Tim Hortons Case Study Essay

655 Words 3 Pages
1. For many consumers, there could be three motivators behind the choice of breakfast restaurants such price, quality and brand loyalty. First, the price of a small coffee at MacDonald’s is $1.39 (I believe this includes a muffin) and $1.33 at Tim Hortons. In this case, McDonald’s would be a better deal for the consumer because they are getting some added benefit.

Second, quality is an important part when a customer picks a brand, especially in the food industry. During the time of this case study, many people thought that Tim Hortons sold the better tasting coffee. However, now McDonald's has made a deal to acquire Tim Horton’s coffee supplier in last few years. Thus, Tim Horton’s had the better tasting product when McDonald’s started
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I believe Doritos did something similar where they had a contest where customer created a homemade commercial about their latest product. The reward was a year supply of Doritos.

Moreover, I would set up a pop-up McDonalds coffee shops in high population areas such as mall parking lots to reach new customers. Maybe I even would set up a pop-up shop near a Tim Horton’s location.

3. When compared with the free coffee promotion from Mcdonalds, Tim Horton’s “Roll Up the Rim to Win” promotion is the more alluring because the prize pool is bigger and the market strategy is better executed. When you roll up to win you have a chance to earn a car, free coffee, gift cards, and entertainment devices. In my personal experience, I have won many free coffee cups during the promotion (you could pick any size you want). Also, there is a certain excitement that you get when you roll up the coffee cup even if the customer loses they are reminded that there is a 1 in 4 chance to win the next time.

Although, I believe the monopoly promotion is a better comparison to the “Roll Up the Rim to Win” at Tim Hortons. I feel that people will find it difficult to give up a chance of a free car in exchange for a free

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