is looking for a better product. Starbucks has strived to make everyone know that they offer the best coffee. A perfect example is their ad, that can be seen everywhere, stating “The Best Coffee, For The Best You”. This provides their customers with a feeling of accomplishment when they purchase a Starbucks coffee. I feel Starbucks uses this to empower or inflate peoples’ self image. Purchasing “the best coffee for the best you” will always make someone feel better about themselves and it will also make them appear to be in an upper societal class even if they splurged and spent more than they should have on that special cup of coffee. Starbucks whole positioning is based on their product attributes and product benefits. The positioning that is achieved from the product attributes, is having the best product, which allows Starbucks to differentiate based on a superior product. The positioning that is achieved through the product benefits, purchasing a superior product for a superior self, is almost a psychological advantage. Starbucks has managed to associate their products with a sense of a higher social class, and having the best product in the market. These two positioning techniques coupled together has allowed Starbucks to become and stay in the race as one of the major competitors in the coffee industry. However, I do not think these positioning techniques will ever be enough to surpass Tim Horton’s emotional connections with its customers. Question 5 (799 words) Tim Horton’s Pricing: Tim Hortons’ pricing strategy is that of customer – value based pricing. Tim Horton’s realizes that there is only so much value that can be attained from a simple cup of coffee so they carry a low price for their products and have continuously increased the value from their products. Not just the coffee itself but the customer perceived value. Going back to the Timbits
Hockey, if someone purchases a cup of coffee and can contribute to the happiness of a child, this would give a lot more value than just a simple cup of coffee. Marketing Communications: Tim’s uses a variety of promotion tools to reach its’ customers. Some tools that Tim Hortons uses are advertising, sales promotions and public relations. Tim Horton’s also takes advantage of paid, owned, earned and shared media to promote their products to customers. Tim Hortons also uses a push strategy to encourage customers to buy the products. It would be very hard to create the “pull effect” with a convenience product. Distribution Strategies: Tim’s takes advantage of many different distribution channels. They cater to many different retailers and wholesalers through franchising. Tim Hortons will allow people to open retail locations and use the Tim Hortons brand name, which allows Tim Horton’s to engage in retail activities, selling directly to customers. Tim Hortons also wholesales its products to these locations. Tim Hortons also makes use of “Rack Jobbing”. This is accomplished when Tim Hortons began to sell its coffee products on the racks of other retail stores like Wal Mart.
You've reached the end of your free preview.
Want to read all 15 pages?
- Spring '15
- Marketing, Tim Horton’s Segmentation Variables