TIM HORTONS CAMP DAY Tim Hortons Camp Day Executive Summary Tim Hortons is certainly the market leader in Canada for the coffee shop industry. With an evident presence in Canadian communities as being “Fresh, Friendly, Familiar.” The company has established this identity as being a Canadian national symbol because of strategic marketing plans and successful implementation. Community is at the foundation of both the Tim Hortons company as it exists in the industry, as well as where the company’s attention is focused on for marketing and community events. One of Tim Hortons most successful events based on profit alone is Tim Horton’s Camp Day. The one day event is put on to fund underprivileged children the opportunity to go to camp, through the donation of every coffee sale made at every Tim Hortons location on this day. The marketing of Tim Hortons Camp Day is carried out similarly to the company’s marketing as a whole. Prior to Camp Day awareness is made of the upcoming date primarily through the coffee cups and store windows, whereby regular customers will find themselves. The target market for Camp Day is Tim Hortons “regulars” who can feel good about buying their coffee on Camp Day because the proceeds go to the Tim Horton’s Children’s Foundation. Lines in the decked out in the Tim Hortons locations are longer than usual n Camp Day. This is because the marketing of Camp Day is able to reach other community members wanting to help out a good cause, through other advertisements, and those iconic “Timmies” coffee cups that other friends, commuters and co-workers have clutched in their hands throughout the day with the now-familiar “Camp Day” cup. Tim Horton’s initial goal for Camp Day this past June was exceeded, which suggests that not only was the event a success, but more importantly more than 15,000 kids got to go to camp and Tim Hortons maintains their community-driven marketing plans effectively. Camp Day Camp Day is an event that happens one day a year during the month of June to raise funds for kids the opportunity to go to camp. Tim Horton’s Children’s Foundation A non-profit charitable organization founded in 1974 by co-founder of Tim Horton’s, Ron Joyce. TIM HORTONS CAMP DAY Overview of Camp Day and Tim Hortons Tim Hortons began in 1964 in Hamilton, Ontario. The primary focus of the chain was to provide value for their quality, fresh products while also giving consumers great value. What separated Tim Horton’s from other organizations was to also concentrate on community leadership. They specialize in baked goods and homestyle lunches, but strengthen their brand through their always fresh, legendary coffee. 2 This event takes place during the Tim Hortons has a strong first week in June and consists of the focus for their own Tim Horton’s restaurant owners donating 100% of Children’s Foundation. The their coffee proceeds to the Children’s Foundation is focused on Children’s Foundation. Camp Day has giving underprivileged kids the proven to be a successful event, opportunity to go to camp. Since having raised over $11 million in being established in 1974, Tim 2012 (Sustainability Report, 14). Horton’s camps have grown from having only one camp in Ontario to now having five camps across Canada and one in the United States. The main fundraising initiative for the Children’s Foundation is a single event called Camp Day. TIM HORTONS CAMP DAY 3 Tim Hortons Marketing Plan Elements The main corporate marketing objective of Tim Horton’s is to remain a national symbol. The company achieves this using brand recognition as a reliable way of advertising. They also use “television, radio, outdoor (billboards, transit shelters) and in some print vehicles” (Tim Hortons website) as a method to promote their products. As a company, their Tim Hortons originally had a 2012) This involves ensuring that the goals for 2013 include: customer base that was “55% male, menu provides different foods for mostly blue-collar workers, and 45% each meal. As well, Tim Horton’s across Canada to 4000, with female.”(Buist, 2003, p. 117) continues to try out and implement expansions focused mainly in However, this has changed over new menu items within the US in an time. The current target market for attempt to grow their market share. Tim Hortons is every Canadian, as The second part of the marketing this year “the customer demographic depends strategy is to continue the growth of Tim Horton’s plans to improve the on where the stores are the company, and invest in various Drive-thrus at 1000 Tim Horton’s located.”(Buist, 2003, p. 117) Their areas in order to ensure that Tim target market/audience is all Hortons can grow in new and current the experience of guests at Tim Canadians, and they are currently markets. This involves targeting Horton’s, by providing new items in attempting to expand into the US smaller communities in order to store, such as free Wi-Fi. coffee market as well. They are also increase their overall development They also plan to renovate 300 attempting to target more upscale of the company. The third part the markets, with the recent addition of marketing strategy is to expand as a the new layout and design within grilled panini’s and lattes to their company in ways that they have not 2013 menu. done so far. This includes adding the New items will be added to the The main marketing strategy of Tim company Cold Stone Creamery to menu in order to increase traffic Hortons can be divided into four their stores, and inserting their new categories. The first category within restaurant pilot in to more stores Tim Hortons marketing strategy is to across Canada. The fourth part of use “daypart, category and the marketing strategy is to continue marketing opportunities to drive the strong relationships between the same store sales.”