Beef sandwiches were a hot commodity in the second quarter, and Tim Hortons got in on the action with its Slow Roast Beef offering.
It faced fresh competition, as McDonald's Canada launched its Angus Burger and A&W introduced its Sirloin Burger for a limited run. (All carried the same $4.99 price tag.) The A&W offering was popular - and led to a quarterly same-stores-sale increase of 9.1 per cent. Tim Hortons' sandwich, however, didn't last very long, despite heavy marketing
Now do you think introducing more sandwiches to the menu is going to boast sales when your real specialty is coffee and doughnuts?
How bout throwing endless marketing dollars to interrupt people, screaming pay attention!?
Line extension can work for some brands, however it doesn't work for most. This is why playing to your core strengths is so important. And why A&W has succeed with the Sirloin burger, after all they are in the beef business and that's what their target audience is looking for.
Do you think Tim's existing audience really thinks about sandwiches, let alone beef sandwiches when they have their caffeine/sugar fix? Not to mention the sandwich is way over priced ($5) for such a small portion. This isn't fine dining folks, portions = value.
When you attempt to promote a premium product when you are a value based chain, and then believe heavy marketing is all you need to be successful - you've got a serious problem.
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