Last week Starbucks got dumped by their main agency of record- Wieden + Kennedy. Today, some details started to come through to unveil reasons behind the split. It seems that Starbucks was such a pain in the ass, WK just said no more.
At first glance, you might think how could you drop a brand like Starbucks? Well, if you look into what is going on recently, it kind of makes sense. Starbucks doesn’t have a large advertising budget, let alone for what they were using WK for ( Starbucks spent 37.6 million in media spending in 2007). Couple that with the struggles Starbucks has been facing, including laying off hundreds of employees and closing some 600 stores. And the topper, as it seems, was the increasing frustration of working with CEO Howard Schultz and his apparent unappreciation for advertising.
The article from Ad Age best sums this whole situation up:
Executives with knowledge of the situation said Starbucks was simply a very frustrating client for Wieden, an agency that other marketers have described as unusually honest in its communication with clients. Other agencies that have worked with Starbucks have felt frustration with the marketer too. Rich Silverstein, co-founder of Omnicom Group’s Goodby, Silverstein & Partners, which did two stints representing Starbucks, said much of the fault lies with the mercurial Mr. Schultz. “He does not appreciate advertising,” he said. “Any agency that comes in has one foot out the door already.”
Will be very intersting to see where Starbuck’s marketing goes from here, and who steps up to become their next agency of record.