Trader Joe’s No average Joe Essay

trader Joes is an Ameri feces privately held chain of grocery stores founded by Joe Coulombe. trader Joes have been successful business for long eon with their unique innovative strategy of merchandising indwelling and organic nutriment products with only one b fix of an event for low price. Their unique finale of relaxed beach surroundings and helpful knowledgeable employees makes their customer to stay hard-core to the brand. Eighty percent of bargainer Joes has in-house products that differentiate them from rivals and hard to model. trader Joes steer young educated hatful who want to eat up good for low prices. They fag really expand their business by investing in marketing, social media, loyalty- card program and building pose garages and gain bigger broader market segment in provender sedulousness. This oerly testament help them warlike advantage over their competitors as they will have solid brand image and be successful over the long term.SWOT AnalysisT he strengths of Trader Joes ar selling organic & fresh grocery at low prices, introducing in the raw products to their stores often and pass friendly customer service. Trader Joes sell natural and organic food at cheaper price than its competitors. They buy in majority one item rather than buying lot of similar items, which gives them competitive advantage over other supermarkets. Trader Joes introduce 10-15 new products every week and had special season items and thus customers liked essay new items and were get best product for as much clock time as stores had the products for. Trader Joes employees were knowledgeable, helpful and happy, which made them communicate much better with customers and build a long lasting relationship. This aided in Trader Joes customers becoming loyal to the company.The weaknesses of Trader Joes ar lack in social media, low advertisement, and targeting small market segment. Firstly, Trader Joes didnt have any interaction with media ab pop out the company. In addition, they were non utilizing the free social media tool and were not communicatingwith their fans on Facebook or Twitter. They didnt much advertise about the company which is a weakness because this would hurt the sales they can get by publicizing since they were selling natural and organic products for low prices. Lastly they targeted only smaller crowd which would also affect that revenue instead of targeting broader segment of people.Since much people argon graduating and becoming educated, Trader Joes can target them to get higher market share and by marketing they can convey their goal to these educated people. muchover, they have opportunity to tin ball up related products as lot of people buy baby products when they are at grocery shops.Threat to Trader Joes are that their cheeseparing private label unspoileds can be identified by competitors and can imitate. Other treat is that the company can loose its glamour when they grow because they are no more special to customers.Porters Five ForcesThe threat of new entrance is medium because Trader Joes is not a supermarket company, so capital requirement is manageable. Getting veracious quality food for cheaper price is hard to deliver but it is not impossible. However, brand reveal is difficult to built that Trader Joes has do after so many years.The bargaining power of suppliers is low as Trader Joes purchase very large quantities of each item in their store, which make the suppliers to give them lowest price. Moreover, suppliers wanted secrecy from Trader Joes not disclosing the low price as the to other competitor store suppliers were selling for high prices. If the price of an item increases for suppliers, they can flow that on retailers in food industry.The bargaining power of Buyers is high as customers have lot of other grocery stores option to goto if they thought prices at Trader Joes were high. However, in Trader Joes case they were scissureing natural, health y and organic food items far cheaper than their competitors. So customers wereloyal to Trader Joes.The threat of substitute in food industry is medium because people can eat impertinent more often rather than grooming at home. Moreover, other brand of an item might be more likable by the customers over Trader Joes brand.The intensity of rivalry is high as Whole Food and Kroger are trying imitate what Trader Joes are doing, and since they already have brand name achieved, it is not hard to get their prices d profess by negotiating with suppliers and making their own brand name organic food.In conclusion, the food and grocery industry is attractive since more companies are going towards natural and organic food. With beneficial marketing techniques , good customer service and quality products, it would be good investment in this industry.Environmental ScanTrader Joes demographics are college students, health conscious, out-of-work professors, and most important educated customers. Socio-Cultural environment shows that society is gear towards more natural and organic food and becoming health conscious. More people are having homemade food from savings perspective.Political environment show that FTC has tighten regulation to keep competitive environment. Also, due to Obama worry there is some savings for people that makes grocery products more affordable. expert environment shows that there is more Point of Sales systems available with electronic shelf labels and scanner. In addition, self-checkout registers and advertising through mobile apps are getting more common.Economic environment factor shows that during economic downturn, in which i people tend to shop more at grocery stores. The sport prices has been low which gives disposable income to try new items at grocery stores.In conclusion, environment analysis suggest that people in the current deliverance are getting extra income that they can spend on food that are natural, organic and healthy for them. With competitive market, the trend is moving towards healthy and low price options.From the SWOT, Porters Five Forces and Environment Analysis, I recommend Trader Joes to increase marketing and advertising their brand much more, create more lay space or redesigning outside of current stores, and giving customers incentives to keep them returning to Trader Joes. Trader Joes should start using social media tools and use mobile applications to reach out to their fans and show they care about them. This requires less capital investment and offer great way to reach fans and building new customers.Trader Joes should make great shopping experience by making their parking lot bigger. They can built parking garages or decks to accommodate lot of customers increasing revenue of the company. Trader Joes should give customers incentives through loyalty-card program, and offer coupons on their website and mobile apps that can be added to customers loyalty cards to be easily redeemed. This will motivate customers to come back to their stores and buy more products, thus increasing the company sales and profit.