Cybersecurity Awareness Training Presentation v2024.03
Team Omega: Tim Hortons
1. SM 346 Final Project!
Analysis of and
Recommendations for
Tim Hortons"
2. Introduction to Tim Hortons
• Founded in 1964 as a “coffee and donuts” shop
• Dedicated to satisfying the changing tastes of
consumers through product innovation
• #1 seller remains their “legendary” coffee
• 95% franchise owned in Canada, similar
strategy in U.S.
• Merged with Wendy’s International, Inc. in 1995
in order to place greater focus on United States
expansion
3. Identification of the Problem
While Tim Hortons does a great job of attracting the
segment of consumers that are “on the run,” they
disregard several other segments of coffee drinkers
who need a comfortable space to spend time and “call
their own” when buying and consuming coffee.
After our analysis, we have proposed a plan that will leave Tim
Hortons better positioned to gain customers seeking a
comfortable place to call their own, while maintaining their
established customer base of ‘on-the-run’ consumers.
5. Strengths
• Largest quick service restaurant chain in Canada
• 3,200 locations in Canada
• 600 in the United States
• Iconic in Canadian culture
• 40% of all fast-food revenues
• 80% of the baked goods market
• 66% of the coffee market
• Demonstrates corporate social responsibility through various programs
6. Weaknesses
• No brand recognition in the United States
• Small presence in the U.S. with just 606 units
• Locations are not as profitable as Canadian counterparts
• Competition in the U.S. is fierce
• All-American brands like Starbucks and Dunkin Donuts have
many more locations per capita
7. Opportunities
• International expansion
• In 2011, Tim Hortons
expanded internationally to
the Gulf Cooperation
Council
• 5 restaurants opened
in the United Arab
Emirates
• Canadian expansion
• Product line expansion
8. Threats
• Competitors are continuously moving into Tim
Hortons’ territory
• Global economic recession can result in increased
costs for labor, production, and resources
• Threat of market saturation
10. Overall Strategy & Objectives
• Based
on
the
mission
statement
below,
Tim
Hortons’
strategy
focuses
on
two
main
objec;ves
• Deliver
quality
products
and
services
• Be
the
industry
leader
in
all
that
they
do
• They
deliver
on
this
mission
through
their
CSR
ini;a;ves
and
dedica;on
to
quality
product
sourcing
“Our guiding mission is to deliver superior quality
products and services for our guests and
communities through leadership, innovation and
partnerships. Our vision is to be the quality leader in
everything we do.”
11. Segmentation Methods
GEOGRAPHIC
DEMOGRAPHIC
PSYCHOGRAPHIC
Heavily
Canadian.
In
the
Gender
and
age
ranges
Fast-‐paced
lifestyle,
“on-‐
states,
localized
in
near-‐ generally
similar;
decrease
the-‐run”
consump;on
north
ci;es
such
as
in
consump;on
by
seniors.
style.
May
appreciate
Wealthy
more
likely
to
Detroit
and
Buffalo;
CSR
and
environmental
frequent
Starbucks
than
TH
scaIered
elsewhere.
or
DD.
ac;ons.
GEODEMOGRAPHIC
BENEFIT
BEHAVIORAL
Suburban
and
“small-‐ Those
who
seek
Loyal
and
frequent
urban”
subsectors.
Lack
convenience
and
consumer
base
of
“on-‐
of
penetra;on
in
economy
receive
both
the-‐go”
coffee
drinkers.
affluent
and
from
Tim
Hortons.
Tim
Hortons
fans
are
sophis;cated
areas.
avid
–
LOVE
Tim
Hortons.
12. Evaluating Segment Attractiveness
Current Strategy" Proposed Strategy"
Identifiable?
Identifiable?
Convenience and economic-driven consumers Maintain convenience-driven base while extending
looking for a quality product in a QSR setting
reach to those looking for a comfortable place.
Substantial?
Substantial?
Large proven customer base in Canada; working to Coffee market in the U.S. is huge: 64% of surveyed
build similar base in U.S.
Americans consumed coffee in past 30 days.
Reachable?
Reachable?
Current marketing strategy includes all traditional Similar marketing strategy with an emphasis on
forms of media (TV, Radio, Print, Outdoor) as well as digital and social as well as event-based marketing.
social platforms (Facebook, Twitter, YouTube)
Responsive?
