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Tim Horton's are known for their known for its coffee and doughnuts

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Oligopoly (few companies are in control of this industry)

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- Coffee Time
- Star bucks
- Second cup Coffee

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- FreshCO
- 7 Eleven
- Convenient Stores
- No Frills
--McD ($1 coffee promotion)
- Subway
- Pizza
- A&W
- Burger king

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Tim Horton's has a selection of doughnuts  

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Tim Horton's has a selection of doughnuts  

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The future of Tim Hortons, one of this country's most iconic brands, apparently rests on such Canadian classics as grilled panini and espresso-based specialty beverages. And the company that built its empire on convenience and ushering customers out the door quickly, is now hoping they'll linger longer. To that end, big money is earmarked this year to refurbish 300 stores and a thousand drive through outlets. The baked goods and coffee giant has tinkered with its menu before.

But there's a greater urgency with these latest incarnations. For the first time in its history, Tim Hortons is facing stiff competition from rivals - mostly Americans accustomed to grinding ground wars in the quick-serve restaurant business - with deep pockets who are aggressively contending for a slice of the profitable morning market.

[np_storybar title="Tim Hortons looks to paninis, drive-thru to combat slowing growth" link=" https://business.financialpost.com/2013/02/21/tim-hortons-looks-to-paninis-drive-thru-to-combat-slowing-growth/"%5D
Revenue and profit at Tim Hortons Inc. were hindered by tough competition and restructuring charges in the fourth quarter, but the company expects to see a boost in sales this year from new lunch products and an overhaul of its drive-thrus.

Revenue in the three months ended Dec. 31 rose thanks to the successful debut of a new Panini sandwich and single-serve Tassimo coffee line, climbing 4.1% to $811.6-million.

Having coasted for so long on the success of its ubiquitous brand, Tim Hortons is unaccustomed to serious challenge. Few Canadian companies have realized the kind of sustained growth enjoyed by the Oakville, Ont. giant during the past couple of decades. With its 3,300 restaurants, the chain merrily saturated the Canadian market from coast to coast, unencumbered by any sustained competition.

Until now. Its stranglehold on the lucrative fast-food morning market in Canada is under attack from rivals McDonalds Corp., Starbucks Coffee Co. and Subway Restaurants.

To be sure, the Canadian giant still commands just under 80% of the $3-billion away-from-home coffee market in this country. Coffee is the second most consumed beverage in Canada, after water for those 25 years of age or older, and 64% of Canadians drink it every day, according to Agriculture Canada. That's more than Americans, which is a big reason why McDonald's, the U.S. fast-food behemoth, has been spending $1-billion in the past two years setting up and renovating 1,400 McCafes in Canada. Ditto for Starbucks, which has been rolling out its breakfast sandwiches and lighter coffee blends and plans to add another 150 cafes to its stable of 1,200.

Meanwhile, there are other troubling signs for Tim Hortons. During the past four quarters, there's been a steady decline in consumer traffic at its restaurants, the company announced Feb. 21. Although there are fewer people passing through its doors, the ones that do are spending more. Same-store sales, a critical barometer of restaurant performance, are up 2.6% in Canada year-over-year despite the decline in customer traffic.

Compare that figure to 2012, when Tim Hortons saw a 4% increase in same-store sales. And consider the company targeted an increase of 3% to 5% for 2012.

Feeling the squeeze from rivals, and facing a new breed of consumer demanding value-for-money products but willing to pay more for small luxuries, Tim Hortons is at a crossroad. The rise of the so-called barista culture is fuelling demand for espresso-based beverages, which are overtaking traditional brewed blends. As a drive-through coffee concept, Tim Hortons "has run its course," says retail analyst Douglas Stephens. "The company has to reinvent or die."

It doesn't help that Tim Hortons lacks a permanent chief executive to make those tough, long-term decisions. Apparently, almost two years after Donald Schroeder left abruptly in May, 2011, the board still can't find a suitable replacement. For now, Paul D. House, 69, executive chairman of the board, continues as acting CEO.

The challenge will be to entice a new, younger generation of customers into its renovated restaurants

Clearly, House now oversees a company facing greater competition than the unrivaled juggernaut he presided over as CEO in 2005. He acknowledged as much to analysts last week, saying "We are working hard to adapt to current markets conditions."

Thus, the menu additions: grilled panini, breakfast sandwiches, healthy wraps, espresso-based specialty coffees (café lattes and cappuccinos), blended beverages and smoothies. If in the future, growth at Tim Hortons will be generated less by rolling out new stores - although there are plans to add up to 180 outlets and double lanes to higher-traffic drive-thrus - the challenge will be to entice a new, younger generation of customers into its renovated restaurants. Preferably, the 18 to 24 age crowd who are more inclined to pay for expensive non-coffee blended beverages and healthier food choices, and are less likely to nurse the same cup of brewed coffee for hours. "Tim Hortons is the club house for aging boomers," Stephens says, and that's not the customer base needed to sustain its dominant market position in the long run.

