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Tim Hortons Case Analysis

Tim Hortons Inc. is a multinational fast food restaurant known for its coffee and donuts. It is also Canada’s largest quick service restaurant chain; as of December 31, 2016, it had a total of 4,613 restaurants in nine countries.

The company was founded in 1964 in Hamilton, Ontario, by Canadian hockey player Tim Horton (1930–1974) and Jim Charade (1934–2009), after an initial venture in hamburger restaurants. In 1967, Horton partnered with investor Ron Joyce, who assumed control over operations after Horton died in 1974. Joyce expanded the chain into a multimillion-dollar franchise. Charade left the organization in 1966 and briefly returned in 1970 and 1993 through 1996.

On August 26, 2014, Burger King agreed to purchase Tim Hortons for US$11.4 billion; the chain became a subsidiary of the Oakville-based holding company Restaurant Brands International on December 15, 2014, which is majority-owned by Brazilian investment firm 3G Capital.

Tim Hortons Case Study Examples

 Case Title: Tim Hortons Short Cycle ProcessWho is The Decision Maker: Tim Hortons Inc. Executive branchWhat is the Issue: How to continue expansion of the Tim Hortons brandWhy the Issue has arisen: Tim Hortons corporate objectives are for further expansion and sustained growthWhen the Decision must be made: Over the course of the next yearHow: […]

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Tim Hortons Inc.

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Tim hortons inc. description.

In 2014, Tim Hortons Inc., a powerhouse in the Canadian quick service restaurant industry for 50 years, has a number of strategic choices to make if it is going to address increasing competition and shifting consumer trends. To have an international presence, it needs the financial resources, organizational capabilities, store saturation, product innovation and brand recognition to compete with Starbucks, McDonald's and Dunkin' Donuts, the world's largest and best known providers of fast food such as coffee, donuts and sandwiches. However, while the brand is almost synonymous with Canada, it is far less known beyond that country's borders. In mid-August, the company announced its potential acquisition by 3G Capital, the Brazilian parent of Burger King, but this still has to be approved by its shareholders and likely by Canadian and U.S. regulators. The potential merger might help the company move forward, but will it be enough to create a competitive advantage on a global scale?

Case Description Tim Hortons Inc.

Strategic managment tools used in case study analysis of tim hortons inc., step 1. problem identification in tim hortons inc. case study, step 2. external environment analysis - pestel / pest / step analysis of tim hortons inc. case study, step 3. industry specific / porter five forces analysis of tim hortons inc. case study, step 4. evaluating alternatives / swot analysis of tim hortons inc. case study, step 5. porter value chain analysis / vrio / vrin analysis tim hortons inc. case study, step 6. recommendations tim hortons inc. case study, step 7. basis of recommendations for tim hortons inc. case study, quality & on time delivery.

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Case Analysis of Tim Hortons Inc.

Tim Hortons Inc. is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Tim Hortons Inc. is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Tim Hortons Inc. case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Tim Hortons Inc. will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Tim Hortons Inc. case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Tim Hortons Inc., is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Tim Hortons Inc. case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Tim Hortons Inc. case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Tim Hortons Inc.

Step 1 – Problem Identification of Tim Hortons Inc. - Harvard Business School Case Study

The first step to solve HBR Tim Hortons Inc. case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Hortons Donuts is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Hortons Donuts, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Tim Hortons Inc.. The external environment analysis of Tim Hortons Inc. will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Tim Hortons Inc. case study. PESTEL analysis of " Tim Hortons Inc." can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Tim Hortons Inc. macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Tim Hortons Inc.

To do comprehensive PESTEL analysis of case study – Tim Hortons Inc. , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Tim Hortons Inc.

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Tim Hortons Inc. ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Hortons Donuts is operating, firms are required to store customer data within the premises of the country. Hortons Donuts needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Tim Hortons Inc. has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Hortons Donuts in case study Tim Hortons Inc." should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Hortons Donuts in case study “ Tim Hortons Inc. ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Hortons Donuts in case study “ Tim Hortons Inc. ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Tim Hortons Inc. ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Hortons Donuts can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Tim Hortons Inc. case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Hortons Donuts needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Tim Hortons Inc.

