McDonald , Tim Hortons or Starbucks? which will brew more coffee for canadians

When it comes to coffee , canada is the only country in the world who has the most number of coffee drinkers. Guys , this country is blessed with rich coffee makers like Tim hortons, McDonald and Starbucks . These three are the leading brands in term of coffee brewers while McDonald being the only newest one to enter in this captivating market with McCafe  Brand.

There is intense competition brewing around between tim and McDonald to be the choice of Canada in upcoming season . McDonald is “positioning” its McCafe coffee brand in order to compete with ever-growing demand of Tim hortons Coffee and its other related products. According to the “reid”, term positioning refers to the different variables used by a firm to compete differently in same target market under consumer perceptions. This exactly should be the objective for Mr John Belts president and chief executive of Macdonald. The market is huge, this text reminds me of the one of the factors essential for segmenting the market according to author in “reid”. Well Canada has one of the worlds largest coffee drinkers target market and so accordingly fast food companies are throwing themselves in this treasure of delicious hot beverages catered to customers at their convenience.

Now let’s go ahead and do some serious talk regarding what new are these fast food companies are up to in this battlefield?

McDonald and Tim Horton  both are going head to head by launching new product-service mix like tim newly announced their lattes, coming up with espresso coffee machines to provide richer taste. Both companies are following product market strategy, Tim Horton brand image is the biggest advantage over McDonald due to that people love trying their new product every time thus the product market strategy works fine for tim whereas McDonald charm ends there so that’s why they are always trying to promote their product by giving away coupons in flyers across Canada and also engaging customers into their product …the most essential part of traditional hospitality product service mix highlighted by “Reid” author. Now how McDonald does that is by before launching the product they give the customers a free chance to enjoy their offerings. I like that strategy by McDonald’s marketing management and even “Ottawa citizen” cited that John Betts is going to offer 95 percent Canadian households a free cup of their premium taste coffee through coupons.

Tim has segmented the coffee market by providing valuable quality and affordable price (price being the crucial attribute in segmenting market) whereas according to my perceptions Starbucks is doing the same thing but their price is on downside due to this reason they are losing their market share to their competitors. McCafe elevated its brand by providing espresso coffee rich taste at good price , Mc Cafe positioning products was the most important aspect in elevating brand image as of now. Thus due to positioning they were able to sell more than 200 million cups (according to Ottawa citizen), McDonald’s is giving new looks to its restaurants across Canada to target families and also increase their breakfast business , coming to Starbucks just announced that they are coming up with new line of juices so i guess that they are primarily changing their target market and hence getting out of competition of coffee makers. McDonald has affected the sales and market share of tim hortons according to a research firm NDP , tim is still the leading breakfast provider across Canada proving their dominance by taking 45 % of breakfast market whereas from nowadays the competition is getting more tight on beverage market that accounts for 16%. I am going t

o highlight that in my map by comparing Starbucks , tim hortons and McDonald quality and the price they are charging for the quality and the service medium.

So Starbucks as they are changing their target market and providing a new product line will change their focus in this battle but the cost remains the downside of Starbucks quality. McCafe just elevated their brand name by repositioning their products, coming with different market strategy and more customer oriented gives them a unique position in my map as their quality thus stated in “Ottawa citizen” makes me put them on par with tim hortons leadership attributes such as price and quality .

I would like to end this by highlighting on the fact that Mccafe is emerging brand  and tim hortons has to do something unique, opening a single restaurant worldwide would not help them ,  they are providing themselves opportunity and threat too from the competitors like McDonald’s . They have to think some thing different. McCafe is going to be the top competitor among the breakfast and coffee provider .


Posted on November 17, 2011, in Uncategorized. Bookmark the permalink. Leave a comment.

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