Tim Hortons Mini Brand Audit
Principles of Advertising and Branding
Ryan Starr
Brand Elements https://www.timhortons.com/ca/en/index.php The Brand Tim Hortons Brand stems from Tim Horton himself; the Canadian Hockey Legend. It was established in 1964 and in 1967 Tim Hortons became business partners win Jon Joyce. When Tim Horton passed, in 1974, Ron Joyce created the Tim Hortons Children's Foundation in memory of Tim Horton, due to his love of children and helping the less fortunate (Timeline; Corporate, 2019). This is where Tim Horton’s Brand originated from as they have a “helping hand” brand attitude and are always supporting the local with charities and fundraisers. Slogan and Mission Statement
Tim Hortons Mission statement outlines their goals as a brand and business; “Our guiding mission is to deliver superior quality products and services for our guests and communities through leadership, innovation and partnerships” (Tim Hortons, N.D.). Tim Horton has effectively displayed this through their fundraising and foundations, they also display this through their ability to deliver quality fresh products as new coffee is brewed fresh regularly.
Over the years the Tim Hortons Slogan has changed, it has developed from “You’ve Always Got Time for Tim’s” to “It’s Time for Tim’s” and then from “Tim Hortons, Always Fresh” to “Always Fresh, Always Tim Hortons.” Tim Hortons also has a Christmas slogan as well; “Because you can’t wrap a double double” (Tim Hortons Slogan List, N.D.) These slogans brand Tim Hortons as the “fresh” coffee shop, and uses the idea of “fresh” as their key differentiation from others who offer similar products.
Main Product Offerings
Tim Hortons main product offering would be fresh coffee and teas as they are well known for their hot beverages. Cold beverages such as iced coffee, iced caps, smoothies etc. are also included and special to the Tim Hortons Brand. They offer baked goods like Timbits, muffins and donuts as well as breakfast and lunch items. Things such as sandwiches, bagels and wraps are included in the lunch and breakfast menu.
Tim Hortons launched a new produced line for canned soup. Tim’s launched chicken noodle soup, cream of broccoli, homestyle chilli, chicken & rice. This new product line allows the company to target a larger audience. This way they are getting into a competition with President's Choice and other companies which are known for canned products. Since Tim Hortons is already is a very loved brand in Canada so people will naturally gravitate towards it. Tim Hortons also has different merchandises like coffee mugs, ceramic water bottles. Take away drink trays. The company also sells its coffee products in supermarkets. A study was done in 2018 and it showed that Tim Hortons was the most at home consumed coffee brand in Canada. It accounted for 77% of the total sales (Duncan, N.D.).
Packaging
Tim Hortons packaging is often used for marketing purposes, different advertisements are printed onto the cups for a different range of marketing techniques. For example, Shawn Mendes was printed on the cups for support of his Hometown show in Toronto this past September (Tim Hortons partners with singer-songwriter, Shawn Mendes to celebrate his Canadian roots, 2019). Roll up the rim is another technique that utilizes the packaging for advertising as well – the cups during this time of year are all roll up the rim themed. Tim Hortons utilizes packaging effectively for advertising as well as their standard advertising techniques.
Target Audience
Tim Hortons' target audience is business people and working adults, families and students from the lower and middle class. Business people and working adults are the main target audience as it is a fast-food service that is conveniently located in large corporations, malls, colleges/universities and nearly every corner of a city. It is a quick stop on the way to work, for break time or even lunch. In addition, Tim’s market their brand towards families with young children through sponsorships of sports teams, free community swim-skate days, and famous Tim Horton’s Summer Camps. Grabbing a coffee for under two dollars makes this the most affordable choice for low- and middle-class citizens.
