Tim Hortons chain looks to expand across the globe

Tim Hortons plans to expand its operations internationally. Its short-term goal is to continually learn and grow in the Middle East before furthering its international expansion in the long run. This expansion is an opportunity, as analyzed by SWOT.

Its target is clear. As stated, “this is not about plastering the Tim Hortons brand everywhere, this is about taking the brand where it makes sense and where we can further build.” Seemingly, Tim Hortons has a step-by-step plan to conquer the world coffee market. And the way to do so is to open up more chain stores or franchising, while knowing exactly who its target consumers are, which are the concepts mentioned in class.

However, the biggest challenge, the threat in SWOT analysis, is the fierce competition from Starbucks and McCafe, which offers a variety of products with different prices. Not only so, Tim Hortons falls behind in regards to its mobile app, “Timmy Me”, which customers cannot pay with. As high-tech app becomes the points of difference between Starbucks and Tim Hortons, it needs to develop high-tech products to not only catch up with Starbucks, but also create its own points of difference to minimize the threat.

In addition, focusing more on younger customers who demand more complex coffee drinks, and developing healthier options by providing more balanced choices will also become Tim Hortons’ main focuses.

Video: Tim Hortons expansion

Hyperlink: http://www.ctvnews.ca/business/tim-hortons-chain-looks-to-expand-across-the-globe-1.1532688

iPhone 5s props up Apple’s market share in China, but Samsung still leads

The arrival of iPhone 5s, especially iPhone 5s gold, brings Apple to the top five smartphone makers in China because of the shipment growth.

For the first time, iPhone released its latest iPhone 5s and 5c at their earliest in China. iPhone 5s, especially in gold which served as the main driver of growth, fits Chinese customers’ demand perfectly since Chinese people prefer gold to any other color. This is a case of almost perfectly targeted consumers, thus some even wish to purchase from China’s grey market with almost double the original price, whereas others wait for at least two to three weeks for the shipment.

Not only so, the inventory level of iPhone 5s is so low that supply does not meet demand, despite the increase in level of production. As for iPhone 5c, the prospect is still uncertain.

Despite the rapid growth of iPhone 5s, Samsung Electronics still makes the largest gains. While being famous for its Galaxy brand, many of its lower-end products, such as handsets and phones, attracts more demand because of the reputation of Samsung Electronics. This exemplifies the importance of a brand: Consumer directly relates high quality with any Samsung products, no matter whether it’s lower-end or not. Extensive retail channels also made this gain possible.

Video: Gold iPhone 5S selling out in China – China Price Watch – September 25, 2013 – BONTV China

Hyperlink: http://www.pcworld.com/article/2061400/iphone-5s-props-up-apples-market-share-in-china-but-samsung-still-leads.html

KFC China Promotional Disaster: Yum Brands Company Criticized For Ripping Chinese Customers Off

Although KFC is recognized as the best foreign fast food chains in China, it faces many promotional disasters. Promotion, the concept mentioned in class, usually carried out through means of advertising, sales promotion and publicity, is vital to the growth of any corporations.

The new marketing promotion, which halves the price of the family-sized bucket, is criticized. Consumers find themselves getting ripped off, since according to the online image, the half-price chicken (right) is not a deal: It is way less compared to the normal amount of chicken (left).

Thousands of posts spread across the Internet, featuring the way “KFC half price” chicken rips off customers. Even some news sources reports that “the half-price deal “tricked a lot of consumers into buying the bucket.” With no doubt, as the negative word of mouth spreads, consumers will take more serious consideration as whether KFC should be their first choice or not. This also demonstrates the possible damaging impact of social media such as Weibo to KFC.

Not only so, when two of KFC China’s chicken suppliers are involved in the scandal because illegal hormones and antibiotics are used for fattening the chicken, KFC stops all of its suppliers which are under investigation. But this did not do any good when H7N9 bird flu comes. Thus I urge KFC China strongly to foster its PR and marketing strategy, so as to minimize the negative effect of future dilemma.

Video: Antibiotics-filled chickens supplied to fast food restaurants like KFC CHINA

Hyperlink: http://www.ibtimes.com/kfc-china-promotional-disaster-yum-brands-company-criticized-ripping-chinese-customers-1450010