Trader Joe's Case Study

3261 Words14 Pages
Trader Joe’s is a privately owned American specialty grocery store chain that specializes in private labeling and providing a unique and fun shopping experience for their customers. The chain comes from humble beginnings as a convenience store in southern California. Joe Coulombe founded the first store in 1958, but at that time it was called Pronto Markets and it was a convenience store in the greater Los Angeles area. In 1967, the name was changed to what we know it as today by Joe himself. This is when he also decided to change the direction of the business away from convenience store products into more of a grocery supplier (“Our Story”). This change was sparked by the rise of the 7-11 convenience stores. Coulombe was worried that…show more content…
Products like Speculoo’s Cookie Butter, Chili Lime Chicken Burgers, Almond Cocoa Spread, and Spinach and Kale Greek Yogurt Dip are so specific to Trader Joe’s that you will not be able to find them anywhere else, especially because of Trader Joe’s private labeling strategy which is an integral part of their success (Madarang). They also make a guarantee to their customers that all of their foods are GMO free and offer a wide variety of organic and free range products (Armstrong). They’re products allow the customers to feel good about purchasing them and creating that bond with a customer is key to bringing them back to the store (Armstrong). Their formula of offering how value products at a low price creates a winning recipe for the company (Lutz). Trader Joe’s targets the “educated consumer” (Seattlepi). These are the people that not only want to be nourished by their food, but want to learn from it and experiment with products that they cannot find in traditional grocery stores. These types of people appreciate culture, but may not be able to afford to travel so they get a taste of other cultures through Trader Joe’s products (Watson). By having their products in smaller and single serve packaging Trader Joe’s appeals to the single or small family demographic (Watson). They have many pre-made, frozen dinners that these types of consumers can feel good about purchasing and eating because they tend to be healthier and GMO-free (Armstrong). With the
Open Document