[Some Thoughts] Luckin Coffee's Success

Luckin coffee became more and more popular last year. Everyone thinks that its marketing activities-buy one get one free-are particularly good, and it seems that it is no big deal. You can easily copy by changing your own products, but this is not the case.

First introduce buy one get one free, that is, after the user buys, share the coupon with the newcomer, and the newcomer can get a free cup.

A cup of coffee is more than 20 yuan, no loss.

In fact, Luckin Coffee made two bold bets:

1, a cup of coffee or two cups of coffee, the material cost is not much different.

This may not even be a bet, but people who have made their own coffee will understand. I bought a bag of 88 pieces of coffee powder at Starbucks and drank it for more than a month every day. Plus electricity, water and packaging, the cost of a cup of coffee will never exceed 10.

Luckin coffee, more than 20 cups. kneel down

Some people will say that using SF to deliver goods has high transportation cost!

This is their second bet.

2. The logistics cost generated by each order should be controlled within a tolerable range.

The distribution area of offline Ruixing Coffee Shop is not large, which may be within 3 kilometers, so they control the cost of distance very well. Each order is delivered in a short distance, and the delivery fee will be exempted when it is over 35, and the delivery fee will be in 6 yuan.

Under this constraint, there will be more large single cases of Luckin Coffee, many of which are sent to office buildings. A group of white-collar companies distributed coupons and placed orders collectively, which greatly saved the logistics cost, that is, the delivery fee was exempted, and the cost borne by Ruixing was not high.

From these two points, it can be seen that Luckin Coffee seems to be a fool with a lot of money, but he has made great efforts to control the cost of marketing activities.

Many friends saw the Luckin coffee model and wanted to copy it, but before copying it, they should make a detailed cost accounting of their products and marketing methods.

First of all, is your product repurchase rate high?

Some products may only need to buy one piece for a lifetime, such as some small household appliances, which have a low repurchase rate and can only be profitable by horizontally expanding categories. If you only have one or a few products, or the cost is relatively high, don't engage in Luckin coffee.

Secondly, is the marginal cost of the product very low?

If you don't drink an extra glass of water like coffee, but give a low-priced commodity at a loss, then don't play this game.

Finally, the distribution cost needs to be calculated carefully.

In fact, I haven't figured it out yet. How do shops selling trinkets on Taobao survive? After all, the package prices of Jiangsu, Zhejiang and Shanghai Express are all in 5 yuan.

After completing the self-examination, after the brutal push of Luckin Coffee, it is possible to attach importance to both bonuses and money, otherwise it is likely to become suicide marketing.

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