Tim Hortons' status as a brand is indisputable: it is the king of quick-service coffee and breakfast. It has crept into everyday life for many Canadians and even further to become part of our Canadian identity, culture and way of life. With over 3,280 restaurants and 811 in the United States, it's hard to go anywhere without seeing it. Ryan Murray once stated, “Outside of hockey night in Canada… there are few institutions or businesses that have blended into the character of the nation like TIm Hortons.” Tim Hortons' marketing strategy plays on the idea of being Canadian and how that is defined by various people. The founder is a former Maple Leafs player and a man who some have described as "embodying Canadian characteristics." Prime Minister Stephen Harper once chose to attend Tim Hortons headquarters rather than attend a United Nations summit with Obama; he pointed out how he was “celebrating the repeat of Tim Hortons.” With a company so rooted in Canadian history and politics, it would seem impossible to stop. However, its reign has come into question after the recent takeover by the RBI. Every company tries to expand its market and increase sales, but as Tim Hortons has tried to expand worldwide, it is taking resources away from Canada and as such weakening its own Canadian operations. With the acquisition of Tim Hortons from RBI, they have lost touch with their core values as RBI's business practices directly rival what Tim Hortons stands for. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Tim Hortons has built its brand on the idea of putting customers and communities first. One of their first successful advertising campaigns was a commercial featuring an elderly customer showing how she walked up a hill every morning just to get a coffee; this was based on a real story gathered from group interviews conducted by the company. With such an emphasis on customer relationships, the only way Tim Hortons can become more successful is by building additional relationships with new and old customers and building on customer feedback. Despite this, recent business actions show a growing disregard towards their values and with this their business is being drastically affected. RBI is a company known for cutting costs and limiting budgets to achieve maximum profit, so when they first acquired Tim Hortons their first action was to focus their attention on technology. Technology has allowed them to achieve maximum profit at the lowest cost. They changed their coffee dispenser to a more technologically advanced and economical one. Tim Hortons was renowned for the quality of its coffee, but with the distributor change it faced a backlash as the new coffee was of lower quality. This discouraged customers from McDonald's acquiring the old Tim Hortons distributor. Additionally, Tim Horton's recent cost-cutting practices have had a major impact on their reputation as they dismantle employee relationships and define customer experiences. In marketing parlance, Tim Hortons presents itself as a “local brand” despite being an international company. This places him in high regard in Canadian media; an action carried out within the company is transmitted everywhere. When the minimum wage spike was announced in January 2018, many companies didn't know how to react. As employee wages increase, some companiesthey increased the prices of their goods, while others reduced the size of their employees. However, for Tim Hortons they handled it the worst way possible. The recent minimum wage increase of 33% has led Ontario franchises to remove employee benefits. This inevitably led to a strike, so impactful that politicians supported it, even Kathlyn Wayne at the time. Perhaps the greatest tragedy in these events was the fact that Tim Hortons' own children were the first to benefit. Tim Hortons' response stated this was not part of their core values and did not reflect them as a whole. Unlike Starbucks, which aims for employee happiness and productivity through the benefits they receive, they establish a good relationship with employees. This leads to better customer service. These customers are more likely to return than those who don't. This lack of disconnect between customers and employees will have a major impact on sales, their reputation and customer relationships. The company's disconnection from its beliefs has led to a strong disconnection from its customers. The new management charges higher prices for supplies, especially for coffee. In 2017, the company charged each affiliate $17,650 or more. This increase in supply prices has had a direct impact on menu prices; 2 cent increase per cup of coffee. While it doesn't appear to have a huge impact, consumers took notice and it certainly impacted the connection they had with their favorite coffee outlet. In addition to this, it is also reported in many sources how Tim Hortons reduced the amount of community services it was involved in. Tim Hortons raised between $60,000 and $100,000 annually for several community services such as hockey, children's camps, local barbecues, and swim days. There are few generations that have grown up/lived with these programs. However, the RBI shows no interest in taking it forward for the new generations. The Great White North Group believes that these little things that made Tim Hortons different from other brands no longer exist: “I think it's important to remember that franchise owners and their staff know where their bagels stand. They succeed when they serve their communities, not shareholders. RBI. . . seems completely disconnected from that reality” Tim Hortons is no longer Canadians' favorite coffee shop. In October 2017, Mc Café was voted the best coffee chain, while Tim Hortons placed 4th. With such national coverage, Tim Hortons is effectively ruining its reputation. The biggest contribution to Tim Hortons' success is based on the relationship with consumers, building trust and relying on it to bring them back. However, having bad press and lack of connection with employees, RBI seems to want to sever Tim Horton's past success. The company must return to its roots, otherwise the company revered as part of the Canadian identity could lose its standing. In recent years, Tim Hortons has faced strong competition that has caused it to lose its title as the market leader in the coffee sector in Canada. Although the company has been successful in the past, due to competitors such as McDonald's and Starbucks the market has become more competitive than ever. Tim Hortons was forced to abandon its traditional ways of incentivizing customers to choose its coffee brand over others. However, with competitors offering better, more concentrated products, Tim Hortons finds itself in a place where it attempts to please everyone while pleasing no one. Marc Caira,CEO of Tim Hortons, wants to highlight the efficiency of the drive thrus by reducing menu items to make ordering quicker and easier. Starbucks, on the other hand, is a