Trader Joe's

839 Words Aug 9th, 2012 4 Pages
Case 1: Trader Joe’s Distinctive Approach

Questions:

1. What retail classification best fits Trader Joe’s store-based strategy mix? Explain your answer.

With the exception of the fact that Trader Joe’s is a food retailer, this type of store can be classified as a category specialist. By definition, category specialists sell a narrow variety but deep assortment of products. As compared to the 25,000 products a typical supermarket sells, Trader Joe’s selling an average number of 3,000 product lines can be regarded as very narrow. The store sells an extensive assortment of organic foods, which cannot be competed with by a regular supermarket.

It can be classified as a category specialist for the instance that they also provide
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It sells unique products from different countries which is attractive to people. With that strategy that is difficult for competitors to copy, Trader Joe’s can boost their sales as because it is the only store that can sell such assortment.

3. How can a traditional supermarket effectively compete against Trader Joe’s?

Since Trader Joe’s is well known for their exceptional customer service, it would be useful for a competing supermarket to consider improving their customer service. The supermarket can take the steps necessary to help their employees enhance their knowledge about the store’s products so that they can answer customer queries quickly.

Also, unlike most Trader Joe’s stores which are smaller in space, a supermarket can carry more types of goods. It would be beneficial for competing supermarkets to expand to a new market segment of health conscious people and have a section of organic products. In addition, a traditional supermarket can also offer a wider variety of private label products. In that way the store can achieve greater store loyalty while reducing costs (they buy in bigger bulk). They are also advantageous for having the benefit of one stop shopping with a wide assortment of goods that many people like to take advantage of. Lastly, being bigger in size, it is necessary for them to allocate more money for advertising, thus getting their name in more places.

4. How can Trader Joe’s most

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