SWOT Analysis of Coffee’s Marketing Strategies: A Case Study of Luckin Coffee in China

Abstract

As big data and the Internet continue to advance, there is much space for new retail models to emerge. Luckin Coffee, one of the top brands in China’s coffee industry, has seen significant growth in both market share and brand recognition thanks in large part to its marketing approach. This study gathers a great deal of official data to understand the reasons behind Luckin Coffee’s rapid popularity in China. It then applies SWOT analysis to evaluate Luckin Coffee’s marketing approach. Luckin Coffee initially succeeded due to its rapid expansion and technological innovation but faced setbacks due to financial mishandling and excessive reliance on discounts. Fortunately, the company was rescued promptly and focused on developing its products. However, competition in the Chinese beverage industry is very fierce. The authors offer several recommendations for tweaks to the current marketing mix in the conclusion to aid Luckin Coffee in enhancing its core competency. It also knows the demand and market for coffee in China in recent years. To expand the product brand and produce more best-selling items, Luckin Coffee ought to use brand co-branding. Similarly, it is necessary for Luckin Coffee to developLuckin Coffee must develop localized products and establish its ecosystem. The suggestions might also serve as a source of inspiration for creating and growing a mid-range Chinese coffee company.