioning itself for a strong comeback, aiming to restore its place as a beloved, iconic brand.