...MGMT3650 Term Paper Tim Hortons Expansion to the US Market: What went wrong? Table of Contents Introduction 3 Company Background 4 Expanding to the U.S. 6 U.S. Competitors and Market Share 9 Issues: Competitors & Market Share 9 Leadership Issues 10 Liability of Foreignness 10 Mode of Entry 13 Current Financial Results: 2008 – 2013 (5) Year Plan 15 Tim Hortons New Plan: 2014 – 2018 ‘U.S: A Must-Win Battle’ 16 Recommendations 16 Strategies going forward 16 VRIO Framework 17 References 18 Figure 1: Michael Porter’s five forces 15 Introduction In the present day, there are multiple franchises being established and growing in the community as well as globally Tim Hortons is one of those companies. Due to their chain’s focus on top quality, always fresh products, value, great service and community leadership, Tim Hortons has made a respectable reputation for itself, it is a company that works hard to deliver superior quality products and services for guests and communities through leadership, innovation and partnerships, not only in Canada, where it all started but as well as internationally. In 1984, Tim Hortons opened its first U.S. restaurant in Tonawanda, New York, a suburban community north of Buffalo, which is just 16 kilometers from the Canadian border. (Budak, 2010) Tonawanda is close enough to Canada which gives some recognition into the new U.S. market. Companies that expand internationally can face many problems. In the U.S., Tim Hortons has built an emerging...
Words: 5574 - Pages: 23
...University of the Fraser Valley A Marketing Analysis on Tim Hortons Company Diana Beedassy 200105312 Business 120 Mr. Richard Simon April 2, 2012 Table of Contents Cover Page...............................................................................................................................................1 - 2 Table of Contents…………………………………………………………………………………………………………………………………….3 Introduction and History………………………………………………………………………………………………..………………....4 - 5 SWOT Analysis……………………………………………………………………………………………………………….………………….6 – 7 Business Articles………………………………………………………………………………………………………………………………………8 Target Market…………………………………………………………………………………………………………………………………9 – 10 Tim Horton’s merging with Wendy’s Inc………………………………………………………………………………………………..11 Tim Horton’s as a convenient product……………………………………………………………………………………..…………...12 Channel of Distributions …………………………………………………………………………………………………………..…………...13 Promotional Strategies……………………………………………………………………………………………………………….…….....14 Socially Responsible Behaviour……………………………………………………………………………………………………..15 – 20 Recommendations – Part A (SWOT) ……………………………………………………………………………………………..21 – 22 Recommendations – Part B …………………………………………………………………………………………………………. ..23 Recommendations – Part C……………………………………………………………………………………………………………24 – 25 Gross Annual Sales & Market Share………………………………………………………………………………………………26 – 27 Appendix 1 – Timeline……………………………………………………………………………………………………… …………………..28 Appendix...
Words: 7764 - Pages: 32
...& Tim Hortons Prof. W. D. Walls Javer Badruddin 10036348 Due: June 26th 2014 Introduction: The coffee and baked goods service industry has seen much competition and continues to be a promising industry in Canada. Two specifically known companies are Tim Hortons and Starbucks. Both coffee companies are popular and are able to keep up with Canadian and Global Trends. Tim Horton’s is well known across Canada and the franchise is slowly expanding into the US. The company holds a strong brand image as it is known as an iconic store amongst all Canadian consumers. As Tim Horton’s strategy is to target all Canadians, they successfully use marketing campaigns to cater to all demographics. Starbucks has established an exquisite brand and the company’s financial success is based upon how consumers value the brand reputation. The coffee company has created a unique brand identity and uses its diverse product differentiation strategies to lure consumers in. Both coffee companies grasp a product line which includes fresh brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, Tazo tea, baked pastries, sandwiches and salads. As well, the coffee companies are able to accommodate seasonal products to adjust for the changing Demands. Starbucks is also slowly making way into the grocery industry as well. Both companies also have experienced both success and failure. This project will aim to analyze the similarities and differences between Tim Hortons...