Social factors that impact tim hortons inc., technological factors that impact tim hortons inc., environmental factors that impact tim hortons inc., legal factors that impact tim hortons inc., step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: tim hortons inc. case study solution.

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Tim Hortons Inc.

By: Karin Schnarr, W. Glenn Rowe

In 2014, Tim Hortons Inc., a powerhouse in the Canadian quick service restaurant industry for 50 years, has a number of strategic choices to make if it is going to address increasing competition and…

• Length: 15 page(s)
• Publication Date: Nov 10, 2014
• Discipline: General Management
• Product #: W14568-PDF-ENG

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In 2014, Tim Hortons Inc., a powerhouse in the Canadian quick service restaurant industry for 50 years, has a number of strategic choices to make if it is going to address increasing competition and shifting consumer trends. To have an international presence, it needs the financial resources, organizational capabilities, store saturation, product innovation and brand recognition to compete with Starbucks, McDonald's and Dunkin' Donuts, the world's largest and best known providers of fast food such as coffee, donuts and sandwiches. However, while the brand is almost synonymous with Canada, it is far less known beyond that country's borders. In mid-August, the company announced its potential acquisition by 3G Capital, the Brazilian parent of Burger King, but this still has to be approved by its shareholders and likely by Canadian and U.S. regulators. The potential merger might help the company move forward, but will it be enough to create a competitive advantage on a global scale?

Learning Objectives

The case fits nicely in any core strategy or strategic management course at the undergraduate or MBA level to achieve the following objectives:To allow for industry analysis in an industry that most students are aware of and have experience with.To provide an analysis of the internal operations of a company (management preferences, resources/capabilities, organization) as well as a consideration of how it is competing (goals, value proposition, activities, and product market focus).To evaluate strategic alternatives and make a recommendation as the company deals with challenges and opportunities.

Nov 10, 2014 (Revised: Apr 22, 2019)

Discipline:

General Management

Geographies:

Canada, United States

Industries:

Accommodations

Ivey Publishing

W14568-PDF-ENG

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Tim Hortons PESTEL Analysis

Before we dive deep into the PESTEL analysis, let’s get the business overview of Tim Hortons. Tim Hortons is a popular Canadian multinational quick-service restaurant chain focused on coffee, baked goods, and various fast food items. 

Founded in 1964 in Hamilton, Ontario, by former ice hockey player Tim Horton and his partner Jim Charade, the brand has since expanded its footprint across Canada and internationally.

As of 2021, Tim Hortons operates over 4,800 restaurants in various countries, including the United States, the United Kingdom, Ireland, Mexico, the Philippines, and China. The brand is well known for its signature products, such as Timbits (bite-sized doughnut holes), coffee beverages, and breakfast sandwiches. The menu also features soups, sandwiches, wraps, and an assortment of pastries.

In 1995, Tim Hortons merged with Wendy’s, an American fast-food chain. However, the two companies separated in 2006, with Tim Hortons becoming a publicly traded company on the Toronto Stock Exchange and the New York Stock Exchange. In 2014, Restaurant Brands International (RBI), a Canadian multinational fast-food holding company, acquired Tim Hortons. RBI also owns other well-known brands such as Burger King and Popeyes.

Tim Hortons emphasizes convenience, speed, and affordability as a quick-service restaurant chain. They have adapted to customers’ changing needs by introducing new products, enhancing their drive-thru experience, and offering mobile ordering and loyalty programs.

Financial Performance :  Tim Hortons generated 2.63 billion U.S. dollars in revenue from sales and 1.19 billion from its franchises and properties during the 2022 financial year. 

Here is the PESTEL analysis of Tim Hortons

A PESTEL analysis is a strategic management framework used to examine the external macro-environmental factors that can impact an organization or industry. The acronym PESTEL stands for:

• Political factors: Relate to government policies, regulations, political stability, and other political forces that may impact the business environment. 
• Economic factors: Deal with economic conditions and trends affecting an organization’s operations, profitability, and growth. 
• Sociocultural factors: Relate to social and cultural aspects that may influence consumer preferences, lifestyles, demographics, and market trends.
• Technological factors: Deal with developing and applying new technologies, innovations, and trends that can impact an industry or organization. 
• Environmental factors: Relate to ecological and environmental concerns that may affect an organization’s operations and decision-making.
• Legal factors: Refer to the laws and regulations that govern businesses and industries. 

