Tim Hortons

Expands to Australia
International Market Entry Plan
 Tim Hortons

🍩 Tim Hortons was founded in 1964 in Hamilton,

Ontario by Tim Horton, a Canadian NHL hockey
player, and Ron Joyce, a former police
constable.

🍩 Tim Hortons expanded rapidly during the 1980s

and 1990s, becoming a cultural icon and
beloved institution in Canada.

🍩 In 2014, the company was acquired by Burger

King, which later merged with Restaurant
Brands International, the current parent
company.

🍩 Today, Tim Hortons operates over 4,000

locations in 14 countries, with a focus on coffee
and baked goods.
 Market Opportunity
1 Untapped Market 2 Growing Demand
Despite the popularity of
The coffee market in
coffee culture in Australia,
Australia continues to grow,
there are few established
with specialty drinks and
chains offering the diverse
baked goods becoming
range of food and drink
increasingly popular.
products Tim Hortons
provides.

3 Brand Recognition
Tim Hortons' well-known brand and reputation for quality
can help differentiate it in a competitive market.
Australian Coffee Culture
Coffee Shops
Independent cafes and chains alike are a mainstay in
Australian culture, with many locations specializing in
unique, locally-sourced coffee blends and baked goods.

1 2 3

Coffee Varieties Cultural Significance

Australian coffee culture is known for its Coffee culture is an important part of Australian
emphasis on high-quality espresso-based drinks, social life, with coffee shops serving as a hub for
particularly flat whites and long blacks. socializing, work, and relaxation.
Challenges

Competitive Market Cultural Differences Costs Menu Adaptations

Adapting to Australian Entering a new market Tim Hortons will need to
Australia has a well-
tastes and customs will can be expensive, with adapt its menu to meet
established coffee
be a key challenge, costs related to local tastes and
culture, with many
particularly given the establishing a supply expectations, while still
established local and
sensitivity around chain, hiring employees, staying true to its brand
international chains.
cultural appropriation and building new identity.
and globalization. locations.
 Market Entry Strategy
Based on previous market entry strategy executed by Tim Hortons
abroad, the most convenient to perform to get into Australian
market should be:

Investment
(Foreign Direct Investment)

🔴 Direct investment allows Tim Hortons to have full control over its
operations, brand image, and business decisions in the Australian
market.
🔴 Ensures consistent brand standards, product quality, and
customer service.
🔴 Can establish stores more quickly and potentially expedite its
expansion timeline.
Marketing Objectives

Opening a minimum of 50 stores across major

cities and key regional areas within the first
three years.

Achieve at least 80% brand recognition

among the target audience within the
first year of operations

Attract a diverse customer base in Australia

with a target of 30% being repeat visitors
within the first two years.
Marketing Objectives

Capture a significant amount of the Australian

market, aiming for a 15% market share within
the first five years of expansion.

Maintain high employee satisfaction at a

75% level to ensure motivated and
well-trained staff.
Target Audience
Population distribution Hot beverage consumption
in Australia, by age (2022) in australia, by age (2022)

69.6%
67.3%
Pre-Boomers, 4.3% 64.1%
Generation Alpha, 59.9% 61.1%
12.0%
Baby Boomers, 53.7%
18.0% 48.3%
43.1%
Generation
Z, 18.5%
32.3% 30.5%

19.5%
Generation 11.6% 12.1%
X, 19.2% 9.3%
7.3%

Millennials, Pre-Boomers Baby Boomers Generation X Millennials Generation Z

28.0% (Pre 1964) (1946-1960) (1961-1975) (1976-1990) (1991-2005)
Hot Tea Hot Coffee Hot Chocolate
Target Audience
Consumer Profile
INTRODUCTION TO CONSUMER TYPES 77

🇦🇺‍ Ages between 35 and 55 years old.

Breakdown of consumer types in Australia
🇦🇺‍ Income: USD $45,000 – USD
$62,000.
🇦🇺‍ Value Happiness experiences.
🇦🇺‍ Research for value before buy.
🇦🇺‍ 45% want to have a positive impact
on the environment.

Numbers of respondents

271 174 162 157 79 73 52

© Euromonitor International
Marketing Mix
Tim Hortons will offer competitive
pricing, with discounts for loyalty
members and value menu items.
Tim Hortons will use targeted advertising,
social media, influencer marketing, and
loyalty programs to build brand awareness
and attract new customers.

Price Promotion

1 2 3 4

Product
Tim Hortons will offer a diverse menu
including coffee, tea, baked goods,
breakfast sandwiches, and soups and chili.
Place
Tim Hortons will focus on high-traffic
urban locations with outdoor seating,
drive-thru options, and easy accessibility
via public transit.
Marketing Mix

Product & Price Promotion Place

 Positioning
Positioning Marketing Message Target Audience
Tim Hortons will position
itself as a high-quality, "Discover your new favorite Tim Hortons' target audience
affordable alternative to coffee spot with Tim Hortons in Australia is young, urban
other coffee chains, - where quality coffee and professionals, and families
emphasizing its brand baked goods meet iconic looking for quality coffee and
heritage and unique menu Canadian charm." baked goods.
offerings.
 Tactics to execute with direct
investment
Targeting High-Density Areas

Adapting the Menu

Positioning
Cultural Sensitivity

Localized Marketing Campaigns

Digital Innovation

Training and Quality Control

 Financial Forecast
2024 2025 2026 2027

Sales $1245 $1461 $1883 $1942

Cost of Goods Sold $1813 $1610 $1890 $2312

Gross Profit $1993 $2843 $2364 $2598

Operating Profit $1245 $1461 $1883 $1942

Profit after
$1500 $2374 $2598 $2843
financial items
Net Income -$2598 $486 $838 $1008

This financial summary outlines the projected performance of the company for a four-year
period, presenting estimated values in Canadian dollars (CAD) for revenue, cost of goods
sold, gross profit, operating profit, and net income. The table offers insights into the
anticipated financial outlook, providing a comprehensive overview of the company's
expected financial performance over the specified time frame.
 ☕ Coffee culture is an important part of Australian social life, with coffee shops serving as
a hub for socializing, work, and relaxation.

☕ The average Australian consumes 2.1 kg of coffee, with instant coffee being more
Summary popular (1.4 kg). This provides a huge opportunity in the Australian market.

☕ Expanding to Australia presents significant challenges and opportunities for Tim

Hortons. By understanding the Australian coffee market and adapting to local tastes,
Tim Hortons can differentiate itself and establish itself as a beloved brand in the region
International Marketing Management
Prof. Fatima Faizan

Group – 8
Aditya Bhardwaj
Seema Seema
Juan Jose Lopez Del Rio
Sebastian Hoyos Pumarejo
Kunal Parate
Priya Priya