Marketing Plan: Luckin Coffee's Strategic Analysis for Jordan Market

This report presents a comprehensive marketing plan for Luckin Coffee, focusing on its potential expansion into the Jordanian market. It begins with an introduction to Luckin Coffee, its objectives, and its current success in China, highlighting its internet-based business model and competitive positioning against Starbucks. The report then delves into a detailed market analysis using various marketing theories and models, including Porter's Five Forces, Ansoff Matrix, TOWS analysis, and PEST analysis, to assess the competitive landscape, growth strategies, and external factors influencing the business. The analysis covers the threat of new entrants, bargaining power of buyers and suppliers, competitive rivalry, and the threat of substitutes. It also explores market development through the Ansoff Matrix and identifies strengths, weaknesses, opportunities, and threats using TOWS analysis. Additionally, the report examines the political, economic, social, and technological factors impacting the business through PEST analysis. Finally, the report emphasizes the importance of resource utilization through planning and provides strategic recommendations to maximize marketing effectiveness and achieve the company's objectives in the Jordanian market. The report concludes with a summary of key findings and recommendations.

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Marketing Plan on Luckin Coffee 1
Table of Contents
Introduction......................................................................................................................................2
Objective......................................................................................................................................2
Analysis Through Theories and Models..........................................................................................2
Porter Five forces.........................................................................................................................2
Ansoff Matrix...............................................................................................................................3
TOWS Analysis...........................................................................................................................4
Pest Analysis................................................................................................................................5
Role of other approaches and skills for utilizing resources.............................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
Marketing strategy play a vital role in the growth and success of any business. Most of the
companies has adopted effective marketing strategies and focus on their strategies to attract
maximum consumers and add competitive advantage in their business. It is one of the effective
key towards the success story of the business (Abdallah and Jaleel, 2015). Lucking Coffee is one
of our internet companies that are situated in China. We lead in the market of China due to our
outstanding performance in the competitive market. We offer American style coffee to our
consumers with a variety of bakery items. It make out coffee shop unique from other coffee shop
in the market. We are Beijing based coffee shop and make consumption of coffee seamless
across the online and the world of online. We make emphasizes it carefully selected Arabica
beans that are blended by our team of World Barista Competition Champion from Italy. We have
already achieved great success in China and now planning to expand our business in new market
which is Jordan to make our existence in the global market. It will make our company more
competitive in the world.
In the following part there will be detailed analysis of the market with the help of marketing
theories as well as models to analyses the market more efficiently and effectively
Objective
The main objective of our coffee shop is to:
 Competing Starbucks.
 Increase market share in the global market
 Satisfying consumers from our services

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 Lead in the global market
Analysis Through Theories and Models
Porter Five forces
The analysis of Porter Five forces is of the essential tools for analyzing the structure of
organization industry in strategic process. It supports the marketer to contract a competitive
environment (Mohammad, 2015). Porter has identified five competitive forces that shape every
industry as well as every market such as:
Threat of Entry
The threat of entry includes the high or low cost of entry, economies of scale, cost of advantage
as well as ease of access to distribution channels. The regulation set by the government of Jordan
to open new business represents high barriers of entry to the local industry. It directly affects the
cost to our company at greater level. Therefore there is high level of threat for my business to
expand in such country (Patil and Bach, 2017).
Bargaining Power of Buyers
The buyers play a vital role in the success of business. The power of the consumers is likely to be
high if a number of conditions are in place. The consumers of Jordan are attracted towards the
low prices products that would affect our business towards the profit margin. The bargaining
power of the buyers is high due to the reason that consumers have huge options to purchase in
the same market that create threat for our business.
Threat of Substitute

