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The document discusses conducting a market analysis for introducing Tim Hortons coffee shops in Pakistan. It covers topics such as the target audience, competition, promotional plans and pricing strategy.

The target market analysis covers demographics like age, income levels as well as psychographics to understand customer preferences. Geographics and behavioral patterns are also examined.

Promotional strategies proposed include social media campaigns, television commercials, print ads, billboards and a 'Roll up the Rim' campaign similar to the one run in Canada.

Presented By: Bilal Hanif (18543)

Presented To: Sir Jami Moiz


Course: Marketing Management
Date: 19th September 2019
Table of Contents
Business Definition .............................................................................................................. - 2 -
Industry Analysis.................................................................................................................. - 2 -
Market Analysis.................................................................................................................... - 3 -
SWOT Analysis............................................................................................................................. - 3 -
Target Audience Analysis .................................................................................................... - 3 -
Demographics ............................................................................................................................... - 3 -
Geographics .................................................................................................................................. - 4 -
Psychographics ............................................................................................................................. - 4 -
Behavioral ..................................................................................................................................... - 4 -
Competitor Analysis ............................................................................................................. - 4 -
Distribution Channels .......................................................................................................... - 4 -
Promotional Plan and Strategy ........................................................................................... - 5 -
Television Commercials ............................................................................................................... - 5 -
Print Ads ....................................................................................................................................... - 5 -
Social Media .................................................................................................................................. - 5 -
Billboards ...................................................................................................................................... - 5 -
Roll up the Rim Campaign .......................................................................................................... - 5 -
Pricing Strategy .................................................................................................................... - 6 -
Additional Recommendations .............................................................................................. - 6 -
References ............................................................................................................................ - 7 -
Exhibits ................................................................................................................................. - 8 -
Exhibit 1.1 ..................................................................................................................................... - 8 -
Exhibit 1.2 ..................................................................................................................................... - 8 -
Exhibit 2 ........................................................................................................................................ - 9 -
Exhibit 3 ........................................................................................................................................ - 9 -
Exhibit 4 ...................................................................................................................................... - 10 -
Exhibit 5 ...................................................................................................................................... - 10 -
Exhibit 6 ...................................................................................................................................... - 11 -

-1-
Business Definition
Tim Hortons is one of the world’s leading quick serve restaurants, and Canada’s
biggest, serving a variety of snacks and beverages. While their specialty lies in their coffee,
they also serve a mix of food items like donuts, pancakes, waffles, strudels and lattes, these
products are a part of a wide product portfolio which makes up the Tim Hortons Menu. The
breakfast menu includes a variety of bagels, sandwiches, wraps, hash browns, oatmeal and
croissants. Tim Hortons also serves footlong sandwiches and burgers in their lunch and
dinner menus. Tim Hortons serves three types of coffees, i.e. original, decaf and dark roast.
In hot beverages French vanilla latte, which is also their star product, and mocha are
available. In cold beverages it has iced coffee, fruit chills, fruit smoothies, frozen lemonade
and chocolate chills. They also serve a variety of bakes items, which include donuts, muffins,
cookies, bagels and pastries. All these menu titles have a variety of options under them. Tim
Hortons also serve sides like soups, wedges and dips.

If established in Pakistan, Tim Hortons will be bringing the same mix of products to
the Pakistani market, as this menu already works for them in the UAE (Exhibit 1.1 and 1.2),
where Pakistanis make up the second largest national group, therefore a huge part of the
population, which means that it would be safe to say it should work in Pakistan as well.

Tim Hortons has a total of 4613 locations around the world, out of which 3436 are in
North America. It is easily one of the biggest coffee chains in the world. The location of the
stores matters a lot; therefore, each store is located where it is most convenient for the customer
and where there is a high footfall of people. The cafes are cozy and spacious, so they portray a
feeling of warmth to the customers, which is enhanced by the aroma of coffee all around them.
The confectionery is also displayed in a beautiful set up where it is most visible to the customers.

