A Strategic Plan For A Company

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A strategic plan is an important aspect in any business. In order to be successful, a company must have goals, be capable of creating a path to achieving them, and be successful in implementing the strategy to reach their goals. A notable example of a company who has done a good job of implementing an effective strategic plan is Trader Joe’s. Trader Joe’s is a privately held national supermarket chain. According to their website, they were founded in 1958 under the name Pronto Markets. In 1967, they changed their name to Trader Joe’s as well as the way they handled business. They moved from small convenience stores to much larger ones. In the late 60’s and 70’s, they created a distinctive atmosphere where employees wear Hawaiian…show more content…
Simplistically stated on their website, “It’s not complicated. We just focus on what matters — great food + great prices = Value.” Early in their existence, they realized that product and price, components of the marketing mix, were major factors that create and capture value in consumers’ minds. It is their goal to create a good customer experience by offering great food at low prices every day. In order to achieve this, they adopted a good-value pricing strategy. They choose not to mark-up, only to mark-down prices or create a sales event to entice customers to their store. Nor do they require customers to join loyalty programs or pay for memberships. They want every customer to know what to expect: low prices every day. In order to achieve this, when possible, Trader Joe’s buys directly from suppliers to keep costs down and is adamant in negotiations on a price they are willing to pay. For costs savings, they open stores in out-of- the way locations that offer low rent. They have limited product offerings, a manageable 4,000 versus 50,000 offered by most supermarkets, which keeps them from needing larger stores or warehouses for storage. They have created many private label brands which also saves them money. Also, they do not spend much on advertising as they utilize their newsletter, The Fearless Flyer, along with their website to promote products. As evidence of their
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