6. +
Operational Action Plan
Self-Serve Vending Machines
Compete more aggressively in
Breakfast market
Air Miles Partnership
Pursue Tea Market
7. + Decision Criteria
Low risk to brand name or image
Solidifies/expands market share
Focuses on convenience & service
New & innovative
Helps achieve motto of ‘Fast. Friendly.
Fresh.’
Quick implementation
Cost effective
8. +
Self-Serve Vending Machine
Fresh.
Friendly. Fast.
Tassimo and
Tim Hortons
Partnership
Located in High
Traffic Areas
such as malls
Vending
Machines –
Good
Strategic Fit
Low-Cost
& Low-
Risk
Alternative
9. +
Air Miles Partnership
Why a Loyalty Program?
• 94% of Canadians belong to a
Loyalty Program
• Switching cost facilitation
Why Air Miles?
• Positive Brand Image
• Air Miles is present in 75% of
Canadian households
• Ten million active users
10. +
Internal Analysis
Corporate • To deliver superior quality products and services
for our guests and communities through
Mission leadership, innovation and partnerships.
Corporate • To be the quality leader in everything they do
Vision
Value • Always Fresh.
Proposition
Target • 18 – 45 yrs.
Market
13. +
Strategic Fit
Convenient and prominent service
Quicker service will give an edge over
McDonalds
Introduction of a loyalty program creates
switching costs
14. +
External Analysis
The Industry
16%
21%
Coffee
Carbonated Soft Drink
Milk
16% Tea
11% Bottled Water
Fruit Beverages
Others
11% 13%
12%
15. +
External Analysis
The Competition
25%
Tim Hortons
McDonald's
Subway
Other
58% 11%
6%
17. +
PEST Analysis
• Procedural barriers to entry
Political • Minimum wage
• Strong economy
Economical • Canadian dollar performing at high level
• Attachment to the Canadian brand non-existent in the U.S.
Social • Population growth rate of only 1% (matured market)
• Available on Tassimo
Technological • Growth potential in new product development
18. +
Balanced Scorecard
Financial Marketing
• Return on Capital 22.44% • Always Fresh
• Quick Ratio 0.6 • Consistency
• Debt-to-Equity 44.7 • Roll Up the Rim to Win
Vision & Strategy
Learning & Growth Customer
• Adaption to a new industry • Customer loyalty
• Continually adding new products • Most recognizable coffee shop
• Stays relevant with trends • Introduction of Double Drive-Thru
• New store concepts
• Partnerships – Coldstone Creamery
Social• Strong push for fair trade coffee (Tim Hortons, 2013)• Strong push for environmentally friendly products and services• Population growth rate of only 1% with many boomers “on the way out”• Shift in traditional family to one kid; less marriages which means tougherfight for market growth• Career paths have greatly switched with many skilled positionedemployees moving from company to company in a lifetime• Attachment to the Canadian brand in Canada does not exist in the USA• Ever changing taste of consumers• Trend towards dual income households means more disposable income24Technological• Available on Tassimo• New menu items like espresso, lemonade, lattes and cappuccinos• low barriers to entry on the technological side• Much growth potential available in new product development
Social• Strong push for fair trade coffee (Tim Hortons, 2013)• Strong push for environmentally friendly products and services• Population growth rate of only 1% with many boomers “on the way out”• Shift in traditional family to one kid; less marriages which means tougherfight for market growth• Career paths have greatly switched with many skilled positionedemployees moving from company to company in a lifetime• Attachment to the Canadian brand in Canada does not exist in the USA• Ever changing taste of consumers• Trend towards dual income households means more disposable income24Technological• Available on Tassimo• New menu items like espresso, lemonade, lattes and cappuccinos• low barriers to entry on the technological side• Much growth potential available in new product development
Social• Strong push for fair trade coffee (Tim Hortons, 2013)• Strong push for environmentally friendly products and services• Population growth rate of only 1% with many boomers “on the way out”• Shift in traditional family to one kid; less marriages which means tougherfight for market growth• Career paths have greatly switched with many skilled positionedemployees moving from company to company in a lifetime• Attachment to the Canadian brand in Canada does not exist in the USA• Ever changing taste of consumers• Trend towards dual income households means more disposable income24Technological• Available on Tassimo• New menu items like espresso, lemonade, lattes and cappuccinos• low barriers to entry on the technological side• Much growth potential available in new product development
On CampusOn Every CornerOn-the-Go
Key traits of the Industry:Two Industries: Coffee and Baked Goods, Fast FoodStatistics Canada recorded: Pie ChartNon-alcoholic Beverage BreakdownCoffee 16% leads with popTea at 12%Euromonitor has predicted that the Fast Food Industry has a growth rate of 2% and that the sales in Canada will reach $23.6B by 2016.
Coffee and Baked Goods IndustryStarbucks, Second Cup, Williams Fresh Café, Coffee Cultures,McDonald’s and Dunkin’ Donuts in the USAFast Food IndustryMcDonald’s, Burger King, Wendy’s, Pizza Pizza, Subway, and MTY Group Inc. (Tiki Ming, Mr. Sub. Villa Madina, Thai Express)Chains, small and local independents – Pizza JointsPie Graph shows Canadian Fast Food Main players in 2012Tims – 25%McDs – 11%Subway – 6%Coffee and Baked Goods IndustryIndependent cafesLarge ChainsConvenience StoresRestaurants – BreakfastFast Food IndustrySandwich RestaurantsBurger RestaurantsPizzeria
Coffee and Baked Goods IndustryStarbucks, Second Cup, Williams Fresh Café, Coffee Cultures,McDonald’s and Dunkin’ Donuts in the USAFast Food IndustryMcDonald’s, Burger King, Wendy’s, Pizza Pizza, Subway, and MTY Group Inc. (Tiki Ming, Mr. Sub. Villa Madina, Thai Express)Chains, small and local independents – Pizza JointsPie Graph shows Canadian Fast Food Main players in 2012Tims – 25%McDs – 11%Subway – 6%
Minimum wage in Canada is higher than in the USACanadian franchisers must produce disclosure documentation which can be expensive and create a barrier to entry not seen in theThe laws protecting Canadian shops make the market although desirable in terms of size, undesirable in terms of work• Outstanding relationships between Canada and USA made for an easy transitionEconomical• The strong economy makes it enticing for businesses in strugglingeconomies to make the move (essentially during tough times people want to move here, when the going is good it changes)• High tax economy (KMPG LLP., 2012)• Canadian economy weathered the recession better than new expansion area, USA• Canadian dollar is performing at high-level vs. the American. If the Canadian dollar were to struggle this would put pressure on American stores to up the bottom line. This was notable during the NHL crisis when the Canadian dollar plummeted. (affects of volatile Canadian dollar) (Belson, 2009)• Retail gains increasing in Canada month by month (Government of Canada, 2012)• Losing pricing power to McDonalds and Starbuck’s positions in the market• Economies of scale• Global warming (droughts, floods caused by such) and increased oil price can greatly increase variabl
Social• Strong push for fair trade coffee (Tim Hortons, 2013)• Strong push for environmentally friendly products and services• Population growth rate of only 1% with many boomers “on the way out”• Shift in traditional family to one kid; less marriages which means tougherfight for market growth• Career paths have greatly switched with many skilled positionedemployees moving from company to company in a lifetime• Attachment to the Canadian brand in Canada does not exist in the USA• Ever changing taste of consumers• Trend towards dual income households means more disposable income24Technological• Available on Tassimo• New menu items like espresso, lemonade, lattes and cappuccinos• low barriers to entry on the technological side• Much growth potential available in new product development
