Group Discussion Week 10_Group 8

Group 8

LI Jiayuan

TENG Qianyu

ZHANG Yujia

ZHANG Leyan

ZHENG Xiaoyu

Introduction

The co-branding of Maotai(spirit) and Luckin is successful. These two brands cooperate to introduce a new flavor drink, which contains the component of both brands' classical product. This new product achieved high sales and stirred rich discussions on social media platform, greatly enhancing brand awareness of both brands.

Why successful?

1.        Expand target customers: The target customers of Moutai and Luckin are less closely aligned. Luckin's customers are younger, while Moutai focuses on high-end groups. Co-branding can make young customers of Luckin understand and appreciate Moutai better. At the same time, Moutai consumers, most of whom are middle-aged, know and take the initiative to try Luckin coffee.

2.        Brand Image & Social Media Buzz: The co-branding generated significant social media buzz and discussions across various platforms. Luckin leveraged the prestige associated with Maotai and created a halo effect, elevating Luckin's perception. Meanwhile, Maotai rejuvenated and modernized the brand image.

3.        Increase Product Sales: The success of this collaboration is not only reflected in the heated discussions on social media but also directly in product sales. Moutai saw an increase in the procurement volume of its liquor. As for Luckin, it sold more than 5.42 million cups of the alcohol-infused latte on the first day of its launch, setting a new sales record for this coffee chain.

What can be done better?

The collaboration between Luckin Coffee and Moutai initially attracted a large number of customers to buy the single alcohol-infused latte with the contrast between low-priced coffee and high-priced liquor and extensive promotion. However, its persistence is insufficient. The main problem lies in the fact that the taste may not be universal, and there is a lack of taste optimization and product iteration based on feedback. Relying only on temporary novelty is difficult to maintain consumers' long-term interest. To improve persistence, in-depth research on consumers' taste needs should be conducted, and the taste of alcohol-infused latte should be optimized. More flavored collaborative coffee products and peripherals should be launched. At the same time, pay more attention to quality and taste in marketing, improve the consumption experience to encourage repeat purchases.