Blog Post 5: The Coffee Wars in Canada

When was the last time I decided to have a cup of coffee? Just this morning.
Did I have to debate on getting my coffee from Tim Hortons, Starbucks, or McDonald’s? Of course.

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(Image Credit: 2brains1storm.com)

In Canada’s coffee market, competition is perfect. Nearly everywhere and anywhere, one is bound to pass by a Tim Hortons, Starbucks, or McDonald’s (just think about the UBC Campus for starters).  As popularity for this sought-after drink rises, these businesses find themselves trying to outdo one another. What is the problem? Coffee is coffee – there are too many points of parities.

The points of parity for each company are to provide the mass market with a take-out cup of coffee to get their day going. Because each company sells coffee, it is essential to have clear points of differences. Just what exactly makes each of these companies unique? Ultimately, it depends on what customers value the most.

Focusing on Tim Hortons, it is evident that they are the only Canadian company of the three, so it is no surprise that patriotic consumers would prefer to buy coffee from there. Along with a relatively cheaper price, patriotic consumers would enjoy a Canadian taste rather than an American one. They also promise to focus on fresh ingredients, another value consumers appreciate. Because of these points of differences, Tim Hortons are able to retain customers who have believed the company has met all their needs.

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