Disrupting Coffee Business in China
BACKGROUND
Coffee is too expensive and not convenient in China. They are the pain points hindered the development of freshly brewed coffee business in China. Starbucks spent 19 years and opened 3,800 stores in China, yet the coffee market scale in China is having a large room to grow.
WE proposed a game-changing brand positioning for Luckin Coffee - “Any Moment” as core brand strategy to disrupt the traditional coffee chain model - “The Third Place”. WE let coffee come to you instead of users to find coffee, via mobile internet enabled usage occasion + intensively located “Pickup” stores, instead of mega “Third Place” coffee shop like Starbuck does.
Luckin Coffee is a new coffee chain which opened in January 2018. The new retail concept offers online ordering with offline product pick-up, and features high-end coffee blends with flavors adapted to Chinese consumer taste buds. The new brand needs to establish a premium image before launch.
IDEA
Based on the concept “The Imagination from a cup of coffee”, the creative leveraged two top celebrities known for premium lifestyle to shoot the brand’s first TVC to build a high-end brand image and create resonance.
RESULTS
Over 2,000 new stores were opened in China within the first year. Users acquired and total sales far exceeded the original plan.
BACKGROUND
Coffee is too expensive and not convenient in China. They are the pain points hindered the development of freshly brewed coffee business in China. Starbucks spent 19 years and opened 3,800 stores in China, yet the coffee market scale in China is having a large room to grow.
IDEA
WE Marketing Group proposed a game-changing brand positioning for Luckin Coffee - “Any Moment” as core brand strategy to disrupt the traditional coffee chain model - “The Third Place”. WE let the coffee come to you instead of you to find coffee, via mobile internet enabled usage occasion + intensively located “Pickup” stores, instead of mega “Third Place” coffee shop like Starbuck does.
As a coffee brand, brand charisma is built on the authenticity of the brand which makes the brand so popular among the younger generation in China. A distinctive Brand Look further helps differentiate from the competition. WE brought in a BLUE + WHITE color program to Luckin Coffee. WE also leverages quality brand spokespersons, Mr Zhang Zheng and Ms Tang Wei to reassure the brand’s quality proposition. Deploy tremendous digital marketing and social marketing techniques to expand the user base. Highly targeted media channels include LBS WeChat Moment ads and office outdoor ads.
RESULTS
In 12 months, it achieved over 12+ million users and 90 million cups sold, which is 350% of the original target. Luckin Coffee was listed in the Nasdaq exchange (May 17, 2019) after its 17 months of operation. Luckin Coffee plans to open up to 4,500 stores by end of 2019, and 10,000 stores by end of 2021.