It is expected that the implementation of this marketing plan will lead to the following key results.
- Increase in the number of customers with children.
- A more engaged following on digital platforms, particularly Instagram and Tik Tok.
This marketing plan will use multiple marketing strategies and activities for Tim Hortons’ products to respond to the needs of the primary market segments. The basis for the proposed marketing strategies and activities is the model of 4Ps of marketing.
The expected results listed above and the proposed marketing strategies and activities are based on some assumptions. It is assumed that Tim Hortons’ media presence will remain relatively positive and that a younger demographic will respond positively to the company’s digital campaigns, which will inadvertently result in high social media engagement across various platforms.
Presumably, the required investments amount to $200 million. Funding is expected to be obtained from executives, key stakeholders, and outside investors.
The major risks are financial volatility, geopolitical tensions, economic instability, as well as COVID-related lockdown measures regulated entirely by the government.
Plan Objectives
It is safe to say that marketing, or more precisely, marketing planning, significantly impacts any firm or organization’s overall prosperity and success. Kotler and Keller (2016, p. 25) note that “CEOs recognize that marketing builds strong brands and a loyal customer base, intangible assets that contribute heavily to the value of a firm.” Every competent business specialist must have sufficient theoretical knowledge and practical skills to do a marketing analysis. Outside the organization’s context for which the current marketing plan is drawn up, the goal of this work is to develop and demonstrate marketing and business administration skills.
It is necessary to mention that the chosen organization for which the business plan is made is Tim Hortons. According to Hunter (2018, para. 1), “Tim Hortons is a Canadian restaurant chain known for its coffee, donuts and connection to Canada’s national identity.” In marketing, specialists identify and formulate key goals following S.M.A.R.T. criteria. According to Ogbeiwi (2017, p. 329), “S.M.A.R.T. is an acronym for Specific, Measurable, Assigned, Realistic and Timed, first published by George T. Doran in 1981 as the five essential criteria that the statement of every meaningful and effective objective should fulfill.” The first primary objective of this marketing plan is to get Tim Hortons to become the number one US Google search for the keyword “coffee restaurant” at the close of 2021. Moreover, “Tim Hortons has nearly 3,700 locations in Canada and the United States and serves more coffee than any restaurant chain except Starbucks” (New U.S. online store ships coffee, tea and travel mugs to all 50 states, no date, para. 5). It means that there are both significant opportunities for the organization, namely its resources, and favorable external conditions that make the goals set achievable and relevant to the organization.
Market Audit
A market audit is that part of the marketing plan that evaluates the company’s internal aspects and external business factors. For a critical assessment of Tim Hortons and its environment, PESTLE analysis was applied by the author of this marketing plan. Abdoh et al. (2020, p. 20) note that “this technique is common for organizations environment analysis and is an abbreviation for political, economic, social and technological, legal and environmental that commonly affect businesses.” This evaluation model was chosen because it covers many crucial business aspects.
In the case of value-in-use analysis, it is important to understand the most critical points of value exchange during the monetary transactions provided by the customers. The assessment will be primarily based on the use of primary data derived from extensive survey regarding the customers’ key interests. The customer value can be manifested in social, service, technical, and economic benefits, which are delivered by Tim Hortons. The survey results suggest that economic values are based on satisfactory and affordable pricing, whereas technical aspects are timely order delivery and availability of a wide range of product options. In regards of service, many customers come to Tim Hortons for a breakfast where customer service can be considered as superb. Social values or benefits are rooted in the general environment, which pleasing and welcoming, and many customers value ambience (Tim Horton’s peer survey results, 2021). Thus, the market segment of interest are young people, who seek breakfasts and ambient conditions, such as students. More extensive value-in-use analysis can be observed in the Figure 3 in the Appendix. In addition, the PESTLE analysis is described below, whereas the Porter’s Five Forces and Key Assumptions table can be seen in Figures 1 and 2 in Appendix, respectively.
