TIM HORTONS CAFÉ AND BAKE

SHOP
Nimrah Zubairy 07031
 TIM HORTONS CAFÉ AND BAKE SHOP

Table of Contents
Business Definition ......................................................................................................................... 2
Industry Analysis ............................................................................................................................ 2
Market Analysis .............................................................................................................................. 3
SWOT analysis of Tim Horton café and bake shop. ............................................................................................ 3
Strengths ..................................................................................................................................................................... 3
Weaknesses ............................................................................................................................................................... 3
Opportunities ............................................................................................................................................................ 4
Threats ........................................................................................................................................................................ 4
Competitive Analysis ...................................................................................................................... 5
Target Audience .............................................................................................................................. 5
Distribution Channel ....................................................................................................................... 5
Promotion Strategy ......................................................................................................................... 5
Advertising ...................................................................................................................................................................... 5
Loyalty cards/Discount Promos................................................................................................................................. 6
Pricing Strategy............................................................................................................................... 6
References ....................................................................................................................................... 6

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 TIM HORTONS CAFÉ AND BAKE SHOP

Business Definition
Tim Hortons Inc is a renowned Fast food chain specializing in coffee, donuts and other desserts.
At Tim Hortons in Pakistan we will be focusing on the division of coffee, donuts and desserts.
Tim Hortons café and bake shop will be serving hot and cold brewed coffee at its stores, roasted
beans and packaged cold coffee at High end IMTs for example Carrefour, Spar and Metro.
Since the target market in Pakistan is concerned about hygiene in restaurants and this is one of
the factors why they chose any restaurant, the USP of Tim Hortons café and bake shop will be
that the entire process from ordering the coffee to preparing and serving it will be done in front
the customers.
Tim Hortons café and bake shop will be getting its coffee from several of the world's renowned
coffee-producing regions and using a premium blend of 100% Arabica beans. Tim Hortons
coffee will be served within 20 minutes of brewing or will not served at all. It's that quality and
focus on "Always Fresh" that we think will make Tim Hortons coffee our guests' favorite with a
short period of time.

Industry Analysis
‘Coffee is the common man’s gold, and, like gold, it brings to every person the feeling of luxury
and nobility.’ This description of the behavior of people towards coffee by the great Muslim
scholar Shaikh Abd-al-Kadir is as relevant today as it was when coffee was first discovered.
Although the above description is somewhat true, Pakistan is known to be a tea drinking nation
and coffee is at its early stage of business cycle. The coffee culture in Pakistan is growing thanks
to the young generation specially in the posh areas of urban cites. The current consumption per
capita of coffee is 0.8 kg in Pakistan, but because of the growing trend of coffee the figure will
go up in the future.
The awareness of coffee among individuals is at an early stage in Pakistan and the taste of coffee
is not fully developed. Drinking tea is a cultural norm and is an intergenerational drink and is an
integral part of family gathering and socializing.
As per the marketing executive of Second Cup, a Canadian coffee brand, based in Islamabad and
Lahore, they sell 400 to 450 cups of Coffee per day at one outlet and the sales have gone up by
more than 40 percent since 2015.
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 TIM HORTONS CAFÉ AND BAKE SHOP

The general consensus about coffee is that it is not just a drink anymore: It’s a culture, an art, and
a passion.
International and high-end local chains are the main competitors of Tim Hortons café and bake
shop. International chains like McCafé, Gloria jeans and Dunkin donuts are our main
competitors. High-end local chains like Espresso, Floc, Mocca and Butlers chocolate cafe are
also the main competitors of Tim Hortons in the industry. There are also other major players in
the market that are providing substitute products like shakes, chai, canned beverages etc. the
beverage industry also imports beverages for example packaged Starbucks coffee, which also
constitutes to competitors in the market.

Market Analysis
SWOT analysis of Tim Horton café and bake shop.
Strengths
• Internationally recognized brand image
As of Dec 2018, Tim Horton Inc had 4846 stores all over the world and is still the leading
coffee café in Canada. The international brand recognition will help create customer loyalty
and good brand image in the minds of the customer.
• Several new entrants
International coffee chains, like Second cup and Gloria jeans, are coming to Pakistan and
investing in the coffee sector. This is not a threat as this is creating more demand for coffee
in Pakistan and the target market is looking for options to try out new brands.
• Change in Demographic Factors
Due to rapid increase in young and middle-aged population of Pakistan with higher
disposable income, both the demand and the target market for coffee cafes is increasing at an
exponential level.
• Low consumption
As mentioned earlier, the consumption of coffee per capita is less than 0.8 kg. This indicates
that there is a chance of growth in the sector.

