Thursday, May 23, 2019
Ã¯Â»Â¿Trader JoeÃ¢â¬â¢s No average Joe Essay
dealer Joes is an Ameri burn privately held chain of grocery stores founded by Joe Coulombe. monger Joes have been successful clientele for long time with their unequaled innovative strategy of selling natural and organic nutrient products with only one brand of an level for low price. Their unique culture of relaxed beach environment and fosterful knowledgeable employees makes their customer to stay loyal to the brand. Eighty percent of trader Joes has in-house products that differentiate them from competitors and hard to imitate. dealer Joes tar put down young educated people who want to eat healthy for low prices. They can really expand their business by expend in selling, social media, loyalty- card program and building parking garages and gain bigger broader market segment in food industry. This also will help them emulous advantage over their competitors as they will have solid brand image and be successful over the long term.SWOT digestThe strengths of monger Joes are selling organic & fresh grocery at low prices, introducing new products to their stores frequently and erecting friendly customer service. Trader Joes sell natural and organic food at cheaper price than its competitors. They buy in bulk one item rather than buying tidy sum 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 care trying new items and were getting best product for as more 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 partnership.The weaknesses of Trader Joes are escape in social media, low advertisement, and targeting small market segment. Firstly, Trader Joes didnt have any interaction with media about the company. In addition, they were not utilizing the unfreeze 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 gross sales they can get by advertising since they were selling natural and organic products for low prices. Lastly they targeted only smaller crowd which would also affect that tax revenue instead of targeting broader segment of people.Since more people are 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. Moreover, they have opportunity to offer foil related products as skunk of people buy baby products when they are at grocery shops.Threat to Trader Joes are that their secretive private label goods can be identified by competitors and can imitate. Other treat is that the company can loose its charm when they grow because they are no more special to customers. Porters quintet ForcesThe threat of new entrance is medium because Trader Joes is not a supermarket company, so capital requirement is manageable. Getting good quality food for cheaper price is hard to deliver but it is not impossible. However, brand name is difficult to built that Trader Joes has done after so some 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 worst 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 pass 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 persuasion prices at Trader Joes were high. However, in Trader Joes case they were offering natural, healthy and organic food items far cheape r than their competitors. So customers wereloyal to Trader Joes.The threat of substitute in food industry is medium because people can eat outside more often rather than cooking at home. Moreover, other brand of an item might be more likable by the customers over Trader Joes brand.The intensity of competition 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 down 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 difference towards natural and organic food. With right 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 societ y is gearing 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 explosive charge there is some savings for people that makes grocery products more affordable.Technological 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 unstable apps are getting more common.Economic environment factor shows that during economic downturn, in which i people ply to shop more at grocery stores. The gas prices has been low which gives disposable income to try new items at grocery stores.In conclusion, environment analysis give notice that people in the currenteconomy 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 parking 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 t o come back to their stores and buy more products, thus increasing the company sales and profit.