Most recently, Starbucks announced a major corporate restructuring that involved the elimination of its global chief marketing officer (CMO) role. This move comes as part of a larger trend in the industry where companies are reevaluating the significance of the CMO position within the C-suite.
The coffee chain’s former CMO, Brady Brewer, has been promoted to chief executive officer of its international business, signaling a shift in focus towards regional marketing strategies. Starbucks has no plans to fill the global CMO role, instead opting for local marketers to support each regional chief executive.
This decision raises questions about the role of marketing within the organization. While some view the move as a positive step towards aligning the company’s structure with its global expansion goals, others see it as a potential undermining of the importance of marketing within the company.
Ewan McIntyre, chief of research, vice-president, and analyst at Gartner Marketing Practice, believes that having a former CMO as the CEO can be a positive sign for the company, indicating a strong focus on customer-centric strategies and the importance of marketing. However, others, like Marcus Collins, a professor of marketing at the University of Michigan, see the elimination of the CMO role as a potential devaluation of marketing within the C-suite.
Looking ahead, industry experts predict a potential rise in chief marketing officers transitioning into CEO roles in the coming years. This shift may indicate a greater recognition of the strategic importance of marketing at the executive level.
In its 2023 full-year earnings report, Starbucks acknowledged the critical role of marketing in driving sales and brand relevance. The company stated that unsuccessful marketing efforts could impact its market share and sales performance, highlighting the importance of effective marketing strategies within the organization.
As Starbucks reorganizes its marketing structure, there are differing opinions on the impact of eliminating the CMO role. While some see it as a strategic realignment to better align with regional needs, others question the long-term implications for the company’s marketing efforts.
Ultimately, the shift away from the global CMO role at Starbucks raises broader questions about the evolving role of marketing within large organizations. As companies continue to adapt to changing market dynamics, the relationship between marketing and executive leadership will be a key factor in driving business growth and success.
