Luckin“s launch of Xiaolu Tea will affect the brand positioning of its new retail coffee maker

2020-08-03 17:32:11 0 Comment 333 views

I remember the brand positioning of Luckin Coffee when it was first launched: "A typical representative of China's new retail coffee, committed to bec

Always advertised itself as a "new retail coffee maker" against Starbucks' Luckin Coffee, and now started a tea business. Consumers will be somewhat confused, and some marketing practitioners who are familiar with positioning theory will be surprised.

The Luckin Coffee Development Conference announced the sale of tea in a high-profile manner. Does it violate Luckin's brand positioning as an "Internet coffee maker"? The author remembers the brand positioning of Luckin Coffee when it was first launched: "A typical representative of China’s new retail coffee, committed to becoming China’s leading high-quality coffee brand and professional coffee service provider." This Will it cause confusion to consumers' brand perception? So you fall into the trap of "all is nothing, nothing" called by some positioning masters? What do you think? p>

Positioning theory has been recognized since the launch of "Positioning" and a series of books co-authored by Trout and Lis in the 1970s. It was once recognized as another after David Ogilvy’s brand image theory. The pioneering marketing theory has been sought after by 4A companies at home and abroad. The core concept is: "Whether it’s a product, a service, an organization, or even a person, you have to position the product in the minds of prospective customers, and ensure that the product has a real value in the minds of prospective customers. Status." In short, you have to clearly tell consumers who are you?

Luckin Coffee’s original brand positioning "New Retail Coffee Merchant" also has a strong positioning appeal. Could it be said that Xiaolu Tea will have a negative impact on Ruixing Coffee?

First, Xiaolu Tea is an extension of Luckin’s new retail brand positioning

In the author's opinion, Luckin's launch of coffee has enabled the evolution of a brand positioning with its business development, and it will not affect consumers' perception of it in the short term. The reason is:

1) Brand positioning changes around core users

Returning to the question just now, Luckin Coffee is launching Xiaolu tea in a high-profile manner. Will it Make consumers' perception of it confused? In fact, the phenomenon of Luckin Coffee's introduction of tea is a microcosm of the continuous challenge of positioning theory in recent years. First, Deng Delong, general manager of Trout China, questioned that Xiaomi's development of household appliances category was a damage to its brand positioning of "Internet direct sales mobile phones". Later, Meituan opened a taxi service and directly opened a bar with Didi to raise questions. Wang Xing was concise for this. Responded to "Meituan has no borders."

The author believes that positioning theory has its own merits, but it is a theory after all.The developing and changing with the development and change of the business of the enterprise cannot fall into the dilemma that "a person with a hammer in his hand is a nail" as Charlie Munger said. Luckin Coffee's high-profile launch of its own tea products this time is an expansion of the brand's connotation to adapt to the current business development. The logic of the rice cooker is exactly the same. In summary, Luckin Coffee's launch of tea products this time is an expansion of the brand connotation around its core user needs, and it is a change in Luckin Coffee's initial brand positioning.

2) Exploit large categories to realize the maximum flow of traffic

Why does Luckin Coffee push tea at this moment? In my opinion, first of all,Luckin Coffee’s tea launch this time has the same logic as its previous launches of "healthy snacks", "lucky snacks", and "juice drinks", which is simply to develop categories. According to the prospectus of Luckin Coffee, the contribution of Luckin Coffee's revenue from products other than coffee to total revenue is close to 20%. Similarly, we see that in the Starbucks financial report, the revenue contribution of other products also exceeds this number. Before Luckin Coffee, Starbucks launched its own tea products early in the morning.

