Marketing Plan for Luckin Coffee's Jordan Market Expansion Strategy

This report outlines a comprehensive marketing plan developed for Luckin Coffee, a Chinese coffee chain, to facilitate its expansion into the Jordanian market. The plan begins with an executive summary and an introduction that sets the stage for the company's market entry strategy. It includes an internal analysis, utilizing a SWOT analysis to identify strengths, weaknesses, opportunities, and threats, and an external analysis, which incorporates a PEST analysis to evaluate the political, economic, social, and technological factors impacting Luckin Coffee. The report also conducts a situational analysis, assessing competitors and consumer behavior, with a focus on the preferences and habits of the Jordanian coffee market. SMART objectives are defined to guide the marketing efforts, followed by the identification of the target market and the development of a detailed marketing mix, encompassing product, price, place, and promotion strategies tailored for Jordan. The plan further outlines an implementation and control section, including a marketing implementation plan, evaluation methods, and budget/sales projections, along with a sales forecast and break-even point analysis. The report concludes with a summary of key findings and recommendations, supported by relevant references. The aim is to provide a robust framework for Luckin Coffee to successfully penetrate and compete in the Jordanian coffee market.

Running Head: Marketing 0
LUCKIN COFFEE
Marketing
(Student Name)
2/13/2019

Marketing 1
Executive Summary
The marketing strategies play a prominent role in the expansion of business in the new
market. one of the leading shops in China, Luckin serve a variety of products to their
consumers with the innovative manner that enhances the goodwill of Luckin in such a
competitive market. Luckin has a target to compete Starbucks for which they are planning to
expand their business in Jordan. In the report, there is a detailed analysis of the market that
would help Luckin to target in such market according to the taste and preference of
consumers. Moreover, strengthen and opportunities are also recognized to cope up with the
challenges of weaknesses and threat faced by Luckin. There are certain strategies that can be
adopted by Luckin to target their consumers in a more effective and efficient manner

Marketing 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Internal Analysis........................................................................................................................3
SWOT Analysis......................................................................................................................3
External Analysis.......................................................................................................................4
PEST Analysis........................................................................................................................4
Situational Analysis...................................................................................................................4
Competitor’s analysis.............................................................................................................4
Consumer behaviour...............................................................................................................5
SMART Objectives....................................................................................................................5
Target Market.............................................................................................................................5
Marketing Mix...........................................................................................................................6
Implementation & Control.........................................................................................................7
Marketing Implementation Plan.............................................................................................7
Evaluation and Control...........................................................................................................8
Budget/Sale projection...............................................................................................................8

Marketing 3
Sales Forecast.........................................................................................................................8
Break-Even Point....................................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................10

Marketing 4
Introduction
Luckin Coffee is one of the internet companies in China that strives to make coffee
consumption seamless across the online as well as the world of online. Luckin is Beijing
Based coffee shop that offers American style coffee with a variety of bakery items. It was
launched in the year 2018, January. They used mobile technology in their business to target
their consumers. The company emphasizes its carefully selected Arabica beans, blended by
their team of World Barista Competition champions from Italy, Japan, as well as China. The
coffee shop operates three distinct types of stores which include large flagship stores with
seating as well as an appealing ambiance, smaller typically located in the lobbies of office,
designed majorly for self-pickup and take away kitchen which majorly operates to fulfill and
deliver online orders (Reuters, 2018)
Luckin Coffee has planning to expand their business in the Jordan Market to make their
existence at a global level. In the following part, the marketing plan will be prepared for the
Luckin that would help them to enter new market in an effective manner.
Internal Analysis
SWOT Analysis
It is one the useful technique to understand the strength, weakness, opportunities, as well as
threats of the company. In other words SWOT analysis is a framework that is used to
evaluate the competitive position of the company. The SWOT Analysis of Luckin Coffee is
explained in below points.
Strengths Weaknesses

Marketing 5
- Luckin offers a wide range of
products to their consumers with a
unique style and pattern.
- The status of the product name, as
well as image of Luckin, allows the
reorganization of brand and retention
of consumers.
- Luckin has highly skilled as well as
professional chefs which lead to rapid
and stable growth
- The rice of their coffee is high due to
rise in the cost of production
- Due to the reason, Luckin has huge
number of stores that lead to the
scramble of consumers in each store.
Opportunities Threats
- Luckin has an opportunity to expand
their business in the global market, as
the coffee is more popular among the
young generation.
- The modern lifestyle of a teenager, as
well as adults, supports the
proliferation of the western coffee
shop that can be easily targeted by
Luckin.
- The coffee market at the global level
is very competence sector that can be
the biggest threat for Luckin.
- In the market, most of the consumers
still dedicated to tea that is the threat
of the company to target those
consumers (The Straits Time, 2018).