Words: 4198 - Pages: 17
...Strategic Business Analysis - Tim Hortons 1 EXECUTIVE SUMMARY 3 2 TIM HORTONS MISSION AND VISION STATEMENTS 3 2.1 Mission Statement 3 2.2 Vision 3 3 HISTORY 3 3.1 Tim Hortons Brand 4 4 PAST STRATEGY 4 4.1 Merger with Wendy’s International lnc. 4 5 CURRENT STRATEGY 5 5.1 Brand Recognition 5 5.2 Unique Business Model 5 5.3 Market Expansion into the U.S. 6 5.4 Co-Branding – Cold Stone Creamery 7 5.5 Community Involvement (Children’s Foundation) 7 5.6 Coffee Partnership - Working within the Industry Value Chain 8 5.7 Measures Of Performance 9 6 FUTURE STRATEGY 9 6.1 Five Key Points for 2010-2013 Strategic Plans 9 6.2 U.S. Market expansion 10 6.3 Market Leader in Canada 10 6.4 International Strategy 11 7 CONCLUSION 11 8 APPENDIX 12 9 REFERENCES 12 1 Executive Summary A strategic business analysis of Tim Hortons’ restaurant chain was conducted and action plan is recommended. We are the Vice President of Marketing and Chief Financial Officer and presenting this report to the shareholders of Tim Hortons. This report includes a review of Tim Hortons’ past strategies by focusing on its origins from the beginning to the establishment of their valuable “Brand” reputation in Canada. We will perform an analysis of the past, present, and future strategies of the business. 2 Tim Hortons Mission and Vision Statements 2.1 Mission Statement: Our guiding mission is to deliver superior quality products...
Words: 2393 - Pages: 10
...King and Tim Hortons stocks, surges to its best high price of $32.40(19.5% ) and $74.72 (18.9% ) per share. Behind this high drama in floor of NYSE, there was a one of the key announcement rocked. Burger King Worldwide Inc., an American based fast food chain and Tim Hortons Inc., Canadian based coffee and doughnut chain combined announced news of potential merger seeing both on the grounds of market strategic and largest food chain in global market. With approximately $23 billion in system sales, over 18,000 restaurants in 100 countries and two strong, thriving, independent brands, the new company will have an extensive international footprint and significant growth potential. The new global company will be based in Canada, the largest market of the combined company. Tim Hortons and Burger King each have strong franchisee networks and iconic brands that are loved by their guests. Following the closing of the transaction, each brand will be managed independently, while benefitting from global scale and reach and sharing of best practices that will come with common ownership by the new company. “By bringing together our two iconic companies under common ownership, we are creating a global QSR powerhouse. Our combined size, international footprint and industry-leading growth trajectory will deliver superb value and opportunity for both Burger King and Tim Hortons shareholders, our dedicated employees, strong franchisees, and partners. We have great respect for the Tim Hortons...
Words: 8858 - Pages: 36
...and Tim Hortons stocks, surges to its best high price of $32.40(19.5% ) and $74.72 (18.9% ) per share. Behind this high drama in floor of NYSE, there was a one of the key announcement rocked. Burger King Worldwide Inc., an American based fast food chain and Tim Hortons Inc., Canadian based coffee and doughnut chain combined announced news of potential merger seeing both on the grounds of market strategic and largest food chain in global market. With approximately $23 billion in system sales, over 18,000 restaurants in 100 countries and two strong, thriving, independent brands, the new company will have an extensive international footprint and significant growth potential. The new global company will be based in Canada, the largest market of the combined company. Tim Hortons and Burger King each have strong franchisee networks and iconic brands that are loved by their guests. Following the closing of the transaction, each brand will be managed independently, while benefitting from global scale and reach and sharing of best practices that will come with common ownership by the new company. “By bringing together our two iconic companies under common ownership, we are creating a global QSR powerhouse. Our combined size, international footprint and industry-leading growth trajectory will deliver superb value and opportunity for both Burger King and Tim Hortons shareholders, our dedicated employees, strong franchisees, and partners. We have great respect for the Tim Hortons...
