Starbucks vs Tim Hortons

A Comparison of Starbucks and Tim Hortons Starbucks and Tim Hortons argon both companies that specialize in the fare and umber service industries. Information virtually each company, a comparison of how each commercialises their brand and their differing dispersal methods go forth be nominated. Starbucks is a premier roaster, commercialiseer and seller of specialty coffee (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of much than 17,000 retail stores in over 55 countries.Most retail stores are in highly populated areas, like downtown and suburban centers, office buildings, university campuses and in remove rural and off-high musical mode locations (Marketline 2012). Starbucks sells former(a) products in addition to coffee, like teas and warm food items. It excessively licenses its trademarks through grocery stores and national food service accounts (Marketline 2012). close to of the brands, besides Starbucks , are Tazo teatime, Seattles Best umber and Starbucks VIA Ready Brew.Products for trade in Starbucks stores let in Italian-style espresso beverages, refrigerated and iced shaken drinks, and both breakfast and tiffin items such as pastries, salads and sandwiches. Starbucks likewise sells warm food items, coffee equipment proposes thaw wireless internet within its stores. Tim Hortons is like Starbucks in the sense that they provide similar products like premium coffee, flavored cappuccinos, specialty teas, home-style soups, fresh sandwiches, wraps, tempestuous breakfast sandwiches and fresh baked goods (Marketline 2012). Tim Hortons has 3,750 restaurants in Canada and the United States.Most of these (3,148) are in Canada. It in addition offers home-brew coffee through various lines of distribution in Canada and the US, including certain grocery stores (Marketline 2012). The way in which both Starbucks and Tim Hortons assigns their products is through the various licensing t horoughfares. For example, Starbucks today advertises and sells its products in grocery and warehouse club stores in Canada, the U. K. and countries in Europe. This channel is also known as the CPG Channel, which represents the four business segments the U. S. , international, global consumer products sort and other (Marketline 2012).Many licensees also subscribe to license agreements with Starbucks where Starbucks sells its ingredients to make these products that are change in retail stores. Regarding Starbucks, some of these licensing agreements are with North American umber Partnership (joint venture with Pepsi-Cola Company), Arla, Suntory, and Dong Suh Foods. With these license agreements, Starbucks is able to have these other companies manufacture and grocery ready-to-drink beverages like the Frappuccino and Doubleshot espresso drinks as well as manufacture, market and distribute Starbucks chilled cup coffee beverages in Europe, Japan and South Korea.Super-premium Tazo Tea and ice cream products in the U. S. with Unilever is another example of how the manufacturing and distribution kit and boodle with Starbucks. Most of these products discussed are sold to foodservice companies that serve the following industries businesses, education, healthcare, office coffee distributors, hotels, restaurants, and airlines, among many more. National accounts also receive Starbucks (Seattles Best Coffee brand), such as SYSCO Corporation, US Foodservice and others (Marketline 2012).Like Starbucks, Tim Hortons uses warehouses for distribution efforts as well. They also market their goods in restaurants and also have self-serve kiosks that consist of pastries and both hot and cold beverages. What differs from Starbucks is the distribution of paper and dry goods in the Canada-based restaurants as well as the frozen baked goods that are delivered to Ontario-based restaurants. Coffee-roasting plants in areas like Rochester, New York and Hamilton, Ontario are also used as third company distributors, which differs from Starbucks methods (Marketline 2012).Tim Hortons doesnt have as many joint ventures as Starbucks, but still also shares that distribution method, as Tim Hortons operates the Maidstone Bakeries facilitiy, which is a 50-50 joint venture with a secondary of IAWS and a subsidiary of Starbucks (Marketline 2012). In comparing both Starbucks and Tim Hortons regarding distribution, Starbucks definitely has more of a wide range of distributors and concentrates mainly on coffee and fresh food distribution. Tim Hortons concentrates on their beverages as well as bread, dry foods and pastries distribution as well.So in this sense, they differ a bit in what they distribute and how, as Starbucks uses a lot of licenses and partnerships term Tim Hortons relies on third party distributors and warehouses. selling is another key aspect that both Starbucks and Tim Hortons do otherwise for their company. Starbucks has intensely used technology applicati ons such as for the iphone, in which a customer can use their mobile phone to make their purchases and it is also connected to the Loyalty Card that Starbucks has (Baker 2012). Starbucks also uses Facebook and online shopping to market their products.For example, in regards to social media, that area is part of the Marketing team in the UK and Ireland. They include customer care and public relations people, as well. Ian Cranna, Vice president for Marketing, stated that Starbucks believes that customers want genuine and authentic interaction with the brands they choose to ensnarl in online (Lifting the chapeau on social 2012). Starbucks hosted a Frappuccino Happy mo and Cranna also admitted most of the best ideas come from their customers and Facebook is a great way to stay connected. Lifting the lid on social 2012). Also, regarding the online shopping aspects, the Verismo, recently released in September, is Starbucks first home coffee machine and can be bought on Starbucksstore. co. uk. This is the first time the chain has ventured into e-commerce (Baker 2012). harmonize to Androich and Laird, a managing director, Kris Engskov, stated, Up until today making a Starbucks Latte at home was skillful not possible. Now customers who have been asking for more convenient shipway to enjoy Starbucks need look no further (2012).Starbucks is aiming to also provide self-serve Go machines. Its aim is to provide the quality of Starbucks anywhere (Baker 2012). Tim Horton also uses technology like social media to attract customers and advertise, just as Starbucks does. Tim Hortons did a Facebook turn tail with the recording up the Rim promotion, which also included television, radio and both outdoor and in-store promotions. Those who liked the Facebook page could download a free ringtone of the Roll Up ringtone as well as create profile pictures with the theme.Free coffee for a year and gift cards were available to win. This attracted thousands of likes on Facebook an d in reality promoted the Tim Hortons name (Androich and Laird 2012). However, what differs from Starbucks is that Tiim Hortons is especially associated with Canada life, and the few regions it inhabits in the northern United States area, while Starbucks is more of an internationally recognized brand because of its wide spread stores. According to Chris Koentges, a writer in Vancouver, Tim Hortons attracts Canadians.In his article, Why we are Tim Hortons and Tim Hortons is us was a headline on Canada. com (Koentges 2012). Overall, Tim Hortons and Starbucks differ in their marketing by who they market to as Tim Hortons is mainly in Canada and Starbucks, although predominantly in the United States, is also all over the world. However, they do market their brands in similar fashions on Facebook or other social media channels and providing chances to win certain prized items. References Androich, A. & Laird, K. (2012).Facebook make right. Marketing Magazine, 117(3), 44-47. Retrieved from EBSO Host on November 11, 2012. Baker, R. (2012). Starbucks launches new caffeine fruit drink. Marketing week (Online Edition), 11. Retrieved from American Psychological Association on November 11, 2012. Koentges, C. (2011). The Pandoras buffet of the new Tim Hortons. Marketing Magazine, 116 (18), 21. Retrieved from the American Psychological Association on November 11, 2012. Lifting the lid on the social brands. (cover story). (2012).Marketing(00253650), 3-5. Retrieved from the American Psychological Association on November 11, 2012. Starbucks Corporation. (n. d). Retrieved from on November 11, 2012. Tim Hortons Inc. (n. d). Retrieved from on November 11, 2012.