TRADER JOE’S – INDUVIDUAL ASSIGNMENT 1 Part 1 – Introduction What Joe Coulombe did was opening an ordinary supermarket into the industry but the strategies he took were separating the Trader Joe’s from its rivals. What he did was to offer products targeting sophisticated costumers who were searching for good bargains. The offerings of Trader Joe’s were so unique which are not found at rival shelfs. Another crucial decision he made was to take advantage of recent environmental movements such as the rising trend of costumers searching organic foods. The company also decided on selling private labelled products with lower prices than other brands of the same product. Moreover, he also decided to sell nonfood items such as music albums. Coulombe …show more content…
Wal-Mart has been experimenting in smaller places rather than usual big cities. Wal-Mart proclaimed that they are planning to open %40 of their store openings over next years with small store formats. The SWOT analysis indicates us relevant information about the current threats of Trader Joe’s. The threat analysis indicates that there is huge rivalry in the market, having no technology and substitute companies creates big threat. The substitute threat and brand name items are concern for Trader Joe’s and competitive advantage. Brand loyalty is a concern of other competitors but Trader Joe’s. Having no brand products can become a strategic …show more content…
The happiness of staff helps create loyal and hardworking employees and this is very hard to build for many communities. The culture of Trader Joe’s is unique in terms of organization. The Culture of happiness is a key and at the same time an evidence of sustainable success. But as the community gets bigger and bigger it may be challenging to sustain it in the future. 4 - How would you modify Trader Joe’s strategy going forward? In my opinion, one of the concerns of mine about Trader Joe’s is to eventually gat harm because of not having enough technology inside the company. As technology improve each day, it creates a simple world than before. The technology eases our life and so it should do the same to Trader Joe’s in terms of some operational activities. Self-checkout kiosks vanish endless queues and speed ups the process of shopping both for costumer side and seller side. Considering using more technology inside Trader Joe’s would also speed up business inside Trader Joe’s. 5 – Conclusion This paper has revealed the most powerful and weak spots of Trader Joe’s. Supermarket industry is currently alive and competition between firms are very contentious. Some markets choose to provide the lowest cost possible to their costumers and some of them choose to sell spatialized products to their customers. The SWOT analysis provided useful clues about the future of
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Marion Nestle deftly writes how supermarkets use various strategies and techniques in order to gain maximum profit as well as sustaining customer interest at the same time in her article, “The Supermarket: Prime Real Estate.” This issue is compelling yet perhaps obscure within many people’s lives as they often naturally regard supermarkets as locations to buy food and necessities. Nestle is conspicuously trying to change that simplistic perspective as she claims supermarkets are in fact the ones in control and that the shoppers are victims of buying “too much”, adding to one of America’s widespread health problems, obesity. Through relevant data, outlines of marketing strategies, and effective explanation, Nestle presents a matter that readers
Their idea is that convenience is what Bob’s was trying to sell in a price conscience market that was focused on saving money because of the economic down turn in 2008. (Parnell, 2014). In the article, “The Changing Face of Food Retailing” the article describes the economic change that is penetrating the country described as “The rapid spread of supercenters and deep-discount food retailers illustrates Porter’s threat of the entry of new competitors, after supermarkets had been the predominant food retail format for several decades. The growth of private-label products reflects both Porter’s risk of substitute goods and the power of product buyers. In terms of technology, the analysis of the point-of-sale (POS) data generated by checkout scanners and barcodes has helped shift bargaining power from the product suppliers to the increasingly-concentrated retailers” (Senauer & Seltzer, n.d.).
The experience of walking into a grocery store is one that a person will never forget. The bright fluorescent lights. The squeak of the wheel of the shopping cart. Thousands of alluring products catching the eye as one walks by. This reaction is hoped for by researchers who devote their lives to the profit of supermarkets around the world This is what Marion Nestle’s essay, “The Supermarket: Prime Real Estate” is all about.
The services provided include employees giving out free samples, assisting customers with questions, and ringing customers up at the end of the trip. Coulombe founded Trader Joe’s with the idea that it serves the “overeducated and underpaid” people. The primary target market is comprised of Generation Y, with target consumers ranging in ages from 20-35 years old. These individuals are typically well-educated, ecologically conscious people who tend to be particular about their consumer preferences. They seek a healthy lifestyle, support local production of food, and are willing to invest in grocery stores that cater to their specific wans or needs in regards to their choices of consumption, whether it be organic, vegan, vegetarian, gluten free, fat free, or kosher.
