After the breakup with Wieden & Kennedy a case where the agency dumped the brand, rather than vice versa, Starbucks has selected Omnicom agency BBDO New York as its agency of record. The decision followed a competitive review. Sadly Larson & Associates was not in contention for this account.
“Already, we have seen an indication of the kind of fresh thinking, new energy and strong sense of partnership BBDO brings to the brand,” said Terry Davenport, SVP and CMO of Starbucks.
As reported in this blog Starbucks has had a very rough year. The coffee maker has been closing down retail stores, about 600 in the US. In its fourth quarter financial results, the firm reported that sales at US stores fell 8%, which was attributed to deteriorating store traffic and a decline in the average transaction size. Sadly we here at Larson’s can only drink so much coffee and could not personally keep the sales up enough.
The first official BBDO-led campaign is expected to debut next year and we will be reporting on it.
Larson note: I wish Starbucks all the success in the world. Yet the key point here is that Wieden & Kennedy ended the relationship not the other way around. Are their clients that maybe you should be ending your relationship with, Clients that are not good or right for your companies well being? If not fire them!
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*Major source Dianna Dilworth