Start burning money! Understand Luckin Coffee's luckin coffee money-burning strategy, or beat Starbucks.

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It has been several months since the former Shenzhou Youche COO resigned to create luckin coffee (Luckin Coffee). At present, Qian Zhiya has a team of more than 300 people and more than 60 direct stores in Beijing and Shanghai. In the face of the media, Qian Zhiya made no secret of saying that the goal of luckin coffee is to beat Starbucks and become China's leading high-quality, professional coffee.

Money burning strategy 1: the endorsement of Zhang Zhen and Tang Wei

Recently, many people have seen the latest advertising blockbuster of coffee brand luckin coffee endorsed by Tang Wei and Zhang Zhen in business buildings and cinemas. It is reported that this group of advertising films appeared in high profile in Beijing, all over the major business circles and cinemas, leaving a deep impression on consumers.

Money burning strategy 2: the strategy of "customer welfare"

During the current trial period, luckin coffee launched a free first cup for new customers, "buy two get one free, buy five get five free" discount activities, so that consumers can get a new coffee consumption experience at a more affordable price. Equivalent to about 34% discount and 50% discount.

Luckin coffee also launched a "free coffee for friends, each get a cup" discount activity, so that the majority of consumers can experience professional coffee for free, so that the taste up. Consumers can share activities with friends or moments, share discounts with friends and family, and experience luckin coffee for free on the "my" page on the official APP of luckin organizer. At the same time, in order to facilitate consumers to experience luckin coffee, the coffee experience voucher in this event sets a longer experience time.

Strategies for downloading APP

New users will be given a free coffee voucher after downloading APP and successfully registering, and the first cup will be automatically waived when the user places an order.

From the cultivation of consumption habits, the first cup is free, so that everyone can have the motivation to download APP

At the beginning of issuing the order, APP retains the consumption track of all customers as the basis for data analysis.

The price of a single cup is lower than that of similar brands. "the taste of luckin coffee is easy for most people to accept, not too bitter, not too sour, and a very good sense of balance." Qian Zhiya said. But compared with other brands, the price of luckin coffee coffee is lower, a latte other brands sell 30 yuan, luckin coffee sell 24 yuan, a cup of American coffee others sell 27 yuan, luckin coffee only 21 yuan, the aim is to let consumers experience better coffee at a lower price, the first cup is free!

The strategy of "customer welfare" has been transplanted from the travel industry to the coffee retail industry.

Qian Zhiya said frankly in the interview that the most important thing now is to educate Chinese consumers that coffee is a very good drink and let people develop coffee consumption habits, but the price is too high and it is inconvenient to buy coffee has become the most important resistance to the popularity of coffee consumption. Qian Zhiya prepared 1 billion yuan in the early stage to continue "market education" by laying storefronts and customer welfare. "I don't expect consumers to switch from tea to coffee because of me, but I want to dispel the misconception that 'coffee is not good' and provide you with a better consumption style and experience." Qian Zhiya said.

Qian Zhiya also said that the new coffee retail model will help the company to grasp consumer habits and preferences in real time, improve the back-end supply chain based on the entire front-end consumption data, achieve a seamless connection between the front and back ends, and make the customer purchase experience more convenient and smooth. To sum up, this is not a catering project, but an Internet project.

What is the user experience? The editor saw that Zhihu users had such a message.

Luckin coffee is also working with SF, and officials say the current delivery time is basically 10 to 15 minutes, with no more than 30 minutes at the latest, to ensure that the temperature and taste of the coffee remain at its best when it is delivered to customers. If it takes more than 30 minutes, you will lose another drink.

Practically. Yes.

On how to achieve the goal of "beating Starbucks", Qian Zhiya responded, "better quality, taste more suitable for Chinese people, lower price, more convenient purchase, this is the brand advantage of luckin coffee, but also a bargaining chip to compete with competitors."

The rapid development of Luckin coffee has attracted great attention from the capital market. Since the positioning of luckin coffee is to build a high-quality commercial national coffee brand, the premise is to be stable. No matter who you beat, you must first have your own place.