Recently, while scrolling down the many blogs, I came across Lauren Nipp’s blog about Tim horton’s introduction of smoothies. I completely agree with her, that this new product will definitely open up a new segment for Tim Hortons. They really focused on creating this new product to target a new customer base. Previously they only concentrated on coffee, teas as the main beverages but as of March 7th, Tim Horton’s is getting it “into a trendy and growing but fragmented market for the healthy crushed-fruit drinks” (Freeman, 2010). As Lauren mentioned in her blog, Tim Horton’s realizes that they can segment to people who want healthy beverages especially with the trend towards healthy eating. http://ca.finance.yahoo.com/news/Tim-Hortons-enter-trendy-capress-3938403974.html
tim hortons smoothies
http://www.couponsequalcash.com/2010/10/real-fruit-smoothies-for-99-at-tim.html
the new smoothies that Tim horton’s plans to introduce didn’t just get me thinking about STP but also brand extensions. Smoothies are a totally unrelated product category for Tim Hortons, yet the brand is still very distinct. They recognize that there is a whole untargeted area that they could move in on and in turn generate more revenue.
I don’t know how well this new brand extension will do in the long run, but I am definetely going to try it out!
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