Traders Joe’s
Executive Summary
We shall be reviewing Trader Joe’s grocery business. This is one of the leading groceries in the United States. This company has received high ranks in the customer’s choice in 2012 and 2013. This company came into existence in 1954 in San Diego after the store chain was launched, which later acquired several chains.
The chain had raw materials targeted from the locals, and the Adohr Milk farms did the financing. To gain a marketing strategy, the company changed the name to Trader Joe in 1967. This was competing with other business as it targeted the fresh graduates. The business operations were located near the learning institutions, which made it easy to sell its services. The owner framed the business to be for the educated, and this gained good press attendance.
The industry caught the consumer’s awareness by offering products not in other supermarkets, such as sprouted wheat and whole-bean coffee. Customers were excited by the company offering private products. The employees were well paid and satisfied; hence they were highly motivated to work. Coulombe, the business owner, was the business’s principal financier though he received grants later after the business’s success. The company established a plan outside other competitors’ expectations. First, they targeted the educated and absorbed them after analyzing their taste. The culture of success was also initiated from inside the company by motivating the employees. They were well paid and hence motivated to work. Again, the company sold several valuable products that other companies were not selling.
Case Analysis
- Market Attractiveness.
Trader Joe has created a remarkably attractive market for all consumers. Integration of several products in the market that gives consumers several selection options. The products are also sold at relatively low prices, unlike other competitors. Trader Joe is the solution to those with health issues as it offers a plethora of several organic and natural products. The stores have an attractive store feature that seems appealing to consumers.
The uniqueness of the products from Trader Joe has attracted several customers to the firm. It is vital to notice that the firm does very little on product promotion. Their success is highly dependent on the provision of quality products. The business is also a consumer motivation culture with several offers and discounts and minor consumer promotions (after-sale services).
How firms in the supermarket industry make money and competitive advantage
Supermarkets offer a wide variety of goods and services all under one roof. The prices of goods in these supermarkets are relatively lower. Consumers hence prefer supermarkets since everything is on shelves and consumers shop what they want. There is also the advantage of having a wide variety of products. This promotes sales and earns profits in return. The company sells quality products at lower prices. This fact gives it a lead over other famous firms it competes with (Sedes et al.)
- Target Market
Trader Joe’s has its targets directed to couples, small families, and also those single households. These are the people who make up the market structure. The firm also targets the more significant firms in the consumption industry though their main focus lies in these small sets of consumers who buy comparatively small products.
Threats to Joe’s Competitive advantage.
Other companies in competition are now adopting this strategy. They are focusing much on the quality of the products. They are also marketing their products at lower prices and offering several other services that are drifting customers away. Trader Joe’s can sustain their advantage if they still hold the quality of products and keep the current trends in outcomes.
How to Modify the Strategy?
A strategy aims to make sure that you win. To counter competition, you need to understand the competitor’s process and fight it. Trader Joe’s should focus on the customer, segment the market, and get the consumer’s feelings about the products from both products. The firm should then modify the product, if necessary, to meet the consumer needs.
- Benefits, consumer behavior, and pandemic effects.
Consumers visited the stores of trader Joe’s everywhere, and they could offer advice to the management on the possible errors. The firm also buys goods directly from manufacturers hence cutting distributor expenses. The consumer behavior is causing strains to the business as it tries to fit in. This is affecting profitability. The pandemic has affected the company much as several of its workers (1250) were confirmed to have the disease. This created fear, and most business activities were suspended.
Tools/Matrices
This is the strategic way that the business uses to identify the weaknesses and strengths of the competitors. The suppliers are also considered and also making sure they keep their terms constant. Supplier price adjustments might blow the firm profits. Buyer power and the threat of having a substitute for the product have always been a threat to Trader Joe’s. Thus, the company has kept on the look and aware of all the new entries and the effects they have on the business.
Contingency Plan.
The company is being threatened severely by the upcoming industries. They are producing more advanced products that are more exciting. The company should be advised to effectively blend these products but take precautionary measures if their work is highly threatened. It seems like unethical business practice, but then the risk of losing the business is high (Wang, Jianhui, et al.).
Conclusion
Businesses involve several risks, from production to consumption. A backup plan is essential. The contingency plan is to keep the business moving regardless of the dangers or the competition it faces.
References
Wang, Jianhui, et al. “A contingency plan for the management of the 2019 novel coronavirus outbreak in neonatal intensive care units.” The Lancet Child & Adolescent Health 4.4 (2020): 258-259.
Sedes, P. Rascado, et al. “Contingency plan for the intensive care services for the COVID-19 pandemic.” Medicine Intensiva (English Edition) 44.6 (2020): 363-370.