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F 2 3 MRK 1 0 8 NJJ Midterm Case Study: How Tim Hortons is driving trial for its new ice creamThe QSR ' s
F MRK NJJ Midterm Case Study: How Tim Hortons is driving trial for its new ice creamThe QSRs latest foray into grocery is positioned around indulgence and it's looking forpackaging to attract a premium buyer.Tim Hortons is hoping brand recognition will help carry its latest foray into retail, which isbringing it to the freezer section.The QSR Quick Service Restaurant is coming to conventional grocers with a fiveSKU lineup ofice cream based upon approximations of its coffees, Salted Caramel Iced Capp, DoubleChocolate Donut, Birthday Cake Timbits, Apple Fritter and Fruit Explosion muffin.Tim Hortons is an emotional brand, explains Sourabh Malik, VP of CPG at Tim Hortons.Through the pandemic, we have seen that ice cream and frozen dessert as a category beinghighly emotional and growing for the consumer. We want a permanent place in the categoryand believe we have the potential to win.That means the QSR is investing in this space permanently, which Malik says is in part,informed by supply issues during lockdowns. As he tells strategy, retailers are focused onsolving their supply chain constraints within the marketplace, and Tims wants to come toshelf efficiently without causing the kind of disruption that would result from an LTO LimitedTime OfferingThe launch process, he says, is based on the companys own detailed consumer research, andpeople associating the brand with indulgent occasions, like its baked goods, and amplifying thisboth on pack and on social. Tim Hortons first entered CPG when it began selling its coffee ingrocery, but has expanded that offering, including into the cereal aisle through a partnershipwith Post that has resulted in Timbits and Cafe Mocha inspired products.The QSR opted for the ml pints as a means to stand out against competitors like GeneralMills brand HagenDazs or local favorite Chapmans because over the last two years, at homeconsumption of premium pints is growing the fastest.The flavour profiles caters to adults, kids and its expecting people to pick up more than oneflavour, and that it will grow the entire pie, rather than cannibalizing the space.According to Malik, based on its insights, customers spend : in the frozen aisle, and that asa brand, it has about twothirds of that to attract eyeballs.The packaging should live together as a cluster, and thats how red stands out, as its our brandidentity as well, he says.At this moment, phase one of the rollout is the packaging itself, rather than a shoppercampaign. Wobblers, Malik says, are good tactics to draw attention but that its staying awayfrom that for now so retail partners can be focused on efficiencies, and it is also waiting to see ifit will do any couponing or other topoffunnel promotion spending. Malik says if it does
introduce a more robust shopper marketing campaign, it will be closer to the summer fornow, promotion is focused on social.We are giving retailers four to five weeks to set up the ice cream set for success, Malik says,adding that it gives consumers enough time to recognize Tim Hortons ice cream at shelf. Also,March Break is around the corner, an occasion to appeal to young families, its coredemographic.Similarly, it will come to market with flavour innovations beyond its current offerings,depending on how consumers react answer the question Which growth strategy was Tim Hortons using when it launched its premium ice cream? Explain your answer using facts from the case. If you were a marketing manager for Tim Hortons, and were now asked to recommend another growth strategy for Tims which would it be Provide all the specific details of your recommendation and the rationale for proposing it over the others. Marks
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