New blend, new positioning?

Tim Hortons is introducing a new blend of coffee, for the first time in its 49-year history. Why did Tim Hortons choose to increase its product depth now? It may be the intensifying competition from Starbucks and McDonald’s, or maybe the new blend is trying to meet a consumer need that was previously unaddressed.

From a consumer standpoint, Tim Hortons is the place to go for a “cheap, quick-serve morning fix”. However, the company’s vision is to be the “quality leader”, which may not be exactly aligned with consumer’s thoughts. In my opinion, the new blend is a way to attract attention and invite people to try Tim Hortons coffee with a different mindset.

Speaking of a different mindset, I recently watched a commercial showing the coffee-making process, from planting to brewing, in the form of a stop motion sand animation, using coffee grounds instead of sand. I did not recognize that it was a Tim Hortons commercial until the logo showed up. At first, I thought it was a commercial for some new gourmet coffee that was going to be in the trendy single-serve coffee makers. This story behind the quick and inexpensive Tim Hortons coffee did not seem too believable for me, but it did lead me to think about how Tim Hortons is trying to change its positioning in the market and work towards its vision of being a quality leader. But the real question is, will consumers see Tim Hortons in a new light?

Back to the new blend. What if the new dark roast just ends up moving customers away from the regular blend? There is a certain degree of risk to product diversification and increasing product depth. What puzzles me is why Tim Hortons would want to introduce a new dark roast blend after 49 years of (successfully) selling one blend. Whatever the reason, it has caught my attention, and I am willing to try a small double-double in dark roast, if the blend makes it to Vancouver.

08. November 2013 by julieliang
Categories: COMM 296 | Leave a comment

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