Toco, it's summertime!
ToCoToCo Ice Cream - Coffee Sub-branding
Launching an exciting new venture, ToCoToCo, a brand synonymous with quality milk tea and outstanding customer engagement, has stepped into the realm of ice cream and coffee with its new sub-brand, ToCoToCo Ice Cream & Coffee. In response to the growing competition and evolving market dynamics, ToCoToCo decided to leverage the power of a sub-branding strategy, opening over 12 stores in the first two months in key cities like Hanoi and Saigon. This fresh initiative offers an irresistible blend of delectable ice cream, robust coffee, and the timeless appeal of ToCoToCo's brand philosophy.
With an aim to capture a wider market share and counter competition, ToCoToCo Ice Cream & Coffee's offerings are designed with strategic precision, keeping in mind the competitive landscape and customer preferences. Not only does the brand serve an array of delicious ice creams and coffees, but it also ensures that these offerings are affordable, bringing the joy of high-quality, flavorful treats to a larger demographic. The affordability of ToCoToCo Ice Cream & Coffee products is a calculated move, dictated by a penetration pricing strategy. This pricing strategy allows ToCoToCo to attract a significant volume of customers and quickly gain market share by offering products at a lower price point than competitors, in this case, ice cream priced at only 10,000 VND and drinks for as low as 25,000 VND.
The rapid expansion of ToCoToCo Ice Cream & Coffee is a strategic response to counter competitors, particularly Mixue, which has rapidly established a significant presence in the Vietnamese F&B market. Mixue's growth in the affordable milk tea segment, traditionally ToCoToCo's stronghold, has been notable. Industry reports suggest that ToCoToCo's sub-branding strategy aims to combat this competition, expand its product range, retain its market share, and attract a broader customer base. The swift launch of ToCoToCo Ice Cream & Coffee stores in key locations echoes Mixue's aggressive expansion while adding unique offerings of ice cream and coffee, reinforcing ToCoToCo's position in the competitive market.
