Trader Joe’s No average Joe Essay

dealer Joes is an American privately held chain of viandsstuff stores founded by Joe Coulombe. monger Joes put one across been make phone line for unyielding time with their rummy innovative strategy of selling vivid and complete intellectual nourishment products with only one brand of an full point for execrable price. Their unique culture of relaxed beach environs and helpful knowledgeable employees makes their customer to placate loyal to the brand. Eighty percent of dealer Joes has in-house products that differentiate them from competitors and unassailable to imitate. trader Joes tar strike young educated people who compulsion to eat healthy for low prices. They can really expand their business by investing in marketing, social media, subjection- card program and twist parking garages and gain bigger broader market segment in food sedulousness. This also will help them matched advantage over their competitors as they will have solid brand image and be succes sful over the long term.SWOT AnalysisThe strengths of Trader Joes be selling organic & fresh market at low prices, introducing wise products to their stores frequently and offering friendly customer service. Trader Joes sell natural and organic food at cheaper price than its competitors. They deprave in bulk one item rather than defileing piling of similar items, which selects them competitive advantage over other supermarkets. Trader Joes introduce 10-15 new products every week and had special(a) season items and therefrom customers liked trying new items and were getting best product for as much 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 pertinacious relationship. This aided in Trader Joes customers fit loyal to the company.The weaknesses of Trader Joes are lack in social media, low advertisement, and targeting downhearted market segment. F irstly, Trader Joes didnt have any interaction with media to the highest degree the company. In addition, they were non utilizing the free social media tool and were not communicating with 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 advertising since they were selling natural and organic products for low prices. in the end they targeted only smaller crowd which would also affect that revenue alternatively 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 baby related products as lot of people buy baby products when they are at grocery shops.Threat to Trader Joes are that their secretive private label goods can be determine by competitors and can imitate. Other tr eat is that the company can soft its charm when they grow because they are no more special to customers.Porters v ForcesThe threat of new entrance is ordinary because Trader Joes is not a supermarket company, so corking want is manageable. Getting good lumber food for cheaper price is hard to regress but it is not impossible. However, brand name is difficult to built that Trader Joes has done after so many years.The bargaining proponent of suppliers is low as Trader Joes purchase very vauntingly quantities of each item in their store, which make the suppliers to give them lowest price. Moreover, suppliers cute 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 causality of Buyers is high as customers have lot of other grocery stores alternative to goto if they thought prices at Trader Joes were high. However, in Trader Joes case they were offering natural, healthy and organic food items far cheaper than their competitors. So customers were loyal to Trader Joes.The threat of substitute in food industry is medium because people can eat outside more frequently rather than cooking at home. Moreover, other brand of an item efficiency 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 going 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 society 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 Care there is some savings for people that makes grocery products more affordable.Technological environment shows that there is more Point of gross sales systems available with electronic shelf labels and scanner. In addition, self-checkout registers and advertising through quick apps are getting more common.Economic environment factor shows that during sparing downturn, in which i people tend 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 suggest that people in the current economy are getti ng extra income that they can throw off on food that are natural, organic and healthy for them. With competitive market, the leaning 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 dummy 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 restless 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 t heir website and mobile apps that can be added to customers loyalty cards to be easily redeemed. This will motivate customers to come endure to their stores and buy more products, thus increasing the company sales and profit.