Competition

Tostao is currently located in the Colombian coffee and bakery sector. This is one of the
markets most demanded by the consumer because coffee is a product of the Colombian
culture and tradition, giving the possibility that the market has multiple segments of
customers. This can be seen in the fact that around the country there are approximately
10,000 coffee shops offering this product. This is one of the most competitive industries in
the country. Tostao today has three main competitors Oma, Juan Valdez and Starbucks
Coffee.

These are considered solid brands, all three are directed towards an exclusive target and are
characterized by the comfort of their shops and the convenience they offer to the client.
However, despite the success these brands have had throughout their history, Tostao today
is the brand with the most points and at the sales level is one of the most successful in the
market.

Below is a table with relevant information for the business:

In the table above, you can see how Tostao's competition is characterized by the multiple
amenities they offer to the customer, making the point of sale much more enjoyable to
spend time with customers. However, this makes the costs of places like Juan Valdez, Oma
and Starbucks much higher and need a large space to put a point of sale which makes it
difficult to open them. This is why Tostao is currently the brand of coffee with the highest
number of stores in the market, since its business model focused on "Low Costs" allows it
to have a greater number of stores, despite being the newest brand among its competitors.

On the other hand, the main point in favor of Tostao Low Cost's business model is that it is
a marketing strategy focused on creating a "No social classes" brand that allows it to reach
the entire Colombian population regardless of their economic level, expanding its target
and covering the need of a wider group of customers than its competitors, The three
competitors of Tostao offer an excellent service, but because of the high prices they are
closed to only one or two social classes, losing a great part of the Colombian population
that due to their economic level will prefer Tostao for its lower prices and great service in
spite of not offering in their premises all the comforts of their competitors

The following figure shows the price difference in a product between competitors and Tostao:
Finally, the added value of a brand is extremely important for a company to consolidate
itself in the market and compete against its competitors. In this respect, Tostao offers two
main added values: a product of excellent quality at an affordable price compared to its
competitors and seeks with its design of "passing stores" to offer a fast and efficient service
that saves significant time to its customers and is the best option for a customer that has few
time in front of its competitors, a factor that is very significant considering that most stores
are located in a mega city like Bogota characterized by heavy traffic where citizens lose
much of their time and need agile services.

It helps you to build on what you do well, to address what you're lacking, to
minimize risks, and to take the greatest possible advantage of chances for success