Political Factors
The Canada-United States political relationship can be described as long-lasting and positive. According to the Bureau of Western Hemisphere Affairs (2020, para. 17), “in 2019, the U.S.-Canada Innovation Partnership was launched to create a stronger bilateral relationship in innovation, technology, research, science, and related areas.” Such a friendly state-to-state relationship ensures Tim Hortons’ safe expansion into the US market from a political perspective. However, it is also important for Tim Hortons executives to acknowledge current instabilities of the U.S. political climate due to consumers’ growing concerns with the response to the Black Lives Matter movement from the government and big corporations (Mundt, Ross and Burnett, 2018).
Economic Factors
Economic relations between the two North American countries are also positive. Bureau of Western Hemisphere Affairs (2020, para. 15) mentions, “the United States and Canada enjoy the world’s most comprehensive trading relationship, which supports millions of jobs in each country.” Moreover, “Canada and the United States have one of the world’s largest investment relationships” (Bureau of Western Hemisphere Affairs, 2020, para. 16).
Social Factors
Mutually beneficial cooperation between the two countries under discussion also takes place in the social aspect. The USMCA was concluded “to generate job opportunities, improve worker protections, increase agricultural trade, produce new investments in vital manufacturing industries, protect intellectual property rights, create a similar set of environmental standards” in North American countries (Bureau of Western Hemisphere Affairs, 2020, para. 13). It is important to recognize that the cultural influence of the U.S. on Tim Hortons as a business is undeniably strong. Social factors that are crucial to consider are Americans’ health consciousness, demographics, as well as prominent cultural forces. In the United States, in particular, the public is concerned with environmental issues and ethical consumption (Gauba, 2019).
Technological Factors
In a highly competitive market, Tim Hortons can ensure it provides customers with a unique selling proposition, which is tied to technological advances society is getting used to. While it is essential for an enterprise as large as Tim Hortons to engage consumers through social media, the company has to innovate and make its digital efforts more of a priority.
Legal Factors
Any organization must assess the impact international laws have on its business operations. Legal factors important to consider also include current legislation that directly (or indirectly) shapes the industry in areas such as competition, safety, employee retainment, and others. Menu-labeling laws at local, state, and federal levels are crucial to take into consideration. In addition, regulations attributed to the COVID-19 pandemic are specific to each country.
Environmental Factors
The United States of America, as well as Canada, continues to take small steps towards battling environmental issues, which are the most concerning to the public. Executives of Tim Hortons have to be aware of a novelty in the quick service restaurant industry, which is the green approach. Restaurant chains adopt innovative recycling and waste management corporate policies (Gauba, 2019).
Marketing Objectives
Market penetration is an only plausible solution in the case of Tim Hortons, because it does not provide a new product or develop a new market. Therefore, the marketing strategy at its core should focus on market penetration, which means bringing more recognition towards the brand as well as attract the customers through better value offer. ANSOFF strategic planning can be accessed in the Figure 4 of the Appendix, where market penetration is identified as a primary direction of the marketing strategies.
Portfolio Analysis
Market attractiveness factor assessment revealed that Tim Horton’s is the most popular and appealing among younger individuals and middle-aged people, whereas there is a lower degree of attractiveness among teenagers and older adults. CSF evaluation for older demographic shows that they prefer Tim Hortons more compared to its key competitors, which means that the current marketing efforts should remain intact. However, the CSF assessment for younger demographic shows a major weakness of the company in regards to its rivals, which is Digital Presence factor. In other words, Tim Hortons needs to improve its online presence through aggressive advertisements. A more detailed analysis of market attractiveness factors can be seen in Figure 5 of the Appendix, whereas CSF for older and younger generations can be observed in Figures 6 and 7, respectively.
Marketing Objectives and Strategies
Regarding the younger demographic and teenagers, the objectives include social media engagement with potential customers via Instagram and Tik Tok as well as becoming a leader of vegan beverage options. The activities for this segment include influencer marketing, social media rebranding, production of Tik Tok and Instagram content with the focus on consumer trends within a chosen demographic. Such trends include vegan and vegetarian meals or beverages, sustainability initiatives, and corporate activism. As for the segment that includes married customers with babies, the objectives are the increase of the amount of children menu orders as well as a gradual shift of Tim Hortons to position the company as a family-oriented business with a variety of children-friendly options available to customers.
