Tim Hortons Marketing Strategy In South American Market with different strategies to be implemented

1. Bringing the Canadian
Coffee Experience to Brazil
Always Fresh
Abhishek Kevalramani - 6171357
Anum Raees - 5325183
Bianca Rodricks - 4357115
Christina Motti - 4869448
Yassine Idrissi - 6566303
Christina - 15
seconds

2. Introduction
Market entry
strategy into South
America.
Mission: To provide
superior quality products
and services through
leadership, innovation,
and partnerships for our
guests and communities.
Vision: To be the
leader of quality in
everything we do.
In-depth analysis of
Argentina, Brazil,
and Colombia.
PESTLE Analysis
Argentina
Brazil
Colombia
BERI Index
Argentina
Brazil
Colombia
Christina - 1 min

3. Factors Argentina Brazil Colombia
Political +1 +3 -2
Economic -1 +3 -1
Social +2 +2 +1
Technological +3 +2 -1
Legal +1 +1 +2
Environment -1 +2 +2
Criteria Argentina Brazil Colombia
1) Political Stability 6 9 3
2) Economic Growth Trends 5 7.5 5
3) Currency Convertibility 3.75 5 2.5
4) Labor Cost Productivity 4 6 5
5) Short-term credit availability 4 4 2
6) Long-term loans/venture capital 3 6 2
7) Attitude towards foreign brands, foreign investors and profit repatriation 3 4.5 3
8) Threat of Nationalization 3 4.5 1.5
9) Monetary Inflation 1.5 3 1.5
10) Balance of Payments/Trade Balance 1.5 4.5 1.5
11) Enforceability of Contract 3 4.5 3
12) Bureaucratic Delays 1 2 1
13) Communication Technology: Phone, Fax, Internet Access, etc 3 3 2
14) Local Management/ Trained Manpower 1 1 1
15) Professional Services, Intermediaries, Suppliers, and Contractors 0.5 1 0.5
Total 43.25 63.5 34.5
PESTLE Analysis and BERI Index
Low Score High Score Least favorable Most favorable
Christina &
Bianca - 3 min

4. Target Market Decision
Country Total Decision Rule
Argentina 5/24 0.20<0.45
Brazil 12/24 0.5>0.45
Colombia 4/24 0.17<0.45
Country Total Decision Rule
Argentina 43.25
Average conditions - You
may enter with caution
Brazil 63.5
Good Conditions - Enter
the market
Colombia 34.5
Risky conditions -
Consider other factors
PESTLE Analysis BERI Index
Based on the PESTLE and BERI Analysis, Tim Hortons has made the decision of expansion into Brazil.
● World’s 14th largest economy by nominal GDP.
● Booming tourism makes a remarkable contribution to the economy.
● Trade surplus broadened to USD 9.3 billion in May 2021 compared to USD 6.9 billion in previous months.
● The economy is expected to experience an increase of 6.7% in its technological advancements by the end of 2021.
Developing International Market - Entry Strategies into Brazil
Bianca - 1.5 min

5. Market Entry Mode
Franchising
We can benefit from the high adaptability and number of the franchisees present in Brazil’s.
Develop relationships with franchisees to benefit from the well-structured proposals.
High negotiations with the organization, keeping our financial return and security in mind.
Ease of credit and stronger supplier relations as our franchisor (Vinci Partners) has strong established
connections in the market.
Exportation
Strategic Alliances
Full Direct Investment
Yassine - 1.5 min

6. Our approach to standardization and adaptation
Standardization
Helps in managing our product
portfolio.
Beneficial to keep our
organization's overall design in
control.
Offer our trademark range of
French Vanilla, Frozen Hot
Chocolate, and Tim’s Shake.
Adaptation
Offering explicit and customized
products as per Brazilian needs.
Helps keep costs low.
Introduce flavors catering to the
Brazilian target’s taste buds like
Arabica Coffee, Coffee Mojito’s,
Brazilian Tim, and Cafezinho.
Standardize our
marketing mix
elements and
strategies.
Implement
adaptation to
maintain our local
market position.
Bianca - 1.5 min

7. Marketing mix roadmap to achieving our objectives
Product
Place
Promotion
Price
1. Three traditional Brazilian coffee flavors along
with our standardized best-selling coffee.
2. Use Arabica and Bourbon Santos beans - the
highest selling flavors in the Brazilian market.
3. Coffee that is low in acidity and exhibits
flavors as per Brazlian tastes.
1. Cost-based penetration pricing strategy to
establish long-term growth in the country.
2. Products sold at an affordable price without
compromising on our standard and quality.
3. Suitably priced between $2 to $4 per cup.
1. Two cafés will be opened in Rio de Janeiro,
São Paulo, and Curitiba each.
2. The government encourages opening of
more international brands to boost the
economy.
1. Rewards and discount programs for price
sensitive market.
2. Social media channels to spread and increase
brand awareness.
3. Collaborations with Neymar and Ricardo Kaká
given the country's close association with
football.
Physical Evidence
People
1. Well-defined guidelines in place for
recruiting and training our staff.
2. Progressive, motivated, and happy
employees will reflect satisfied
customers.
1. Provide more than just Canadian coffee.
2. Focus on the ambience of the store –
creative and exciting.
3. Positively influence and emotionally
appeal to our Brazilian customers by
creating a relaxing and safe space.
Our two main objectives:
1) Increase our brand awareness in Brazil.
2) Reach a minimum market share of 10% for Tim Hortons in Brazil.
Christina - 2.5
min