The Competition
Competitors
Between 2010 and 2015, Tim Hortons was the undisputed leader in coffee and snacks industry in Canada with 62% market share (Tim Hortons, 2015). It was estimated that every 8 out of 10 cups of coffee sold in Canada were from Tim Hortons. Although in the last 3-4 years, new competitors like McDonalds, Starbucks, and Second Cup have arisen. As of 2017, Starbucks is ranked the 3rd favourite coffee chain in Canada, one place ahead of Tim Horton sitting at 4th with only 1,518 stores open in Canada compared to Tim Hortons 3,802 stores and Second Cup is ranked 2nd right after McDonalds (Ciolfe, 2018).
Starbucks sells Italian-style espresso beverages, cold and iced shaken drinks, and both breakfast and lunch items such as pastries, salads and sandwiches. Their primary target market is men and women ages 25 to 40. They accounted for just about half (49%) of its total sales in 2018. They appeal to this consumer age group by utilizing hip, contemporary design that is consistent in its advertising and decor. Is a student of 22 years of age, I can confidently say that their market is definitely starting to branch out to younger college students as well. Their hip and modern looking restaurants attract many students to go enjoy a coffee and a few snacks while studying. Although, Starbucks prices their items higher than Tim Hortons. They don’t have a “small” size, mostly to appear to be a premium product, and to make more money. Prices start at about $2.95 for a “Tall” Coffee while Tim Hortons Small Coffee starts at $1.59 and $1.99 for a Large (Borchardt et al, N.D.).
Second Cup, has been somewhat of the underdog in the coffee and snacks industry. They have a warmer feel than Starbucks, and positioned their prices in between Tim Hortons and Starbucks. They’re prices start at the high end of Tim Hortons at $1.95 but neck to neck with Starbucks for their “premium” drinks. All three restaurants sell breakfasts and lunch items with Starbucks and Second Cup selling at a higher price point ($6-$10) and Tim Hortons sticking to their lower priced menu ($4-$8) with an average difference of about $2 per food item (Menu with Price, N.D.)
Point of Parity
Tim Hortons McDonalds both are very affordable brands. A quality which is very valuable for the masses. Both brands offer meals for starting at $5. McDonalds is the highest consuming coffee brand in Canada. Tim Horton’s comes at number four (Coilfe, 2017). Tim Horton’s comes ahead of McDonalds for me would be its nationalist approach. Tim’s is associated with a Canadian identity. The brand has put Canada on a global map. Tim Hortons is one of the best fast food restaurant Canada has to offer. Tim’s Hortons can be found on every intersection in Canada - it’s very convenient. Most of Tim’s in Canada has drive throughs so that people do not have to stand in the line while they are trying to get to work or school. Tim’s offers a sausage/bacon muffin meal which comes with a sandwich, hash brown and a medium size coffee for about $5.
Positioning Statement - Tim Hortons is involved in various community events throughout Canada. Some of those events include 1. Tim Hortons Children foundation 2. Timbits Minor Sports Program 3. Tim’s Coffee Truck 4. Smile Cookie 5. Free Skate
These are some of the things that Tim Hortons is involved in. They are also involved in sponsoring various hockey events. Tim Hortons also helps small business owners not just in Canada but in Latin America as well. They help farmers who are into coffee production to grow their business. Which is not only good for farmers but it also helps the local economy to grow. It improves the standard of living in that community in general (Coffee Partnerships: Making a True Difference, 2019).
Mission Statement: “Our guiding mission is to deliver superior quality products and services for our guests and communities through leadership, innovation and partnerships” (Tim Hortons, N.D.).
Restaurant Brand International, a parent company which owns Tim Hortons, Burger King and Popeyes released a sustainability report in 2016. Which includes their revenue, sales, meat production, dairy production, partnerships in Canada and Overseas, market share, community events, and sponsorships.
Tim Hortons sponsor major Canadian clubs in different sports. Such as hockey, soccer, Basketball, football. They sponsor Montreal Canadians, Toronto Maple Leafs, Toronto FC, Toronto Raptors. This way the coffee brand can be reached in every single household in Canada. (2016 Sustainability Report, N.D.).