Words: 8858 - Pages: 36
...Introduction The company under investigation in this study is Tim Hortons, a coffee and fresh-baked goods quick-service restaurant, originating from Canada. As of January 2006, (Annual Report 2005, P.1) Tim Hortons operated 2,597, mostly franchised, stores in Canada and 288 in the US. Tim Hortons boasts a 76% market share in the Canadian coffee and fresh-baked goods sector (Shareholder’s Report 2005, P.6) and “based on sales dollars, Tim Hortons is now almost 25% larger than its closest QSR (quick-service restaurant) competitor in Canada.” (Ibid) Since 1995, Tim Hortons has been owned by the American company, Wendy’s International. (Palmar 2005, Harris 2005) Tim Hortons was named ‘Best Managed Brand’ and ‘Most Admired Corporate Culture’ by Canadian Business Magazine (Shareholder’s Report 2005, P.6) and Marketing Magazine named Tim Hortons its 2004 ‘Marketer of the Year’ “for its winning formula of product advertising, unpretentious advertising, smart partnerships and status as a national icon.” (Harris 2005) The approach Tim Hortons has adopted has been “relentlessly patriotic” (Parmar 2005) and their advertisements “try to reinforce what we do in the community, what our core products are and what our core values are.” (Cathy Whelan Molloy, VP of Brand Marketing & Merchandising in Harris 2005) Its marketing strategy focuses on “emphasising its community ties.” (Palmar 2005) Their long-term goals include: • Extend the Tim Hortons brand into new markets (Shareholder’s Report 2005, P...
Words: 8582 - Pages: 35
...Canadian Restaurant and Food Services Association has asked us to find out whether or not people are really responding to all of this media coverage and if people are still going to fast food restaurants as a daily routine. Research Objectives The purpose of this study is to examine and explore if consumers (even with all of this information about Trans fats and being health conscious) still attend fast food restaurants regularly in Canada in comparison to 10 years ago. Research Method In order to study the correlation of buying patterns of customers over the past ten years and compare them to today’s buying patterns I will be gathering information about three very competitive fast food brands in Canada, McDonalds, Burger King and Tim Horton’s. My research will include going to each individual website, and to research financial numbers that are released about the popular fast food restaurants. I will be looking at overall number of customers over the past 10 years and see if customers are on the decline because of the information that is available to them. I will focus mostly on a market of people who are between the ages of 18 to 55. This is because these are the people who work every day and are busy. I estimate that...
Words: 2286 - Pages: 10
...weaknesses, opportunities, and threats factors of Apple, Inc. By knowing these factors about Apple, Inc. will be important to our company because it takes a look at our competitor. A strategy and product will also be proposed that will take advantage of Apple, Inc. vulnerabilities which will increase this company’s market share. SWOT Analysis Strengths Apple, Inc. has five great strengths that include innovation, brand, customer loyalty, retail stores and marketing, and cash flow abundance. Apple, Inc. innovation includes being the leader in technological innovation with the release of products such as the iPods, iPhone and more. The 2012 Global Innovation 1000 ranked Apple, Inc. number 1 for the 3rd year in a row. Apple, Inc.’s idea of innovation is creating quality products (Krasnv, 2013). Apple, Inc. has also secured their brand value by constantly creating products that are well designed. Although it is not foolproof a company’s marketing ability can be reflected by brand power. The world has seen Apple, Inc. has marketing power ranked number two based on the 2012 Best Global Brand (Reid, 2012). Apple, Inc....
Words: 1762 - Pages: 8
...Table of Contents I. Executive Summary (Jannie Noels) II. Situation Analysis (Denise Merritt)(pgs__-___) A. List each part III. Problems Found in Situation Analysis (Charles Monu-Azinge) IV. Strategic Alternatives for Solving Problems(Charles Monu-Azinge) V. Selection of Strategic Alternative and Implementation (Charles Monu-Azinge) VI. Summary (Jannie Noels) Executive Summary Situation Analysis-Environment The business environment of Krispy Kreme deals with economic conditions, cultural and social values, and political and legal issues. The doughnut industry has generated five to six billion dollars in the years 2003-2004. The estimated sales at outlets specializing in doughnuts rose nine percent in 2002 to $3.6 billion. In 2002, worldwide sales were at $2.7 billion. According to these recorded results, the expected earnings per share in 2004 were expected to be between $1.16-$1.18. Due to lower than expected off premises sales, Chief Executive Officer, Scott Livengood said the company is lowering earnings guidance to .23 per share. During July and August of 2004, system wide sale increased 14.8%, company revenue went up 11.5%, and company store sales rose by 18.7%. Americans consume an estimated ten to twelve billion doughnuts annually. This social...
