Analysis of advantages and disadvantages of Luckin Coffee marketing strategy based on 4P theory

Abstract

Nowadays, coffee plays an increasingly important role in people’s daily life, and drinking coffee has become a daily habit of many people. As a rapidly developing coffee brand in recent years, Luckin Coffee’s marketing strategies and methods are also worth analysis and reference. Therefore, this paper explores the marketing strategy of Luckin Coffee based on 4P theory through literature investigation and case analysis. This paper analyzes the advantages and disadvantages of Luckin Coffee’s marketing strategy from four aspects: product, price, promotion and place. This paper concluded that Luckin has developed rapidly in the coffee market and has a position in the coffee market through the combination of product research and development, price advantage, sales promotion, viral marketing, multi-channel sales and other marketing means. But at the same time, This paper also points out a series of problems existing in Luckin Coffee, such as difficulties in expanding foreign markets, difficulties in making profits, excessive marketing, and high operating costs, Finally, this paper puts forward some suggestions to Luckin Coffee according to the actual situation. This paper proposes that Luckin can improve the core competitiveness of products, clear price positioning, accurately control customer needs, and enhance customer purchase willingness through diversified ways.