All the above-mentioned reasons make Tim Hortons the best fast food and most loved fast food chain in Canada. It is a national treasure.
Point of Difference
Tim Hortons is a widely valued and recognized brand name, that is currently a top 5 coffee brand across Canada (Ciolfe, 2017). The reputable coffee and dining franchise began production in 1964; since then, they have grasped a brand loyal consumer market with a diverse demographic. Their market consists of business professionals/working adults, families and students from lower-to-middle class.
Customers that are not apart of the brand loyal market may associate the brand to be within the ‘fast-food’ sector; however, consumers that are brand loyal view Tim Horton’s to be more of a coffee shop, bakery, and bistro setting. Although they offer fast and efficient services to be considered a fast-food joint, Tim Hortons continues to embrace and market its roots as a bakery and hot beverage restaurant. One attribute that the company is most popularly known for, is their heavy promotion as a breakfast and lunch location. This is a perfect choice for customers that are in need of a satisfying and filling source of food at a good price point. Although, Tim Hortons chooses to emphasize their sit-down services as a bistro-style restaurant, their fast services gain them a lot of success as a quick stop in or drive through option. In order to meet the needs of their busier customer markets; such as the business professionals/ working adults. For example, Fanshawe College is supplied with 2 established Tim Hortons for food & beverages and 1 Tim Hortons Express pop-up, specifically for beverages & baked goods. The express line is ideal for a quick pickup or refill, ideal for on the go busy students.
Throughout the decades, Tim Hortons never fails to incorporate new additions to their menu and services. They continue to operate mindfully in regards to their brand mission statement; “Our guiding mission is to deliver superior quality products and services for our guests and communities through leadership, innovation, and partnerships.” Innovation is a key element that sets one competitor apart from another, Tim Hortons consistently follows its primary market segments to analyze new trends and understand their needs and wants. Fundamentally, Tim Hortons focuses on its established consumer markets to make new innovative and executive decisions for change and growth.
Tim Hortons has grasped a competitive advantage through their main focus on brand loyal customers across Canada; however, with this type of operation, the company will only achieve short term success and growth. In future years when this dedicated consumer market decreases in population, the company will need to seek out new unique selling propositions to regain and establish another brand loyal market. This will remain Tim Hortons as a top brand of choice and a strong competitor in comparison to a similar brand.
How They Market
Tim Hortons is very competitive with conducting new innovative market strategies to appeal not only to their target markets but also uniquely set themselves apart from the competition. What almost every marketer does is promote the assets their company has to offer; Tim Hortons relies on their low valued pricing, set brand loyal market, promotional values, and their national image and appreciation for Canada.
The most unique selling proposition that Tim Hortons has to offer is through their low to moderate pricing options, to suit all demographics in their segmented markets. This is a huge advantage in comparison to competitors such as Starbucks, William’s Cafe and Second Cup; all offering ‘gourmet’ beverages, but at a higher valued price. Tim Hortons’ brand loyal market may have reasons other than a reasonable price point to be a dedicated customer, however, those that would not associate themselves as ‘brand loyal’, appreciate the low-price range and use that as a driving factor to revisit as a light to irregular customer. Marketing strategies to keep this type of customer returning are through an emphasis on their fast, reliable and efficient services; overall, maintaining their strong trustworthy reputation.
The company’s style of promotion varies in many forms such as word of mouth, seasonal rewards, strategic real estate, being a Canadian originated company and a recent reliance on media marketing.
