FAHAD ALI | Marketing Management |

MARKETING PLAN
TIM HORTONS
LAUNCHING OF A GLOBALLY SUCCESSFUL
BRAND IN PAKISTAN

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Delivering the Marketing Brew

Congratulations! You have been appointed the Country Marketing Manager for Tim
Hortons Pakistan. Looking at the booming coffee businesses in Karachi, it looks
like a promising investment to try their luck in the local market. The company
plans to carry out a Karachi wide launch of the brand in the next four months, by
Feb 2016.Globally, the brand has fared very well and thus, has a reputation to live
up to. To ensure success of their brand, you are handed the responsibility to
develop a marketing plan for Tim Hortons in Karachi.
http://www.timhortons.com/ca/en/index.php
Your plan should cover all of the following aspects:

Business Definition: (What is your

business and brand? Product, processes
etc.)
Tim Hortons Inc. (known internationally as Tim Hortons Cafe
and Bake Shop) is a Canadian multinational fast casual restaurant
known for its coffee and doughnuts [1]
Product: Single Serve Coffee

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Industry Analysis
The beverage Industry has emerged as one of the most
productive sectors in Pakistan over the years. In this regard,
coffee consumption has witnessed sudden surge thanks to
growing popularity of cafe culture especially in posh areas of
cities like Islamabad, Lahore and Karachi. In fact, out of home
coffee consumption has immensely contributed to the
increased in-house consumption as well.
In advanced countries and bigger markets like United States and
Austria, the per capita coffee consumption exceeds 5 kilograms and
10 kilograms respectively. In Pakistan, the per capita consumption is
less than 0.8 kilogram. However, people are drinking more coffee
than ever before and there is plenty of room for newcomers to
capitalise on this trend and start their new business with a bang.
Therefore, there is nothing wrong in saying that rise of cafe culture
incorporates huge potential for anyone who is willing to invest in
this thriving industry.
Coffee sales in Pakistan are expected to grow at exponential rate
over next few years. Analytics and market experts argue that such a
growth is impossible without the contribution of our young
generation. Coffee cafes have done a marvellous job of attracting
teenagers and young adults to their outlets as they also offer them
a chance to socialise with each other on regular basis. This will also
prompt them to consume more tea at home, practically helping
coffee industry to achieve its sale targets. [2]

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 Market Analysis: (Description and

analysis of the dynamics of the market
segment you plan to enter and why?
Discuss strengths, weaknesses,
opportunities and threats in context of
the market)

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Target Audience Analysis

Our target audience is the younger generation aged between
18-30 who belongs to middle class.
As the living style in Pakistan is change very much in the last
decade. The growing number of professionals and increase in
education level shift a considerable portion of lower class to
middle class. But the commercial opportunities offered by this
new shifted class are not exploited as mostly businesses in
Pakistan focus two classes that are upper, and the lower .
The young generation belong to this class has higher
purchasing power as well as they need a sophisticated ,well
designed place where they can gather with their friends and
can have a lot of fun.
I believe that coffee is their need not a want. If we connect
their need with a certain style offered by Tim Hortons, surely
they will be addicted to it for their entire lives. The data below
shows the share of this class in population.

[3 ]

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Competitive Analysis
The Pakistani coffee market is emerging at fast pace. The last
decade is quite aspirational and number of new entrants join the
arena. Following brands will be the direct competitors of Tim
Hortons;
Dunkin Donuts present in the Pakistan since 2000, they are
operating 12 retail outlets in major cities. As we know their
aggressive marketing attract many customers especially from
our selected target class. The location of their outlets also lie
in middle class areas.

Gloria Jeans operate 21 outlets in major cities and it started

its operation in 2007.

When we consider indirect competitors some brands just click

our mind .As I write it down;
Nescaf offers wide variety of coffee grains. People can enjoy
their ready to made coffee.

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Distribution Channels
The retail outlets in semi posh areas of Karachi city are the
best option for the distribution. We can also offer franchise to
some local businesses who willing to operate at profit sharing
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basis. The most suitable places for the outlets are shopping
malls, airport, and hyper marts.
The audience we are targeting frequently visit these places
and their instant need for beverages can be fulfilled by these
outlets. The trend of shopping and eating is continuously
rising in middle class and it will surely become a mega trend
in next 3 years.

MALLS

AIRPORTS
AIRPORTS

TIM
HORTONS

HYPER
MARTS

BEVERAG
BEVERAG
E
E NEED
NEED

Promotional plan and strategy: (Where,

how and why you plan to promote your
brand?)

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Pricing Strategy
We use value based pricing. The brief intro of this type of pricing is
as follows; Pricing a product based on the value the product has for

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the customer and not on its costs of production or any other factor.
This pricing strategy is frequently used where the value to the
customer is many times the cost of producing the item or service.
For instance, the cost of producing a software CD is about the same
independent of the software on it, but the prices vary with the
perceived value the customers are expected to have. The perceived
value will depend on the alternatives open to the customer. In
business these alternatives are using competitors software, using a
manual work around, or not doing an activity. In order to employ
value-based pricing you have to know your customer's business, his
business costs, and his perceived alternatives. It is also known as
Perceived-value pricing.[4]

[5]

Additional recommendations and

suggestions

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*Substantiate your reasons, arguments and

facts through
primary/secondary research and literature
review.

References:

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1. https://en.wikipedia.org/wiki/Tim_Hortons
2. http://www.bahriacommunity.com/blog/growingpopularity-of-coffee-cafes-in-pakistan
3. https://www.google.com.pk/search?
q=upper+middle+class+in+pakistan&biw=1301&
bih=641&source=lnms&tbm=isch&sa=X&sqi=2&v
ed=0CAYQ_AUoAWoVChMIkPuA1YmmyAIVRLMUCh
3ReAI8#imgrc=zcPY8LxfjVclOM%3A
4.
https://en.wikipedia.org/wiki/Pricing_strategies#Psy
chological_pricing
5. https://www.google.com.pk/search?
q=value+vs+price+graph&biw=1301&bih=641&t
bm=isch&imgil=cL3YVRaxbtLRiM%253A
%253Bdv_vLkRUZV-52M%253Bhttp%25253A
%25252F
%25252Fwww.businessmanagementdaily.com
%25252F20649%25252Fdiscount-pricing-inrecession-magic-wand-or-herdmentality&source=iu&pf=m&fir=cL3YVRaxbtLRiM
%253A%252Cdv_vLkRUZV-52M
%252C_&usg=__dPZVPow5IBD5jLendq0SdFeU9hw
%3D#tbm=isch&tbs=rimg
%3ACXC92FUWsW7SIjggwgJBCQ8MOw55DCKfOXUs
9RAAtJ6UrgiQaKRjXU0LrOtRxt9XpLH3WJgx8hODDD
MREiM33SDUCSoSCSDCAkEJDww7EVtBNuXUqulLKh
IJDnkMIp85dSwR8RyPFEJgUsqEgn1EAC0npSuCBHNj9GTdcnLoyoSCZB
opGNdTQusEWfjVA4tG37OKhIJ61HG31eksfcR8UOIb
bktRiMqEglYmDHyE4MMMxHyxj0Vf3HYICoSCRESIzf

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dINQJEW6E5NJuwRqW&q=value%20vs%20price
%20graph&imgrc=ERIjN90g1Ak6DM%3A
6.

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