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This occurs where there is product-for-product substitution where there is a substitution of the
need. The main substitute for coffee is tea which creates biggest threat of our business due to the
reason most of the co summers in Jordan are addicted for tea that will affect the overall sale of
our business and it also create threat of switching from coffee to tea. The consumers will not take
time to switch their taste that affects our business at greater level (Tobey et al., 2016).
Competitive Rivalry
The market of Jordan has involved huge competition due to the reason of high demand of coffee
in the market. The competition is progressively increasing next to Luckin each year as the
business grows. The competitors will affect the profit margin of my business as they look to
increase a benefit by cutting the cost that attracts maximum consumers towards the products of
our competitors. The main competitors for our business will be Star Bucks, Costa Coffee as they
have huge market share in the global market and also maintain brand in the competitive market.
The other local competitor will be Café Strata, Afra Café. They manage their shop in the
crowded places that attract maximum consumer towards their products. It is one of the major
threats of our business in the market of Jordan.
Bargaining Power of Suppliers
If the market is dominated by few large suppliers rather than numerous fragmented sources then
the bargaining power of suppliers is supposed to be high. There is huge competition in the
market for suppliers as well that forces them to sell their product at reasonable prices to the
coffee shop. It represent that the market of Jordan have low bargaining power of suppliers due to
high completion among them. Although, suppliers are also have certain amount of power, which
is limited. With our business being the most famous specialty coffee shop in China and still

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planning to expanding, we can still be requiring the coffee beans for some time. We basically
buy our beans from other country that did not affect the bargaining power on our business at any
level (Hatheway, Kwan and Zheng, 2017).
Ansoff Matrix
It is one of the strategies planning tolls that provide frameworks to support the managing of the
company as well as marketers devise strategies for growth in future it include four different
growth strategies such as market penetration, market development, diversification as well as
product development. Our business will cover the following part:
Market development: in such strategy the main goal of the company is to enter in a new market
with existing product. Our business has adopted such strategy. We are entering in the new
market which is Jordan with our existing product due to the reason we are specialist in our
product as well as have deep knowledge of such process that would help us to attract new
consumers with our existing product in the market. The expansion of business helps in producing
new existence in the global marker. In the recent, we are reviewing as well as building the
business through new geographic takes as well as looking for new other cities as well (Key and
Czaplewski, 2017).
Diversification: it is one of the broader concept in which the individual enter in the new market
with their new products to achieve more growth in the market. Diversification of business is one
of the effective manners to enhance the overall performance of business at greater level. Our
Coffee shop will grow by developing new business of equipment in the market. We will share
espresso makers, teapots; tea kettles as well as other coffee makers with other related
accessories. Such products will be new to our company. We have planning to target those

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peoples who like to make tea or coffee or for those people who do not have a time to go to the
shop. The main reason to introduce new product is to attract maximum consumers in the new
market and make our business unique from our competitors at greater level (Büyüközkan, Mukul
and Uztürk, 2016).
TOWS Analysis
The TOWS analysis is majorly applied to summarize the internal strength as well as weakness of
the company with external opportunities and threats. It is applied to highlights four brad
directions from which the possible strategic alternatives can be drawn.
Strength (S) Weakness (W)
Opportunities (O) Using the strength to
capitalize on available
opportunities (SO)
Cope up with the weakness
with the help of opportunities
(OW)
Threat (T) Application of strength to
avoid threats (TS)
Reduce weakness to avoid
threats. (TW)
Strength opportunities Strategies

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 The company will market the brand heavily in the limited penetrated spaces. We will use
our innovative products to extend the presence in the emerging economy.
 We will have a planning to expand our process of product mix without compromising
with the quality of the product in effective manner.
 We have a planning to partner with other well-known brands in the market of Jordan to
penetrate the market at faster pace. It will create mutual benefits for both from each other
capabilities (Baltes, 2015)
Weaknesses Opportunities Strategies
 Most of the consumers are attracted towards the low price products therefore we will also
release medium prices products to attract the middle class consumers at a greater number
as well as increase sale in Jordan (Malysheva et al., 2016)
Strength Threat Strategies
 As I can suggest that the coffee shop should focus on marketing as well as in advertising
their products in the market to attract as well as retain maximum consumers towards the
business that help in decreasing the competitive pressure in the new market.
 Our company will market to the millennial generation to capitalize on altering the trends
related to demographic.
 In the new market we will market our ethical image of the business that provides the
competitive advantage to our business in effective and efficient manner.
 Our business will advertise the quality of products to differentiate from competing the
brands as well as that help in reducing the challenges that can be occur due to the
imitation (Flint and Schumann, 2017)