In this article, we will do a PESTEL Analysis of Tim Hortons.

PESTEL Analysis Framework: Explained with Examples

• Regulatory environment : The political factors affecting Tim Hortons significantly involve food safety and quality regulations. Tim Hortons has to comply with local and national laws concerning food standards, health and safety, employment, and taxation in all the countries where it operates. Political changes can lead to changes in these laws, which can, in turn, affect Tim Hortons’ operations.
• Trade Policies : Political decisions can affect trade policies, which can impact Tim Hortons. For instance, changes in tariffs, import and export restrictions can affect the cost and availability of ingredients that Tim Hortons sources from different parts of the world.
• Political Stability : The political stability of the countries where Tim Hortons operates can significantly affect the company. If a country is politically unstable, it could negatively impact business operations. Conversely, political stability can provide a favorable environment for growth and expansion.
• International Relations : As a multinational company, Tim Hortons is affected by the international relations between Canada and its operating countries. Any political tension or conflict could affect its ability to do business in those countries.
• Public Health Policies : Government policies related to public health can also affect Tim Hortons. This has been particularly relevant in the COVID-19 pandemic, where government restrictions impacted the operations of many businesses in the food and drink sector.
• Labor Laws : Changes in labor laws, such as minimum wage laws, worker safety regulations, and labor union rules, can impact the operating costs for Tim Hortons and its overall business strategy.
• Economic Stability : The economy’s overall health in the countries where Tim Hortons operates can significantly impact its performance. In periods of economic growth, consumers typically have more disposable income and are more likely to spend on items like coffee and fast food. Conversely, in an economic downturn, consumer spending often decreases, which could affect Tim Hortons’ sales.
• Exchange Rates : As a multinational company, Tim Hortons is affected by fluctuations in exchange rates. Changes in the value of the Canadian dollar against other currencies can impact the cost of importing goods and raw materials, as well as the profitability of overseas operations.
• Inflation Rates : High inflation can increase the costs of raw materials, labor, and other operational costs, which can affect Tim Hortons’ profit margins. Conversely, low inflation or deflation can lower expenses and indicate a sluggish economy with reduced consumer spending.
• Interest Rates : Changes in interest rates can affect Tim Hortons’ costs, mainly if the company relies on borrowed funds for its operations or expansion activities. Higher interest rates increase borrowing costs and can affect profitability.
• Unemployment Levels : High unemployment levels can affect consumer purchasing power, leading to a reduction in sales. However, it can also lead to an increased pool of potential employees, affecting labor costs.
• Consumer Confidence : The level of consumer confidence in the economy can significantly impact the food and beverage industry. When confidence is high, consumers are likelier to spend on non-essential items like dining out. When confidence is low, however, consumers tend to cut back on such spending.
• Commodity Prices : The prices of commodities like coffee beans, dairy products, and other ingredients that Tim Hortons uses can significantly impact its operational costs and profitability. Various factors, including weather conditions, geopolitical events, and economic policies, can influence these prices.
• Tim Hortons SWOT Analysis

