Analyzing The Marketing Strategy of Coffee Retail Industry: Case from Luckin Coffee

Abstract

Coffee retailing is an emerging industry, the market is rapidly expanding, and competition is intensifying. Luckin Coffee was founded in 2018. In just five years, Luckin Coffee has become one of the most successful companies in China. In October 2017, Luckin Coffee opened its first shop in Beijing and was listed on NASDAQ in the US on 17 May 2019. By July 2022, Luckin Coffee will already have more than 7,000 shops. It owes its success to the effective marketing strategy it has adopted. In this paper, the various marketing strategies used by Luckin Coffee can be summarized as celebrity endorsement strategy, promotion of a large number of coupons, development of marketing campaigns in Luckin Coffees app, promotion on public domain platforms, and marketing on Wecom are analyzed in depth. In addition, questions are raised, and recommendations are given for these marketing strategies in this paper.