Co-marketing Strategy and Problem: Case of Luckin Coffee and COCONUT PALM

Abstract

The Internet is becoming more and more important in people’s lives. Nowadays, in today’s marketing methods-based Internet, there is a cooperation method among brands called co-branding. Some brands choose partners entirely different from them to cooperate and launch new products; others prefer selecting some brands in similar industries and jointly developing new products. The case in this paper belongs to the second category. Luckin Coffee and COCONUT PALM jointly launched a coconut milk coffee called coconut cloud latte in the first quarter of 2022. This strategy not only gives full play to the two brands’ market advantages but also attracts consumers to buy through Internet marketing means and excellent packaging design. However, in the actual marketing process, the taste and material preparation did not satisfy consumers generally. These problems can be avoided in early market research. In addition, brands must continue to deliver core values when co-branding and innovate based on quality assurance. Only when each of the above links is effectively implemented can the brand co-branding strategy maximize its effect.