Trader Joe’s owns 344 food stores in throughout the United States, and is strong example of how to gain the competitive advantage in a large market by embracing their unique approach. In 1967 Trader Joe’s opened their very first store in Southern California. [4] They had started as a convenience store chain called Pronto Markets back in 1958. In 1967 the original founder changed the company’s name to “Trader Joe’s” and opened its doors for the very first time in Pasadena, California. The company holds the upmost pride in the way they service their customers, as well as how they’ve always worked on bringing unusual goods to their wide variety of different customers.
Trader Joe's success can be attributed to its ability to effectively balance its commitment to quality and price with its emphasis on customer pleasure. According to the authors, the company's innovative approach to the grocery industry, which includes the use of private label branding and selective product sourcing, has enabled it to offer its customers high-quality products at an affordable price
The store began its journey in the United States Supermarket arena as a collection of small convenience stores in the year 1950. It has now evolved into a huge conglomerate in the Supermarket industry specializing in food grocery. While the store’s history dates back to 1950, the actual name of the store that is Trader Joe’s, was given in the year 1967, to a store opened in California. This store had quite a few collections on liquor (mostly wine) along with cheese and nuts. The store is well known for its own brand of food items which has the consumer addicted to it.
Approximately 80% of their products are private label because they are bought directly from food producers. Instead of offering multiple brands for each product, Trader Joe’s typically offers one house brand or untraditional local brand. Thirdly, full-time employees make $48,000 per year, and store managers make six figures annually. The main competitors are Whole Foods and Sprouts, followed by all traditional grocery stores. Trader Joe’s has the advantage of everyday low pricing (which is achievable by their private labels) which Whole Foods, Sprouts, and other specialty grocery stores struggle to
Trader Joe’s is a small, American grocery store chain that would benefit from expanding internationally into the Canadian market. As we have seen in recent months, Target Corp. just pulled all of their locations out of Canada, but this is largely due to the fact that their international strategy did not fit well with the Canadian market. This paper will outline why Trader Joe’s is a good retailer for international expansion, why Canada mixes well with their business strategy as a country to expand to, the strategic plan Trader Joes should engage in during expansion, and five strategic recommendations that lead to Trader Joe’s advantages in
Trader Joe 's is a developing chain of supermarkets with a distinction. Whilst not a gigantic chain store, Trader Joe 's accentuates little stores which offer a choice of merchandise hard to discover somewhere else at lower costs. The way that quality merchandise come at such low costs is only one motivation behind why the Trader Joe 's organization has turned out to be so fruitful. From humble beginnings, the organization has now developed into a multi-billion dollar monster.
Trader Joes is an alternative grocery store that offers a more intimate shopping experience. They have been in business since 1967 and have strived to make sure they are bringing the best value to their customers. In my area, Trader Joes directly competes with a Shaw’s Supermarkets as well as a Stop N Shop. Trader Joes differs from the big grocery chains because it offers products from their own line and they can sell different beers and wines. Target audience for trader joes would be people who are sick of the big chains and searching for products that are healthier as well as better quality.
First looking at Trader Joe’s promotional strategy, it is unique and different. The company approaches this strategy very different their other grocers. It is very uncommon you will see Trader Joe’s television commercials or billboards, this believes the best way to promote is word-of-mouth. Trader Joe’s wants the consumer to experience something special when entering their store and they think the best way to pass that experience along is for the consumer to tell their story. The story is more personal coming from a person than being shown on a television commercial.
While the company has been in existence since 1967, they remained in only 15 states by 2001. Since 2001, they are now in 40 states and storefront numbers have gone from around 160 to 418 (Hill, 2017). Between these changed mindsets on the foods people choose to eat and the change in the family work week and the lack of time many have to drive to a specific store, it may be in Trader Joe’s best interest to consider more storefronts and in these other areas in order to increase
While Its competitors ranged from 40,000 to 50,000 square feet in selling space, Trader Joe’s stores preserved a size less than 15,000 square feet. Because of the small size of the stores, it lacked the wide aisles that its competitors had, but that did not hinder its competitive advantage. The small size of the stores allowed a chevron design that helped it differentiate the interior layout of its store and arrange the passageways in a way that let customers see the content of the shelves at their arrival. Uniquely, its small size and chevron design complemented Trader Joe’s unregimented persona and enhanced its unique identity with its customers, which can be credited for an increase in
When going grocery shopping, it’s hard, at times, to decide which store to go to. After evaluating different stores in my neighborhood, I found that Walmart and Kroger rank highest in the areas of convenience, lowest prices, the quality of their meat and produce, and the overall store shopping experience. I like Walmart because, it’s only a few blocks away, and is convenient, especially when I need just a few things like milk, and bread. However, the store is bigger and more crowded than Kroger, and their prices overall are higher than Kroger’s. I believe Kroger has better quality meat, and the fruits and vegetables seem superior.
Advanced technological equipment is being used in larger superstores such as Wal-Mart. Self-service checkouts are being installed to help reduce the time waiting to pay for items, and prevent large lines cluttering store space. Though there are pros and cons for the kiosks, they seem to be here for the long run. A study by Survey Brain showed that the self-service checkout is more popular among people 35 and younger and they also found that 66% of customers want self-checkout options when shopping. Moving forward, new generations are potential new customers.
The biggest differences I observed between the grocery stores I visited were found in the check-out lines. Walmart Neighborhood Market was the only grocery store with a self-check-out which I think is a great feature. Publix and Trader Joe’s each have friendly staff working at each of their check-out lines. In addition to the regular check-out lines, Publix also has an express line which is helpful when you’re checking out with only a few items. Check-out lines are another great opportunity for building social skills.
In all Trader Joe’s is one of the leading super markets in the U.S., but after careful analysis of their operations I believe there are opportunities that are currently being ignored by the company. The company doesn’t need to act on all the recommendations that I made, however it would be in their best interest to do so. Not only would the company grow at a faster pace, but it will make strides in areas that haven’t been occupied before. Despite these current pitfalls, Trader Joe’s still is a popular option in their
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