(Tim Hortons, company and franchise owners. Increase the number of restaurants Quebec, Western Canada, Ontario and major urban areas. This will be a total growth of 180 restaurants across the country They plan to increase and enhance restaurants in Canada 450 restaurants will be built using within each restaurant (i.e. the gluten free food item that was recently added to the menu) TIM HORTONS CAMP DAY 4 Camp Day Marketing Plan television commercial, Tim Hortons The event portion of camp day marketed the event by having their reaches beyond just being a coffee the Tim Hortons Children's stores on the donation box on customer on Camp Day at many Foundation, created in 1974 by co- screen, as well as children sitting locations. The activities that are founder Ron Joyce, which raises around a campfire. Stores attract ongoing at Tim Hortons stores on money to allow underprivileged attention to the event by marketing Camp Day are ultimately up to each children to be able to go to camp. In it on their windows and having store owner, however many 2012, Camp Day brought in over $11 “CAMP DAY” and the date painted particular events that add to the million dollars, which allowed over across their store windows. If you go success include car washes, face 15,000 children to be sent to camp. to the Tim Hortons on Humber painting, kids sidewalk games, as The company has marketed College’s Lakeshore campus, you will well as employees dressing up in themselves through a wide variety of also see by one of the exits (right of costumes. The money used to fund marketing schemes, and does so in the cashier), a poster advertising these activities comes directly from such a way that it is always a Camp Day and the Foundation all the stores, which is a donation by success. The company has advertised year around. Tim Hortons has also the store owner to Tim Horton’s that the event has consistently taken come up with an effective marketing Camp Day success as a whole. All of place within the first few days of tool that they begin far in advance the events on camp day are run by June, in which every coffee sale to the event date – advertising on Tim Hortons employees, making it a made at Tim Hortons stores that day their cups that are given to special day for everyone involved. goes toward the foundation. This is customers daily. The cups list all the one of Tim Hortons more popular important information needed, and scheme for Camp Day has been events that consistently runs, as will remind customers to come back known to be an effective one, opposed to product events which and purchase a coffee on that day. considering the success they have Camp Day is an event run by occurs when a new product is being implemented in stores. Purchasing from Tim Hortons Tim Hortons’ marketing had in the past. A writer for Miratel coffee on Camp Day isn’t the only Soluntions Inc. mentions that, “this way Tim Hortons has managed to fundraising concept works for many the foundation is tgh radio and raise enough money to make it a reasons: 1) it’s a popular/trusted television commercials, social media success. They have also encouraged brand; and 2) customers will be sites, transit station posters, bus people to text “CAMP” to a number, drawn to support such a worthy shelters, and of course in their own in which five dollars is automatically cause with their daily choices/guilty stores. With such a wide outreach to donated. You are also able to go on pleasures.” the public, they increase their their website and see the items that audience, customers, and money are purchased for the camps with raised for the foundation. the funds, and pick which items you The goal of the event and While you are in the car would like to purchase, while driving to work, or at home watching donating money to the foundation. television, you are likely to come This information is even posted on across a Camp Day ad. In a recent their ads in stores all year around. TIM HORTONS CAMP DAY 5 Evaluation of Effectiveness As a prominent market leader with brand due to the high volume of 76.3% of the market share (Strauss, people drinking from Tim Hortons’ 2013, p. B3), Tim Horton’s does a cups in the weeks and months great job at marketing both their leading up to the day of the event. brand and the Camp Day event. This type of brand recognition In the past, Tim Hortons has met and surpassed expectations in meet their corporate objective of terms of growth, guest experience reaching new demographics. and product launches. For example, FAST FACTS 76.3% The percentage of market share Tim Hortons holds as of 2013 within the industry. $11.5 The amount, in millions that Tim Hortons raised towards the Tim Horton Children’s Foundation in their 2013 Camp Day event. marketing also helps the company They also have a good last year, 159 new restaurants strategy of using social media to opened in Canada alone (Tim their advantage. Their plan to make Hortons, 2012). This year, they have donating easier by doing so online or successfully enhanced their patrons’ by texting has been well-received. experience with their new Cafe and Additionally, the 2013 Camp Day Bake Shop model for their new and raised more than their goal of $11.5 renovated restaurants. These shops million for the Children’s include free wi-fi and other Foundation. They are on track to amenities such as comfortable fulfil their goals of sending 17,000 seating, fireplaces and televisions. children to camp before 2015 and Along with these renovations, a lot providing more than 1,000 bursaries of restaurants are seeing more menu for post-secondary youth leaders options which are improving same (Tim Hortons, 2012). These store sales and recruiting new successful outcomes are directly customers (Christmann, 2013). related to Tim Hortons’ effective The marketing plan for Camp marketing tactics. That being said, Day is also