Weaknesses
• Coffee is considered a luxury
Due to the high prices at international coffee chains and more inclination towards tea, coffee
is still considered a luxury in Pakistan by a large portion of the population because of the
increased inflation and lower standard of living.

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 TIM HORTONS CAFÉ AND BAKE SHOP

• Under-Developed Country
Although the economy of Pakistan is growing, it is still a very poor country. International
brands that open in Pakistan must invest a lot on advertising and promotion to reach their
market and make an impact.
• Tea dominating the current market
The current beverage market is dominated by tea in Pakistan. It will be difficult to divert the
target audiences’ interests from tea to coffee.

Opportunities
• Changing lifestyle and income of individuals
The growth in urbanization and high disposable income has led to higher value drinks
experience strong growth in the market.
• The business cycle of coffee
The business cycle of coffee café is still in the growth stage and more and more people are
switching from tea to coffee because of the increased sense of sophistication that comes with
it.

Threats
• Increased tax regulations of Pakistan

Recently, the new government has imposed different kind on taxes on both customer and
businesses especially for luxury goods. There are also increased tax regulations for collection
of taxes in Pakistan.

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Competitive Analysis
International and high-end local chains are the main competitors of Tim Hortons café and bake
shop. International chains like McCafé, Gloria jeans and Dunkin donuts are our main
competitors. High-end local chains like Espresso, Floc, Mocca and Butlers chocolate cafe are
also the main competitors of Tim Hortons. These are the main competitors of Tim Horton’s café
and bake shop because their main products are addressing a similar need of target audience.
Indirect competitors are the various high-end chai dhabas like Chai khana, Chai wala, Chai shai
and Lollywood café. These cafes provide a substitute to coffee and provide the same comfortable
environment hence they can decrease the market share of coffee cafes. There are also other major
players in the market that are providing substitute products like shakes, canned beverages etc.
Pakistan beverage industry also imports hot and cold beverages for example packaged Starbucks
coffee, which also constitutes to competitors in the market.

Target Audience
• Young people mostly (18-35)
• Affluent consumers with developed taste for fresh coffee.
• Coffee lovers
• People seeking comfortable and interactive environment
The growing population of middle-aged people with high disposable income is one of the main
reasons that the trend of coffee is emerging in Pakistan. Over the past few years coffee cafes
have attracted young adults and teenagers as they provide them with an environment they can
socialize in and hang out with friends on a regular basis.

Distribution Channel
As main product of Tim Horton café and bake shop is coffee, coffee will be provided through 2
different distribution channels. Freshly brewed coffee, baked goods, shakes and desserts will be
available at Tim Hortons outlet. Whereas packaged roasted and grounded coffee beans and
packaged iced coffee will be available in high-end LMTs and superstore for example Aghas and
Ebco.

Promotion Strategy
Advertising
Due to the increasing trend of social media among the younger and middle-aged generation, Tim
Hortons will be promoted through different social media channels for example Instagram, Facebook and
Snapchat. Since the brand image of Tim Hortons is already present all over the world, the market in
Pakistan will just need to be informed that an international coffee café is opening its stores in Pakistan.
Since the brands’ main target market is people with high income, Initially Tim Hortons will also be
advertised in high-end fashion magazines and newspapers to create awareness in the market. The brand
will also be associated with local celebrities for endorsements to help create a familiar image in the
minds of the target audience

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Loyalty cards/Discount Promos

Loyalty cards will be introduced to regular customers that will enable them to avail discounts and free
product after a certain number/amount of purchases. This will help create customer loyalty and
encourage them to make frequent purchases. Reward points will be added after every purchase and
customers will be entitled to enter for lucky draws after a certain number of points gained.
Discount promos/discount coupons will also be introduced from time to time which will be available to
customers who purchase a product and discount will be on the next purchase.

Pricing Strategy
• Value based pricing strategy will be used to the price the products at Tim Hortons since it is a
premium based product.
• Tim Hortons will be using psychological pricing strategy where it prices its products in such a way
that seem lower, however the price is the same.
• It will be considering the prices of direct competitors and pricing its products above the
competitors’ price since it will be offering additional features in terms of environment, free wifi etc
and can charge a higher price for its goods

References
Literature review: Marketer’s Toolkit: The 10 Strategies you need to succeed
Literature review: Marketing Management by Kotler Keller
http://www.timhortons.com/ca/en/index.php
https://gulfnews.com/world/asia/pakistan/coffee-culture-is-on-every-lip-1.1965199
https://defence.pk/pdf/threads/coffee-culture-in-pakistan.569681/
https://www.euromonitor.com/coffee-in-pakistan/report
https://horeca-world.com/growing-popularity-of-coffee-cafes-in-pakistan/

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