8. Our Projected Budget Plan
Construction/ project
development
Annual
recompenses
Operating costs
Promotion/
Advertisement
Total projected
cost US$
2.5 Million
US$
8 Million
US$
12 Million
US$
2.8 Million
US$
25.3 Million
Q1
Q2
Q3
Q4
Total projected
revnue for
Year 1
Total net profit
US$
9 Million
US$
10 Million
US$
11.7 Million
US$
18 Million
US$
48.7 Million
US$
23.4 Million
Projected Cost Projected Revenue
Abhishek - 2 min
30 secs

9. 8th Jul 21
Board Meeting
Implementation Plan
19th Jul 21
Submit franchising
application
21st Jul 21
Meeting with B+H
Architects
19th Aug 21
Approval for
franchising
23rd Aug21
Application for
funds and loans
1st Sep 21
Selection of the
construction company
and final designs
1st Oct 21
Construction work
begins
1st Mar 22
Screening, hiring, and
training employees
3rd Jan 22
Interior work
begins
20th Mar 22
Shops ready for
inspection and approvals
10th Jun 22
Inauguration and
open for service
Bianca - 2 min

10. Monitoring & Control
Our focus will be on evaluating performances of our marketing
campaigns.
First In First Out method will be used for inventory valuation
to maintain the standards of ”serving fresh” products.
Monitor loyalty programs through Redemption Rates to gather
data on rewards and offers redeemed.
Employ Repeat Purchase Rate to monitor customer loyalty.
Sales and budgets on promotional campaigns will be measured
quarterly and adjustments will be made accordingly.
Online tracking tools will be used to monitor campaign
performances on social media.
1
2
3
4
5
6
Anum - 1.5 min

11. Conclusion & Recommendation
Entering the marker through franchising as we will have lower risks, lower
costs, and will help achieve economies of scale faster.
We will implement standardization and adaptation strategies to retain our
brand value while responding to the local demand.
Achieve our main objectives of increasing our brand awareness and reaching
a minimum market share of 10% through effective marketing mix strategies.
After analyzing the budget plan, the projected net profit for the first fiscal
year is set to be $23.4 million.
The implementation plan will make sure all KPIs are being met and the store
launches will take place on 10th June 2022.
We should invest in R&D in areas such as consumer preferences that will help
us in attaining a competitive edge.
Strong focus on customer interaction and inclusiveness which will encourage
more footfall and increase spending.
Strategic focus on pricing will be profitable as Brazilian consumers are price
sensitive.
Anum - 1.5 min

12. Brand Creatives - Posters
Bianca - 15 sec

13. Brand Creatives & Videos - Instagram and Facebook
Coming this winter!
Bianca - 15 sec

14. Thank you!
Always fresh

15. References
• BBC News. 2021. Brazil: Political crisis and Covid surge rock Bolsonaro. [online] Available at: <https://www.bbc.com/news/world-latin-america-56581131> [Accessed 4 May
2021].
• BBC News. 2021. Burger King and Tim Hortons agree merger details. [online] Available at: <https://www.bbc.com/news/business-28939538> [Accessed 17 May 2021].
• Cormack, P. (2008). True Stories of Canada: Tim Hortons and the branding of national identity. Cultural Sociology, 2(3), 369-384.
• Foster, W. M., Suddaby, R., Minkus, A., & Wiebe, E. (2011). History as social memory assets: The example of Tim Hortons. Management & Organizational History, 6(1), 101-
120.Gordon, G. (2017). Communication, Vision, and Mission. In Leadership through Trust, p.65. Palgrave Macmillan, Cham.
• Kognitiv. 2021. 5 Loyalty Program KPIs that Matter - Kognitiv. [ONLINE] Available at: https://kognitiv.com/blog/5-loyalty-program-kpis-that-matter/. [Accessed 20 June 2021].
• Tim Hortons – Apparel Group. 2021. Tim Hortons – Apparel Group. [ONLINE] Available at: https://www.appareluae.com/tim-hortons/. [Accessed 05 May 2021].
• Tim Hortons. 2021. About the Coffee Partnership. [online] Available at: <https://company.timhortons.com/us/en/corporate/about-the-partnership.php> [Accessed 17 May
2021].
• Timhortons. About Us. 2021. Tim Hortons. [online] Available at: <https://www.timhortons.ca/about-us> [Accessed 17 May 2021].