Trader Joe's Case Study

After reading this it makes me want to be a manager for Trader Joe's. There making a lot of money. But with the workers that work for them there given a lot of benefits with all the health, dental, vision and etc. Also they're given promotions from within philosophy because they're privately own. Also they tell there employees to try the produce so when someone has a question about something they can take them to something that is something there thinking about or better. Trader Joe’s has designed jobs to increase job satisfaction by showing appreciation in providing more benefits to their employees than other chain grocers.

Trader Joe’s is a major food retailer who has developed quite the name for themselves. It has well over 350 stores in over 32 states and is expected to continually grow over the next few years (Bond, 2012). For over 50 years, Trader Joe’s has been providing quality customer services, products and a unique shopping experience for its customers. They have come a very long way from when they first officially opened their doors. Trader Joe’s started when its founder Joe Coulombe wanted to find a way to differentiate his 7-Eleven stores (Schermerhorn, Osborn, Uhl-Bien & Hunt, 2012). In the food retailer industry, Trader Joe’s has developed a process that works well and

Trader Joe’s has great workforce management practices and its employees enjoy what they do. They have cheerful attitudes and are more than willing to assist customers with anything in the store. Trader Joe’s employees are engaged in conversation with the customers that shop in the store and make the customers aware of any new or exciting products from them to try. The positive behavior of these employees is due to the compensation and benefits each employee receives, which is far more competitive than other grocery food stores. Trader Joe’s has also created an environment where employees feel valued and know their opinions matter to the growth of the

One of Trader Joe’s biggest advantages is in their target market. They have found the niche that appreciates higher quality foods but is on a tight budget and Trader Joe’s has managed to provide high quality food that is at a great price. So you end up with the individuals who are health conscious and in college or recently graduated who value a great deal. Trader Joe’s has realized that and has capitalized on this fact by opening in locations that are easily accessible to both students

Trader Joe’s chief executives have been careful in their expanding of the brand to more geographic locations, and they must continue to seek out their target market of “intelligent, educated, inquisitive individuals” and settle around them.

Thirdly, Trader Joe’s stores are small and located in non-prime locations, which holds fixed operating costs at bay. Furthermore, the company is able to generate the industry’s highest sales per square feet in its small sized stores. In an effort to diversify from its competitors, Trader Joe’s also relies on a non-traditional marketing strategy. Completely neglecting conventional marketing techniques like commercials or promotional offers, the company focuses on unique and store specific in-store marketing with its newsletter and the occasional radio ad being its major means of communication with its customers. The Trader Joe’s brand with its vast fan base is naturally another part of the company’s competitive advantage.

One of Trader Joe’s competitive assets is their business model. They open small stores that give their customers a neighborhood feel. Analysts have found that the chain sells almost twice as much per square foot as its main competitor, Whole Foods (INVESTPOEDIA, 2016). This unique strategy allows consumers to view and choose more products in a given area, therefore making them more likely to find what they are searching for. This strategy is sustainable if Trader Joe’s continues to operate in this manner.

Grocery shopping is more diversified and evolved than ever before. Individuals across the nation have access to everything from exotic products to unique delivery services. Often, specialty stores have limited locations whereas specialty services have a limited reach. However, two retailers have expanded to hundreds of locations while adhering to unexpected market positioning for previously untargeted market segments. Whole Foods Market and Trader Joe’s have become household names while also innovating beyond regional and national traditional chains. Despite comparable size in

“At Trader Joe's, our mission is to bring our customers the best food and beverage values and the information to make informed buying decisions. There are more than 2000 unique grocery items in our label, all at honest everyday low prices. We work hard at buying things right: Our buyers travel the world searching for new items and we work with a variety of suppliers who make

Market Force has ranked Trader Joe’s as #3 for America’s favorite grocery stores (Vasel, 2016). Trader Joe’s is all about customer service, happy employees and offering high quality products at low prices. Their strategy is to compete differently than their rivals, and by offering products that the others can’t. This is reflected in their mission statement below:

3. What are the main threats to Trader Joe’s competitive advantage? Is their advantage sustainable?

Trader Joe’s success with their employee’s is based on hiring individuals who are “ambitious and adventurous, enjoy smiling and have a strong sense of values” (Uhl-Bien, Schermerhorn Jr., & Osborn, 2013, p. 98). Trader Joe’s employees’ exhibit job satisfaction and higher performance because they are compensated very well in their earnings, benefits and professional growth opportunities. Employees’ that are based in California stores “can earn almost 20 percent

Current news report describes Trader Joe’s as a “trendy grocery store with cult like following,” Similar new report that Trader Joe’s are opening up a store in Florida. I do believe Trader Joe’s is a management benchment

Trader Joe’s occupies a niche position in the grocery market by providing natural, organic and eclectic selection of wines, frozen food, prepared food and groceries at everyday low prices. They have a small area format with limited products which has put them in the top rank for sales per square feet.

Publix is the leading employee owned supermarket found in 1930 by George Jenkins in Winter Haven, Florida. Currently, there are 1,051 stores in the five states who operate Publix’s supermarkets, Florida, Georgia, South Carolina, Alabama and Tennessee. Its promise to commitment has facilitated their success in a being a grand place to work and shop. “Where shopping is a pleasure” is Publix’s slogan which they are known for promising never to disappoint a shopper intentionally. Not only does Publix cater to their customers but their employees as well which has maintained high rate of employee fidelity.