company with a diverse selection of coffees, frappuccinos, etc. and has already developed a drive-thru system that attracts customers without having to sacrifice product diversity. They created a two-way video screen to satisfy consumers' desire to have a more human interaction in a place where they wouldn't expect it. Tim Hortons attempts to reach the same level of success as Starbucks when it comes to drive-thrus, but it simply fails. In this case, Tim Hortons gives up something for something the consumer doesn't care about, while Starbucks is able to surprise customers with something they didn't realize they needed. Another thing Tim Hortons lacks is the ability to appeal to specific demographics through the structural design of their locations. While Starbucks targets specific nations by building their stores with themes and aesthetics that fit the geographic landscape they're in, Tim Hortons simply copies and pastes the store design. Each Tim Hortons location is the same, while most Starbucks locations have their own identity. Tim Horton's lack of consumer awareness is one of the reasons why it was unable to win back the customers it was losing. Another large-scale problem that Tim Hortons has faced is the level of success of product outreach. The company attempted to compete with McDonald's and its large selection of breakfast and lunch/dinner items. McDonald's broke into the breakfast/coffee market by emphasizing a higher quality standard in 1993 with McCafe, while maintaining the status quo for its lunch/dinner products. On the other hand Tim Hortons has launched lackluster products that don't seem to impress anyone despite having a declining quality level for what they are known for, their coffee. As previously stated in a survey conducted by Maclean's Magazine's Coffee Ranker, the company went from first to fourth place in Canada in 2017. Ironically, the company was beaten by McDonald's, Second Cup and Starbucks, respectively. Beating other companies like Van Houtte and A&W by just a few hundred votes, the company finds itself in a difficult position. If Tim Hortons lost consumer preference and was unable to operate in Canada, it would have little to no hope of sustaining itself for years to come. Although the company has attempted to expand into foreign markets such as the United States, it has done so with little success. Its more than 850 U.S. stores account for just 3% of the company's annual revenue, with its largest markets, New York and Ohio, making a net loss. Instead of learning from McDonald's business model and focusing on improving the products they sell, Tim Hortons has aggressively but unsuccessfully produced subpar lunches and dinners that no one is interested in. As they struggle to learn from their mistakes, McDonald's has made great strides in increasing its control of the market. One of the most important decisions was the acquisition of Tim Horton's old coffee supplier, Mother Baker. When Tim Hortons was acquired by RBI in 2014, it entered the brewing business and abandoned its original coffee supplier, Mother Baker. It was then bought by McDonald's, meaning their new coffee was the old Tim Hortons coffee and the new Tim Hortons coffee was something no one liked. This caused a huge shift in consumers as people discovered that the taste they were looking for could now be found elsewhere.Additionally, McDonald's and Starbucks have also started offering healthier alternatives to appeal to the Millennial generation who are looking for a quick snack without sacrificing food quality. While Tim Hortons also offers healthier options, it doesn't have the same level of impact as McDonald's due to poor quality control. Tim Hortons has fallen behind its competitors because they stick to the same business strategy while relying on being a Canadian company. In today's market, however, this is no longer enough to engage consumers who have multiple options available to them. While competitors are constantly finding new ways to excite and entice customers to choose their brand over others, Tim Hortons simply lacks the appeal it once had. Tim Hortons has maintained a leading position, but this Canadian giant is now in the process of recovering after an onslaught of negative press, strikes, loss of identity, etc. Tim Hortons should focus on menu development, expand into new markets, and provide new products for potential and current customers. Tim Hortons mass markets across demographics, psychographics and geographic locations across Canada. They do this because of the low prices and convenient products they offer. Studies have found that Generation Y and Generation Xi demographics tend to spend more money per meal at quick-service restaurants. Therefore, Tim Hortons' task is to attract potential customers by offering possible developments in its brand, according to the wants and needs of consumers in the Canadian coffee market. A great solution for Tim Hortons to gain recognition again is to review the research and experience with new customer groups such as younger Millennials and immigrant groups in their food tastes and preferences. Invite key suppliers to present their insights and development opportunities. Target key seasons and time slots for rollout. Each restaurant contains a standardized menu, which includes a wide range of products for various times of the day to attract customers throughout the day. To remind customers of the variety and freshness of their products, Tim Hortons recently underwent a layout transformation in which its bagels and donuts were moved from behind the register to in front, next to the register. All product packaging contains the Tim Hortons logo and "Always Fresh" slogan to further remind customers of the quality of their products. Additionally, the packaging they use for their products is simple and convenient, which complements the position they want to maintain in the minds of their customers, a high-quality, reasonably priced store that offers convenience and fast, efficient service. The QSR industry markets to all demographics due to the low prices it offers and the variety of foods that cater to all psychographic and gender variables. In the QSR industry, customers find value in the overall economical price of items and the convenience restaurants offer in terms of efficiency and effectiveness. Customers also benefit from a high-quality product and variety offered. The benefit of a value-priced menu is the opportunity to get what consumers want. Tim Hortons offers a variety of products for customers to choose from. Tim Hortons, like President's Choice and Canadian Tire, stands for both getting good value from the familiar, but also helping its customers explore new meals. Tims' menu should offer comfort and familiarity, but also a little excitement. But one of the biggest pain points Tim Hortons currently experiences is the perception that they don't serve a lunch menu and that.
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