Trader Joe 's Introduction : Marketing Strategy And Competitive Advantage

1180 WordsNov 18, 20155 Pages
Eric Klos MNGT-475 Fall 2015 Common Assignment Dr. Yu Trader Joe’s Introduction Trade Joe’s is known as “the place to go” if you are looking for unique products you won’t find at other grocery stores, don’t mind Hawaiian-shirt-clad employees, and are lucky enough to have one near you! In 2012 Trader Joe’s ranked as the 2nd best supermarket in US according to Consumer Reports, and in 2013 Market Force Information, named Trader Joe’s as the #1 consumer’s favorite grocery store. These achievements are no doubt due to the company’s strategy and competitive advantage. Their strengths and weaknesses are also a critical component to understand when analyzing Trader Joe’s success, as well as its potential going forward. While Trader Joe faces some problems, these obstacles are by no means insurmountable. So how does Trader Joe’s achieve best-in-industry sales per square foot numbers and rank so favorably among consumers? Their corporate strategy of focused differentiation is the primary driving factor behind Trader Joe’s success. Trader Joe’s targets a specific clientele, which described by founder Joe Coulombe is: “...overeducated and underpaid people…” Trader Joe’s has grown a cult-like following of consumers that are quirky, trendy, and are looking for unique experiences. Target Consumer Segment & Strategy This niche clientele is the targeted consumer market for Trader Joes, and because of this, they offer products aimed at the sophisticated consumer interested in a good
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