Sociocultural

• Changing Consumer Preferences : Consumer tastes and preferences can change over time due to various sociocultural factors. For example, there’s a growing trend towards healthier eating and drinking habits. Tim Hortons might need to adjust its menu to include more health-conscious options if this trend continues.
• Cultural Significance : In Canada, Tim Hortons holds a significant cultural position. It’s seen as a national icon and a part of everyday life for many Canadians. This strong cultural association could be a strength for the company, but it poses challenges as it expands internationally, where this cultural significance might not exist.
• Demographics : Changes in demographics can affect the demand for Tim Hortons’ products. For instance, younger generations may have different food and beverage preferences than older generations. Understanding these demographic shifts can help Tim Hortons tailor its product offerings.
• Ethical and Social Responsibility : Consumers are increasingly concerned about ethical issues, including fair trade, animal welfare, and sustainability. They expect companies to take social responsibility seriously. Therefore, Tim Hortons’ policies on sourcing ingredients, waste management, and corporate social responsibility can impact its brand image and customer loyalty.
• Workforce Diversity : With operations in various countries, Tim Hortons has to manage a diverse workforce. Understanding and respecting cultural differences and norms can enhance employee satisfaction and productivity.
• Lifestyle Trends : Lifestyle changes can influence the demand for Tim Hortons’ products. For example, with the increasing pace of life, demand for quick service and convenience, such as drive-thru services and home delivery, has increased.
• Social Media Influence : In today’s digital age, social media plays a significant role in shaping customer preferences and opinions. Negative or positive reviews on social platforms can significantly impact Tim Hortons’ reputation.

Technological

• Digitalization : The rise of digital technology has transformed the way businesses operate. Like many other companies in the food and beverage industry, Tim Hortons has adapted to these changes by offering online ordering, mobile payment options, and a loyalty program app. The effectiveness and user-friendliness of these digital tools can significantly influence customer experience and loyalty.
• Automation : Automation technology can enhance operational efficiency and reduce costs in the food and beverage industry. For instance, automated coffee machines can help ensure consistency in product quality. Implementing such technology requires significant investment but can lead to long-term benefits.
• Data Analytics : Advanced data analytics can provide valuable insights into customer behavior and preferences, enabling Tim Hortons to tailor its offerings and marketing strategies more effectively. However, the use of data analytics also raises issues related to data security and privacy.
• Sustainability Technologies : As sustainability becomes a more significant concern, technologies that help reduce energy use, waste, and environmental impact can be crucial. For example, using energy-efficient appliances or implementing recycling programs can help Tim Hortons enhance its sustainability efforts.
• Supply Chain Technology : Technological advancements can also improve supply chain efficiency. For example, predictive analytics can help optimize inventory management, while GPS technology can enhance logistics and delivery.
• Artificial Intelligence (AI) and Machine Learning : These technologies can be used in various ways, from improving customer service (for example, through AI-powered chatbots) to enhancing operational efficiency (such as through machine learning algorithms that optimize scheduling or resource allocation).

Environmental

• Sustainability : There’s a growing concern among consumers and regulators about sustainability. As a result, Tim Hortons might face increased pressure to demonstrate its commitment to sustainable practices. This could involve sourcing ingredients sustainably, reducing energy consumption, minimizing waste, or using eco-friendly packaging.
• Climate Change : Climate change can impact agricultural practices globally and thereby influence the availability and cost of the raw materials Tim Hortons uses, such as coffee beans, wheat, and dairy products.
• Regulations : Environmental regulations vary by country and can impact Tim Hortons’ operations. These regulations can relate to waste disposal, energy usage, and greenhouse gas emissions. Changes in these regulations can require significant adjustments in the company’s operations.
• Natural Disasters : Natural disasters, which may become more frequent and severe due to climate change, can disrupt Tim Hortons’ supply chain or affect its ability to operate in certain locations.
• Consumer Preferences : As consumers become more environmentally conscious, they may prefer businesses that demonstrate a commitment to protecting the environment. Tim Hortons’ ability to meet these changing consumer preferences can influence its brand image and customer loyalty.

• Food and Safety Regulations : As a food service provider, Tim Hortons must comply with a wide array of food safety and hygiene regulations. These regulations cover everything from the sourcing and handling of ingredients to the preparation and serving of food.
• Employment Laws : Tim Hortons must comply with various employment laws, including those related to minimum wage, overtime, health and safety, and non-discrimination. Changes in these laws can impact Tim Hortons’ labor costs and practices.
• Tax Laws : Tax laws and regulations can impact Tim Hortons’ financial performance. The company must navigate a complex landscape of tax laws in all the countries where it operates.
• Intellectual Property Laws : Tim Hortons must protect its brand, trademarks, and proprietary information. This requires navigating intellectual property laws in multiple jurisdictions.
• Environmental Laws : As noted in the discussion of environmental factors, laws related to waste disposal, energy usage, and emissions can impact Tim Hortons’ operations.
• Health and Labeling Regulations : Tim Hortons must adhere to regulations related to the disclosure of nutritional information, allergen warnings, and other information about its food and beverages.
• Data Protection and Privacy Laws : With the digitalization of business operations, Tim Hortons must comply with data protection and privacy laws, especially considering its use of customer data for its loyalty program and mobile app.