Marketing 6
External Analysis
PEST Analysis
A PEST analysis is the analysis of the macro environment which greatly affected the
performance of the companies. PEST is the acronym for the Political, Economic, Social, as
well as Technological factors of the external macro environment. The PEST analysis of
Luckin Coffee is explained in below points:
Political
- Jordan suffers from weak political reforms in the country
- The government of the country faces protest on social justice
- The stability factors of the country is still an issue of concern (Szabo et al., 2016)
Economics
- The nation has a well-built surroundings for business that driven elevated FDI inflow
in the nation
- The GDP enlargement of the company went down considerably during the period of
slump.
- Jordan is likely to produce at a quicker rate in the near future after recovering from
Euro crises (Berisha Qehaja, Kutllovci, and Shiroka Pula, 2017).
Social
- The media outlet plays a vital role in influencing the opinion of the public. in Jordon,
both social media and traditional media are rapidly growing that would give efficient
marketing network to Luckin

Marketing 7
- Distribution of income is another factor that Luckin need to look at it to position their
provisions. Coffee is additional of a lavishness creation, therefore; it is folks place or
people with the mainly quantity of throwaway revenue to use (Mauseth et al., 2016).
Technology
- In the short-term period, Luckin needs to recognize the largely well-organized
software upgrades to use that would help in keeping with the competition.
- The country positioned as the 9th best outsourcing objective at the global level which
represents that Jordan had one of the mainly favorable big business climates, with an
cultured inhabitants (Noori, 2018)
Situational Analysis
A situational analysis is one of the effective method that is used by the company to analyse
their capacities, potential consumers as well as business environment according to which they
would able to generate an appropriate marketing strategy to apply for their business.
Competitor’s analysis
There is a huge competition in the market of Jordan due to the high demand for coffee by the
consumers. Rivalry is progressively rising next to Luckin each year as the business grows.
The competitor looks to increase a benefit by cutting cost, initiation a competitor
manufactured goods, violent development of manufacture to enhance the market share
(Saidat, 2018). One of the major competitors for Luckin will be Starbucks, as they have
earned 35% of market share in Jordan that helps them in enjoying a competitive advantage
due to their goodwill and brand. The other competitors are Afra Café, Cafe Strada, and Costa
coffee. They have opened their outlets at the approachable market through which, the

Marketing 8
consumers get attracted towards them in an effective manner and efficient manner (Rjoub,
2016).
Consumer behavior
The coffee plays a prominent role in the country Jordan as it is a great deal additional than
just a infusion from the individuals in Jordan. It is the symbol of admiration as well as a way
to carry the people together. The black and cardamom flavored Arabic coffee also known as
qahwa sada which is known as a welcome drink, is intensely embedded in the civilization of
Jordanian. Portion coffee and tea to the guest is a main part of the Hashemite Kingdom war
generosity.
The consumers in Jordan are price sensitive, however; their behavior is changing rapidly to a
point where most people of Jordan spend more amount than their income. The young people
cover 60% of the population and they find if technological innovation as well as spends a
huge amount of their income on innovative products with taste (Alzubi, Alkhawlani, and El-
Ebiary, 2017).
SMART Objectives
Specific
 Increase Satisfaction among consumers
 Compete Starbucks in the market
 Reenergize with innovative products
Measurable
Luckin has an objective to achieve 90 percent of satisfaction of consumers and enhance their
market share by 40% in the new market.

