Professional Documents
Culture Documents
Marketing Plan
Tim Horton
By Danyal Imran - 18545 (Section II)
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Table of Content
About Tim Hortons Inc. 2
Table of Content 3
Executive Summary 5
Company Background 5
Situation Analysis 6
Company Analysis 6
Mission Statement 6
Vision Statement 6
Unique Selling Proposition (USP) 6
Industry Analysis 7
Market Analysis 7
Product Situation 7
SWOT Analysis 8
Strengths 9
Weaknesses 9
Opportunities 9
Threats 10
Competitive Analysis 10
Target Audience 11
Pricing Strategy 11
Distribution Strategy 12
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Search Engine Optimization (SEO) 17
References 21
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Executive Summary
Tim Hortons Incorporated is a fast food restaurant chain, focusing on top quality, fresh
products, value, and great services. 1,2
It is Canada’s largest quick service chain; as of
December 31, 2018, Tim Hortons is located in 14 countries with more than 4,800
restaurants. 3,4
Finally, Tim Horton is planning to carry out a Karachi wide launch in Pakistan by February,
2019. Due to an increased consumption pattern of breakfast and coffee, the company aims
to generate large revenues in the foreseeable future.
Company Background
The journey begins when a National Hockey League legend, Tim Horton, opened his first
store named Tim Horton Donuts in Hamilton, Ontario, Canada on May, 1964. 6 The price of
each coffee and donut sold was at a reasonable 10¢ price mark. In 1967, Tim Horton joined
hands with Ron Joyce as partners, and inaugurated its first franchise.
1981 till 1985 introduced new items on the menu including muffins, cookies, croissants,
and chilli and soups. 1984 saw the first U.S. location open in Tonawanda, New York. 1991,
1995, and 2000 marked milestones when the brand opened its 500th, 1000th, and 2000th
restaurant respectively. 7
In 1995, Tim Hortons merger with Wendy's International Incorporated to help with their
expansion into the United States. 9 1996 till 1999 welcomed new items to their menu:
bagels, flavoured lattes, sandwiches, and iced capp.
6
The last decade served well to the growth of Tim Hortons. First, they introduced
single-serve Keurig® and Tassimo® coffee brew packages in 2011. In 2014, Tim Hortons
introduced a Double™ Visa® Card, which allowed customers to earn reward and instantly
redeem Tim Cash for their favourite Tims products. Furthermore, the TimmyMe mobile app
allowed customers to pay with their smartphones. Finally, Burger King and 3G Capital
acquired Tim Hortons and formed the third-largest restaurant brand in the world. 10
Situation Analysis
Pakistan is a predominant tea drinking nation, and coffee is still in its very early stages.
Consumers aren't aware about the coffee's full potential, and therefore lack the knowledge
to best understand its taste, hence it remains low and underdeveloped in this country.
Meanwhile, tea is ubiquitous in an average Pakistani life. However, with a change in
socioeconomic and demographic trends, the youth are going to diverge towards coffee in
the foreseeable future, hence boosting sales. These prospects are influenced by the West
and modern lifestyles. While consumers are hesitant to pay a premium for coffee, brands
such as McDonalds, Dunkin Donuts, Subway, and Espresso, are helping spread taste and
awareness of the earthy bean that is enjoyed by the world. 13
Company Analysis
Mission Statement
Our mission is to deliver superior quality products and services for our guests and
communities through leadership, innovation, and partnerships. 5
Vision Statement
7
Industry Analysis
Pakistan's hot drinks can be characterised by traditional consumption patterns, especially
in the case of tea. Tea in Pakistan is simply more than a beverage. With its cultural
significance and deep rooted consumption traditions, tea drinking is a tough habit to break.