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Weaknesses Threat Strategies
 We will introduce innovative products in our coffee shop to retain the existing consumers
as well as to attract the consumers that mostly prefer tea.
 We will release low price products to our consumers to minimize the cost of challenge
from other competitive brands in the market (Baker, 2016).
Pest Analysis
It is one of the tool through which the macro environment can be analyzed. It greatly affected the
performance of the company at greater level. PEST analysis includes Political, Economic, and
Social as well as Technological factors:
Political
The stability level of the country is poor that made the government of the country as a weak
political reform. As the government of the country faces the protest on the social justice that
represents the political environment of the country is not favorable. They have a great
influencing power that affect the overall business of the country at greater level.
Economics
The economic condition of Jordan is stable. The country has well-built surroundings for the
business which represent elevated FDI inflows in the country. Moreover, during the period of
slump, the GDP of the country went down.
Social

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The living standard of individual in Jordan is average. They have low spending level ta other
countries. The consumers are seeking for innovative products that are not compromised with the
environment. It the country, the social media as well as traditional media are rapidly growing
that can provide new market to the business.
Technology
The country has lag of technology advancement that would affect our business due to the reason
it would increase cost to our business as we need to port the advanced technology from other
countries (Pedersen, Richter and Arranz-Otaegui, 2016).
Role of other approaches and skills for utilizing resources
The skills, knowledge and other approaches play a vital role utilizing the resources. The
marketing can be function effectively if the resources are utilized in effective and efficient
manner. There is certain manner through which, the company can effectively utilize resources
for marketing as they are explained in below points:
Plan to Plan
Planning is one of the effective tools when it comes to being more efficient. Before entering in
the new market, our business will be done with proper planning. For effective resource
management, it is required to plan the business at the initial level. For planning, the project will
be divided into different stages such as
 We will identify the resources that are needed for the completion of project. The list will
be prepared of the resources that are required in our business.

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 Analyze as well as will put up an estimated time of every resources that are required and
their role in completion of ta particular task
 Will go through the outline of the entire projects as well as finalize the resource that are
required in the process of marketing (Fan, Lau and Zhao, 2015)
Take a Systematic Approach
One of the most effective manners for using the resources for marketing is by taking the
systematic approach which includes:
 We will set the base line for our business in which area we need to advertise our products
 We will benchmark the performance of the individuals so that they can work in more
effective manner
 Will form the action strategy
 Observing as well as reporting the task that we will have done
 At the end reviewing the action plan as well as performance to evaluate the effectiveness
of marketing (Järvinen and Taiminen, 2016)
Use technology as possible
In the recent most of the individuals are available on the platform of social media that can be
effectively used by our company to target them in more effective manner. They are the main
sources of targeting the consumers in more effective and efficient manner (Pisano, 2015).
Use Resource Management Software

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In the process of utilizing the resources in effective manner we will use the resource,
management software. The software can include scheduling the project, generating the work
schedule, producing the weekly schedule and so on (Piercy, 2016).
Conclusion
From the above analysis we can be concluded that marketing strategies play a vital role in the
growth and success of any business. Most of the companies have adopted various strategies to
attract the consumers in effective manner. Luckin is one of the leading coffee shops that have a
planning to expand the business in new market. We have adopted various strategies to enter in
the market. Before entering in the market, our business has analyzed the whole market. The
political environment of the country is not very effective as well as the economic condition of the
country is stable that represent the environment is stable for the business. Moreover, we have
also adopted the strategies that help in coping up with the challenges of weakness and that has a
possibility to face in the market.

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