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How does the incomprehensible "Luckin Coffee" work?
Luckin Coffee, which continued to lose money, went public 18 months after its establishment, and its opening price soared by 50%. After listing, its share price was as high as 6 billion US dollars. In such a big environment, it is really amazing that Luckin Coffee can achieve such results. Many people are amazed by its incomprehensible play, and even think that Luckin Coffee is a typical money-making play. But if we carefully analyze the business model of Luckin Coffee, we will think that the success of Little Blue Cup is not accidental, but inevitable.

I divide the whole play of the little blue cup into three steps. The first step is to conduct sufficient market research, understand market opportunities, and confirm whether you can enter the game. The second step is to accurately locate the brand, implement high-dimensional attacks, and seize the user's mind; The third step is to use the flow pool thinking to carry out fission marketing.

According to third-party data, the annual growth rate of coffee consumption in China exceeds 15%, which is huge compared with the growth rate of 2% in the global market. The global coffee market is 12 trillion RMB, of which the United States has 3 trillion RMB, while China has only 70 billion RMB, which is huge. It is worth noting that the coffee drinking structure in China market is also very different from that in the global market. The proportion of freshly ground coffee in the world is 87%, and instant coffee is less than 13%. On the contrary, in China, instant coffee accounts for 84%, while freshly ground coffee only accounts for 16%. It can be seen that the experience of high-quality coffee is seriously lacking in China. With the deepening of the concept of consumption upgrading, the demand for freshly ground coffee in China market will increase greatly in the future.

Obviously, Qian, the founder of Luckin Coffee, saw the opportunity of the industry and quickly convened a team with matching ability and opportunity to fully educate the market with Internet thinking and endless funds to challenge users' cognition. Moreover, unlike the traditional enterprise development logic, Luckin Coffee is not afraid of huge losses and mainly takes the user growth model as its development logic. This style of play has indeed caused many doubts in the industry, thinking that this mode of burning money will lead to the same outcome as enjoying a bicycle. However, personally, there are still essential differences. The combination of online App and offline store of Luckin Coffee implies an important trend of new retail. Only by strong operation and rapid development can we achieve different results.

Successful brands are supported by corporate strategy, and Luckin Coffee is no exception. In the early days of its establishment, Luckin Coffee continuously improved its brand image through two sets of combination punches, namely, opposition positioning and high-dimensional attack, and achieved the first card position on the client side.

opposite direction

The core of the concept of opponent positioning is strong competition orientation and differentiated positioning with opponents. This method is very suitable for late-developing brands. For example, the opposite positioning of melon seeds used cars is that there is no middleman to earn the difference, which is opposite to the irregularity of the whole industry, while the opposite positioning of car Inc. is "safer special car", which puts competing products on the opposite side and allows users to form the perception that other special cars are unsafe.

Luckin Coffee takes the opposite positioning method, regards Starbucks, the big brother in the coffee industry, as a competitive product, constantly attacking Starbucks' weaknesses and strengthening its brand image. For example, Starbucks focuses on the coffee shop experience in the offline third space, while Luckin Coffee grasps the limitations of the third space, subverts Starbucks' advantages with infinite scenes, repositions its competitors' brands and pushes them to an unfavorable position.

In addition, Luckin Coffee, as a new coffee brand, also carried out porcelain-touching marketing on May 6, 20 18, and sent an open letter to Starbucks, pointing out that Starbucks put pressure on the suppliers of small blue cups, which instantly enhanced the popularity of Luckin Coffee. There are indications that Luckin Coffee has been staring at Starbucks since its founding. All he has done is to let users know that Luckin Coffee dares to challenge the industry giants and even has the ability to bring down Starbucks.

Not only that, the Little Blue Cup team also spent a lot of time creating visual symbols and auditory symbols to enhance this user's cognition. The design of antlers logo gives people a feeling of daring to break away from convention and seek a breakthrough. And the setting of the small blue cup is in sharp contrast with Starbucks' green LOGO, which makes the two brands have a strong correlation. Whenever users see Starbucks, they will associate it with Luckin Coffee, which reduces the memory cost of users. From the perspective of auditory symbols, the slogan "Who doesn't love this cup" has a meaning of challenging the user's mind. Through a rhetorical question, the user has 1 second to think and answer, thus improving the stay time of the small blue cup in the user's mind.

High-dimensional trend

Luckin Coffee has successfully formed a strong alliance with Starbucks, but this is not enough to be a hard-core means to crack down on Starbucks. Luckin Coffee, who is well aware of this truth, quickly launched a high-dimensional attack, seized the limitations of Starbucks' traditional offline cafes, strengthened its own Internet attributes, and seized the user's mind with the first brand of new retail coffee, achieving accurate card position. In other words, through differentiated positioning, Luckin Coffee successfully positioned itself as the first in the new category industry. Let Luckin Coffee be promoted from a challenger to an industry leader, and greatly enhance users' brand awareness of Luckin Coffee.

Then Starbucks' behavior deepened Luckin Coffee's leading position. 2065438+In August 2008, under pressure, Starbucks announced that it would cooperate with Hungry, a subsidiary of Alibaba, and Starbucks would select 2,000 offline stores in 3 1 key cities nationwide for distribution. The appearance of this news made many people think that "Starbucks is a compromise forced by Luckin Coffee", thus establishing Luckin Coffee's industry position.

Luckin Coffee's marketing routine is worth learning. It is necessary to find the increment by stock and apply the flow pool thinking to the extreme by high-frequency play. In order to prevent people from confusing traffic pool thinking and traffic thinking, let's distinguish these two concepts first. Simply speaking, traffic thinking is to obtain traffic to form transformation, and traffic pool thinking is to obtain traffic and obtain more traffic through storage, operation and mining. Here is a problem that needs attention. From a technical point of view, the traffic pool thinking needs to establish a data model. Luckin Coffee chose the online transaction method of self-built App, which solved this problem well. According to the user's purchase behavior, the data is analyzed, and finally the user portrait is formed, and the traffic pool is constructed for user fission.

Luckin Coffee's marketing routine is simple and practical, which can be roughly divided into three steps: first cup reward, innovation reward and coffee treat.

In the early days, Luckin Coffee used advertisements and product trials to tap seed users. For example, white-collar workers in office buildings are likely to see the first free advertisement of Luckin Coffee when they take the elevator, and they can become seed users by scanning the code to register. (The larger the seed user base, the better the later fission effect). The second step is to attract new rewards, because the essence of fission is that old users attract new users and need to give both sides some temptations. Therefore, Luckin Coffee deliberately spends a part of advertising expenses on new product subsidies, and through the induction of welfare and creative sharing, it catalyzes users' social desires, obtains social traffic at a lower cost, and forms fission marketing. The third step is to set up coffee service. Compared with the simple and rude WeChat red envelope, this way expresses the user's intention to his friends. The way I treat you to coffee is closer to people's social etiquette in real life.

Looking for market opportunities, accurate brand positioning, and making good use of fission thinking. Simple actions and quick execution are the key to the success of Luckin Coffee, even too fast for people to understand or understand. Because they really played too steadily, they didn't hesitate to make a decision, and they didn't hesitate to lose. It seems that Luckin Coffee is just fooling around with investment. In fact, Ruixing has a very mature operation team and a clear development plan. In any case, Luckin Coffee, which has reached this stage, has a strong fantasy color, firm investors, rapid user growth, objective income and smooth listing. People like to question unreasonable phenomena, but I prefer to find reasonable parts in seemingly unreasonable places. The growth route of Little Blue Cup may not be copied, but its playing style and attitude are worth learning.

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