Starbucks recently shifted from a global to a regional marketing structure. Kieran and I believe this is the worst thing you can do to your marketing strategy, resulting in significant, long-term business consequences.
Starbucks’ new CEO, Brady Brewer, recently announced a shift from a global marketing approach to a regional, decentralized model. As part of the change, Brewer is eliminating the role of a global CMO and will instead have regionally divided marketing teams with regional CMOs.
While this may seem like a strategic move to tailor marketing efforts to local nuances — Brewer was previously Starbucks’ CMO, after all — we believe this is the single biggest mistake a marketing leader can make.
As discussed in the latest Marketing Against the Grain Podcast, we dive into the biggest challenges that regional marketing models create for global businesses.
We also touch on the lessons learned by companies like Uber and HubSpot, which have tried this structural change, and steps to build your own global marketing strategy.
Regional Marketing Model Challenges
1. Inefficiency and Misaligned Competition One of the core challenges of a regional marketing model is that it generates significant inefficiency and counterproductive competition.
For example, when teams operate independently, they often (unknowingly) duplicate efforts, creating similar campaigns from scratch instead of optimizing and scaling successful strategies globally. This not only wastes valuable resources but also leads to inconsistent execution.
Read the rest of this article:
https://blog.hubspot.com/marketing/regional-marketing-models-global-businesses
By: kbodnar@hubspot.com (Kipp Bodnar)
Publication Date: 2024-06-27