Tim Horton’s is the most popular store in Canada, engaged in variety of coffee’s and baked items. The first store was opened in 1964 Hamilton, Ontario.
There are more than 2200 stores in all over the country and it has near about 160 locations in united states. Previously, it deals with the coffee and donuts, and in that time, they offered only two kinds of donuts apple fitter and duchies. They were most popular in that days and today also. Tim Horton’s derives its name from one of its founder.
It started by Ronald Joyce and Tim Horton’s. But after Tim’s death, this store come under only by Ronald V. Joyce. Tim Horton’s has kept strong position in market to attract the consumers. Every day there is a big rush outside the Tim Horton’s and on drive-thru, moreover that time everyone is in hurry to reach at their jobs. Due to fast paced of life everyone wants quick service.
Swot analysis Strengths Tim Hortons is the most growing restaurant in Canada. They serve more than 10,000 customers in a day. They provide fresh and nutritional food to people as they live health. Canadian business awarded Tim Hortons as a best managed brand in Canada. They charged reasonable prices for their products as comparison to another restaurant. It also promotes itself through the Tim Hortons children foundations.
The company got distracted when they realise that the competitors were serving other food product apart from coffee and donuts due to which company suffers losses. The company tried to move in other products segments, but as they were late in launching the new product, they had well established rivals in the industry which led to their failure. Tim Hortons is the well-established brand in Canada but it has failed to achieve the same level of success in other country.
With the advancement of technology, they have new more options on its menu that help them to set a standard in the market. Many QSR (quick service restaurant) industry like Tim Horton’s, McDonald and Starbucks directly affected by the external opportunities. With the changing environment, technology and social behavior the demand for food is running higher. Customer’s expectations is rising faster than past, this is the opportunity for industry to introduce new branches at different sites.
There are so many competitors run their stores in the market like McDonald, Starbucks and KFCs due to these stores Tim Horton’s face many troubles. Now days, due to increasing health awareness people prefer home made food rather then eating outside. Future research and challenges This report conducted the upcoming scenario of Tim Horton’s with recommendations that how could company run their business in market and how would they have applied their strategy for the development of industry. We analyse that in future the Tim Hortons could be expanded in Canada, united states and middle east countries.
The higher authority of Tim Hortons announced that in next few years near about 500 outlets would be opened. This report shows that the researcher plays an integral role in introducing new product Marketing strategy There are so many strategies are adopted by the company to gain the highest level in the market which are as follows: Product Tim Hortons is the coffee leading company throughout the world which deals with snacks and beverages.
They provide various kinds of food items which includes sandwiches, soups, donuts, cookies, muffins, hot and cold beverages, bagels and croissants. Price Tim Hortons manage their customers by introducing new product and services at a very reasonable price, so that everyone could afford the product as compared to other popular stores such as Starbucks and McDonald. They increase their sales by giving some discounts to customers so that they stick with that store for long time. By doing this, their market value is also increased and it bring new more customers. The strategy aim is to compete with other rivalry stores in the market.
Place They commenced their business at near residential area where a bunch of people live there it affects the economy. From now onwards, people can buy the product by online they ordered it through the website it saves time. And, the most popular coffee grinds are available on internet so people can buy this from amazon. Promotion Tim Hortons does many efforts to promotes their brand by using various sorts of schemes like ‘Role up the rim’ where the customers can roll their coffee cups to see what prize they have got.
They use this technique every year to make more customers because masses feel happy to get product with many offers. Pestle analysis Political factors Government of Canada has enforced many rules and regulations specially on food service industry to manage the quality of food by regular inspections. It is very difficult for the existing and new companies to follow up with these policies. As there is a lot of demand for the coffee and other products it is very important for the company to differentiate themselves from others.
Tim Horton’s has made many efforts to become most visited restaurant in Canada by continuously following the policies made by the government. There are so many factors that effects on the industry to gain the popularity. Various kinds of rivals are on same path to compete, so that they can raise their level in the food industry. Tim Horton’s having an exceptionally extreme rivalry with Starbucks, Dunkin doughnuts and Macafe. With the advancement of technology and level of standard, the sales of Tim Horton’s is escalating day by day consistently, Tim Horton’s record sales of $23billion with $4.3 billion active customers.
Various factors like wages, inflation, job security and unemployment will have impact on customers that how they expend and invest their money. These all factors effect the gross domestic product (GDP) of Canada. Social factors In present scenario, people are very conscious about their health because they have some health issues, so that they prefer to consume drinks fresh juices and caffeine free coffee instead of normal one. To overcome from this, they introduce other nutritional food for the consumers to get rid from these circumstances.
Technological factors As the consumer expectations levels are higher then before that is why industry introduce new variety of machines and equipment to stay up-to-date with the market. some kinds of food are very complex to make so by using these instruments it will be complete earlier. Human work input reduces with the technological advancement. They directly interlinked with customers through different kinds of media. Environmental factors Tim Horton’s faces variant kinds of environmental factors that affects the business.
They have a capability to attract the customers toward them to increase the revenue. In a daily life more than 1000 of customers visit in the store but the market value is still very low as comparatively to others. If they maintain their standard as per the market needs then they got a lot more opportunities to expand it. Legal factors Tim Horton’s must confident about the rules and regulations that will be imposed by government to stay long time in market. They follow all these laws carefully and, they maintain good relationship with international countries from whom they buy raw materials.
They should pay more attention on the making of caffeine free products because in today era everyone has a very particular about their health. Recommendations As we can observe that there are few sections in this industry that need to be improved to some extent like in social aspects they need to launch new products for baby boomers because this is the big and famous industry in the market.
If they expend more money on introducing new products then it will be beneficial for them as their market value triggered and it boosts their interest. This report reveals that the Tim Horton’s should expand more branches throughout the world in urban as well as in rural areas. Therefore, they should analyse and measure the current scenario that prevails in a market as they obtain much higher level than before.
Apart from this, in coming years they fix their target and they have taken some initiatives to raise the level in underdeveloped areas. Conclusion After detailed and careful examinations of Tim Hortons by using various kinds of methods of research, we come to know that the studies can determine many conclusions about the company.
This survey measures the capabilities and learn by understand the whole concept that why this company has become successful business runner in Canada. Tim Hortons maintain good relations with the customers, therefore they deal their consumers very friendly. Because of which the consumers feel free to visit the Tim’s store because they are assigned, loyal and emotionally attached with this iconic brand.
On the other hand, they always give first preference to the customer expectations by giving them quick service because in today hectic schedule no one have enough time to eat at home. Tim Hortons basically deals with the coffee’s and food items. And they kept all things very neatly, as they are very conscious about the cleanliness of the store.
