in Karachi

Marketing Plan
By: Zoha Kamal
ERP: 18481
Executive Summary
, Canada's largest quick service restaurant chain, specializing in coffee and
donut items and focusing on delivering the best quality products, and great services. It has around
4800+ restaurants in 14 different countries and has its headquarters in Toronto, Ontario.

Tim Horton is planning to expand its chain by introducing its first ever franchise in the City of
Lights Karachi, Pakistan by February, 2019. The company aims to increase the trend of having
Morning coffee in a café rather than at home.

Company Background
In the year 1964, Tim Hortons, a National Hockey league Legend, opened his first official
restaurant in Hamilton, Ontario, Canada carrying his own name “Tim Horton’s Donuts” which was
later abbreviated to “ ”. The company started off by selling premium blend coffee and
donuts. In 1967, Tim Horton and Ron Joyce became partners and inaugurated their first ever
franchise.
In 1974, Tim Horton, the founder passed away, leading Ron Joyce to purchase all of Horton
family's share for $1 million and take over the business as a sole proprietor. The majority of the
1980’s was spent in expanding their menu. 1984 saw the first U.S. location open in Tonawanda,
New York. Year 2000 marked milestones when the brand opened its 2000th Restaurant and after
six years, the brand became a publicly traded restaurant on the New York Stock Exchange.

In 2014, Tim Hortons introduced a Double™ Visa ® Card, which allowed customers to earn
reward and instantly redeem Tim Cash for their favourite Tims products. Furthermore, the
TimmyMe mobile app allowed customers to pay with their smartphones. In the same year, Burger
King and 3G Capital acquired Tim Hortons and formed the third-largest restaurant brand in the
world.

Company Analysis:
Tim Hortons mission is,

“To deliver superior quality Products and

Services for our guests and communities through
Leadership, Innovation, and Partnerships.”

And vision is,

“To be Quality Leader in everything we do.”

Tim Hortons corporate goals in the near future, include focusing more on the daypart segment,
investing to grow the brand in new and existing markets, and leveraging core business strengths.
The company currently uses a growth objective in that they are always looking to be market
leaders, and thus are always looking forward to grow their market share.
Products Offered
As a new franchise in the Pakistan, we are going to start small, then scale up as our market share,
and reach increases. The franchise is going to start with its core products mainly Coffee but there
are a variety of flavors, with the options of also choosing tea or cappuccino other than coffee, also
having donuts, sandwiches, wraps, fresh salads etc. Our menu is always evolving with new
products in order to grab the customer’s interest and market share. The following shows all of the
products that are going to be offered:

Industry Analysis
Pakistan's hot drinks can be characterized by traditional consumption patterns, especially in the
case of tea. Tea in Pakistan is simply more than a beverage. With its cultural significance and
deep-rooted consumption traditions, tea drinking is a tough habit to break. However, coffee is
penetrating the lives of urban consumers with its Western appeal and trendy image. Thus, coffee
volume sales are expected to continue to grow in the quick service industry. Overall, coffee is
expected to register fast sales growth, especially due to consumption by young adults. 13
According to Euromonitor’s Hot Drinks dataset, we can analyze that the Pakistani market in 2016
wasn’t fond of Coffee in the food services sector, approximately 1.33% hot drink sales share,
while 98.67% of the sales are generated by Tea. The forecasted share of Coffee is to rise to more
than 10% till 2023. This miracle is due to the influence Western world has on the youth, meanwhile
businessmen and employees prefer to purchase breakfast and hot beverages on-the-go while
commuting to their office.
Market 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 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 capitalize 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 marvelous job of attracting teenagers and young adults to
their outlets as they also offer them a chance to socialize with each other on regular basis.
It is also a fact that coffee is fast becoming the beverage of choice for the people of Pakistan.
Again, cafes such as Coffee Planet have played their pivotal role in making coffee a household
beverage especially in the urban areas of the country. Another encouraging trend that can further
help this very industry to prosper is the stiff competition between local as well as international
brands that are ready to leverage the great opportunity the increasing popularity of the coffee
offers. Some experts are of the opinion that consumers will particularly benefit from arrival of new
players because they will have more options to choose from.
Coffee consumption in Pakistan will increase in coming years which will ensure sustainable
growth. On-trade consumption will enjoy massive growth thanks to growing trend of socializing
with friends, relatives and colleagues at cafes. All these factors combine to portray a very positive
future for this already extremely lucrative industry.