Word of mouth is a valuable source of free advertising that a company can attain. It is very useful for a business because it allows promotion with little to no expense required. This is beneficial because companies can invest in other forms of business growth opportunities other than their promotion. This style of advertising is most effective when it is a positive response from a customer to another potential customer; once the individual hears good out comes of a product or service they are more likely to invest in it. Tim Hortons has ultimately grasped and benefited from this advertising style. On top of their already reputable good product & service for a good price, one memorable event that gained a mass amount of word of mouth across Canada was the ‘Tim Horton’s Pop-Up Recruitment Store’. This was an idea to appeal to their target market for possible new recruitments and develop a unique style of promoting what the brand is all about. This involved the transformation of a regular family neighbourhood home, into a pop-up Tim Hortons restaurant; they distributed gift baskets to neighbours, performed various neighbourly acts of kinds, and treated the street to free coffee and donuts. (Charleson, 2014) This was a major success for Tim Hortons and their brand name as a whole. Tim Hortons came to the conclusion that they best appeal to their consumers through visual, interactable, personal and memorable forms of advertising, and that is what makes them a well respected and known brand name.
Seasonal rewards are another top form of marketing that brings the company a lot of success in their annual sales. The concept of this program system is to retain their customers by providing rewards for purchasing behaviours. This is beneficial because it promotes a heavy increase in sales and the company gains a larger market segment for a short-term. Tim Hortons is most popularly known for conducting numerous rewards programs such as Roll-Up the Rim, Camp Day, and their new addition of a Rewards Card + App. The idea of the Rewards Card and the Tim Hortons app is to have a competitive advantage over competitors like McDonalds. This addition appeals to newly tech savvy consumers that use apps regularly.
The use of real estate is very important for growth and being at most convenience for the targeted market. The ideal placement for Tim Hortons is to be located in highly populated regions that gain lots of foot/vehicle traffic and areas of convenience. For example, a Tim Hortons location is typically found on routes to schools, service stops on major roads/highways, as well as inside office buildings, schools and other major establishments.
Tim Hortons is a Canadian founded company that embraces their roots in almost every source of promotion. Although their target markets don’t choose Tim Hortons primarily due to their dedication to the country, however, it is a widely appreciated aspect that is incorporated into what the brand name represents. Many advertisements incorporate national symbols that represent Canada and the Canadian market they serve; such as the colour red, beavers, the maple leaf, and Canadian born celebrities. The idea is to unite the country as a whole and target a personal connection.
The usage of multimedia is source of marketing that has quickly developed in the past decade of technological advances. Although multimedia promotion is a medium to high price point, it is a very effortless form of advertisement. Promoting through the media sources enables promotion of a product or service over a large group of people within a small amount of time. Tim Hortons as a brand with set consumer markets, has to constantly analyze the sociographic and habits of buying needs and wants. The incorporation of marketing through social media is a very effective way to target the tech savvy potential customers; for example, the Tim Hortons loyalty rewards app was strategized to appeal to those that use a mobile device regularly.
Brand Equity
What Motivates Consumers
The main aspect that Tim Hortons carries around with its coffee is the idea of “the Canadian Lifestyle” that comes with it. For many people this is very important and a large interest in their everyday lifestyles;
"I'm so excited to launch this incredible campaign with Tim Hortons in celebration of my homecoming Toronto show. Tim’s has been a part of my life since before I can remember and I'm so proud to share my love for this Canadian tradition.” Shawn Mendes, Canadian Singer Songwriter states (Tim Hortons partners with singer-songwriter, Shawn Mendes to celebrate his Canadian roots, 2019).
This demonstrates that as someone who grew up Canadian, Tim Hortons has been a part of Shawn Mendes’ lifestyle since he was young. Now, going on to do a campaign with the company shows that Tim Hortons fulfilled that Canadian Lifestyle throughout his life and he now fully supports the Canadian Brand because of it. Overall, this demonstrates that Tim Hortons can influence Canadians over a lifetime and growing up drinking Tim Hortons really does leave a positive impact on an individual. Tim Hortons also funds Camp Day programs, to support children and low-income families within local communities (Who We Are, N.D.). By doing this Tim Hortons is showing their love and support for the people who love and support them. This also demonstrates the “Canadian lifestyle” that comes along with Tim Hortons as everyone near and far who drink Tim Hortons are loving, supporting and helping one another.