However, coffee is penetrating the lives of urban consumers with its Western appeal and
trendy image. Thus, coffee volume sales are expected to continue to grow in the quick
service industry. Overall, coffee is expected to register fast sales growth, especially due to
consumption by young adults. 13
Apart from the fact that Tea is the go-to option for many Pakistani’s, when paired with
various international or local breakfast, the taste and experience is soothing to each
personal. With the success of recent local cafés, the amount of time people spend on
breakfast and mid to late-night snacks have increased tremendously because the
environment and aroma delivers a soothing and homelike experience to the consumers in
which love hanging out with their friends and family.
Market Analysis
Product Situation
As a new franchise in the Pakistani market, we are going to start small, then scale as our
market share, and reach increases. The franchise is going to start with its core products:
coffee, tea, donut, sandwich, breakfast, and salad. The following table lists all of the
products that are going to be offered:
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Product Description
Original Blend
Our signature Original Blend with the familiar and satisfying taste that
Canadians enjoy every day.
Donut
Single or by the dozen, Tims donuts are the snacks perfect moments are
made of.
Homestyle Oatmeal
Oatmeal the way grandma used to make it. Slow cooked and available in
Maple or Mixed Berries.
Sandwiches
Prepared with quality ingredients and made to order just for you.
Fresh Salads
Don't want a heavy meal? Try our Caesar or Garden Salads. Made fresh to
order with quality ingredients, satisfying and delicious.
SWOT Analysis
Tim Hortons launch in Karachi, Pakistan, is going to introduce a lot of challenges the
company hasn't faced so far due to the unique dynamics of the country. However, with
strengths possessed by Tim Hortons, there is nothing the firm can do to overcome its
weaknesses and threats.
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Strengths
Weaknesses
● Premium brand: Tim Hortons is a brand that is enjoyed by the middle and upper
class, and considering that Pakistan is a poor country with 5.79 growth domestic
product (gdp) rate, it goes to show that the majority of the population belongs to the
lower class. 15
● Unrecognized brand in Pakistan: Due to a high number of population belonging to
the lower class, they won’t be able to recognize the brand since they aren’t coffee
consumers in the first place.
● Below industry average: Recent performance highlights a low profitability ratio.
Opportunities
10
Threats
Competitive Analysis
The main competitors of Tim Hortons in Karachi, Pakistan, will be McDonald’s, Dunkin
Donuts, Subway, and Espresso. Due to the premium nature of Tim Hortons and the quality
that it offers to the consumers, it won’t be competing with small to mid-sized local brands
in the market.
McDonald’s
‣ Decline in forecasts
Tea 140 - 170 PKR ‣ Menu diversity
‣ Limited success outside
‣ Global brand
core business
Coffee 210 - 320 PKR ‣ Availability
‣ Days inventory is
‣ Affordability
compared high compared
Breakfast 205 - 555 PKR ‣ Top fast food restaurant
to competitors
Sandwich 505 - 705 PKR
Dunkin D
onuts
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Subway
‣ Hygienic ‣ Low brand value
‣ Customized menu ‣ Low satisfaction and level
Sandwich 370 - 540 PKR
‣ Nutrition of service
‣ Oven fresh ‣ Too many workers
Salad 320 - 580 PKR
Espresso
‣ Expensive
Coffee 165 - 425 PKR
‣ No online presence
‣ Menu diversity ‣ Old-themed restaurant
Breakfast 500 - 1000 PKR
‣ First local café ‣ Low brand value
‣ Local aroma ‣ Improper financial
Salad 525 - 625 PKR analysis
Sandwich 575 - 975 PKR
Target Audience
After analyzing the industry and competitors, it's safe to draw attention to the audience
that Tim Hortons will be looking to target once it successfully launches in Karachi:
Profile Target
Wants & Needs Breakfast on the go, scrumptious sandwiches, mid-day or
late-night snacks, fresh salad, mesmerizing coffee, and tea
Pricing Strategy
We will be opting for Penetration pricing strategy, since it is best to gain market share as we
enter the market. Once customers realize the value that Tim Hortons delivers, the prices
will be increased. 24
Furthermore, Tim Hortons will also be offering product line pricing to
emphasize on bulk sales.
