External Environmental Analysis of Tim Horton’s – Team Assignment

Marketing 116

Gourav SharmaManpreet Singh.

.Tim Horton’s Inc. is a Canadian fast casual restaurant known for its coffee and doughnuts. It is also Canada's largest fast food service with over 3000 stores nationwide. It was founded in 1964 in Hamilton, Ontario, by Canadian hockey player Tim Horton and Jim Charade, after an initial venture in hamburger restaurants. (wiki)

PEST analysis of the company’s products

Political (Legal) Aspects:-A company will not be able to gain success,

good reputation and trust if it will not consider legal and political sector as part of their strategy. Political and legal sectors include the needs of the company to follow the given policies and regulations of the government in order to be considered as legal and authorized business company.

.

Political (Legal) Aspects Conti…

We have to keep in mind   Tax policy     Employment laws     Political stability     Environmental regulations Trade and tariff restrictions

.

Economic Aspects:-

The economic factor involves the context in which an industry belongs, i.e. the configuration of the competition in which a company operates the active demand of the products, general economic condition of the nation or region, conditions in relation with other industries, and the situation of the resource markets.

Economic Aspects:-

conti….  Economic stability  Economic growth  Interest rates  Inflation rates  Exchange rates

Socio-cultural Sector

Society and culture is an important factor that must be given emphasis by any business, specifically those who are operating in the global arena such as Tim Horton’s. It is important that the company must operate in compliance with the social systems in order to gain good reputation and effective public image.

Socio-cultural Sector

Conti…. Population growth rate Age distribution Career attitudes Consumer behavior Religion and culture itself

Technological Aspects

The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both technology and business managers towards more strategically oriented approaches for planning and management of any industry.

Technological AspectsConti….

Distribution and communication channels

Technology incentives Automation Rate of technological change Environmental and ecological aspect Barriers to entry

SWOT ANALYSIS

Strengths Innovative Culture - Tim

Horton’s Franchises Repays in 1 to 2

Years Low Staff Turnover is an

Important Strength for Tim Horton’s

Ease of Training Helps Tim Horton’s

Strong Management at Tim Horton’s

Prime Real Estate - Location is Key for Tim Horton’s

Pricing Power Allows Tim Horton’s to Adjust Prices

Financial Leverage is a Strength of Tim Horton’s

Weaknesses

Long lines Weak

Management at Specific Locations

Tarnished Reputation - Tim Horton’s

Customer Service - Tim Horton’s

SWOTConti…

Strengths Economies of Scale

Help Reduce Cost for Tim Horton’s

Cost Advantages Over Rivals - Tim Horton’s

Rapid Expansion Supply Chain - Tim

Horton’s Brand Name - Tim

Horton’s Customer Loyalty is Key

to Tim Horton’s

Weaknesses

-

SWOTConti…

Opportunities Lower Prices of Tim Horton’s

Food Can Help Win Customers Fair Trade Benefits the Growers

and Consumers of Coffee Organic Farming Provides and

Opportunity for Tim Horton’s Young Drinking Age Could Help

Grow By Increasing Market Size World's Population is increasing

- Potential to Expand is Huge They Can Make Acquisitions of

Other Fast Food Companies Emerging Markets Offer Tim

Horton’s Expansion Potential New Products and Services

Could Increase Tim Horton's Revenue

Threats Global Warming Could Hurt

Food Product and Costs Fast Food is linked to

Hardening of the Arteries Consumers Could Change

Their Tastes and Desires in Food

Volatile Cost - Tim Horton’s International Competition

Could Hurt Tim Horton’s Substitute Products Could

Hurt Tim Horton’s Intense Competition -

Restaurants Industry

SWOTConti…

Opportunities Marketing in

Canada is Locally Tailored

Variety of Food New Services by

Tim Horton’s New Products at Tim

Horton’s

Threats

Competitive Analysis

Competitive Rivalry, e.g.:› Number and size of firms existing in

market like as Tim Horton’s› Industry size and trends of the market › Fixed v variable cost bases

Supplier Power, e.g.: Brand reputation which product supplier

supplies us Geographical coverage of that particular

supplier

Competitive Analysis

Buyer Power, e.g.:› Buyer choice of our product› Buyers size/number in that particular

area Product and Technology Development,

e.g.: Alternatives price/quality Market distribution changes in rules which

may affect or not Fashion and trends of the new market

(+)and (–) implementations of PEST

Social Factor:-› The changing role Of Families and Women(+)› Growing component life style(+)

Economical Factors:-› Purchasing Power(+)› Recession(-)

(+)and (–) implementations of PEST

Technological Factors› Research› New products

Recommendation …

We believe that they need to improve their social aspects they need to introduce some products for the baby boomers because they are big consumers in Canadian market. Moreover, if they can spend more money on R&D to improve their service line and product quality, then they can reach new heights of profit. Regularly introducing new products in market and create more interest in the people.

Market Segmentation

Tim Horton’s brand is synonymous with Canadian culture and coffee is a product with wide demographic appeal, the target market for this campaign is broad in scope. People most likely to engage in this contest are likely male and females aged 18-50; students and professionals alike. They want to cover college, school and working people. Their products are very low in cost and have different quantity menus, which every one affords

Mission and Vision Statement

MISSION STATEMENT: Our guiding mission is to deliver superior quality products and services for our + and communities through leadership, innovation and partnerships. (Horton's, 2011)OUR VISION: Our vision is to be the quality leader in everything we do.

Competitive Strategy

Locations› Has more than 6000 stores in Canada› Covers every single public place› Going global

Cost Competitive› Low price products

Work cited

channel, B. (n.d.). http://www.brandchannel.com. Retrieved 10 22, 2011, from http://www.brandchannel.com/features_profile.asp?pr_id=253

Horton's, T. (2011, 12). www.timhortons.com. Retrieved 10 23, 2011, from http://www.timhortons.com/ca/en/about/media-company-facts.html

wiki. (n.d.). http://en.wikipedia.org/wiki/Tim_Hortons. Retrieved 10 21, 2011, from www.wikipedia.com: http://en.wikipedia.org/wiki/Tim_Hortons#Menu