Responsive?
Current customer base accepts Tim Hortons’ value Based on our survey data, consumers are receptive
proposition, reacts positively to offerings with high to our proposed ideas.
levels of customer loyalty
Profitable?
Profitable?
In Canada, yes: 66% of Canadian coffee market; Similar options profitable; these consumers are
80% baked goods, 40% QSR. Need to build in U.S.
some of most engaged.
13. Selecting Target Market
Our proposed strategy shift will maintain
the mass-marketing approach that Tim
Hortons currently employs
• TV
• Radio
• Print
• Outdoor (billboards, etc.)
• Social: Facebook, Twitter, YouTube
However, we will focus heavily on digital
and event-based marketing, which will
become clear later in our presentation.
15. Marketing Mix
Product
Price
Value
Crea)on
Value
Capture
Promo@on
Place
Value
Value
Delivery
Communica)on
16. Product
• Wide variety of goods
• Coffee, specialty beverages like espresso and iced coffee,
baked goods, and breakfast and lunch options
• “On-the-go” options
• Don’t offer many things you have to sit down to eat
17. Price
• Coffee is priced around $1.20
• Less expensive than other coffee shops
• More focused on offering convenient items with less variety
• Tim Hortons is about value and convenience
Place
• Tim Hortons is primarily consumed in Canada
• Majority of outlets are located in Ontario
• Their restaurant are the main way they get their products to the
consumer and generate profits
• Some items can be bought online
18. Promotion
• TimmyMe
• Allows user to find the 10 closest store locations, get directions
to the nearest location, check the balances of a gift card, and
get nutritional information on all their products
• Facebook and Twitter
• Roll Up the Rim to Win
• Customer rolls up the rim on their coffee with chance of winning
anything from free coffee or doughnuts to a brand new car
• Held annually since 1986
19. Recommendations
HANGOUT
Ω
Quick Caffeinators
What business are coffee shops really in?"
The simple answer might be “selling coffee”
PLug-INs
Comfort Creatures
But every brand has an emotion behind it, else it’s just a product. "
For many coffee shops, that emotion tends to be" A la
central perk
“Apart from their home and office, Hip-sperts
people tend to seek out a place they can call their own”
20. Our recommendations
reflect the knowledge that
there are several consumer
segments who want their
coffee shop to be a place to
plug in and do work, relax
with a good book, or meet
up with friends.
Our research reinforced this by reflecting the perceptions of Tim
Hortons and Dunkin Donuts as less inviting, with few having ever sat
down in either establishment.
Our primary recommendation is to create
“Hortons Hangout” in all locations, incorporating
HANGOUT
event-marketing as part of the launch.
21. These sit-down consumers are often the most engaged with
the brand, frequenting their choice of coffee shop several
times a week for extended periods of time, and often
purchasing multiple drinks and snack items during their stay.
22. Coinciding with the launch of “Hortons Hangouts”
we will create pop-up hangout events in cities,
on campuses, at bus shelters, etc.
Two great examples from Absolut and Caribou Coffee
23. Adding Value to TimmyMe
Competitors’ apps incorporate payment systems and
customer loyalty programs, where perks are received
after a given number of purchases, on birthdays, etc.
The new and improved TimmyMe will incorporate these
functions with the added benefit of WiFi enhancements
and the best new function…
24. Is This Seat Open?
Have you ever planned to go to Starbucks or even the UgLi to
study, only to be denied an outlet or a seat altogether?
Each Hortons Hangout will be equipped with the
technology for access on TimmyMe
Before accessing the WiFi – which Tim Hortons has already
implemented in all locations – users will be obligated to disclose
whether they are seated in the Hangout and using an outlet
TimmyMe will know the logistics of each location and be able to
inform users whether there are seats or outlets open
25. Each of these marketing innovations
HANGOUT
will drive value to Tim Hortons"
allowing them to access the consumer
base of coffee drinkers who need a
comfortable place, while maintaining
their established “on-the-go” customers
26. That concludes our presentation
Would you be more likely to frequent Tim
Hortons if these options were available?
That concludes our presentation
Are there any questions?