Tim Hortons tests its first new coffee blend in 49 years, because it wants to compete with McDonald’s Corp. and Starbucks Corp., in the area of stronger dark roast coffees, because these two companies have expanded quite quickly in Canada.
Tim Hortons does that because it wants to broaden its customer segments and attract those people who would like to drink dark roast coffee. If Tim Hortons does not do that, most of the market share will be taken by McDonald’s Corp. and Starbucks Corp. Tim Hortons does not want that to happen, so after it found out his competitors will take most of the market share of dark roast coffees, he took the action which is a little bit late.
In my opinion, 49 years is not a small number, this means that Tim Hortons hasn’t been focused on creating new kinds of coffee for a long time, that’s why Tim Hortons is doing it suddenly. In another way of thinking it, it’s also a good signal that the CEO of Tim Hortons become aware of the importance of innovation. I think after this change, Tim Hortons will become a more competitive company in Canada and Tim Hortons will realize the importance of the innovation.
Reference:
The Globe and Mail: http://www.theglobeandmail.com/report-on-business/tim-hortons-targets-rivals-tests-new-dark-roast-coffee/article15114207/