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Strategic Marketing Management of Tim Hortons Research Paper

Executive summary, the role and process of strategic marketing in tim hortons, links between strategic marketing strategy and corporate strategy of tim hortons, models of strategic marketing planning, marketing tactics used at tim hortons and their benefits, advertisement marketing strategy its merits to tim hortons, recommendations, reference list.

Tim Hortons is a Canadian restaurant that has recorded a very high level of performance over the past years. The company is widely known for their quality product that has attracted a large number of customers from all over the world. The company is widely known for its coffee and doughnuts. It has more than 3000 stores across the nation. The company was founded in 1964 by Tim Horton who was a hockey player.

This study examines the strategic management process employed in the company. This analysis begins by outlining the role of marketing in the company. The marketing tactics adapted by the company are given and their merits are outlined.

Tim Horton is one of the companies that have managed to develop the most successful marketing strategy. Marketing plan forms one of the most important parts in the overall business plans in Tim Hortons. The organization has integrated its marketing plans with its strategies, mission, and vision. By so doing, the organisation has managed to maintain a high level of performance.

Marketing is a very important element in any organization. It is therefore necessary to have a clearly designed marketing plan or strategy in order to have a successful organization. In marketing of existing products, it is necessary to understand the customer’s needs. This understanding will act as guidance in molding the product and service to maximize customer satisfaction

The success by Tim Horton’s restaurants can be attributed to its strategic marketing plans. The company has managed to improve the quality of its brand through marketing. The fast food industry has recently recorded a tremendous growth by marketing the product across the media.

Marketing has a significant role in determining an organization’s competitive advantage. Tim Hortons has managed to attract a large number of customers through its unique marketing plans.

For instance, it has managed to increase the quality of its brand across the world, the fact that has sigjnificantly contributed to its success. It also helps in corporate positioning. At Tim Hortons, the strategic marketing are developed and implemented by the Chief marketing officers. They play a significant role in the entire implementation process.

The Company has managed to align its marketing plans with its mission and vision. The company’s vision is to be the quality leader in everything they do (Tim Horton 2011). By aligning its marketing plan with its mission, the organisation has managed to maintain a high level of customer satisfaction.

This has significantly contributed to the performance of the organization. The company’s mission is to deliver quality products and services to their guests and communities by maintaining continued innovation, quality leadership, and partnership. These are the guiding principles in the company. They have been integrated in the company’s day to day operations and plans.

In order to maintain a high level of performance within an organization, it is always necessary to have a market oriented mission. One of the most important things in every business is a clear understanding of what their business is and the customer needs that are met. Tim Hortons has integrated this in its mission.

In the contemporary world, consumers in the food industry are more concerned about the health implications of the food. However, this does not imply that they have ignored the prices. Therefore, companies in the food industry must be in a position to satisfy all these needs at once. Tim Horton’s mission is aligned with these needs, that is, delivering quality products and continued innovation.

Tim Hortons has been ranked as one of the companies with the most effective marketing strategies in Canada (Redpath 2011). The company has managed to apply various tactics successfully, the fact that has won it a significant number of customers.

However, the company has been facing tough competition from its competitors like McDonalds (Redpath 2011). Through a successful branding process, the company has managed to attain a top class position in fast food industry in Canada. The strongly developed brand has won the company a large number of customers.

Over the past decade, several organizations have recorded high level of performance by adopting various models of marketing planning. There are a number of models that has been proposed. While implementing marketing strategies within an organization, it is always necessary to consider the internal and external environment.