In the case of 4P analysis, Tim Hortons’ marketing objectives and strategies need to be evaluated on the basis of its product, price, promotion, and place. Based on the results of the survey as well as the CSF assessment, it is evident that online or digital presence of Tim Hortons is a major pitfall of its low market share. Many customers are merely unaware that Tim Hortons exists or they do not know the advantages of the company. Therefore, it is evident that promotion needs to prioritized by launching well-funded and well-planned social media marketing campaigns. In the case of the product and price, the survey reveals that many current customers are satisfied with the prices as well as with the product and service quality. In addition, one of the key elements, which was derived from the survey is the fact that some individuals value the environment and ambience. In other words, place factors need to be taken into a consideration in order to preserve the anticipated and expected ambient conditions. 4P analysis table can be seen in Figure 8 of the Appendix.
Expected Results
Expected results include a substantial increase in the amount of children menu orders in a week. Another important outcome that should be achieved is the increase in the number of Tim Hortons’ loyalty program participants. In order to engage with a younger audience, including both young adults and teenagers, Tim Hortons must focus on engaging with its potential customers on social media, using situational marketing and influencer promotion. Therefore, the expected result is to increase the number of followers, likes, and shares on various social media platforms, particularly Tik Tok and Instagram. Another crucial focus of Tim Hortons’ marketing efforts is giving back to the community and promoting its charity and sustainability efforts across multiple social media channels as well as traditional media such as print publications and TV networks.
Therefore, it is evident that the majority of efforts are directed at improving online presence of Tim Hortons. One should note that the customer journey map is comprised of five major elements, which are awareness, consideration, purchase, retention, and advocacy. It is evident that the key problem in the company’s case is awareness, because, as survey revealed, many people simply do not know about Tim Hortons. In other words, a purchase or consideration cannot be made without being informed on the existence of the option. In addition, the data from the existing customers shows that they are satisfied with the company, which means there is no problem with retention aspect. Although advocacy might be taking place among the loyal customers, in such a large market, digital presence cannot be replaced by a word-of-mouth, since there are scaling differences. Customer journey map can be seen in Figure 9 of the Appendix.
Alternative Mixes or Contingencies
Risk mitigation strategies include prior establishment of risk preparation programs, which would involve experts from “centers of excellence.” Such centers gather in-house and invited professionals, who specialize in the areas critical for Tim Hortons’ long-term success. The development of the program would enable the company to operate with minimal risks and avoid issues arising from financial volatility, geopolitical tensions, or other challenges that may intervene with Tim Hortons’ success.
Budget and Monitoring
Considering the annual revenue of Tim Hortons that amounts to billions of dollars, the marketing budget should be at least 10% of the revenue. Therefore, the marketing budget for the year should be around $200 million, which would include digitalization efforts as well as the revitalization of loyalty programs and children menu options at Tim Hortons. In order to monitor whether the company makes the right steps for its goal achievement, the marketing department will employ a team leader for each of the aforementioned segments. Each head of the segment will oversee the integration of changes and present a report to their team every two weeks. On a monthly basis, team leaders will demonstrate the results to a group of executives. The presentations must be self-assessed, meaning that they have to include a section identifying potential areas and methods for improvement.
Reference List
Abdoh, H. M. B. et al. (2020) ‘The effect of PESTLE factors on e-government adoption in Jordan: a conceptual model’, International Journal of Engineering Trends and Technology, pp. 19-23. Web.
Bureau of Western Hemisphere Affairs (2020) U.S. relations with Canada. Web.
Gauba, L. (2019). ‘Corporate social responsibility (reliance a trend setter)’, Research Review International Journal of Multidisciplinary, 4(4). Web.
Hunter, D. (2018) Tim Hortons. Web.
Kotler, P. and Keller, K. L. (2016) Marketing management. 15th edn. London: Pearson Education Limited.
Mundt, M., Ross, K. and Burnett, C. M. (2018) ‘Scaling social movements through social media: the case of Black Lives Matter’, Social Media + Society, 4(4). Web.
New U.S. online store ships coffee, tea and travel mugs to all 50 states (no date) Web.
Ogbeiwi, O. (2017) ‘Why written objectives need to be really SMART’, British Journal of Healthcare Management, 23(7), pp. 324-336. Web.
Tim Horton’s peer survey results. (2021). Web.
Appendix
