Tim Hortons in Russia

By: Yanjun Li, Jordan Ruegg, Emily Rudnicki, Nikita Ochakovskiy

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Table of ContentsSlide 1 - Title Slide

Slide 2 - Table of Contents

Slide 3 - Intro... to Russia and why Russia

Slide 4 - Moscow

Slide 5 - Locations for Tim Hortons

Slide 6 - Company Description

Slide 7 - Mission Statement

Slide 8 - Product Line Extension

Slide 9 - Levels of Management

Slide 10 - Marketing Mix

Slide 11 - Exchange Rate

Slide 12 - Trade Regulations

Slide 13 - Business Laws and Culture

Slide 14 - Business Ethics

Slide 15 - SWOT - Strength

Slide 16 - SWOT - Weakness

Slide 17 - SWOT - Opportunities

Slide 18 - SWOT - Threats

Slide 19 - Method for Entry (Franchising)

Slide 20 - Summary

Slide 21 - Thank you! 2

1. Intro... to/Why ???

➔ Low temperature

➔ Russian People like all types of coffee = Also Russians like baked/sweet goods

➔ Some Russians coffee houses sell not fresh products

➔ Russians really like things from West countries

➔ Burger King - 363 restaurants in Russia

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2. Moscow➔ Area =

➔ Population = 11.92 million people

➔ (In Greater Toronto Area = Area: 7124 = Population: 6.05 million people 4

3. Locations for Tim Hortons in Moscow

➔ Colleges/Universities = 264 in Moscow Area

➔ Airports = 3 international Airports

➔ Malls = 339 in Moscow and Moscow Area

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Company Description:Tim Hortons is Canada's largest quick service restaurant chain, started in 1964 its first store opened on May 17th in Hamilton Ontario. Known for its coffee and doughnuts the restaurant also offers a wide variety of soups and sandwiches along with a full breakfast menu.As of September 30, 2016 the restaurant chain had a total of 4,492 stores in 9 different countries.https://www.youtube.com/watch?v=t8YJRdPlGG8

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Mission Statement

“Our guiding mission is to deliver superior quality products and services for our guests and communities through leadership, innovation and partnerships.”

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Breakfast Menu:Product Line Extension:We’ve decided to introduce a small product line extension for our stores opening in Russia to help our new customers feel more at home, some new products we will offer are:

We will introduce a type of pancake popular in Russia, Blini.Served with the choice of sour cream, jam or a chocolate spread.

Soup Menu:A traditional Russian soup called Borscht will also be added.

Additional:We will also offer Rye bread available for substitute on sandwiches

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Levels Of Management

Top Manager:Our first choice would be someone who has run a successful Tim Hortons chain location here in Canada and is willing to help us continue our global expansion.

Middle Manager:Our middle manager will be bilingual (both English and Russian), preferably local with experience in the restaurant and franchising industry.

First-line Manager:Not necessarily bilingual but it would be an asset, preferred local with restaurant and managing experience.

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Marketing Mix (4 P’s)Product:We will be offering a full menu in our stores with our product line extension added.

Place:Our first locations in Russia will be in Moscow, starting in airports and malls as well as close to the colleges and universities.

Promotion:We plan on starting our promotions 2-4 months before opening our first store, we will start with commercials on the local tv channels and branch out online.Our timing will be in sync with the beginning of Roll-up-the-Rim offering a chance to win for coming in and trying our award winning coffee.

Pricing:Our prices may slightly elevate to cover the tariff expenses of importing into Russia.

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Exchange Rate

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Fact:

Average Tariffs on imported pre-made food is 39.59% in Russia.

Source: http://trade.ecoaccord.org/2008/trade_policy_engl.pdf

Trade Regulations 106.03

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Business Laws and Culture●

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Business Ethics in Russia●

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SWOT Analysis---Strength

- Low cost with fine quality- Large variety of product- Hot beverage available- Great reputation/ well-known brand- Past experience of franchising

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SWOT Analysis---weakness- Deregulation of some

franchisees- There are the little things, like surprise

"Always Fresh" audits that grade franchisees on how long customers wait at the drive-thru, the amount of time a pot of coffee is allowed to sit around, and whether there are weeds in the parking lot or graffiti in the bathroom.

- high level of sugar/fat in food- fluctuation of price in raw

materials(coffee, wheat ,oils…)

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SWOT Analysis---Threat- Other competitors in Russia

International competitors: McDonald’s and Starbucks

Domestic competitors: “Shokoladnitsa”

- 71 Starbucks Restaurants in Moscow

Including individual stores and shopping centres

- Uncertainty of how strong canadian dollar will be in the future

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SWOT Analysis---Opportunity

- Relative cheap price - Russian culture for coffee- Russian importing coffee trend

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Method for entry into the market

https://www.timhortons.com/ca/en/corporate/franchise-ca-faq.php 19

Summary- Advantages of Russia- Introduction of new product line- Marketing mix (4P’s)

- Exchange environment - Local law - SWOT analysis - Franchising Method

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Thank You!

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