12
The following will be the prices offered by Tim Hortons once it launches in Karachi:
Distribution Strategy
The procurement process will supply coffee beans and tea leaves from Canada - Tim
Hortons birthplace, to ensure standard and taste that Tim Horton is known to serve. Beans
and leaves sourced will be closely monitored to ensure highest quality possible. 25
Marketing Strategy
Marketing strategy are keen to deliver 360 degree experience to customers. This will
highlight the values, benefits, attributes, products, and image of the brand. These
strategies are implemented in hopes for acquiring long-life customers that value the brand,
and in return generate large revenues for the business. These revenues will be used in
geographic expansion, or R&D department to expand menu according to Pakistan’s taste.
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Promotional Strategy
Building Hype
Share it!
This promotional strategy is to grow the brand’s presence and reach. Share it will allow
users to share about Tim Hortons on the user’s social media pages, and in return will be
entitled to receive a free donut.
Food Bloggers
The word-to-mouth can act as a double edged sword, but if it swings in our favor, the brand
gains traction. Blogger reviews are heavily relied upon for hesitant prospects having a
desire to try our product.
TV Commercials
Pakistani is still old schooled compared to other countries, and people still watch a lot of
television, especially news, dramas, sports, and entertainment. Therefore, to catch their
eye, TV commercials will aim to deliver at a mass level on what Tim Hortons is about during
commercial breaks.
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Website
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Social Media
Tim Hortons will be on different social media pages, where each page will have a unique
approach to influence and aware target audience:
● Twitter: Announce news, and upcoming campaigns that the brand is going to
pursue.
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Search engine optimization is going to help build an online presence. This presence will be
felt when people look up our brand on various search engines. The goal of SEO is to ensure
organic results when a certain query is looked up on the search engines: Google, Bing,
Yahoo, etc. Firstly, we will need to build inflow and outflow links between our different
social media pages. Secondly, we’d need to mark the following keywords: Tim Hortons,
Original blend, Dark roast, and Loose leaf steeped.
Financial Projection
The financial projects section aims to estimate the profits generated in the next 3 years.
Product Demand
Karachi has an approximate 15 million people resident in its proximity out of the 200
million population. 26
Among which everyone has different preferences to taste and brands.
The following table lists the average demand per person of products in Pakistan: 27,28
Product Demand
Donut 9 donuts
Oatmeal 2 oatmeals
Sandwich 59 sandwiches
Salads 37 salads
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1st year 2nd year 3rd year
In addition, we also estimate our market share of total sales per product along the 3 year
timeline:
S ales = (market share x product) x product price x average demand per person
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Estimated Expenses
Tim Hortons is going to incur cost for successfully executing its operations (the expenses
are assumed constant for the 3 year period of operations): 29
Expenses Amount
The table highlights the net profits or losses for each year after launch:
20
Pakistani Theme
The restaurants should not only follow Tim Hortons values, but also incorporate Pakistan’s
culture values to furnish the best possible experience to consumers.
