The Marketing Strategy Case Analysis of Luckin Coffee in Southeast Asiae

Abstract

Luckin Coffee, a digital-native brand established in China, has transformed the traditional coffee industry through a technology-centric approach. This paper examines its market penetration, innovative technological strategies, and recovery following the 2020 accounting scandal. By analyzing its rapid expansion—driven by digital ordering systems, app-based loyalty programs, and AI-powered dynamic pricing—the study underscores how Luckin revolutionized coffee retailing. Despite challenges such as escalating labor costs and fierce competition, the brand sustains robust growth through relentless innovation and international expansion, particularly in Southeast Asia. The analysis reveals that Luckin’s success hinges on its mastery of the 4P and 4C frameworks, integrating product innovation with customer-centric convenience, and its strategic use of localized flavors like durian lattes to penetrate new markets. Furthermore, recommendations emphasize refining customer segmentation, adopting creative social media advertising, and enhancing eco-friendly product offerings to bolster brand identity. This study concludes that Luckin’s fusion of digital innovation and cultural adaptation not only ensures its dominance in China but also positions it as a model for future business strategies globally, offering actionable insights for navigating competitive emerging markets.