Saturday, 1 March 2014

Refresh Rebrand Relaunch


The success of any company depends on its ability to recognize and respond to new challenges and increased competition.  When Tim Hortons burst onto the consumer scene in Canada (1964),  it focused on hockey, on the premise that Canada was hockey and hockey was Canada.  Tim Horton, the brand name, was himself a professional hockey player.  The company sponsored youth hockey teams;  it produced "Tim-Bits",  tiny doughnuts for pint-sized players and it crushed the competition by rapid expansion, 24 hour drive thrus and a simple yet appealing selection of food and coffee.

But like all new, innovative marketing juggernaughts it got bogged down by its own skyrocketing success.  During peak hours, the back log of food items often caused bottlenecks, leaving customers frustrated and impatient.  Many of them refused to make a return visit.  This week, chief executive Marc Caira said strategy and innovation won't, by themselves, win success...."  The companies that will win will be the companies that can execute flawlessly at the store level...."service at the counter is the moment of truth".  So it's back to basics - satisfying customer demand and building loyalty.

Another area of contention pointed out by Marc Caira, was Tim Hortons expanding food choices.  A 5 year experiment to pair its coffee with ice cream failed miserably so the company has now cut that link.  It then simplified its menu and focused on promoting its most popular food items and coffee.

Meanwhile, similar problems were recognized in the American subsidiary, which was established in 1984.  The main problem was the U.S.  restaurants did not have the domineering link with hockey, as Tim Hortons did in Canada.  So the battle to win market share has been long and difficult.  As part of its current restructuring, the company closed many outlets in the United States and cut 24 underperforming food items from American menues.

Today, Tim Hortons recognizes the value of change, not only to win back customer loyalty, but to challenge the ever-growing competition from McDonald's, Starbucks, Second Cup and others. 
To begin its relaunch into the future, the company chose a massive media campaign promoting its Roll Up the Rim To Win contest - an old idea but a time-proven, popular marketing strategy.


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