Tim Hortons Case - Grade: B PDF

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Tim Hortons Case AnalysisINTB 2200 AThe name Tim Horton’s is a staple in the food industry. Especially in Canada, Tim Hortons is every Canadians early morning coffee option. With a variety of options to choose from, Tim Horton’s has expanded its menu to adapt to consumers tastes and to compete with ...

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Tim Hortons Case Analysis INTB 2200 A02

The name Tim Horton’s is a staple in the food industry. Especially in Canada, Tim Hortons is every Canadians early morning coffee option. With a variety of options to choose from, Tim Horton’s has expanded its menu to adapt to consumers tastes and to compete with other thriving chains. Tim Hortons addictive coffee had made its way not only throughout Canada but the United States, Europe and the Gulf Cooperation Council. Although it seems like with the expansion across the world there is a great amount of success, but there were many barriers. Some issues that Tim Hortons faces include its expansion efforts, consumer trends and threatening competition. Tim Hortons is such a recognized name in Canada that wherever you go in Canada, Tim Horton’s is the first name mentioned when you ask for coffee. When Tim Hortons decided to expand to other countries, for example the United States. The brand wasn’t as recognized. Consumers were unaware of what Tim Hortons was, and because of that, many stores in the United States had to close. With consumers tastes changing every year and competitors changing their menus to accommodate, Tim Horton has had to take its menu to a new level just to compete. Competitors like McDonalds and Starbucks have been trying to take a bigger piece of Canadas market with there adjustments to menus and innovations. As an example, consumers tastes had moved toward dark roast coffee throughout Canada and the United states. While Starbucks had an option for these customers, Tim Hortons didn’t and needed to act fast. In August of 2014, Tim Horton’s introduced a dark roast blend which for Tim Horton’s was the first time that they offered a coffee flavor other than their original premium coffee blend. Internally, Tim Hortons is able to compete with such demand with their 3 manufacturing facilities, 6 warehouse distribution centers and one warehouse that services restaurants across Canada and United States. Tim Hortons continues its success with their brilliant marketing event “Roll up the Rim”, that brings in customers just for the millions of

prizes. Also, Tim Hortons has been greatly involved throughout the community with there creation of the Tim Hortons Children’s Foundation. Which has been involved with several charitable events, but most significantly there “Camp Day” which send kids to camp free of charge. Overall, Tim Hortons has been a top competitor in the food industry since its conception and if they want to continue to grow and succeed, they will need to continue what they’re doing by adapting to the consumers and the environment around them. For future consideration, I would suggest that Tim Hortons keep on expanding even if it has been a central issue, they have seen some success. But with the struggles they have had with closures in the United States with there restaurants has a large part to do with being new. Consumers aren’t familiar and are used to their regular coffee shops. With 3G acquiring Tim Hortons and already owning Burger King, who is very much known by the American people. 3G would be able to give some viable resources that have made Burger King successful in the American economy. Which could be anything from advanced marketing to get the Tim Hortons brand more recognized or changing their menu to service a more American friendly appetite. When you look at Starbucks and what they offer, there drink options are vastly better then what Tim Horton’s offers. More options with their drinks would completely take out Starbucks out of the competition. With Starbucks charging $1.85 for a medium coffee and Tim Horton’s charging $1.52 for theirs, consumers are still going to Starbucks for a more expensive product. They have more options, which perceive there brand as higher class. Although that is my key recommendation, my secondary recommendation would be to enter the fast food market and implement an option that is like McDonald’s. I believe it would be more expensive then my initial recommendation, the benefits of including fast food items would allow Tim Hortons to tap into a customer that they might have not considered yet. Considering the industry is forecasted to continually grow, and with Tim

Hortons charging a significantly lower price for its goods they could become a true leader in the quick service restaurant industry....