Tim Hortons Entrance Into Russia

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Category: Business and Industry

Date Submitted: 09/13/2011 11:11 PM

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Executive Summary

Tim Horton's was founded in Ontario in 1964, and is already a well established competitor in the North American quick service restaurant industry. But to ensure strong future growth, Tim Horton's is entering into a new foreign market of Russia. Russia is a very attractive market as it has one of the largest masses of all countries; and its population boasts of more than 140 million people.

While it is a large market it is a market that already has some large obstacles and competition. Coffee's popularity is on the rise due to rising soda prices. Currently the main staple for consumers is instant-coffee and while Tim Horton's does not offer that product, it feels that Westerns Societies growing influence will help them convert current instant coffee drinkers.

The primary market initially will be Moscow's middle aged working class. There will be 5 "tester" stores set up in Moscow to generate and upon successful entries plans for more stores will be incrementally added.

Marketing, advertising and community involvement will all be a part of Tim Horton's strategy upon entering the Russian market. The focus on the product will be affordable price with a pleasant taste. Price point will be a strong point of differentiation in comparison to the rest of the market.

Russia has been viewed as an unstable location for foreign direct investment in previous decades. But improvements in the legal structure and economic infrastructure has helped bring some much needed stability for foreign investors.

Company Overview

Tim Horton's was originally founded in 1964 in Hamilton, Ontario by a former NHL hockey player with the same name as the restaurant. At first Tim Horton's only offered two products - coffee and donuts, but since have expanded their menu. Tim Horton's focus was always on quality, value, great service and always having fresh products. This focus helped Tim Horton's become one of the largest quick service restaurant chains in Canada.