Marketing 9
Achievable
The professional of Luckin has agreed to enhance the sale by 30 % which would support
Luckin to achieve 75% of their targeted objectives.
Realistic
Jordan has great business opportunities that enhanced the purchasing and consumption power
of the individuals that would help Luckin to achieve the desired goal.
Timely
Luckin will achieve the targeted objective with four years which is enough to meet the need
of establishing deadlines as well as to meet their marketing objectives (Moore, 2017).
Target Market
 Luckin will offer a wide range of products that will be suitable for the consumers of
Jordan. According to the analysis, Luckin will target the young professional because
they are the majority westernized, wealthy as well as open-minded. They are seeking
for somewhat that is in style rather than a normal custom.
 An additional objective collection for the utilization of coffee will be returnees, who
studied in the western nations and come back to Jordan. Hey are most wealthy as well
as they are familiarized to gathering the coffee shops.
 Ex-pats are one more objective collection. The recent business enlargement in Jordan
paying attention huge investment from overseas companies. The Ex-pats are used to
sip coffee during their meeting secession as well as their number increases every year
that would be the target for Luckin café in Jordan.

Marketing 10
 Luckin will also target middle class and upper middle-class for their products due to
the reason they have a great spending capacity in innovative products (Morgan et al.,
2018).
Marketing Mix
Product
Luckin is a well-known established brand in China that signify luxury, perfection, as well as
excellence. Therefore, Luckin will cater quality products to consumers to make their
reorganization in Jordan. The ambiance of the shop will be trendy as well as comfortable.
The consumers will have a nice time in the environment of flashy. They will cater a variety of
products to their consumers especially espresso, ristretto, espresso doppio, Americano, flat
white, cappuccino, macchiato, coffee latte as well as mocha.
Luckin will also add some other products to expand their services such as Passion Fruits,
Lemon Vodka and Black velvet. They will also cater handmade chocolates to the consumers
that made them unique in the market of Jordon. To be a premium product in the coffee trade,
Luckin aims at high standards, introduction of innovative products as well as provide
excellent service that will be combined with the unforgettable experience.
Price
Luckin will adopt bundle pricing strategy in Jordan to target their consumers. It is the concept
in which the multiple products will be provided at a lower price that consumers would face if
they will purchase each item individually. It will force the consumers to purchase more
products to taste which will help them to attract in a more effective manner.

Marketing 11
To keep the competitive edge, Luckin will also began to offer $2 bottomless cup of coffee
that can be refilled any number of times as well as 50 cents less than any other products of
Luckin
Place
The coffee shop of Luckin will be at busy intersections of Jordan as well as at the areas where
office buildings, as well as universities, are located to target them more effectively and
efficiently. The main aim of Luckin in next three year is to have more than 20 coffee shops in
that city.
The primary motive of Luckin is to locate them in the highly visible locations as well as
opened in cluster such as near Mecca Mall, Arabela that has a crowded place which is
effective to target consumers
Promotion
The media coverage in Jordan is very effective that would help Luckin to promote their
product in a more effective manner. They will adopt social media and tool to target their
consumers, as people of Jordan are more active on social media. Luckin will target their
consumers through Facebook, Twitter, LinkedIn, and YouTube that are mostly used by the
young generation. They will also provide discounts to their consumers to force them
repeatedly visit in their outlet (Bahadir, Bharadwaj and Srivastava, 2015).
The promotional offers will also provide to the consumers such as they would able to avail
free coffee in Luckin, if they refer it to any new person or to the new mobile registrants. The
promotional offers will also provide on particular day in which, the time period between 4-7
get the offer buy one get one free that would help them in receiving the main in lean time
period.

Marketing 12
Implementation & Control
Marketing Implementation Plan
Activities Period of Time Specialist Growth
Objective
Concerned
Unit
Business Plan
Initiation
8 weeks Marketing
Supervisor
Enhance the
number of
innovative
flavors and
products.
Department of
Marketing
Analysis of
Market
5 weeks Manager of
Research &
Development
Analyze the
consumer
behavior to
target them
more effectively
Department of
Research &
Development
Budgeting Plan 4 weeks Finance
Manager
Financial
requirement
analysis to open
outlets in the
new areas
Department of
Finance

Marketing 13
Start of Process
of Production
8 weeks Sous-chef Focus on quality
of Coffee
Department of
Cooking
Advertisement
and Promotion
8 weeks Manager of
Marketing
To spread
awareness about
the product in an
effective manner
Department of
Marketing
Sales 6 weeks Manager of
Sales
Selling their
services online
and offline to
exploit the
market in an
efficient
manner.
Department of
Sales
Evaluation and Control
Luckin will open two-ay communication system that represents the interpersonal side of the
relationship which promotes the flow of idea as well as suggestions with innovation.
Moreover, Luckin will be equipped with the two-way data link system which permits them to
send the updates on the daily tally of the sales. Such information will provided Luckin with
the information on the percentage of consumption of products as well as the success rate of
the promotion with the marketing program. The sophistication of such information provides