Luckin“s launch of Xiaolu Tea will affect the brand positioning of its new retail coffee maker

(6 mainstream tea products on Starbucks official website)

But the category of "tea drinks" is a bit special, and Luckin also gives After taking care of all kinds of things, it was also a fanfare development conference and invited celebrities to endorse it. Luckin did this for a reason. First of all, according to the estimation of the beverage store development report released by Meituan Dianping, The potential scale of China’s freshly made milk tea industry is close to 100 billion yuan, roughly the same size as China’s freshly ground coffee market. This is equivalent to Luckin, who previously only focused on building China’s first freshly ground coffee, suddenly bet on another and freshly ground coffee. A track with roughly the size of the coffee. Two tracks running at the same time, the probability of winning is always higher than that of one track, and the two can fully share the current Luckin’s over 3000 stores and other foundationsResources.

Secondly, Luckin has opened more than 3,000 stores. In addition, Luckin Coffee APP and Mini Programs have attracted nearly 2,000 Million users. This is a huge private domain traffic pool. Luckin, a new retail coffee maker, knows how to monetize the huge traffic as much as possible. In 2016, Mi Home, which went offline, summarized a set of new retail formulas, which I believe are also suitable for Luckin Coffee. Xiaomi’s new retail formula: retail=traffic*conversion rate*unit price*repurchase rate. On the basis of certain traffic, conversion rate, and repurchase rate, the direct way to improve retail efficiency is to increase customer unit price and increase customer unit price. Note that the customer unit price here does not refer to the price of a single commodity, but refers toThe price of a single customer (user).

Luckin“s launch of Xiaolu Tea will affect the brand positioning of its new retail coffee maker

So the author believes that the direct purpose of Luckin Coffee’s introduction of milk tea is The possible realization of traffic monetization is mainly reflected in the effective increase of customer unit price. In the Luckin Coffee APP, "If you don't want to drink coffee, you can change a cup of milk tea" This is the basic idea of ​​Luckin's tea launch this time.

Second, Xiaolu Tea will inject youthful brand elements into Luckin Coffee

On July 8th Luckin will launch the entire tea drink conference , The most frequent words are the two words "young". We analyze that the main target consumers of the "Fawn Tea" series are young consumers, especially young female consumers.

1) Positioning of "Young People's Vigorous Afternoon Tea"

The effective positioning of products often stems from accurate data insights, Luckin Through big data research, it is found that: Tea and coffee have become the two most popular beverages among young people in the office. At present, 70% of office food consumptionAfter two o'clock in the afternoon, 74% of young consumer groups pursue a healthy lifestyle, so Xiaolu Tea is targeted at the new generation of young working people. In addition to precise consumer positioning, Xiaolu tea series products also have a clear definition of consumption scenarios- afternoon office tea.

2) Accurate spokesperson strategy

At the press conference, Luckin Coffee officially announced the hiring of a popular star Liu HaoranNew endorsement, he also became the third spokesperson of Ruixing Coffee after Tang Wei and Zhang Zhen. At the press conference, Liu Haoran made a stunning appearance for the first time in the TVC of "Bao Yi, Xiao Lu Tea".

Luckin“s launch of Xiaolu Tea will affect the brand positioning of its new retail coffee maker

Celebrity endorsements have always been a powerful way for brands to increase product exposure in the short term and bring goods later. Luckin obviously has gone through detailed data analysis to gather "male gods", "Youth", "Fashion", "New Generation", "High Popularity" and other labels, Liu Haoran has achieved precise matching with young women, the main consumer group of fresh milk tea, thus effectively leveraging Liu Haoran's influence to succeed Introduce Xiaolu Tea into the consumer group of young women.

3. Summary

On the whole, Luckin launched the event of Xiaolu Tea with a high profile.From the brand level, it is a powerful measure to continue to develop categories and realize traffic monetization. . Furthermore, the freshly made milk tea that enters the major categories will not affect its brand positioning as a "new retail coffee maker" in the short term. In the long term, it is also an expansion of the brand's content to adapt to its business development. >.

From a product perspective, Luckin has launched a series of tea products, which is conducive to low-frequency and high-frequency, and enhances the efficiency of Luckin's existing stores. Furthermore, Xiaolu Tea is a product created entirely for young professionals. To a certain extent, it helps to enhance the youthful image of the Ruixing brand and attract more young consumers to make frequent consumption.