Target Market
Tim Hortons’ Target Audience comprises of the following primary audience:

Demographics
• Males and Females from ages 18-30
• Belonging to SEC A and SEC B1
• With good educational background
• A household income of PKR 200,000 plus.

Geographic
• The people living in the elite areas of Karachi, primarily Defence, Clifton, and PECHS.

Psychographics
• Families with working women who embrace the fast lifestyle
• People who enjoy gathering in social spaces for recreation
• Avid coffee lovers
• People who travel frequently

Behavioral
• Heavy coffee drinkers
• Brand conscious and brand loyal

Competitive Analysis
Within our target market(s), we expect to compete directly or indirectly with the followings

Gloria Jean’s
Gloria Jean’s is one of the first Café chain which introduced the coffee culture in Karachi in 2007
and played a significant role in developing the taste for coffee. We can compete with Gloria Jean’s
on the taste and freshness we offer, and the service of our highly trained specialist baristas render.

Espresso
Espresso is the local café established back in 2004. Since their launch they’ve cared a lot about
the items they offer along with the coffee and it is the area where they can give us the tough time
because we have quite a narrow range of complementary products. However, being a local café
chain, they lack the international experience we have and internationally proven techniques we
use to hand craft a perfectly brewed coffee for our customers.

Dunkin Donuts
Dunkin Donuts is being operated in Pakistan since 2000. Above ten locations in Karachi to cater
to people’s sweet tooth! We can compete with Gloria Jean’s on the taste and freshness we offer,
and the variety of products that we have.

Local small Cafe

One can multiple small locally owned cafe in Karachi, who have built their customer base by
providing a personal touch and cozy environment to their customers. As they mostly use locally
available coffee beans and powder, they can compete with us on price but not on quality. Mostly
local small cafés are visited by the residence of that are and so they get used to of that ambience
and personalize feeling, as new brand in the market it will be difficult to break such customers for
us.

Instant Coffee
One of our indirect competitors is nestle and other fast-moving consumer goods producers who’ve
introduced different flavors and version of instant coffee in the market and that too at highly
affordable rate. This might have an effect on our sales in a way that instant coffees are available
on almost every store and shop in Karachi, living the fast city life some customers might fall for
satisfying their craves for coffee in no time by consuming these.

SWOT Analysis
Initially Tim Hortons is going to face certain challenges the company hasn't faced so far due to
the unique dynamics of the country. However, with strengths possessed by Tim Hortons, there is
nothing the firm cannot do to overcome its weaknesses and threats.

Strengths
• Strong brand image and recognition.
• A good blend of Diversified products.
• Signature Product
• Good quality control and maintenance.
• Third largest operator of the fast food industry worldwide.

Weaknesses
• Premium brand which means people of elite class will be able to afford it.
• Only recognized by a few people who travel abroad.
• Comparatively less outlets in the beginning.

Opportunities
• Western Influence on the youth of the country will result in higher consumption of coffee.
• Capitalizing on the rapid Increasing trend of coffeehouse culture
• New products can be added in consideration to the local flavor of Pakistan.

Threats
• Possible entry of bigger competitors like Starbucks.
• Too much competition from local entrepreneurs with better know-how of the market.
• Lower prices being offered by competitors might be more attractive to a major chunk of
the population.
Distribution Strategy
In order to maintain the international standards, it best to engage the existing international
suppliers and source the coffee beans directly from them so as to ensure standard and taste that
Tim Horton is known to serve and to avoid alienating the people who are aware of the quality of
the product abroad.
Local suppliers will be contacted to deal with sandwiches, salads, donut, and breakfast. The aim
is to attain taste consumers are familiar with, while adding value to each product.
Tim Hortons follows the retail café model, and that’s what we will follow as well. Therefore, the
franchise’s outlets are the only place where customers can physically learn about the product and
purchase goods. The methods to purchase goods are dine-in, drive-through, and take-away.

