Comparative Study of Marketing Strategies Between Starbucks and Luckin Coffee in China

Abstract

This paper examines the marketing strategies of Starbucks and Luckin Coffee in Chinas booming coffee market. It analyzes their key approaches, promotional tactics, pricing models, and target customer segments. The study aims to understand how these strategies have influenced each companys brand positioning and market share. A comprehensive understanding of their strategies and effectiveness is achieved by utilizing multiple sources, such as scholarly articles, industry reports, and marketing campaigns. While Starbucks emphasizes a high-end experience and loyalty, Luckin Coffee focuses on accessibility and affordability. Both companies face the challenge of maintaining profitability in a highly competitive market. They prioritize digital platforms but employ different strategies to stand out. Starbucks cultivates an upscale coffee culture, while Luckin Coffee rapidly expands through cost-effective measures. This review highlights the importance of adapting marketing strategies based on local market dynamics and audience preferences. Future market entrants can learn valuable lessons from the successes and challenges these major players face in Chinas coffee industry.