Methods for Luckin Coffee to Develop its Core Competence

Abstract

Luckin Coffee, which is a new Chinese local coffee brand, opened its first store at the end of 2017, and then rapidly expanded. It only took one and a half years to break through 2000 stores and be listed on NASDAQ in the United States. Now, the number of offline stores exceeded 4500, overtaking Starbucks to become the largest coffee chain brand in China. However, due to the influence of its financial fraud and fiercer competition in the mid-range coffee market. It's more difficult for Luckin Coffee to expand and develop. This paper uses qualitative analysis and steps in business analysis to focus on the research of Luckin Coffee's existing marketing mix, analyzing the STP Strategy, and conducting SWOT Analysis. Then based on the result, the author suggests some improvement regarding the existing marketing mix to help Luckin Coffee develop its core competence. For Luckin's product, Luckin Coffee needs to increase brand depth, develop more best-selling products and use co-branding. For its place, Luckin Coffee needs to develop more immersive experience stores, strengthen the connections between offline stores and nearby customers, and change decorations. The suggestion can also be used for providing some ideas for the establishment and development of mid-range coffee brands in the Chinese market.