Industry Analysis
Pakistan does not really have an ‘on-the-go’ coffee culture, but there has been a surge
of younger crowds jumping into the coffee culture. However, most of the coffee places are
hang-out spots for these youngsters where they go just to relax and socialize and sometimes
even to work.
Tim Hortons will be facing most of their competition from international coffee chains
like Gloria Jeans and Dunkin Donuts, but there is also a strong presence of local cafes, like
FLOC, Mocca, Espresso, Butler’s etc. all of which focus on giving their customers with
decent coffee options with a side focus on sandwiches and snacks, but most importantly they
strive to provide their customers with a warm and cozy place where they can kick back and
relax.
Therefore, it is imperative that Tim Hortons makes sure that they bring the same feel
to their Pakistani stores as they do in Canada which is the reason why it is the most loved
coffee chain in all of Canada (Exhibit 2).

-2-
Market Analysis
Tim Hortons mass markets across all demographics, psychographics, and geographic
locations across the world, therefore, it is imperative that the same target market mindset is
brought over to Pakistan, parallel to Tim Horton’s global strategy, however it is
understandable that the younger generation is going to make up most of Tim Horton’s
customer base in Pakistan, because of the recent boom in coffee culture among the youth of
Pakistan. The geographic target market is nation-wide and spans across cities of all sizes.

SWOT Analysis

Strengths Weakness

• Recognizable brand name with a • Mostly known as a coffee house,


pre-established strong brand rather than quick serve restaurant
awareness among people • High prices for Pakistani standards
• Quality products • Pakistan is a ‘tea consumption’
• Tim Hortons University – well market
trained employees
• TimmyME mobile app (Exhibit 3)

Opportunities Threats

• Capitalizing on a growing coffee • Presence of smaller, but well-


culture trend among the youth of established local tea cafes
Pakistan • The local places are much cheaper
• Pakistan has a strong ‘dining-out’ • Pakistan is going through a fitness
culture trend at the moment and most of the
products are carb/sugar based.
• Possible entry of competition like
Starbucks, IHoP etc.

Target Audience Analysis


The following is going to make up the primary target market for Time Hortons in
Pakistan;

Demographics
• Males and Females
• Teenagers aged 15-18
• Young Adults 19-25
• Adults 26-35
• SEC A and B
• Decent educational background
• Household income of PKR 150,000+

-3-
Geographics
Major cities of Pakistan, i.e. Karachi, Islamabad, Lahore, Faisalabad. Major
areas in aforementioned cities, e.g. Defence/Clifton, PECHS, Nazimabad etc.

Psychographics
• Youngsters who like to ‘hang-out’ at cafes
• Young professionals and students who prefer working in a comfortable
environment
• People who prefer coffee over tea

Behavioral
• Avid coffee consumers
• Frequent travelers
• Customers loyal to the Tim Hortons brand name

Competitor Analysis
Tim Hortons is going to face some seriously strong direct competition from
international brands like Gloria Jeans, Dunkin Donuts, McCafe by McDonalds etc. and local
well-established coffee houses like Espresso, FLOC, Mocca, Butler’s etc., mainly because
Tim Hortons is mostly perceived as a coffee shop rather than a quick-serve restaurant.
However, fast food restaurants like KFC, Subway and Burger King etc. would also be direct
competition for Tim Hortons’ food products.
Besides that, Tim Hortons is going to face some indirect competition from soft drinks
and juice brands like Pepsi, Coca-Cola, Nestle etc., also, tea brands like Lipton and Tapal.

Distribution Channels
Tim Hortons distributes their products to their customers through their restaurants,
which make up the majority of their sales, therefore stand-alone restaurants will be set up all
across the county. These restaurants are going to equipped with drive-throughs to add a
convenience factor. Besides that, pop-up kiosks around malls and high footfall areas will
make up the second largest chunk of Tim Hortons’ sales. Non-standard restaurants in hotels
can also be considered to accommodate the guests. Tim Hortons is also known for their co-
branded restaurants, more notably, their partnership with Wendy’s and Cold-Stone Creamery
(Exhibit 4), which is a partnership that they can bring to Pakistan aswell as Cold-Stone
Creamery is already a well-established brand in Pakistan, which is going to help Tim
Horton’s gain brand recognition among the customers of Cold-Stone which shares a target
audience with Tim Hortons.