Promotional Plans and Strategies

The promotional plan for Tim Hortons’ needs to follow a careful methodology in order to maximize
the returns. It can do the following in order to create an extensive strategy:

Creating Hype
To kickstart the promotional campaign, Tim Hortons’ needs to work on building the anticipation
around it. For this reason, there need to be “Coming Soon…” ads placed on all platforms that
build hype and get people talking about it.

TVCs
Initially, TVCs need to be put forward in order to create awareness on a mass level. Once the
target is achieved, move solely to digital platforms. The TVCs should start with the “Coming
Soon…” campaign and then eventually build up to one proper full-fledged ad that epitomizes the
essence of Tim Hortons’.

Print Ads
Issue print ads in all the major magazines and newspapers such as Aurora, Tribune, Dawn, Social
Diary, Mag the Weekly, and Hello! The idea is to start with hype generation and building up to
offers. The magazines and newspapers mentioned above all have the reputation of being formal
and sophisticated with the target audience that directly aligns with the audience of Tim Hortons’.

Digital Platforms
Social Media
Start by creating a visible presence on the three important social media namely Facebook, Twitter,
and Instagram, under the name Tim Hortons’, Pakistan. Put up regular posts online, starting with
hype generation to testimonials and reviews and eventually to offers. The posts should all
encourage some level of engagement and should additionally be catchy. The TVCs should also
be adapted for the digital platform by making them shorter (ideally 15-20 seconds long). Add all
the relevant details pertinent to the business such as address, contact information and menu on
all these platforms so that information search is facilitated for the people who are trying to reach
out. Additionally, become a responsive page and answer queries rapidly.

Bloggers and Influencers

Invite bloggers and influencers to the outlet and offer free samples of the select menu and get
them to write glowing reviews about the product in order to generate organic buzz. Reach out to
influencers who are particularly famous in food related groups such as The SWOT's Guide™ to
KARACHI's Restaurants, Cafes, Dhabas, HBFE, & Takeouts

Pricing Strategy
The pricing strategy to be followed is Skimming Pricing. The reason behind this is that the primary
target audience is that of Class A and B1 which is considered the elites of the country. In order to
create value for them it is important that Tim Hortons’ retains some level of exclusivity.
It should follow the pricing similar to Gloria Jeans where a basic no-frills coffee costs about PKR
250 while the signature and customized blends go up to 550. Additionally, the sandwiches should
also range from PKR 400-500 with an additional PKR 150 to convert it to a full meal.

Additional Recommendation & Suggestions

Pakistani Theme
The restaurants should not only follow Tim Hortons values, but also incorporate Pakistan’s culture
values to furnish the best possible experience to consumers.

Event Based Promotions

The Pakistani cultures are based on gathering and hanging out with friends and family, therefore
the brand should focus on providing deals from 2-8 people during special holidays for them to
enjoy and cherish their day.
References
aurora.dawn.com. (2018). For The Love of Food. Karachi:
https://aurora.dawn.com/news/1142962.

bransynario.com. (2017). 5 Best Coffee Places in Karachi. Karachi:

https://www.brandsynario.com/5-best-coffee-places-in-karachi/.

gulfnews.com. (2017). Coffee culture is on every lip. Karachi:

https://gulfnews.com/world/asia/pakistan/coffee-culture-is-on-every-lip-1.1965199.

horeca-world.com. (2018). Growing Popularity Of Coffee Cafes In Pakistan. Karachi:

https://horeca-world.com/growing-popularity-of-coffee-cafes-in-pakistan/.

ICMA. (2018). Survey on Food Consumption and Expenditures. karachi:

https://www.icmap.com.pk/News_Pdf/outcomes_food_survey.pdf.

talabat.com. (2019). Tim Hortons' Dubai. Jumeirah, Dubai:

https://www.talabat.com/uae/restaurant/20523/tim-hortons-jumeirah-lakes-towers--jlt?aid=1281.

tribune.com.pk. (2012). Coffee culture: Whats brewing? Karachi:

https://tribune.com.pk/story/352588/whats-brewing/.