From setting the world's fastest IPO record to financial fraud, stock price plummeted, suspension of trading and delisting, and a large number of stores closed, Ruixing once fell into bankruptcy from the limelight and its reputation once fell to the bottom.

On June 65438+February 65438+February 7, 2020, Ruixing announced that it had reached a settlement with the US Securities and Exchange Commission and agreed to pay a fee of10.80 billion US dollars, equivalent to about RMB10.20 billion, which is the highest fine in American history!

However, after only 1 year and a half, Rui Xing was "resurrected with blood". According to the latest financial report data of Ruixun, Ruixun 202 1 still made a loss for the whole year, but the loss surface is narrowing. The net income of 202 1 was 7.965 billion yuan, a year-on-year increase of 97.5%, almost doubling.

More importantly, by the end of 20021,Luckin Coffee had 6,024 stores, exceeding Starbucks' 5,557 stores in China. At the same time, the sales of Starbucks stores in China decreased by 65,438+04% year-on-year, and the unit price of customers decreased by 9%, which eventually led to a decrease of 6 points in transaction volume.

So, how did Ruixing "come back to life"? Let's go back to the classic 4P marketing theory and see what changes Ruixing has made.

1, products: return to products as the core, and support word of mouth with explosive products.

We often say: the product is 1 and the marketing is 0. Only by making high-quality products can marketing be infinitely enlarged. Products are the foundation and pillar of an enterprise, and the bridge linking enterprises and users is also products. In the past three years, Luckin Coffee has returned to taking products as the core and propping up its reputation with explosive products.

First, create "no cognitive threshold" coffee

Compared with milk tea, coffee tastes bitter and sour. Except for the first-line consumers who are fully educated, the general acceptance of coffee by most domestic consumers is not high. How to mobilize consumers' subconscious, get rid of the impression that coffee is bitter in consumers' minds, and make young people more willing to try.

Ruixing uses the familiar tastes of mass consumers to "guide" coffee, tap the favorite tastes of mass consumers from the local food culture, and lower the threshold for trying coffee. For example, choose "thick milk", "raw coconut" and "red velvet", which have been loved by mass consumers and have certain basic products. Cooking is an adventure. Everyone doesn't know if something they haven't drunk is delicious, but products with a certain foundation are more likely to win favor, which also improves the acceptance of the public and increases the probability of selling products.

B, forming an explosion matrix

Expand a single explosive into an explosive series, and make a list of Ruixing's explosive series, and you will find that this is simply a "product multiplication table"

Raw coconut × latte series to obtain raw coconut latte.

The raw coconut× ×SOE series, Yunnan raw coconut latte and Yega raw coconut latte were obtained.

Raw coconut × Rena ice series, coconut OK Rena ice obtained.

Raw coconut × meteorite, get raw coconut latte from meteorite.

Strong milk × meteorite, you get a meteorite strong milk latte.

Meteorite × Rena ice to obtain meteorite latte Rena ice.

This is an efficient product strategy: looking for new raw materials, looking for classic product series, constantly cross-combining, getting different explosions, deepening understanding and forming your own explosion matrix.

C. High-frequency innovation: a highly iterative and systematic new product research and development mechanism

Through rapid iteration, use big data to find stable explosive products. In 202 1 year, Ruixing introduced 1 13 new products in one year. Through new product testing, we can get feedback data from consumers' word of mouth, digitize raw materials and tastes, track fashion trends, and constantly iterate out new explosive products.

At the same time, Ruixing's products are no longer limited to coffee, but also include milk tea and light food. And they are also tested and iterated through rapid development.

2. Price: increase pricing to ensure profit rate.

With the guarantee of product reputation, in terms of pricing, Ruixing is constantly raising product pricing, and the unit price of shopping malls and ordinary stores is raised by 2-4 yuan, 1 yuan. While raising the price, it also canceled the previous practice of throwing coupons wildly. On the whole, the actual selling price of Ruixing is much higher than before, which also ensures the profit rate of the brand.

3. Channel: Cost-effectiveness first.

Ruixing's business model has been criticized for a long time. 20 18 some people question the model of Luckin Coffee. In order to catch up with Starbucks, they won a large number of store expansion near Starbucks at a high price, resulting in their own high costs. No matter how well the story of coffee is told, physical stores will eventually return to the essence, that is, costs and benefits.

First, streamline stores

At present, the operation of Ruixing's stores has been greatly improved. Now Ruixing's shop opening cycle is very short, the decoration is simple, the equipment can be disassembled, and it can be opened in a week or two. If the operation is not satisfactory, you can quickly "take the bag and leave". At the same time, the store area is reduced, the rental expenses are reduced, and the personnel are also optimized, which leads to the continuous optimization of the whole single store model.

Streamlined stores are also in line with the consumption trend of modern consumers. After the habit of coffee consumption is gradually formed, more attention is paid to the essence of coffee drinks and the demand for convenience. The consumption scene of "fast coffee" is constantly improving, and the advantages of streamlined Ruixing in the self-lifting mode will become more and more prominent.

202 1, the self-operated store made its first profit, reaching125.28 million yuan. At the same time, as the head brand of cheap coffee under the self-propelled mode, Ruixing's brand influence continues to increase. In the brand preference survey of "Golden Signboard" conducted by China Business News magazine in 20021for 13, the brand preference index reached 5.9 1%, surpassing Mandi (5. 16%), Starbucks (2.88%) and other fine products.

B, start to join

At the beginning of 202 1, Ruixing started the franchise business. By the end of the first quarter of this year, Ruixing * * * had 6,580 stores, of which about three became franchise stores. The first quarter financial report shows that franchise store revenue increased by 239.3% year-on-year to 549 million yuan, of which 366 million yuan came from selling raw materials to franchisees and 66 million yuan was profit sharing.

Ruixing uses franchise stores to quickly occupy the market, while constantly expanding the sinking market.

4. Dissemination/promotion: refine the private domain operation and do everything possible to get customers.

Ruixing has nearly 20 million private domain users, and the number of private domain users has exploded. After users were converted into private users, the monthly consumption frequency of Ruixing increased by 30%, and the number of weekly repurchases increased by 28%.

The core of all this lies in not wasting any opportunity to get customers at every contact point of consumers, and trying every means to get customers and realize the transformation of traffic.

Online, the video number is broadcast live to distribute coupons, and the circle of friends publishes advertisements to attract users in the public domain to become users in the private domain. Then use the WeChat applet to spell out the full reduction, so that old users can drive new users, which not only forms a fission, but also promotes the transaction.

Offline, QR codes can be seen everywhere in the store, including Yi Labao and Xiao Ka. Whether you pay attention to the official WeChat account or join the community, the ultimate goal is to drain the private domain.

Ruixing's comeback against the wind is not an accidental explosion on social media, but a return to the product as the core. Through the adjustment of products, channels, prices and promotions, the core purchasing power is continuously formed by cost, benefit and word of mouth, and the core of the brand-"daily coffee" that consumers can enjoy conveniently is created.