-4-
Promotional Plan and Strategy
Since Tim Horton’s is going to be a new entrant in the Pakistani market, our
promotions are mainly going to be focused on creating awareness and attracting new
customers.
Before the restaurant officially opens up in the city, Tim Hortons might want to create
some hype around the brand for which purpose the following marketing mediums can be
used;
Television Commercials
TVCs can be used to air the story of Tim Hortons, the story about how Tim
Hortons won millions of hearts of the Canadian people, how the company revolves around a
sense of warmth and hospitality, great customer service, great quality food and their CSR
activities. The idea is to create awareness and win people over even before the brand
officially launches.
Print Ads
Print ads will be issued in all major magazines to promote Tim Hortons high
quality beverage and food products. Dawn, Tribune, Aurora etc. will be the perfect
magazines for this task as they are the preferred magazines for our target market. This is
going to help us create a buzz about the brand before the launch.
Social Media
Tim Hortons’ Facebook, Instagram and Twitter pages will used to put up posts
to tease the Pakistani market and create hype. Besides that, competitions can be announced to
get people to like and share posts and tag people, and in return they can win gifts and free
coffee or desserts upon launch, thereby ensuring maximum eyeballs.
Food bloggers can also be invited for a pre-launch event where they will be
introduced to the Tim Hortons menu and where they can do taste tests, the idea is to get them
to write about Tim Hortons entering the market in order to create buzz.
Billboards
Billboards can be put up around the city creating awareness about the launch
(Exhibit 5), similarly digital billboards can be put up with a timer counting down to the
launch in order to create an aura of excitement and anticipation among the target market.
Roll up the Rim Campaign
Tim Hortons in Canada runs a campaign called ‘Roll up the Rim’ (Exhibit 6),
which can be brought over to the Pakistani market after the launch. The idea is that once
people are done drinking their coffee, they can roll up the rim to reveal prizes like cars and
televisions for the lucky winners. This campaign is announced every year in February,
however for the Pakistani market and Eid or Independence Day centric timeline would be
more applicable.

-5-
Pricing Strategy
The idea behind Tim Hortons is that it offers affordable, quality products, therefore
their pricing needs to be competitive with their primary competition.
Looking at Dunkin Donuts’ pricing, if Tim Hortons manages to provide better quality
products at the same price level, they should have no problems competing in the market.
Therefore, I would suggest pricing the basic coffee at PKR 250, with additional charges of
PKR 50 for flavored variants, and the gourmet coffees to be priced at PKR 450 while the
sandwiches can start at PKR 350+.

Additional Recommendations
The Pakistani market at the moment is ripe for new entrants, therefore Tim Hortons
should not waste a lot of time and take advantage of the current trends before competitors
like Starbucks and IHoP get there first.
In order to attract the local market, Tim Hortons should introduce products catering to
the local taste, like Chicken Tikka Sandwich etc.
Special attention should be given to the ambiance of the stores as the local market is a
more of a ‘kick back and relax’ kind of a market rather than an ‘on-the-go’ one.

-6-
References
Company., t. (n.d.). Form 10-K. Tim Hortons 2011 Annual Report. Retrieved October 27,
2012, from http://annualreport.timhortons.com/downloads/xmrl/form-10K.htm#tx269152_20

Global fast food restaurants: Market research report. (2011, September). Retrieved from
http://www.ibisworld.com/industry/global/global-fast-food-restaurants.html

Tim Hortons
https://www.timhortons.com/ca/en/index.php

RRRoll Up the Rim to Win® is Back!


https://www.rolluptherimtowin.com/en/

Dunkin Donuts Pakistan


https://www.facebook.com/dunkindonuts.pk/posts/our-menu/10156541010418086/

Tim Hortons menu | Tim Hortons delivery in Jumeirah 1, UAE | Talabat


https://www.talabat.com/uae/restaurant/20519/tim-hortons-jumeirah-1?aid=1302

'It's genuinely beloved': Why Canadians continue to crush on Tim Hortons | CBC News
https://www.cbc.ca/news/business/tim-hortons-why-the-coffee-giant-is-genuinely-beloved-
by-canadians-1.2748530

UKEssays. November 2018. A Strategic Analysis for Tim Hortons. [online]. Available from:
https://www.ukessays.com/essays/marketing/a-strategic-analysis-for-tim-hortons-marketing-
essay.php?vref=1 [Accessed 17 September 2019].

-7-
Exhibits
Exhibit 1.1

Exhibit 1.2

-8-
Exhibit 2

Exhibit 3

-9-
Exhibit 4

Exhibit 5

- 10 -
Exhibit 6

- 11 -

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