A Comparison of Starbucks and Tim Hortons
Starbucks and Tim Horton’s are two companies that specialize in the food and coffee service industries. Information about each company, a comparison of how each markets their brand and their differing distribution methods will be provided.
Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).
Starbucks sells other products
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In comparing both Starbucks and Tim Hortons regarding distribution, Starbucks definitely has more of a wide range of distributors and concentrates mainly on coffee and fresh food distribution. Tim Hortons concentrates on their beverages as well as bread, dry foods and pastries distribution as well. So in this sense, they differ a bit in what they distribute and how, as Starbucks uses a lot of licenses and partnerships while Tim Hortons relies on third party distributors and warehouses. Marketing is another key aspect that both Starbucks and Tim Hortons do differently for their company. Starbucks has intensely used technology applications such as for the iphone, in which a customer can use their mobile phone to make their purchases and it is also connected to the Loyalty Card that Starbucks has (Baker 2012). Starbucks also uses Facebook and online shopping to market their products. For example, in regards to social media, that area is part of the Marketing team in the UK and Ireland. They include customer care and public relations people, as well. Ian Cranna, Vice President for Marketing, stated that Starbucks believes “that customers want genuine and authentic interaction with the brands they choose to engage in online” (Lifting the lid on social… 2012). Starbucks hosted a “Frappuccino Happy Hour” and Cranna also
In Canada, The coffee retail industry has developed in the previous five years. The franchises is major factor in any business to expand their business for future growth. Actually Starbucks coffee is not a franchises. So they are company owned stores. They offer a different types of flexible coffee, tea program and stores for rang of various markets, and Markets include healthcare, universities & colleges resorts & hotels and existing restaurant. They additionally can take into account qualified high volume or high traffic retail locations.
MGG 502 HW #4: Compare & Contrast “Total Product Offer” for Starbucks, Tim Hortons and Dunkin Donuts
Starbucks has reinvented itself numerous times over the past 40 years and continues to experience substantial growth and contractions. They started as a small company, with its first location in Seattle’s historic Pike Place Market in 1971, and today, “there are more than 21,000 stores in 66 countries.” They have grown from not only selling coffee, but also offer a wide selection of teas, specialty drinks, pastries and an assortment of sandwiches for breakfast, lunch or dinner. They have also diversified their product offerings to include a wider variety of coffee beans, drink ware, and equipment to make coffee or tea at home.
Tim Hortons is the best chain and is obviously better than Starbucks! First and Foremost, the value of Tim Hortons vs. Starbucks. The easiest and most popular comparison is Frappuccino ($3.75) versus the Iced Capp ($2.50). Personally I’ve tried both and they taste pretty much the same with the Frappuccino
starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One
Tim Hortons faces high intensive competition with other reputed corporations. Starbucks, McDonalds or Waves Coffee is rival competitors in the market. Even though having such a big competitor, the company has been succeeding in keeping up with the competition and other changing elements in the market place.
Canadian people really like coffee and it is the Canada’s most consumed beverage amongst adults even more than tap water. Tim Hortons as a Canadian coffee shop is successful in the coffee industry, but not only Tim Hortons discovered the business opportunity in Canadian coffee industry, but also Starbucks Corporation
Tim Hortons ranks number four on the Canadian Business Top 40 Brands list. Having an iconic brand in the coffee/donut industry means they can build their customer recognition and competitive edge. Having a strong brand image enables Tim Hortons to build customer recognition. This means when a customer is buying a product, they recognize a particular brand. “Consumers are far more likely to choose a brand that they recognize over something unfamiliar”. Having a competitive edge in the market is advantageous to Tim Hortons as it differentiates them in the market. The more customer recognition they receive, the more competitive they become to other brands in the market, like Costa, Starbucks and
Tim Hortons’ biggest competitor is Starbuck which is the largest coffee chain in the world, having its presence in approximately twenty thousand location. It’s very important to understand that despite holding 75% of the Canadian coffee market, Tim Hortons is facing really tough competition from the international companies which are coming up with new and aggressive market strategy to attract the Canadian customers. Starbuck is using patriotism to take away the market from Tim Hortons which holds a very sentimental value for all Canadians. Even McDonald has enter the Canadian market and is trying to attract the customers with their low price coffee.
Yet while Tim Hortons overwhelms the Canadian espresso market, it has attempted to discover accomplishment in the U.s., and has confronted rivalry at home as of late from Starbucks Corp. what 's more Mcdonalds Corp.
Tim Hortons, Inc. engages in the ownership and operation of quick service restaurants, Tim Hortons restaurants, in Canada and the United States. The company offers coffee, flavoured cappuccinos, specialty teas, home-style soups, fresh sandwiches and fresh baked goods.
The business I have chosen to examine is Tim Hortons. Tim Hortons Café and Bookshop or Tim Hortons Inc. is a Canadian based fast food restaurant which is multinational in its operation. The company was founded by Tim Horton, Jeffrey Ritumalta Horton and Ron Joyce fifty-three (53) years ago on May 17, 1964. With its headquarters in Oakville, Ontario, it is a household name to many Canadians and very well known for its coffee and donuts. Its colloquial name is “Timmy’s” or ‘Tim’s”. As of December 31st, Tim Hortons had a total of 4,613 restaurants in nine countries which include Ireland, Canada, Saudi Arabia, United Arab Emirates, United States, and so on. The company has grown from a single location in Hamilton, Ontario to thousands across the country and a substantial number in the United States of America. In Canada, there are 3,802 Tim Hortons restaurants, a number which is much higher than that of McDonalds (1,450). Burger King agreed to purchase Tim Hortons for US$11.4 billion on August 26,2014. Being in the Restaurant industry, Tim Hortons has major competitors such as McDonalds, Starbucks, Dunkin Donuts, and so on.
Tim Hortons has a dominant position when it comes to American companies in Canada and has the market share of 70% of the baked goods whereas it has the 75% share in the coffee market, which is much
What are Starbucks’ points of parity and difference to fast food chains who offer coffee?
Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.