- June 29, 2020
Tim Hortons to India
TimHortons to India
Hortonsis a Canadian coffee chain that has its locations primarily in Canadaand the United States. The company has strengths in financialperformance and customer focus, which have helped the entity to haveleverage in entering other markets. This report provides informationon the Indian market analysis for the Hortons Company.
Descriptionof the Market
Accordingto Anand (2013), hotel sales in the developed markets have declined.This makes extending to other markets, especially that have not beenfully explored an important consideration for hotels such as Hortons.The Indian café market has been slowly becoming bigger, a move whichhas made different players in the industry to seek entry into theIndian market (Anand, 2013). Hortons opts to venture into the Indiancoffee business, which is highly lucrative. India has been consideredthe fifth biggest coffee producer in the globe. The market is used tocoffee chains such as Barrista Lavazza and Café Coffee Day (CCD).The region of focus for the company will be Bangalore, which is acity in the Southern India. The choice for entry into this region isbecause coffee is favored in the region. Besides, the area has astrong western culture influence that can assist Hortons in gettingan easy access into the country (Chambers, 2011). In the selectedregion of India, consumer behavior in regards to the consumption ofcoffee is appealing since there is high consumption of coffee. Thiswould provide Hortons with an excellent opportunity of introducingits brand. The commonly used mode of transport in accessing theBangalore region is local buses. The modern modes of communicationare readily available in the Bangalore city, including the internetand mobile phones.
Promotionis an exceedingly essential aspect towards the success of an entitysince it helps in the marketing of the brand of a company. Since theorganization desires to enter the Indian market, it needs to selectits promotional strategy wisely into the market. The entity canconsider using a popular person in the region to market its brand.For instance, the organization may use Rahul Dravid, for IndianCricketer and captain, in its promotion campaigns. The advertisementcampaigns for the organization should be based on quality, and thehoardings need to be placed at strategic positions. Furthermore, theuse of free coupons and gift cards can be integrated as part of thepromotion campaign.
Thepricing strategy that an organization adopts is critical indetermining its future successes. Thus, an entity needs to choose itsstrategy prudently. The best pricing strategy to use entails charginga premium price. Since there are other coffee chains in the Indianmarket, Hortons should charge a price premium however, this shouldcome with unique services.
Inconclusion, in entering the Indian market, Hortons should select theBangalore city since this region would offer an excellent entry intothe Indian market. The city would offer a good market since there isa high preference for coffee among customers and most of theconsumers have western culture influence. Furthermore, the entrymarket offers a brilliant opportunity since the Indian café marketis slowly becoming bigger. The entity can consider using a popularperson in the region to market its brand. For instance, theorganization may use Rahul Dravid, for Indian Cricketer and captain,in its promotion campaigns.
Anand,N. (2013). DNAExclusive: Canadian Café Chain Tim Hortons Plans India Foray.Retrieved fromhttp://www.dnaindia.com/money/report-dna-exclusive-canadian-cafe-chain-tim-hortons-plans-india-foray-1941102
Chambers,C. (2011). Aday at an Indian market.Mankato, Minn: Capstone Press.