Marketing 14
the company with the data on the adjustments; modifications as well as other changes which
might needed to enhance the effectiveness of such programs.
Budget/Sale projection
Sales Forecast
Calculations of Sales expansion rate
Fiscal year ends in December. EUR in
millions except per share data.
2019
-12
2020-
12
2021-
12
2022
-12
Average
expansion
rate
Income expansion rate
0.29
%
16.38
%
14.05
%
9.99
% 10.18%
Calculations of total expenses expansion rate
Fiscal year ends in December. EUR in
millions excluding per share data.
2019
-12
2020-
12
2021-
12
2022
-12
Average
expansion
rate
Total Cost of Goods sold
3.51
%
14.95
%
13.31
%
6.07
% 9.46%

Marketing 15
Total operational charge
1.31
%
18.60
%
12.11
%
8.88
% 10.22%
Break-Even Point
Cost-Volume-Profit Relationships –
Breakeven
Per Unit
Amounts
Selling price
$
128.00
Variable costs
$
35.00
Contribution margin
$
93.00
Total fixed costs*
$
5,00,000.00

Marketing 16
Breakeven in units 5376.34
Breakeven in dollars
$
6,88,172.04
Note: Based on
assumptions
Conclusion
From the above analysis it can be concluded that for entering the new market, there is a huge
requirement of preparing a healthy marketing plan that would assist them to enter in such a
market in an effective manner. One of the leading coffee shop Luckin is planning to expand
its business in Jordan to expand its business in the global market. Therefore, it is required for
Luckin to analyze the market in a more effective manner to achieve success in such a market.
Moreover, they are also required to use their strength in the new market to target the new
consumers in an effective and efficient manner.

Marketing 17
References
Alzubi, M.M., Alkhawlani, M.A. and El-Ebiary, Y.A.B. (2017) Investigating the factors
affecting University students’e-commerce intention towards: a case study of Jordanian
universities. Journal of Business and Retail Management Research, 12(1).
Bahadir, S.C., Bharadwaj, S.G. and Srivastava, R.K. (2015) Marketing mix and brand sales in
global markets: Examining the contingent role of country-market characteristics. Journal of
International Business Studies, 46(5), pp.596-619.
Berisha Qehaja, A., Kutllovci, E. and Shiroka Pula, J.(2017) Strategic Management Tools
and Techniques: A Comparative Analysis of Empirical Studies. Croatian Economic
Survey, 19(1), pp.67-99.
Mauseth, K.B., Skalisky, J., Clark, N.E. and Kaffer, R. (2016) Substance use in Muslim
culture: Social and generational changes in acceptance and practice in Jordan. Journal of
religion and health, 55(4), pp.1312-1325.
Moore, J. (2017) Setting SMART objectives. Headteacher Update, 2017(6), pp.14-14.
Morgan, N.A., Whitler, K.A., Feng, H. and Chari, S. (2018) Research in marketing
strategy. Journal of the Academy of Marketing Science, pp.1-26.
Noori, A. (2018) Attitudes of Afghan EFL Lecturers Toward Instructional
Technology. TechTrends, pp.1-9.
Reuters. (2018) Coffee startup Luckin plans to overtake Starbucks in China this year
[Online]. Available from: https://www.reuters.com/article/us-china-coffee-luckin/coffee-

Marketing 18
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on 13/02/19]
Rjoub, A. (2016) The relationship between heritage resources and contemporary architecture
of Jordan. Architecture Research, 6(1), pp.1-12.
Saidat, A.M. (2018) Jordanian Arabic: A Study of the Motivations for the Intentionality in
Dialect Change. Theory and Practice in Language Studies, 8(6), pp.580-587.
Szabo, K.Z., Jordan, G., Petrik, A., Horváth, Á. and Szabo, C. (2017) Spatial analysis of
ambient gamma dose equivalent rate data by means of digital image processing
techniques. Journal of environmental radioactivity, 166, pp.309-320.
The Straits Time. (2018) China's Luckin Coffee is pouring millions into overtaking Starbucks
[Online]. Available from: https://www.straitstimes.com/asia/east-asia/chinas-luckin-coffee-is-
pouring-millions-into-overtaking-starbucks [Accessed on 13/02/19]