Tim Hortons also takes part in many other fundraisers and programs that support Canadians and motivate them to purchase Tim Hortons. Smile Cookies are sold in support of local charities, hospitals and local support groups (Smiling from coast to coast: Tim Hortons annual Smile Cookie campaign raises a record $9.8M across Canada for over 550 charities, hospitals and community groups, 2019). NHL trading cards are sold in support of Canadian Hockey players Sydney Crosby and Nathan MacKinnon and the love of the Canadians favourite sport - hockey (Tim Hortons faces off for the National Hockey League Season with the Return of NHL Trading Cards in Restaurants Across, 2019). These demonstrate a strong support to Canadians and the relationship that Tim Hortons creates with the consumers. These are all reasons as to why the potential Canadian customers are motivated to shop Tim Hortons; as they know they are also supporting a good Canadian local cause.
This Canadian feeling that is granted with every cup is one of the main drivers for the target audience to purchase; and the reason they continue to purchase. Something about the “Canadian” lifestyle and the feeling of inclusion you experience when drinking Tim Hortons is highly intriguing to a lot of people and is what keeps the target audience coming back. “Tim Hortons is Canada's largest restaurant chain operating in the quick service industry serving over 5 million cups of coffee every day with 80% of Canadians visiting one of nearly 4,000 Tim Hortons in Canada at least once a month” (Tim Hortons partners with singer-songwriter, Shawn Mendes to celebrate his Canadian roots, 2019). This demonstrates that Tim Hortons has grasped a large portion of the market in Canada and the consumer base is a large one. This also supports that Tim Hortons has an established customer base that does continue to return and purchase their coffee from the Canadian Brand over and over again maintaining customer loyalty.
Along with this strong Canadian inclusion feeling that comes with drinking Tim Hortons, they are also very conveniently placed throughout Canada. Tim Hortons is always readily available - they are in most small towns, and big cities. This makes the coffee run very easy, fast and convenient for Canadian coffee drinkers, especially Tim Hortons Target market. With a lot of the market for Tim Hortons being made up of students, business people and lower to middle class adults, this is a main point of interest for them; they are typically looking for something quick, easy and convenient. With Tim Hortons having over 3500 locations across Canada it makes it hard to miss a Tim Hortons.
These are all reasons that contribute towards the consumers motivation and drive for them to purchase Tim Hortons. It is always easily available and easy to locate, and it supports Canadians across the Country, making it an attractive place for Canadians to be sending their money.
Is the Brand Effective
Tim Hortons has effectively grasped a large market of the coffee drinkers in Canada, though they are not effectively growing their market. They are successful with sales as they sell over 2 billion cups of coffee annually, as well as approximately 15% of Canadians visit Tim Hortons Daily (Hardy, 2014). Obviously, with numbers like these Tim Hortons demonstrates that they have a solid grasp on the market in Canada. Though, along with this Tim Hortons does not continues to grow or expand in sales; Tim Hortons takes the 4th top position for coffee sales in Canada; McDonalds, Second Cup and Starbucks beat them out taking the top three positions (Ciolfe, 2017). This shows that Tim Hortons does have an established market share, though there are other coffee companies that continue to outperform and have grasped a larger portion of the market in Canada for coffee sales. The customer base that has been effectively grasped are the ones that are loyal to the brand and continue to return day in and out. However, Tim Hortons fails to grow at a rapid rate over the last few years; and haven’t done an effective job in gaining a new large following of new loyal customers. “Restaurant Brands International Inc. said comparable sales at its Canadian Tim Hortons locations grew 2.2 per cent for the quarter ended Dec. 31, 2018 — the highest that figure has been in the last 10 quarters” (Sagan, 2019). This supports that Tim Hortons yes; is being successful, but they are not controlling the market. They are improving slowly, and continuing to make a profit based off the loyal customer base that has been established.
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