Tim Horton’s in India: Market Entry Strategy and Competitive Advantage

This presentation discusses Tim Horton’s market entry strategy and competitive advantage in India. It covers their target market, competitors, pricing strategies, and recommendations for effective marketing. The presentation suggests a joint venture with Reliance Industries and the adoption of a price penetration strategy.

International
Business
Tim Horton’s In India

Introduction to Tim Horton’s
 Founded in 1964
 Established by hockey players Tim Horton and Jim Charade
 Specializes in Doughnuts and coffee
 Present in 9 countries

Product
Products offered by Tim Horton’s are as below:
 Coffee
 Sandwiches
 Baked goods
 Specialty beverages
 Wraps
 Breakfast items
 Chili
 Most importantly DOUGHNUTS!!!!

Pricing strategies
 Tim Horton’s has adopted a market penetration pricing strategy.
 This strategy requires the brand to price its products relatively low in
order to gain a competitive advantage over other players of the
industry

Place
 The country of expansion is INDIA
 Recommended cities include Mumbai, Delhi, Hyderabad, Pune,
Bangalore, Jaipur and Kolkata.
 Outlets must be opened in commercial locations
 Center of the cities, airports, malls and large office complexes

Promotion
 Digital marketing
 Social media marketing
 Television advertisments
 Billboards and Hoardings

Overall strategy for geographical
expansion

India – A background!
 Largest democracy of the world
 Developing economy
 Large population of 1.32 billion people
 Average age of people is 29 years
 Ease of doing business rank 100 in the world

Target Market of Tim Horton’s
 Youth between the ages of 15 to 35.
 Office goers – who require a quick snack and a coffee
 Students looking for low priced eating joints
 Families with children who are fond of doughnuts

Competitors
 McDonald’s
 Café Coffee Day
 Dunkin Doughnuts
 M.O.D. (Mad Over Doughnuts).
 Costa Coffee.
 Recently entered Starbucks.
 Coffee by Di Bella

Gaining Competitive Advantage
 Price penetration strategy.
 The brand must price its products lower than other brands in order to
gain a competitive advantage over others.
 Healthy offerings – gluten free and vegan products
 Products and especially coffee for lactose intolerant customers

Entry strategy
 Joint venture strategy must be adopted by the brand as it has various
advantages.
 Tim Horton’s can join hands with a brand that already has a massive
working experience in India.
 The brand can learn from the existing brand
 Tim Horton’s can take advantage of the brand’s goodwill and
positioning in the market

Joint Venture with Reliance
 Reliance industries is one of the largest groups of industries in India
 Tim Horton’s and Reliance industries have the same value set
including price penetration strategies and ethical operations.
 Wide reach of Reliance industries would assist Tim Horton’s in
reaching to a large customer segment
 Tim Horton’s could assist Reliance industries in enhancing its product
line

Recommendations
 Offer vegetarian food items as majority of the Indian population
practices vegetarianism.
 Social media marketing strategies must be adopted as it will help the
brand in reaching out to a larger youth segment.
 Outlets must be introduced in commercial locations
 Creative ad agency could be appointed to market the brand
effectively

Conclusion
 Tim Horton’s in INDIA
 Large population of the country will create a large target market for
Tim Horton’s
 Joint Venture with Reliance industries
 Effective marketing strategies
 Price penetration strategy

Thank you!!