TIM HORTONS

THE MARKETING
ENVIRONMENT
Assignment-1

Introduction:The Tim Hortons chain was founded in May, 17 1964 in Hamilton, Ontario. The chain's focus on
top quality, always fresh product, value, great service and community leadership has allowed it
to grow into the largest quick service restaurant chain in Canada specializing in always fresh
coffee, baked goods and Homestyle lunches.
Tim Hortons is created by a hockey player Miles G Tim Horton After he started his first store
he met Ron Joyce a former Hamilton police constable and in 1967 Ron Joyce and Tim Horton
became full partners in the business. Upon Horton's death in an auto crash in 1974, Joyce
bought out the Horton family's shares for $1 million and took over as sole owner of the existing
chain of forty stores.
The first Tim Hortons restaurants offered only two products - coffee and donuts. The selection
of donuts to enjoy was highlighted by two original Tim Hortons creations, the Apple Fritter and
the Dutchie. They became the most popular donut choices in the 60's, and remain two of the
most popular today.
On September 29, 2006. Tim Hortons become separate company
On August 24, 2014, U.S. fast food chain Burger King announced that it was in negotiations to
merge with Tim Hortons Inc.
Tim Hortons had 4,500+ restaurants in Canada, 800 in the United States. As well as it has more
than 96000 employees.

Four PS of analysis

Product:Tim Hortons only offering two products back in 1964 to offering over 100
items on their menu and in stores today. Tim Hortons is known for variety
of coffees and donuts. They provide mainly three type of coffees Original
Blend, Dark roast coffee, and Decafe
Timbit (bite-sized donut hole), today available in over 35 different
varieties. Muffins cakes, pies, croissants cookies, and soups & chili.
Sandwiches, bagels, flavored cappuccino , Caf Mocha and Iced
Cappuccino, the Turkey Bacon Club sandwich and Maple Pecan Danish. For
Healthier option Yogurt & Berries. For Breakfast Option Chicken Salad Wrap
and the hot Breakfast Sandwich (eggs, sausage or bacon, processed
cheese on a toasted home-style biscuit).

Price:Tim Hortons providing good quality at a fair price.

Tim Hortons Product priced approximately $1-$25 (including tax)
Tim Hortons Pricewise would be more expensive than the Donut diner and
less expensive than coffee and food served at Starbucks

Place:There are more than 4000 stores are available in Canada and USA
There are Over 1000 Stores only in Ontario
Tim Hortons also has several stores in Ireland, Colombia, Kuwait, Oman,
and Saudi Arabia.

Promotion:Tim Hortons promotes their products and chain through a large marketing
campaign called Roll up the Rim to Win this is where customers can win
various prizes by looking under the rim of coffee cups. As well as they
provide Tim Gift cards. Tim Hortons often runs campaign for NHL

SWOT Analysis:Tim Horton

Strength
Strong market share in Canadian
market
Well-known Brand in Canada
Financial Stability
Low Employee Turn Over
Merger with Burger king
Product availability in Retail store
such as Loblaws, Walmart,
Sobeys, Metro, Safeway, and
Costco
Opportunity
Expansion in Middle east and
Asian Countries
Increase health conscious
Products
Applying New marketing
strategies for USA

Weakness
U.S. expansion has been sluggish
Less Heathier option in menu

Threat
Competition
Slow Economy
Big Brands Arrival in Market
Stylish and user-friendly
homemade coffee machines.

Starbucks

Strength
Good financial condition
No1 coffee brand in all over the
world
Starbucks experience
Largest coffeehouse chain in the
world
Opportunity
Extend supplier range
Increase number of outlet in
Asian countries

Weakness
Price is high than competitor
Negative publicity
Slow Economy

Threat
Trademark infringements
Supply disruptions
Increasing prices of coffee beans
and dairy products.

McDonald

Strength
Huge fast food market share in
world
Acquisition and Merger with big
brands
Regionally accepted food menu
Large range of product
Opportunity
Home delivery
Including more healthier food in
menu

Weakness
High employee turn over
Less Health conscience food

Threat
People become more health
conscience
Local fast food market

On the basis of SWOT analysis: Tim Hortons do good business in Canada and capture higher market share.
Low price of their beverages compare to their competitor help them to
achieve this position. However in USA this strategy was not working
because there are many big brand steal over there before Tim Hortons

Conclusion and Recommendation: To put into nut shell , Tim Hortons Should introduce more healthier
product .Apart From this they also look for other countries market for
Expansion such as India , China and many other Asian and middle east
market

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2015.
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