Tim Hortons Case Study

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.

Tim Hortons is much more involved in making a true difference for individuals, communities and the around the globe daily than just serving a coffee.

In order for both Burger King and Tim Hortons to reach their maximum growth potential, it is necessary for the Tim Hortons brand to expand into new US markets. In order to do this, the company should implement a combination of alternatives 2 and 3. The main justifications are as follows:

Tim Hortons is currently recognized as the largest fast food restaurant chain in Canada. It provides a variety of products that are appealing to a broad range of costumer choices and the prices are relatively attractive for most of the consumer range. They prices are priced low and that’s why they are often favored by people. The company’s product line consists of premium coffee, espresso-based hot and cold specialty drinks (including lattes, 3 cappuccinos and espresso shots, specialty teas, fruit smoothies), home-style soups, fresh sandwiches, wraps, hot breakfast sandwiches and fresh baked goods.

With Ron Joyce’s strategy, Tim Hortons expanded quickly in both geography and product selection. In 1981, it already had successfully opened almost 150 outlets in Canada, and became the leading chain in Canada. It even resulted in the major changes to the coffee and donut restaurant market in Canada. Tim Hortons thus confidently believed that the expanding strategy could fit well even in the US market, where the geographical distance was close and the culture seemed to be quite similar to that of Canada.

Tim Hortons though is different, coffee isn’t produced in Canada like it is in places such as Brazil. Which begs the question how did Tim Hortons manage to become a staple of Canadian heritage? Well the answer lies in how it marketed itself to the regular everyday Canadian. A key part of the Canadian identity is the that of being hard working and being low key. When you look inside a Tim Hortons you see exactly that, mostly brown cups, and a brown aesthetic that seems like it is minding its own business.

As stated above, we learned that Canadians were not only big time coffee drinkers, but they also enjoyed the specialty type of coffee that Biggby provides. According to the Five Tasks of Foreign Market Attractiveness Assessment, we were able to clearly deduce the strengths and weaknesses entering into the Canadian market. Using this, we first screened Canada’s readiness for foreign entry and decided Biggby had a large market potential due to the large coffee consumption and growth rate. Additionally, we evaluated the industry with Porter’s Five Forces and established our competitive advantages between our competitors and new entrants. Based off of these facts, we recommend that Biggby continues to use franchising because it allows the business to emerge themselves into the culture and uses the same business strategy that Biggby currently employs in the United States. Lastly, Biggby has a high sales potential in Canada because of their competitive advantages and industry growth rates. Therefore, we recommend that Biggby enters the Canadian market with a large selection of specialty coffee, green products, and through

Canadians drink coffee every day and with 67% of the adult population coffee drinkers, the demand is there if a business can capitalize on it.

As student-consultants, we paid regular visit to the Tim Horton's branch (at Baseline/Carling) and we studied the

* Of the 6 major urban areas in Canada – Toronto, Montreal, Vancouver, Ottawa, Gatineau, Calgary and Edmonton every single one of these demographics has an appropriate saturation of stores to meet supply and demand. In the last few years many suburban areas have developed at rapid paces which has led Tim Horton to strategically place more locations in these areas where once there may have been only one store, now

They cannot rely on their name alone to have customers choose them. The previous report had already noted that Tim Hortons had dominated the market in coffee sales in Canada, and according to coffee experts that is despite being a worse coffee than McDonald’s and Wendy’s. (http://www.theglobeandmail.com/life/food-and-wine/food-trends/mcdonalds-tim-hortons-who-makes-the-best-brew/article4183891/) In order to grow an international presence they will need to improve their in store model to offer extras like their competition has. When they are already competing against the market prevalence of Starbucks in the United States (http://www.usatoday.com/story/money/business/2016/12/07/starbucks-stores-coffee-howard-schulz/95086206/) they will need a superior product as customers will need to go out of their way to get to a Tim Hortons over a

Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.

Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty

The context change in form that Starbucks found itself competing with smaller chains that resembled its former pre-expansion model with competitors focusing in creating symbolic-expressive value and fast food restaurants that had started to offer specialty coffee with more aggressive advertisement at a lower cost. The competitive context changed for Starbucks because it’s focus in mass distribution channels and its retail footprint strategy stated its product within a standard performance product value; this affected the value perception of the product.

Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it