Brand Design Study
Tim Hortons Vs. Starbucks: The Power of Brand
Delivering an exceptional experience with a good product is the key to a premium brand
I went to YorkU for my undergrad. Every morning on my way to class, I would pass through this narrow hallway going from CLH to Scott Library. A hallway filled with two warring factions. Two coffee shops literally right in front of each other — Tim Hortons and Starbucks. Each with its own snaking line of patrons.
What my analytical mind couldn’t understand was why? Why wasn’t Timmies just cleaning house with their ~40% cheaper coffee (compared to Starbucks)? Why were these people not in class? But that’s more of an afterthought.
The reason was the power of their respective brands.
Even though both shops sell the same product (coffee), their respective brand tends to attract a particular set of customers. By learning how premium brands differ from their regular counterparts, we will start seeing that delivering an exceptional experience goes along with a good product. The better the experience, the higher the customer is willing to pay.
Simply put,
a unique product + a extraordinary experience = premium price point
Let’s try and break down these two international brands and see what we can learn.
Understanding your target customer and their needs
Define a concrete target customer persona. It’s easy to say — “Everybody likes coffee”. But go deeper. Find out what they want in life, their values, their aspirations, and how your offering can bring them closer to their goals.
Tim Hortons
- Who are the customers: People looking to grab coffee and head to work
- What they want: Quick and easy service
- Their priority: Fast order delivery
Starbucks
- Who are the customers: People looking to sit down and work
- What they want: A cup of coffee made precisely to their specifications
- Their priority: Order accuracy
Lesson Learned: Learn your customer. Figure out what they want to achieve and what they care about. Optimize your process for their success. The more they succeed, the more you will too.
Make your product unique
Customers are human beings. They want to feel special, different than the rest. Make your product look different, distinctive, and unique so that it stands out from every other brand. Use a variety of colourful packaging, cup designs, exclusive product drops, and exciting new options to make yourself stand out.
Tim Hortons
- Popular beverages: Coffee, Iced Capp, and Ice Coffee
- Menu Changes: Year-round consistent drink menu
- Packaging: Opaque; the same cup design for all the drinks
Starbucks
- Popular beverages: A huge variety of specialty drinks
- Menu Changes: Limited drinks every season
- Packaging: Translucent; cups highlight the drink colour/texture
Lesson Learned: Give your customers a reason to flaunt their purchase. Make them feel special. They will be more than happy to share their experience with their friends and family.
Importance of Consumer Psychology
Our subconscious mind constantly uses psychological indicators around us to make buying everyday decisions. Deliberately understand and influence these indicators and elevate the buying experience for your customers. Eating fromage sounds a lot fancier than eating cheese.
Tim Hortons
- Gamification: “Rrrroll up the rim” contest where you have a chance to win a prize if you roll up the rim of a Tim Horton’s coffee cup — turns ordinary coffee drinking into a game
- Item placement: Sweet treats are placed right up front where the customers can see them when waiting in the queue making you salivate
- Faster service: The employees are instructed to prepare the order in 30 seconds or less
Starbucks
- Fancy wordplay: Grande is large, but saying it instead of the plain old size somehow elevates the experience
- Personalization: We all know this ritual where the barista notes down your name when you make an order
- Meticulous service: A dedicated cashier + a barista so that the order is correctly prepared
Lesson Learned: Understanding consumer psychology is key to a successful brand. Capitalize on the psychological indicators to make your brand have a lasting impression.
Read Decoding the New Consumer Mind for more
In-Person experience
A physical location brings your product to life by appealing to the customer’s all five senses — touch, sight, hearing, smell, and taste. Way more than an e-retailer can ever can. Use it to your advantage. Show them the best customer service. Invite them to network with other happy customers. Show them the product being made in front of their eyes.
Tim Hortons
- Vibe: Industrial; Monitor screens
- Lighting: Bright
- Seating: Standard restaurant-style; designed for small groups
Starbucks
- Vibe: Rustic; Artwork hanging on the walls
- Lighting: Moody lighting
- Seating: Communal; promotes interaction
Lesson Learned: A physical location is a physical embodiment of your brand. Use it to carefully craft an experience for your customer that will make them your most loyal fan.
Social Media
Social Media ads have a ton of influence on how today’s generation buys products. By having a consistent voice and message across all the marketing channels, you can create a strong emotional bond with them.
Tim Hortons
- Focus: Canadian, hockey, and community
- Content: Showcase of Tim Horton’s impact on communities
- Design Language: Connecting, hopeful, and cultural
Starbucks
- Focus: Individual, eye-catching visuals
- Content: Gorgeous shots of the product
- Design Langauge: Optimistic, joyful, and unique
Starbucks actually has an entire branding guidelines document on how their products should be presented. Check it out here.
Lesson Learned: Multichannel approach to marketing is the best way to delight new customers. The quality of the visuals has to be consistent no matter the platform.
At the end of the day, Tim Hortons customers are looking to make a quick stop to get some joe on their way to work and Starbucks customers are primarily looking to flaunt their personality with a unique cup of coffee. Each shop achieves the desired end result for their customer.
We can boil all the lessons down to:
A unique product + a strong experience = premium price point
Go out and adapt these lessons to your own brands and delight more of your customers. ‘Till next time!
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