Internal analysis involves consideration of the organization’s values, aspirations, desired objectives, and competencies. This analysis model is critical while conducting strategic planning. It ensures that the marketing strategies lead to realization of organizational goals and objectives.

Market segmentation is another important model that has been applied by many organizations. Through segmentation, an organisation is able to realize the needs of its customers. In segmentation, an organisation divides its market based on certain aspects such as characteristics, demographics, income among others. This helps an organization in meeting the needs of its customers (Lamb, Hair and McDaniel 2011).

External environment is also necessary in strategic marketing planning. This analysis helps an organisation in identifying the consumer needs as well as their characteristics. This analysis is very important since it helps an organisation to identify the best marketing strategies.

Tim Horton’s success can be attributed to its ability to adopt these strategies effectively. The company’s marketing efforts reflects its values and object jives. This means that the company has critically analyzed its internal environment in coming up with its marketing strategies.

External environment scanning has also played an important role in Tim Hortons. By analyzing its external environment, the company has identified the consumer needs in the market. For instance, the company has identified the customers’ needs for freshness and diet. This has helped the company to incorporate these needs in its marketing tactics.

Promotion is also another important strategy that has been employed in marketing in the company. Promotion strategy is of great importance in creating customer awareness especially in the initial stages of organization’s development. This method has helped the company reach a large number of its customers.

One advantage of using sales promotion is that it can stimulate quick increases in sales by targeting promotional incentives on particular products. These can significantly help in improving the performance of the organization in the short run. Sales promotion also plays a significant role in creating consumer awareness. In this case, the potential consumers are not aware of the upcoming products.

Sales promotions will, therefore, play a significant role in informing potential customers of the products available from the gallery. Tim Hortons has successfully applied this strategy in its operations. The company uses various promotion activities in marketing its products. This has significantly contributed to its success. Sales and promotions help to sway consumers to risk buying a new product.

Product specials encourage a customer to try the product, often giving the much needed boost to sales. This is an aspect that has been utilized in the company, for instance, through lowering of prices (Trehan and Trehan 2009).

In order to achieve its current position, Tim Hortons has managed to maintain various marketing tactics that has enabled the company to maximize its sales. When the founder of Tim Hortons opened the first store, he thought that his products will sell themselves since he had a good status in the society.

He was widely known as a hockey champion and for actively participating in social activities. In other words, he applied the testimonial approach in entering into the market. This approach is usually applied by well known people in the society.

Soon after its establishment, Tim Hortons applied the slogan ‘Always Fresh’ to attract its customers. This slogan played a significant role in attracting customers by promising them freshly baked menu (Tim Hortons 2011).

The company managed to attract a significant number of customers by promising quality foods and services through marketing. In fact, it was the first company to promise its customers quality products and services.

One of the most famous promotion strategies that the company has used is the ‘Roll up the Rim’. This is one of the most famous marketing campaigns that the company has ever had. This is a promotion contest that has attracted the attention of many people across the world.

In this contest, the company makes the use of figures to emphasize and guarantee that a significant fraction of the cups were winners (Tim Hortons 2011). People have an opportunity to win variety of different prizes in every year.

In its promotion efforts, the commercials promised of extra ordinary nature of the company’s product. For instance, the company insisted that their product was part of the people’s routine. The company associated its products with quality life styles. This convinced a great number of people to divert their consumption styles where a significant number of people began consuming the company’s products.

Tim Hortons advertises its products through various media. These include the billboards and television. The company also advertises its products through children’s foundation and other activities like funding programs that are involved in children games. This has significantly helped the company to market its products. This has also helped in building the company’s brand.

Advertisement is another tactic that has been used to win a significantly large number of customers. The company is widely known for sponsoring the Brier; the championships that has attracted a large number of people. Through such activities, the company has managed to market its products while building its brand as well.

Tim Hortons has applied various advertising slogans in its operations. Some of the slogans used are ‘You Have Always Got Time for Tim Hortons’ (Tim Hortons 2011). Such slogans have helped the company to attract a large number of customers to its products. Later in 2000, the company adopted a new slogan; ‘Always Fresh, Always Tim Hortons.’

