Fix two small parts of marketing project paper. I used red words to indicate which part need to fix.
marketing_project.doc
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Running head: STARBUCKS AND TIM HORTON’S MARKETING MIX
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Starbucks and Tim Hortons Marketing Mix
Institutional Affiliation
Date
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STARBUCKS AND TIM HORTON’S MARKETING MIX
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Introduction
Starbucks has one of the most respected and recognized brands in the world due to their
uniqueness and experience that they provide to the customers. The marketing mix (4Ps) of
Starbucks coffee support the position of the company in the industry as the world’s best
coffeehouse chain. Its marketing mix traces the firm’s main component of its marketing plan and
uses it in developing its brand popularity and image. On the other hand, Tim Hortons started with
selling coffee and donuts but the company has expanded to be largest fast service restaurant in
Canada over the years. Tim Horton’s marketing mix together with its successful management
team guarantees the success of its strong brands.
Comparison of Products in Starbucks and Tim Hortons
The product mix of Starbucks has continued with innovations in order to capture more
market by focusing on what the company provides to its customers. Starbucks main products
include coffee, tea, smoothies, pastries, Frappuccino beverages, merchandise such as instant
coffee and mugs among others. Starbucks ensures quality in its business innovation where it
aims at providing an experience from its products in order keep and attracts more customers
(Rahmani, Emamisaleh, & Yadegari, 2015). The packaging of Starbuck’s products is well
differentiated which makes its products unique and hard to be imitated by the competitors.
Starbucks has continued to innovate its products packaging through innovative designs in order
to ensure that they are well differentiated in its growing market.
On the other hand, Tim Hortons started by offering coffee and donuts but currently, the
company has increased its product mix which includes sandwiches, muffins, blended coffee,
juice, bagels, rolls, wraps, and blended coffee. It also provides merchandise products which
STARBUCKS AND TIM HORTON’S MARKETING MIX
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include coffee mugs, caps, and shirts among others. The high growth of Tim Hortons’ brands has
been attributed to the provision of quality products which has helped the company to maintain its
large market share despite the stiff competition in the industry. Its products are also well
differentiated to make them unique from those of competitors which have made its brands to be
the leading in Canada.
Pricing Mix in Starbucks and Tim Hortons
Starbucks employs a premium pricing strategy which takes the advantage of the tendency
of individuals to buy the expensive product due to the assumed relationship between expensive
products and high value. Starbucks products are expensive than those offered by Tim Hortons
and all its other competitors making it maintain specialty image. Its online prices of Espresso
Roast sells at $12.95 and 3 Region Blend sells at $ 9.95 (‘Starbucks Market Share and Media
Spend, 2007). Its retails prices are lower where its coffee sells between two and four dollars.
(What pricint strategy?)Tim Hortons offers its products at a price which is competitive.
Its prices are lower in comparison to Starbucks’. Its online menu sells below $9 while its retail
prices of its coffee range from 2-3 dollars. Which reflect its ability to offer quality products at a
fair value. This makes the company capture the customers who are more sensitive to price and
those who are insensitive to price.
Promotion mix in Starbucks and Tim Hortons
Starbucks mainly uses advertisement in promoting its products. Its promotional mix also
involves public relations and sales promotions where it mainly advertises its brands through
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television, the internet, and print media. Use of public relations campaign is also employed in
promoting its brands and also uses sales promotions which include the Starbucks Card.
On the other hand, Tim Hortons is well known for its effective promotional campaigns
which aim at increasing the sales and building customer loyalty. It branding strategy also
promotes the company where its brands are based on a story of a successful Canadian hockey
success. This makes its products to provoke a nationalistic feeling increasing sales (Hit, Ireland,
& Hoskisson, 2016). Tim Hortons also promote its products through community enhancement
programs such as sports programs, sponsorships, and environmental conservation events.
Place marketing mix in Starbucks and Tim Hortons
Starbucks uses a direct supply channel where it sells directly to its consumers in order to
maintain a personal relationship with its consumers. In U.S., Starbucks is located in
neighborhoods with high potential of traffic for its business and its outlets are located in the
various large chains. It thus ensures that all its retail stores are located on visible areas which
align with its aim of providing an experience to its customers. Tim Hortons are also located in
areas of prominent visibility in order to cater for the customers who are on their way to other
duties. Its stores are unique and operate outlets in universities, shopping malls, highway outlets,
and hospitals. Tim Hortons thus ensures that it is located in areas surrounded by commercial and
residential development in order to capture the potential customers in those areas. (Perhaps
include some figures such as numbers of stores availiable nationwide or even around the world.
Also, should discuss the online stores as well since it’s one of the channels they use)
Conclusion
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Starbucks and Tim Hortons compares differently in terms of their marketing mix. They
offer various similar products and have common promotion methods. Their location also
considers similar factors but their pricing strategies are very different. However, their product
mix strategies have been essential in making these companies the leaders in their market
segments.
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References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Competitiveness
& globalization.
Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality Function Deployment and New
Product Development with a focus on Marketing Mix 4P model. Asian Journal of
Research in Marketing, 4(2), 98-108.
Starbucks Market Share and Media Spend (Jan 2007), Brand Autopsy Marketing Practice
http://brandautopsy.typepad.com [accessed 19 Oct 2010]
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