Words: 2328 - Pages: 10
...buyers bargaining power as well. Unlike SWOT analysis which is company specific explained in the next portion of this project, Porter’s five forces framework is industry focused. Furthermore, the five variables in the porter analysis are the industry suppliers, buyers, potential new entrants, substitute products and competition among existing firms. This section provides a thorough examination of the five forces affecting Starbucks’ coffee industry environment. Potential for new entrants The first force in Porter’s model analyzes potential new entrants which may impact Starbucks’s business competition. The threat of entry will depend on the existence of barriers to entry and the reaction of existing competitors (Henry, 2011). In the case of Starbucks, their status is first entrant to the specialty coffee market which gives them an advantage over new entrants. Possessing geographical areas in prime markets is complementary to their status. Starbucks not only...
Words: 6201 - Pages: 25
...Based on the case information and my personal experiences five things that I have learned about Starbucks is as follows. Starbucks became a fortune 500 company in 2003 with over 6000 stores nationwide and in 2008 they had more than 16,000 stores across the nation. This massive expansion into the coffee marketplace was successful for the company however, with so many locations across the country people did not feel that a Starbucks coffee was as special as they once were to consumers. People started to see Starbucks as more of a fast food chain restaurant and with other restaurant chains such as McDonald’s started to focus more on coffee related products they lost consumer focus. Starbucks is most known for selling coffee but they do offer a wide variety of other food related items as well. Starbucks is currently in over 61 countries and territories including Africa, South America, Asia and Europe. Since 1987 Starbucks has opened an average of two new stores per day. One thing that I dislike about Starbucks is the price of their beverages. Starbucks coffee and other goods are overpriced compared to other restaurants that sell similar products such as Tim Hortons. With the high cost of their coffee and other items I believe that they are only targeting a select group of consumers that are willing to spend 3 dollars on a cup of coffee. Another reason that I dislike Starbucks is for their menu. I am not a regular customer to Starbucks and when I do go I often feel confused...
Words: 747 - Pages: 3
...years to create quality products they have also built a foundation as lead innovators and constantly change the technological game with their products. Key Factor-Brand As a leader in innovation, Apple has also secured their brand value by constantly creating products that are well designed but also by understanding that brand is less about the logo and more about aligning the business strategy and employee base with the ability to influence how the consumer felt about the product. This factor is demonstrated by the fact that at least half of every U.S. household own one Apple product minimum despite the price of their products (Gralnick, 2012). Although not infallible, brand power does reflect a company’s marketing ability and Apple has shown the world that they have marketing power by ranking number two behind Coca Cola in 2012 as Best Global Brands with their percentage rising 129% and a brand value of $76.5 million (Reid, 2012). Key Factor-Customer Loyalty Apple’s standing in innovation and brand power has laid the foundation for customer loyalty. Their ability to capitalize on consumer needs, desires and wants has transformed them into a household name. Apple’s ecosystem is closed, which means that their...
Words: 2830 - Pages: 12
...franchise store was opened in Tuscan in 1995 and now they 1400 franchise in operation today. Cold Stone creamery doesn’t only operate in the US but rather across the world like Taiwan, Japan, China, United Emirates, and Denmark …. Cold Stone merged with Kahala Corp in 2007 to become Kahaka-Cold Stone, which has thirteen brands. Originally the CEO of the new company was the original CEO of Cold Stone but after several months he left the company and previous CEO of Kahala Corp became the new CEO of Kahaka-Cold Stone. Cold Stone has performed pretty well as a franchise but they have started to Co-brand to expand in to international market. For instance they tested the Canadian market by starting seven co-branded location with Tim Horton Canadian coffee shop chain, in return Tim Horton’s can operate in more U.S. locations. The advantage of a Parent business franchising its operations is they don’t need to have significant capital on hand because if they franchise 100 stores...
Words: 2036 - Pages: 9
...franchise store was opened in Tuscan in 1995 and now they 1400 franchise in operation today. Cold Stone creamery doesn’t only operate in the US but rather across the world like Taiwan, Japan, China, United Emirates, and Denmark …. Cold Stone merged with Kahala Corp in 2007 to become Kahaka-Cold Stone, which has thirteen brands. Originally the CEO of the new company was the original CEO of Cold Stone but after several months he left the company and previous CEO of Kahala Corp became the new CEO of Kahaka-Cold Stone. Cold Stone has performed pretty well as a franchise but they have started to Co-brand to expand in to international market. For instance they tested the Canadian market by starting seven co-branded location with Tim Horton Canadian coffee shop chain, in return Tim Horton’s can operate in more U.S. locations. The advantage of a Parent business franchising its operations is they don’t need to have significant capital on hand because if they franchise 100 stores...
Words: 2036 - Pages: 9