Comparison of the Market for Starbucks and Luckin—How Did Luckin Rise

DOI

10.2991/978-2-494069-51-0_14How to use a DOI?

Keywords

Starbucks; Luckin; 3C; 4P; Promotion; Market

Abstract

For a long time, Starbucks had almost the entire coffee market in China. However, this situation has been disrupted by the emergence of local coffee brand Luckin, which has given Starbucks a powerful rival in the Chinese market. In less than three years, Luckin has more stores in China than Starbucks, and is almost as well-known as Starbucks. The market positioning and marketing strategy behind Luckin's compared with Starbucks in such a short period of time can be systematically studied. In this research, the 3C (Company, Competitor, Customer) and 4P (Product, Price, Promotion, Price) of Starbucks and Luckin were studied. This study found that Luckin was able to compete with Starbucks quickly because its market positioning was different from Starbucks. Luckin’s products were also cheaper and suitable for Chinese people’s tastes. Therefore, Luckin not only expanded its coffee market, but also attracted some of the original Starbucks customers. Unlike Starbucks, which focuses on word-of-mouth marketing, Luckin uses a retail model that integrates online and offline marketing, and promotes it on social media through mobile apps, influencers, and celebrities. However, Luckin’s strategy of offering discounts to attract customers at a loss is unsustainable and needs to change for the sake of profitability and brand loyalty. This paper may offer some references, for the market positioning and marketing strategies of premium coffee and affordable coffee brands in China’s coffee market.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Chenghao Li
PY  - 2022
DA  - 2022/12/09
TI  - Comparison of the Market for Starbucks and Luckin—How Did Luckin Rise
BT  - Proceedings of the 2022 7th International Conference on Modern Management and Education Technology (MMET 2022)
PB  - Atlantis Press
SP  - 109
EP  - 115
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-51-0_14
DO  - 10.2991/978-2-494069-51-0_14
ID  - Li2022
ER  -