Essay About Company Founder Tim Horton And Start Of The Company

Mkt 571 – Segmentation and Target Market Paper
Segmentation and Target Market PaperMarketing 571October 24, 2015Tim Hortons is an international coffee that started in 1964 with one goal which was to provide excellent coffee and donuts to its customers. The Canadian based business started with one store franchisee Ron Joyce who later became full partner with the company founder Tim Horton later becoming sole owner after Mr. Hortons tragic death. From the start of the company providing a fresh cup of coffee anytime day or night has been its number one goal. Since its inception in Hamilton, Ontario the company has relied primarily on its franchisee’s to help promote the marketing strategy of the company. To boost this marketing strategy the company decided Tim Hortons merged with Wendy’s in 1995 and started expanding into the US, mostly in Canadian bordering states. Since this merger the once small company has grown into one with over 1,800 locations in Canada and the United States (“About Us: Tim Hortons”, 2015). The franchisee’s commitment to helping the brand succeed and the company’s commitment to its franchisee have been shown through its continuous training and incentive programs offered.         Expanding the brand beyond just coffee and donuts has been something that Tim Horton’s has worked on since the late 80’s and more efficiently after their merger with Wendy’s International.  Although they had offered lunch time sandwiches in the past this merger would give them the opportunity to expand beyond the traditional breakfast shop they were known for being. The merger with Wendy’s did prove to be profitable because the company launched a new line of sandwiches in 1998 that helped solidify them as a competitor in the fast food industry. It also allowed them to become more visible in the US market opening up several stores in the Midwest and other Canadian bordering areas. Market Segmentation        Tim Hortons market segmentation has always been one of its strongest success factors. The company is ranked number 61 on APCO’s global loved companies list (“Overall Brand Of The Year: Crowning Tim Hortons Read More: Http://strategyonline.ca/2014/10/10/overall-Brand-Of-The-Year-Crowning-Tim-Hortons/#ixzz3pb0bzggj”, 2014). This ranking was higher than McDonald’s and Starbucks. This lends to the theory that their marketing strategy is targeting the correct audience and working to sustain the company’s ranking amongst competitors. In 2013, the company boasted a sales of $2.3 billion compared to large name competitors who were right around the $1billion range.  The demographic that Tim Hortons has targeted has been the adult population over the age of 25 that can benefit from the restaurant chain being open 24 hours. These people are true coffee lovers and appreciate a chain that is open anytime they need to have their caffeine fix.