This slogan was mainly meant to guarantee the consumers about the freshness of the company’s products. A large number of people in the market were becoming more concerned about the freshness. This slogan therefore played a significant role in attracting customers with such interests or tastes.

Advertisement as a method of promotion is associated with a number of advantages. To start with, advertisement is effective in reaching a wide range of audience (Trehan and Trehan 2009). This is especially when advertising is conducted through a media which reaches a large number of people. The method will reach greater number of people compared to other methods like the sales promotion.

Marketing a product directly to the public is another great way to advertise a new product. This is an aspect that Tim Hortons’ has utilized to the maximum and has contributed greatly to its overall success. Positive peer pressure is achieved through direct marketing and thus it is an excellent advertising campaign that raises awareness for the company’s products and services.

In pricing, there will be a need to conduct a research on the market. This will enable the firm in analyzing what the competitors are providing and the prices they offer at the market. This will help in determining the most competitive price offer.

Tim Hortons is one of the few restaurants across the world that is known to offer health food at very reasonable products (Tim Hortons 2011). The company is widely known for its low priced foods. The company has managed to achieve this by minimizing its operational costs. The company has managed to adopt very low operational costs.

Price refers to the amount of money that the consumers will be willing to pay for the Tim Horton’s products and services in the market. Before deciding on the price to impose on the products and services, the company compares the prices of the competitors so as to make sure that their prices are at par. For a long time, the company has managed to attract a large number of customers due to its extremely low prices.

Advertisement as a method of promotion is associated with a number of advantages. To start with, advertisement is effective in reaching a wide range of audience (Trehan and Trehan 2009). This is more so when advertising is conducted through a media, which reaches a large number of people. The method will reach greater number of people compared to other methods like the sales promotion.

Therefore, this method will not only reach the people who shop in that particular supermarket, but also to other people who shop from other stores. Another advantage of this method is that it is most effective in creating awareness. When the audience views a certain advert on television regularly, this increases their awareness of the presence of the product in the market.

This builds their curiosity to try the new product; a thing that significantly helps in increasing the level of sales. Again, advertising helps in building customer trust through repetition of the main brand and product. In the process, the company will be able to maximize on the level of sales made.

This discussion has clearly shown that Tim Hortons has successful marketing strategy, the fact that has contributed to its success. However, the company has been losing from its competitors. This has significantly undermined the organization’s performance. In orders to avoid such loses, the company must try to balance its marketing strategies. It must give all the products adequate attention.

These will promote high performance in all the products. The company has not fully utilized the social networks like the Facebook and the Twitter. This is despite the fact that such strategies have helped many organizations’ reach a large number of people. The company must therefore improve on its marketing strategies through the social networks.

In conclusion, this discussion has clearly shown that Tim Hortons has recorded good performance in its operations. The company has managed to maintain a high level competitiveness due to its effective marketing strategies. The company has successfully applied strategies such as promotions, the fact that has significantly contributed to a high level of sales.

However, the company is losing on some products from its competitors. This can be mitigated by expanding its marketing strategies, for instance, through the social networks. By so doing, the company can massively increase its sales.

Lamb, C., 2009. Marketing . Canada, Cengage Learning.

Lamb,C., Hair, J. and McDaniel, C., 2011. Essentials of Marketing . Mason, Cengage Learning.

Redpath, T., 2011. Roll Up the Rim to Win Sweet Profits at Tim Hortons . Web.

Tim Hortons. 2011. Products . Web.

Trehan, M. and Trehan, R., 2009. Advertising and Sales Management . New Delhi, FK Publications.

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IvyPanda. (2023, December 27). Strategic Marketing Management of Tim Hortons. https://ivypanda.com/essays/strategic-marketing-management-of-tim-hortons-research-paper/

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IvyPanda . 2023. "Strategic Marketing Management of Tim Hortons." December 27, 2023. https://ivypanda.com/essays/strategic-marketing-management-of-tim-hortons-research-paper/.

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Bibliography

IvyPanda . "Strategic Marketing Management of Tim Hortons." December 27, 2023. https://ivypanda.com/essays/strategic-marketing-management-of-tim-hortons-research-paper/.

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