Marketing Execs Key to Starbucks Turnaround Plans

Coffee giant Starbucks is hoping to steer out of troubled waters with the help of newly promoted Senior VP Marketing Terry Davenport and Senior VP, Global Strategy Michelle Gass. Former Marketing Exec Harry Roberts also returns to the firm as Senior VP/Chief Creative Officer.

Reporting to Gass, Davenport and his team will oversee the firm's overall marketing plan and calendar, product development, consumer insights and innovation for food and beverage. He was previously VP Global Brand Strategy and Marketing. Prior to joining the company, he served as Chief Marketing Officer with KFC, and SVP Global Brand Strategy for restaurant chain Yum Brands.

Gass was formerly Head of Global Products, which included Marketing. She will now be responsible for implementing the restructuring initiative. She joined from Procter & Gamble in 1996 to manage the firm's blended beverage category, and since this time has also expanded the chain's Frappuccino range as well as helped increase its food offerings.

Harry Roberts, who worked for the firm from 1993 to 1996 as VP Merchandising, returns to take responsibility for the customer in-store experience, including creative expression, merchandise strategy and the overall 'look and feel' of the company's stores. He left in 1996 to serve as President and CEO of Chart House Restaurants and then in 1998, took on the same role with new Italian restaurant chain, Pallino.

The changes are part of a move to improve performance by closing underperforming US outlets and speeding international growth; and have been designed by new CEO Howard Schultz who was previously Chairman and replaced CEO Jim Donald last week.

Starbucks has seen its stock plummet 50% during the last year as business in its domestic stores has fallen. Schultz says that the restructure is designed to focus the organisation on providing customers with a superior Starbucks Experience. He commented: 'Change will not happen overnight. It will evolve over time. I, along with our dedicated partners (employees), will strive to exceed the expectations of our customers every day.'

The Seattle-based company is on the web at www.starbucks.com.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.