It's a dicey strategy that will inevitably disenfranchise some of its traditional customers. But having staked its future on new product lines and upmarket coffee shops, Tim Hortons is already taking that gamble.

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Rivals' attack on Tim Hortons in morning market forces menu shakeup

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The future of Tim Hortons, one of this country's most iconic brands, apparently rests on such Canadian classics as grilled panini and espresso-based specialty beverages. And the company that built its empire on convenience and ushering customers out the door quickly, is now hoping they'll linger longer.

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Discover all statistics and data on Tim Hortons now on statista.com!

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Canada exclusive store.
Drive through allows easy access as Tim Horton's as built close to high ways. Are known for a beverage called "Ice Cap". Prioritizes Customer service.

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As we are all university students, coffee is super important to help you refreshed, especially during exam periods. Every day there is a long line in Tim Horton's next to Sauder Building. How come Tim Horton's become so popular among Canadians? What kind of method do they use to win customers heart?

First of all, I would argue that Tim Horton's is a Canadian brand. Although it had been expanded in US and other countries, people could still identify it as a successful Canadian coffee brand. Compare to other foreign coffee stores, Tim Horton's beat them by strong established brand.

Secondly, Tim's Horton's maintain high quality of coffee and snacks; meanwhile, the price is affordable. Many friends of mine are addicted to Tim Bits and honey dips they provided; And there are still others prefer double-double or French vanilla cappuccino; those product of Tim Horton's are quiet unique which makes Tim Horton's stand out among other companies. Also, compare to Starbucks, the price of Tim Horton's coffee is always lower, which target the market to ordinary people like university students and workers.

Finally, in my point of view, Tim Horton's offer better service than others. According to my experience at Tim Horton's and Starbucks in UBC, Starbucks stuffs are always super busy and lack of patient. When you are finished order something, they just couldn't wait to serve the next customer. However, Tim Horton's stuffs are much nicer with smile on their face. Although those to companies may target their market to slightly different income of people, customer's service seems to have huge difference. Tim Horton's is more "approachable" and welcome to everyone. And Starbucks is tending to be more detached to customers.

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Why Tim Horton's so popular among Canadians?

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As we are all university students, coffee is super important to help you refreshed, especially during exam periods. Every day there is a long line in Tim Horton's next to Sauder Building. How come Tim Horton's become so popular among Canadians? What kind of method do they use to win customers heart?

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- Tim Hortons: 3,200-3,400( mixed
from highways to populated areas)
- Coffee time: 110
- Star bucks: 1,100-1300 ( mostly in city)
- Second cup ( 300+ All of Canada )

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Tim Hortons: $3.15 billion US/Year

Star Bucks:1.2billion US/Year
Coffee Time:100,000/Year
second Cup Coffee: 182.8 million/Year
Independent coffee shops: 734million /year ( including second cup and coffee time)

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Comparison of Market Share in Canada vs. Competition:

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Comparison of Market Share in Canada vs. Competition:

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Tim Hortons: 62%
Star Bucks:24%
Coffee Time: 0.2%
second Cup Coffee: 3%
Independent coffee shops:14%
( Including second cup and coffee time)

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SWOT Analysis of Tim Hortons with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Tim Hortons :

1. It is Canada's largest fastfood service with over 100,000 employees

2. It had 4,500+ restaurants in Canada, 800 in the United States

3. It was founded in 1964 and has enjoyed a strong brand image

4. Tim Hortons commands majority of the Canadian market for baked goods and holds major of the Canadian coffee market
5. It has been purchased by Burger King in this August 2014 and they now are the third-largest operator of fast food restaurants in the world

6. Nutritional information on most of its menu items is made available by the company in a two-page brochure and is available online

7. CanadianBusiness magazine has twice named Tim Hortons as the best-managed brand in Canada

8. It also promotes itself through the Tim Horton Children's Foundation

1. It announced closing many stores in the north eastern US due to high competition

2. According to the blog Coffee and Conversation, "Tim Hortons does not sell organic coffee, does not sell Fair trade coffee, and does not disclose the source of its green beans"
3. Does not cater to the health conscious segment

1. Venture into newer markets
2. Introduce more options on its menu

3. The brand can leverage its existing image and increase its popularity through marketing exercises

1. Growing Health conscious segment

2. Presence of strong competitors in this segment

3. Increasing competition and higher costs of raw materials

The brandguide table above concludes the Tim Hortons SWOT analysis along with its marketing and brand parameters. Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry.

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SWOT Analysis of Tim Hortons with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Tim Hortons : 1. It is Canada's largest fastfood service with over 100,000 employees 2. It had 4,500+ restaurants in Canada, 800 in the United States 3.