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References
1. 'Greed is not OK': Backlash grows against Tim Hortons worker benefit cuts, CBC News,
Retreived from
https://www.cbc.ca/news/business/tim-hortons-minimum-wage-worker-benefits-1.4
480097
2. New web-based tool helps groups order their favourite Tim Hortons beverages, Tim
Hortons, Retrieved from
https://www.timhortons.com/ca/en/corporate/news-release.php?id=8205
3. Corporate Profile, Tim Hortons, Retrieved from
http://www.timhortons.com/us/en/about/profile.html
4. Tim Hortons to add 500 Canadian outlets, 300 in U.S. by 2018, The Globe and Mail,
Retreived from
https://archive.fo/20140225153706/http://www.theglobeandmail.com/report-on-bus
iness/tim-hortons-to-open-800-stores-under-new-strategy/article17078297/%23das
hboard/follows/
5. Mission and Vision Statement, Retreived from
http://www.timhortons.com/ca/en/about/media-company-facts.html
6. Tim Hortons asking which menu item should return in 'Bring It Back' campaign, CTV.ca,
Retrieved from
https://london.ctvnews.ca/tim-hortons-asking-which-menu-item-should-return-in-br
ing-it-back-campaign-1.1750764
7. The Story of Tim Hortons, Tim Hortons, Retrieved from
https://web.archive.org/web/20080530034526/http://www.timhortons.com/en/abou
t/index.html
8. Multiple Tim Horton franchises , other businesses cut pay, beneits, citing minimum wage
hike, CBC News, Retreived from
https://www.cbc.ca/news/business/tim-hortons-heirs-minimum-wage-wynne-ontari
o-1.4472878
9. U.S. burger giant buys Tim Horton doughnut chain, Canadian Broadcasting
Corporation, Retreived from
http://archives.cbc.ca/IDC-1-73-2330-13539-10/on_this_day/politics_economy/twt
10. Burger King in talks to acquire Tim Hortons, The Globe and Mail, Retreived from
https://www.theglobeandmail.com/report-on-business/burger-king-in-talks-to-acqui
re-tim-hortons-report/article20187310/
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11. Tim Hortons join S&P/TSX index roster, TheStar, Retreived from
https://web.archive.org/web/20061111063723/http://www.thestar.com/NASApp/cs/
ContentServer?pagename=thestar%2FLayout%2FArticle_Type1&c=Article&cid=1159
353728514&call_pageid=968350072197&col=969048863851
12. Tim Hortons owner eyes rapid expansion in U.S. despite uncertainty around Trump,
Toronto Star, Retreived from
https://www.thestar.com/business/2017/02/13/tim-hortons-burger-king-see-big-jum
p-in-profit-in-2016.html
13. Coffee in Pakistan, Euromonitor International, Retreived from
https://www.euromonitor.com/coffee-in-pakistan/report
14. Best Managed Companies, Canadian Business, Retrieved from
https://www.canadianbusiness.com/best-managed-companies/?utm_source=canadi
anbusiness_com&utm_medium=site_menu&utm_campaign=cdnbiz_organic
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https://tradingeconomics.com/pakistan/gdp-growth
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https://www.euromonitor.com/hot-drinks-in-pakistan/report
17. Espresso - menu, Espresso, Retrieved from http://www.espresso.com.pk/menu.shtml
18. Subway - menu, Foodpanda, Retrieved from
https://www.foodpanda.pk/restaurant/s7ky/subway-bukhari
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https://www.foodpanda.pk/restaurant/u4nv/dunkin-donuts-bahadurabad
20. McDonald's - menu, McDonald’s, Retrieved from
https://mcdonalds.com.pk/our-menu/
21. McDonald’s SWOT Analysis, The Motley Fool, Retrieved from
https://www.fool.com/investing/general/2010/08/25/mcdonalds-strengths-weakness
es-opportunities-threa.aspx
22. Dunkin Donuts SWOT Analysis, Marketing 91, Retrieved from
https://www.marketing91.com/swot-analysis-of-dunkin-donuts/
23. Subway SWOT Analysis, How and What, Retrieved from
https://www.howandwhat.net/swot-analysis-subway/
24. Tim Hortons Marketing Mix, Essay 48, Retrieved from
https://www.essay48.com/term-paper/13933-Tim-Hortons-Marketing-Mix
25. The bean is key at Tim Hortons coffee roasting plant, The Record, Retrieved from
https://www.therecord.com/news-story/2604284-the-bean-is-key-at-tim-hortons-cof
fee-roasting-plant/
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26. Karachi population 2019, World Population Review, Retrieved from
http://worldpopulationreview.com/world-cities/karachi-population/
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from
http://www.radio.gov.pk/24-06-2018/pakistan-at-7th-position-for-high-tea-consumpt
ion-worldwide
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https://defence.pk/pdf/threads/coffee-culture-in-pakistan.569681/
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https://www.franchisedirect.com/foodfranchises/tim-hortons-franchise-07147/ufoc/