In the small rural area there are two grocery stores that are already present. The main two competitors will be Cash Saver and Marketplace. Cash Saver has established themselves as the cheaper of the two stores, while Marketplace has established themselves of higher quality products. The town has two local steak houses that both buy their meat from Marketplace. One of the first obstacles that Trader Joe’s will face is gaining the trust of the local restaurants.
There have been several economic changes that will impact Bob’s Supermarket, but there probably is none bigger than the looming recession (Parnell, 2014). Bob knows that customers usually turn towards low cost providers when budgets are tight and a number of the larger employers in the region will likely have a difficult time due to problems in the automotive industry. Walmart already attracts more than half of the grocery shoppers in both Hanover and Madison and the recession is likely to add to that total or shift a number to even lower prices that can be found at Aldi. Another economic issue impacting Bob’s Supermarket is the rapidly increasing minimum wage (Parnell, 2014). Minimum wage has jumped twenty seven percent in the past 2 years
Consumers looking to save money and shop at a food market that has that hometown feel need look no further than Aldi or Trader Joe’s. Each store offers unique products ranging from organic, gluten free, store-brand, and name-brand products. While it is true that Aldi and Trader Joe’s are owned by members of the Albrecht family, they are not sister companies. I visited the new Aldi location in Wentzville, Missouri and spoke to the manager of the store who gave me this background information about the two companies. Aldi is a German based company that has stores in multiple countries, while Trader Joe’s is only found in the United States.
Stores need to focus on meet customer’s expectation and to win back their trust and create a strong brand loyalty. Also, because competition is already high, incumbents can use more of its financial resources to create stronger barriers for new competitors or to merge with companies that help to create more value to the overall company
Though Bob reports his staff’s polite and caring demeanor are a large part of the attraction to his supermarket, socio economic issues related to the market downturn has made the fact, Bob’s milk for instance is $4.09 per gallon as compared to competitors at $2.32, $2.09, $2.99 to name a few, and this relates directly
The Supermarket: Prime Real Estate Marion Nestle Unhealthy food choices are becoming the number one option for people in America. Unhealthy foods come quick and cheap making it easier to get access to and putting it at many Americans first choice. Cheeseburgers cost a dollar and you get it under two-minute, while apples cost fifty cents more you have to search and find a grocery store which isn’t conveniently placed on every corner.
In today’s market, Walmart and Target are two of the top competing companies within the market system. According to Loudenback and Lee (2015) research on Walmart and Target stated, “We just released a list of the 50 most powerful companies in America, and Walmart came out on top as the most powerful company in the nation with Target a close second”. Walmart was founded 60 years after Target was founded. The two companies have found different ways and techniques to stay a top of their competitors. Within my SWOT analysis, I plan on pointing out each company’s strengths, weaknesses, opportunities, and threats.
The relatively early introduction of this modern service helped IRMA to become one of the only two main online grocery-shopping services. IRMA’s online grocery-shopping service broke the traditional grocery shopping chain, which we see a potential future progress that IRMA further expand its business via the utilization of Internet. Theoretical Framework: In this assignment we will utilize Michael Porter’s Five Competitive Forces model. The model enables us to have a deeper understanding of IRMA’s competitiveness within the supermarket industry in Denmark and by adding the impact of information system to each forces, we thus have a brand new understanding of the current and potential future impacts of the newly introduced online grocery-shopping service on IRMA.
I performed an SWOT analysis for Grapevine Mills shopping mall to identify its strengths, weaknesses, opportunities and threats. The strengths of the mall is that is an outlet mall, which sets them apart from other malls. Another strength is that it is in a good location, and it has variety of stores, entertainment venues and restaurant’s. The weaknesses of the shopping is for some consumers the mall is overcrowded and the parking backed up on the weekends The opportunities of the shopping mall it that it went through renovations, which included enhancements to the flooring, lighting and group seating throughout the mall.
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
Report 1 1. Introduction The first supermarket of Sainsbury’s was established in 1869 by John and Mary Ann Sainsbury. Sainsbury’s is a multinational corporation (MNC) located in the UK. Its chain was Britain’s oldest remaining main food retailer and a leading food retailer in the UK and the US. “It also operated in financial service and real estate” (Sebora, T., Rubach, M. and Cantril R., 2014).