Target Market

1. Thomas Clark - XXXXXXXXXTim Maxwell - XXXXXXXXXKristian Murphy – 200904902Jeff Wilson - XXXXXXXXXBSAD 432:22April 5, 2013

2. Tim Hortons is currently approaching 4000 retail locations in Canada, a number that their research department has concluded is the maximum possible. • The next stage of growth for the company will now likely take place in the United States where Tim Hortons is looking to expand on the 804 established American retail outlets.

3. Target Market • Tim’s positions themselves in the US market as a bakery and café in efforts to appear more “urbanized” and to maintain a competitive edge over competition. • Expansion will begin in developed markets where store locations already exist to maintain their commitment to convenience and opportunity for effective advertising.

4. In recent years, Tim Hortons has emphasized focus on “lunch-time shoppers” with the introduction of lunch items such as paninis and chicken wraps. • While they target primarily what can be referred to as “blue-collar” citizens, Tims hopes to bring in new “white-collar” customers with these new urban-style expansion plans. • While the convenience and pricing strategy is particularly attractive to these blue-collar workers, they have come to offer attractive products for customers of all different sorts.

5. Tim Hortons’ strategy mix: • Product – Tim’s has established both fresh baked good as well as coffee as their staple selling points. • Price – Tim’s prides themselves on offering low prices on quality products. • Location – Convenience is important to Tim Hortons; they aim for higher store density in areas that they are trying to penetrate.

6. Tim Hortons’ strategy mix: • Communication - There are few promotions other than the standard Roll Up the Rim and new product launches. This, paired with local community initiatives such as their “Timbit leagues”, help to form the strategy mix. • Operations Management – The franchise model encourages steady growth. In addition, it reinforces their objective of having higher store density so they can better serve their customers, adding convenience.

7. Competitive Position • Tim Hortons not only competes with the typical coffee and baked goods chains, but with all restaurants in the Quick Service category (burgers, subs, pizzas and so on). • They are currently trying to change their image slightly to better accommodate the seemingly more forward thinking and socially responsible coffee drinkers who seem very attracted to retailers such as Starbucks.

8. Competitive Position • The US market is very over-saturated and many consumers are still unaware of the Tim Hortons brand. • Tim’s was disappointed by American growth in recent years, growing just 2.3, a number below the annual target.

9. Initiative Opportunities • Increased US market share/revenues • Increased international exposure • Permanent growth of the company

10. Risks of the Initiative • Oversaturated US markets • Customer retention – do they care? • High degree of rivalry in the industry • Brand image consistency

11. Thank you.