Trader Joe's Case Memo

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Trader Joe’s Case Memo

America’s favorite supermarket, according to Market Force Information, is the alternative underdog, Trader Joe’s. Trader Joe’s positions itself as a cheaper alternative to Whole Foods, but as providing better quality and more natural food than a Kroger or Walmart. It targets college educated consumers who value their health and a value a bargain. This “niche” market is clearly larger than you may believe because the company is experiencing rapid growth as it expands across the nation. The cult following for Trader Joe’s distinguishes it from its competition. This cult is projected to grow as upcoming generations become more and more price sensitive. Loyal shoppers will camp out overnight for a grand opening or, in one example, write 50 letters to the headquarters pleading for a store opening in their state. This is surprising because their target shopper, Millennials, “show little retailer loyalty” when it comes to where they get their groceries. Trader Joe’s has obtained this loyalty through their Every Day Low Pricing Strategy, constantly changing inventories, and superb store environments. While most grocers rely on coupons, commercials, social media, and other traditional forms of marketing and advertising, Trader Joe’s does not. They do not print coupons nor do they advertise promotions. They have no forms of advertising other than some radio ads that feature store employees rather than actors and their Fearless Flyers which are

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