very successful. The in- you don’t need to read the Tim store marketing is probably the most Hortons annual report or search for effective strategy to spread the statistics to realize that the word about Camp Day, the ads on company has a wildly successful the cups in particular. Through marketing strategy in place, an branding their cups, they are getting impressive feat in and of itself. Its the word out about the event to distinct positioning within the their regular coffee drinkers, but market puts it at a level above that also to anyone who may be in the of any other competitor. presence of those regular coffee drinkers, for example classmates and co-workers will be exposed to the TIM HORTONS CAMP DAY Conclusion and Recommendations It is difficult to make marketing recommendations Another recommendation for the event organizers for a company as successful as Tim Hortons. Through their would be to market not only Camp Day but also the extremely strong branding, Tim Hortons has already activities that go along with it. Relating to our first established themselves as a leader in their industry. recommendation, if there is a single activity across all of Through our analysis we have found that their main the Tim Hortons locations, they can market it in order to corporate objective, to create and maintain a strong, bring more customers in. If it were a family related loyal and Canadian brand, is being accomplished through activity, this would allow parents to bring their kids and their marketing techniques and special events like Camp perhaps end up donating more to the cause. Day. With their initiative and outreach with the Tim Hortons Foundation, Tim Hortons is a brand not only known for their Canadianness and coffee, but also their community outreach. Although Tim Hortons has successfully branded Camp Day through their cups and posters, they fail to stay consistent throughout their multiple franchises. In the past, franchise owners have put on mini events, such as car washes, in order to gain more donations for the cause. Our recommendation to the event coordinators would be to create a single event that will take place at every franchise. By doing this, they can market the event to everyone and simple say “Stop by your local Tim Hortons to participate.” By doing this, they can also create a special event for Camp Day that consumers can anticipate every year. TIM HORTONS CAMP DAY Appendices Appendix A: SWOT Analysis SWOT Analysis Strengths: With a strong brand behind it such as Tim Hortons they will get notice the loyalty of customers Feel good by donating/doing something you’d be doing anyway (buying your daily coffee) Opportunities: Can open to new US markets if they continue supporting American Camps as well as Canadian Changing their cups on Camp Day can get new customers’ attention about what is going on Weaknesses: Not everyone likes Tim Hortons coffee People may think that only some of the funds will be donated/may have to make an extra purchase to donate Appendix B: Company Highlights and Goals For a good cause that gives back to communities which might entice people to want to participate Threats: The Ronald McDonald House has a similar mission and might compete with Camp Day Tim Hortons is not as well recognized in the United States so it is harder to get participants for Camp Day TIM HORTONS CAMP DAY Appendix C: Appendix D: Annual Report Findings 8 TIM HORTONS CAMP DAY References Buist, R. (2003). Tales from Under the Rim: The Marketing of Tim Hortons. Fredericton, Canada: Goose Lane Editions. Retrieved October 3, 2013, from http://site.ebrary.com.rap.ocls.ca/lib/humber/docDetail.action?docID=10193418 Christmann, S. M. (2013, August 5). Coffee stores add attractive new perks. The America's Intelligence Wire. Retrieved October 2, 2013. Paul, J. (2010, December 1). A double-double for the nation. In Strategy. Retrieved October 3, 2013, from http://strategyonline.ca/2010/12/01/timhortons-20101201/ Strauss, M. (2013, September 17). Tim Hortons vows faster service. In Globe and Mail. Retrieved October 3, 2013. Tim Hortons 2012 Annual Report (2012). In Tim Hortons. Retrieved October 3, 2013, from http://www.timhortons.com/ca/pdf/Tim_Hortons_Inc_-_Annual_Report_(Final).pdf Tim Hortons' CSR Business Program Camp Day Makes a Difference (2012, June 13). In MirateLinc. Retrieved October 3, 2013, from http://www.miratelinc.com/blog/tim-hortons-csr-business-program-camp-day-makes-adifference/ Tim Hortons 2012 Sustainability and Responsibility Summary Report (2012). In Tim Hortons. Retrieved October 3, 2013, from http://sustainabilityreport.timhortons.com./pdf/2012_summary_report_30pages.pdf Images http://www.financialpost.com/news-sectors/story.html?id=2645021 http://www.weightymatters.ca/2013/06/not-onion-canadian-government-teaming.html http://sentineldispatch.blogspot.ca/2010_06_01_archive.html#.Uk4YHoakpkg http://www.bargainmoose.ca/tim-hortons-camp-day/ http://canadacoupondatabase.ca/tim-hortons-camp-day-event-wednesday-61-canada-us/ http://hilaurel.blogspot.ca/2012/05/tim-hortons-camp-day-2012-window-art.html http://www.chrisd.ca/2013/06/05/tim-hortons-camp-day-2013-coffee-donations/#.Uk4Yr4akpkg 9 TIM HORTONS CAMP DAY Table of Contents Executive Summary…………………………………………………………………………………………………………………………………………………………………1 Overview of Camp Day and Tim Hortons……………………………………………………………………………………………………………..2 Tim Hortons Marketing Plan Elements…………………………………………………………………………………………………………………3 Camp Day Marketing Plans…………………………………………………………………………………………………………………………………. 4 Evaluation of Effectiveness………………………………………………………………………………………………………………………………… 5 Conclusion and Recommendations……………………………………………………………………………………………………………………….6 Appendices……………………………………………………………………………………………………………………………………………………………7 References…………………………………………………………………………………………………………………………………………………………… 8 10