Tim Horton's
Segmentation Strategy
The Segmentation, Targeting, and Positioning process is used in order to effectively bring new products to the market. The five-step process begins by segmenting your market into distinct groups, then targeting those groups by positioning your product in order to maximize penetration in the segmented market. Segmenting strategically divides groups of people along certain characteristics. It allows differences and preferences among consumers to be better understood, which enables better communication of product variation and benefits within these new markets.
Tim Horton’s, an international multi-billion dollar coffee chain, has created a single-serving coffee machine which will be rolled out using the STP process. Segmentation …show more content…
Every firm always hopes to be successful and surpass obstacles and challenges that arise during business processes. A SWOT analysis of Tim Horton’s shows strengths in brand popularity and loyalty in Canada, weaknesses in brand awareness in other countries like the US, opportunities to expand into foreign markets, and threats from competition in foreign markets like Starbucks and Dunkin Donuts. We aim to provide a means of convenience in an individual's daily routine as opposed to needing to physically go to a coffee shop. We want this product to be a non invasive extension of coffee brands that seamlessly glides into consumers’ lifestyles at home. This product aims to save time for consumers thereby creating value for them as well. This all culminates in creating lasting and loyal relationships in consumers’ lives to the brand and potential recommendations to …show more content…
Therefore, we want to keep our price under $150. Also, by analyzing the survey results, we found that over 80% of the respondents are willing to pay under $150 for our single serve coffee machine. Thus, even though they are not high prices, we can try our best to pursue high quality and provide superior services to our customers.
Tim Hortons marketers must also keep focusing on the potential profitability of Millennials, Generation X and baby boomers. So, we need to be familiar with the straightforward calculations can help us evaluate the profitability:
· Segment Profitability = (Segment size*Segment adoption%*Purchase behavior*Profit margin%)-fixed
The Segmentation, Targeting, and Positioning process is used in order to effectively bring new products to the market. The five-step process begins by segmenting your market into distinct groups, then targeting those groups by positioning your product in order to maximize penetration in the segmented market. Segmenting strategically divides groups of people along certain characteristics. It allows differences and preferences among consumers to be better understood, which enables better communication of product variation and benefits within these new markets.
Tim Horton’s, an international multi-billion dollar coffee chain, has created a single-serving coffee machine which will be rolled out using the STP process. Segmentation …show more content…
Every firm always hopes to be successful and surpass obstacles and challenges that arise during business processes. A SWOT analysis of Tim Horton’s shows strengths in brand popularity and loyalty in Canada, weaknesses in brand awareness in other countries like the US, opportunities to expand into foreign markets, and threats from competition in foreign markets like Starbucks and Dunkin Donuts. We aim to provide a means of convenience in an individual's daily routine as opposed to needing to physically go to a coffee shop. We want this product to be a non invasive extension of coffee brands that seamlessly glides into consumers’ lifestyles at home. This product aims to save time for consumers thereby creating value for them as well. This all culminates in creating lasting and loyal relationships in consumers’ lives to the brand and potential recommendations to …show more content…
Therefore, we want to keep our price under $150. Also, by analyzing the survey results, we found that over 80% of the respondents are willing to pay under $150 for our single serve coffee machine. Thus, even though they are not high prices, we can try our best to pursue high quality and provide superior services to our customers.
Tim Hortons marketers must also keep focusing on the potential profitability of Millennials, Generation X and baby boomers. So, we need to be familiar with the straightforward calculations can help us evaluate the profitability:
· Segment Profitability = (Segment size*Segment adoption%*Purchase behavior*Profit margin%)-fixed