2+Current+Marketing+Situation


 * Current Market Situation**

Tim Horton’s Ice cappuccino is targeted toward people who enjoy the taste of it as well as the easy access it has. The Customers have the enjoyment of a refreshing drink that they can get on a good demand with a lower limit of time. Tim Horton’s is known for its low prices and easy access, this is what makes it so successful. In 2008, Tim Horton’s total Revenue was $2.044 billion with a net income of $285 million and employs over 100,000 across Canada. Tim Horton’s is also currently Canada’s leading food service operator, pulling ahead of McDonald's.

Tim Horton’s was founded in 1964 by a hockey player named Tim Horton. It started off as a family coffee shop and then after dying in a car crash, Tim Horton’s investor partner Ron Joyce expanded the business into a multi-million dollar franchise. The company has opened twice as many franchises then McDonald's and in fact holds 22.6% of all fast food revenues in Canada in 2005. It also holds 76% of the Canadian market of baked goods and 62% of the Canadian coffee market which differs greatly from Starbucks that only holds 7%. Tim Horton’s currently has 2971 stores in Canada. This huge success is decided by the customers demand of cheap products. This is because customers enjoy their products usually on a daily basis, and for a customer to spend 3 to 4 dollars on a Starbucks drink is just not practical, Tim Horton's offers cheap coffee which is practical in their expenses. It works out to only spending left over change from other purchases.
 * Market Description:**

The product mix for the Ice Cap has been made simpler; giving the advantage of producing the product at a faster rate as well as a cheaper rate. Speed of service will benefit both customer satisfactions as well as lowering the cost of manufacturing the product. The current ice cap procedure is outlined as follows: 1. Cup (5 seconds) 2. Cream (10 seconds) 3. Ice cap Mix (20 seconds) 4. Blend (30-50 seconds) 5. Lid (5 seconds) 6. Serve (10 seconds) Total time = 1 min 40 seconds, this time doesn’t seem like a lot but it really makes a difference when the demand volume is very high. An examples of this is when 7 or 8 customers have ordered 3 to 4 ice caps each the time of production is very high at that time and the customers will be waiting a lot longer to get their products The prices are also very incomparable to the other products that Tim Horton's has. The prices are: Large $3.09 Medium $2.49 Small $1.89 before tax. The large, after coming out to about $3.50 after taxes, is seen to not necessarily work out to grab change for. The price is more of a breaking a 5, 10, or 20 dollar bill kind of price.
 * Product Review:**

Tim Horton’s 2 main competitors are country style and coffee time. The advantage though is a lot higher for Tim Horton’s because of their brand reputation. They have established many connections with hockey programs which give the company a “Canadian” feel. This is one of the reasons it has been successful, but aside from that, they are heavily involved in many community events such as the Tim Horton’s camp. Roll up the rim has been a huge success across the country as well, and with all these strategies, Tim Horton’s is the leading coffee franchise. Country style has tried a strategy similar to the Roll up the rim which is every cup wins. Their desperate leap to compete has shown no major success and the company still to this day suffers from the mass popularity of the Tim Horton’s franchise. Country Style had been required to close a quarter of its stores due to declining market share in an increasingly competitive Canadian market.
 * Competitive Review:**


 * Distribution:** Franchises are the major source of revenue for Tim Horton’s. Tim Horton’s mainly depends on each individual within a community to consistently buy products at a very low rate. The very large volume of the customers makes all the revenue for the company. The easy access to the productions gives a major advantage of making money at a very fast rate.


 * Promotion:** Tim Horton’s number one promo is roll up the rim. This promo allows any individual to win a huge range of prizes in which are often won. Most television commercials are set on Canadian channels and are closely linked to the N.H.L. Different advertising slogans have been, "You've Always Got Time for Tim Horton's" and "Always Fresh. Always Tim Horton's."


 * Distribution Review:**
 * Sales Trends:** Around the year, Tim Horton’s always has a strong focus on the spirit of the different seasons. They introduce a new donuts and drink through every season that reflects that holiday. Around Christmas time they introduce both the candy cane donuts as well as the candy cane hot chocolate. In the fall they promote their pumpkin spice donuts and hot flavored drink. Once a year in the month of march, Tim Horton’s promotes roll up the rim, with this their customers are able to win free coffee and donuts on a regular basis and also have the opportunity to win big prizes, this is just a big bonus on top of all the other good qualities of the coffee itself.


 * Distribution Channels:** Distribution for Tim Horton’s is intensive, allowing them to reach their target markets; thus staying competitive with Country style and Coffee Time. Tim Horton’s can be found in almost every city, town, and even lower populated areas. Tim Horton’s brand reputation has given them an exceptional advantage. With both brand reputation and being cost effective, Tim Horton’s is the markets leading coffee industry, taking head of their competitors Coffee Time and Country Style.