...Differentiating Between Market Structures in Trader Joe’s ECO/365 Differentiating between Market Structures in Trader Joe’s Trader Joe’s is a grocery store that offers upscale grocery fare such as; organic produce, nutritional supplements, and health foods. Trader Joe’s was founded by Joe Coulombe and started in 1958 as a small chain of convenient stores in Greater Los Angeles Area called Pronto Markets. Since then, Trader Joe’s has expanded and now has around 375 stores in 30 or more states ("Trader Joe's Company Competition", 2012). Trader Joe’s focuses on providing customers with great quality foods that are hard to find, but at a great value that will save customers money. Trader Joe’s has its own specialty line of private label products, their stores are about 12,000 to 15,000 square foot, and have no service departments. This makes it possible for Trader Joe’s to keep costs down. Some of the products sold include, organic foods, unusual frozen foods, gourmet foods, imported foods, vegetarian food, imported and domestic beer and wine. In addition, Trader Joe’s sales non-food items such as; household cleaners, personal hygiene products, pet food, vitamins, and plants. In addition, many of Trader Joe’s products are environmentally friendly ("About Trader Joe's", 2013). Below is an evaluation of Trader Joe’s market structures, competitive strategies, and recommendations. Market Structure Trader Joe’s market may be viewed as a monopolistic competition...
Words: 834 - Pages: 4
...Marketing Mix Thelma L Woods MKT/421 October 13, 2012 Dr. Bea Bourne Marketing Mix The marketing mix elements will be discussed about the chosen organization. The type of elements will be explained in detail about the organization’s type of products, the location of the company, pricing, and the organization promotion tactics. The effects of the marketing mix will be provided, along with the ways the elements are performed. The organization will be identified along with the industry the company is in. The organization selected is a store called ALDI. This store is in the Food and Beverage industry in the retail and distribution category. ALDI is a discount chain grocery store that started in 1976 with 1,000 stores in 31 states. The stores are in 17 countries. According to "ALDI" (2012), " These stores carry about 1,400 regularly stocked items” (Corporate Information: Corporate Policy). The uses the company’s purchasing power to fill the stores the most redundant purchased household and grocery items. The merchandise sold in ALDI stores must be similar or exceed the national brands by appearance, performance, or taste. Most the product throughout the stores are ALDI selected brands. The store presents a different approach to grocery shopping by storing the shopping carts in one location and using a quarter for a deposit to access the cart. ALDI accepts payments in the form of cash, debit cards, and Electronic Benefits Transfer cards. Customers purchase bags if needed...
Words: 870 - Pages: 4
...Unlike another retail stores, Trader Joe’s aims to provide an extraordinary shopping experience unable to be found anywhere else in the perspectives of the following key sources. Store operations: The Stores are small in old strip malls in suburban locations. There are no self-out checkout lanes so the customers had opportunity to talk to employees. Merchandising: It sold mostly private label goods at reasonable price by stocking fewer items, but more line-ups with dynamic mix compared to typical retail channels. Also, it doesn’t follow trends, but tried to sell new products that customers had not experienced previously. Customers: Trader Joe’s had been targeting clearly and not doing one-way communication. Trader Joe’s really understands the characteristics of customers so it enjoyed a cult-like following. Many customers created Facebook fan pages, wrote cookbooks featuring meals prepared with the firm’s products, and waited in line for hours before a new store opens. The company has made consumers so loyal to it. Marketing: Rather than offering any discount coupons, Trader Joe’s distributed a customer newsletter to provide information on certain products. Trader Joe’s doesn’t have its company-led social media strategy. Instead, the company finds a great deal of content generated by fans of the company. Therefore, credibility of customers has become very high because of such a fan base marketing. People: Trader Joe’s has paid staffs more than they might...
Words: 408 - Pages: 2
...In what ways does Trader Joe's demonstrate the importance of each responsibility in the management process—planning, organizing, leading, and controlling? Trader Joe’s is a company that many fellow corporations aspire to be because of their ultimate success. But how did Trader Joe’s get so successful? Trader Joe’s success built from their understanding that a good team can only succeed if that have a good leader, as in leader I mean manager (which is one of the duties managers are suppose to be on top of). Managers are taught to comply with the four functions that make up the principles of management. These four functions are planning, organizing, leading and controlling. One could say that if a manager does not follow this guideline or a similar personal version of their own, they will not succeed in the management field. So how did Trader Joe’s understand the importance of these functions? First, Founder Joe Coulombe realized there was a gap in the market for grocery stores that offer quality products at low prices. At the time, all competitors either focused on one of the two. One example would be, Whole foods, which focuses on the quality of their food rather than the cost, giving them the nickname of “Whole Paycheck”. Another example, which focuses on minimizing the costs of the food would be Wal-Mart, which promises “guaranteed lowest prices” rather than top quality products. After realizing the need for an improved market, he started the planning to take his little...
Words: 666 - Pages: 3
...Examining Emotions, Attitudes, and Job Satisfaction Trader Joe Kimberly Love Dr. Thomas Schaefer Business 520 Leadership and Organizational July 20, 2014 Trader Joe’s founder had a perception for his stores after vacationing in the Caribbean. He perceived that the customers would try new things while on vacationing. Also realized that less is better. Many time customers buy more when there is less to choose from in that store. Their attention is only selective when there is not a big variety of supplies. Trader Joe case describes the business practices and how they reinvented themselves. Trader Joe’s set themselves apart from the 7- Eleven style store they had and they became top competitors to Whole Foods and Dean and Deluca giants. The case gives a description on the history of the retail chain and various aspects of its unique business practices. The retail store offered a selection of exclusive, which were mostly private-labeled products, and replaced poorly performing products with new ones. Trader Joe’s is a small supermarket chain which offers a limited selection of unique food products at reasonable prices. It sales most of its products under the private label 'Trader Joe's' and its variants. T.J. targets its stores at highly educated and travelled, but not necessarily wealthy, segments of the population. Trader Joe has a team of experienced buyers, who does extensive traveling and research before bringing new products into the stores (Palmeri...
Words: 1245 - Pages: 5
...University of Surrey | Consumer Behaviour | Factors influencing students’ choices of branded grocery products when grocery shopping’ | | Thomas Partridge (6166777) | 4/22/2013 | A focus groups, face-to-face interviews, and in-store observation of a shopping will be used to investigate the factors affecting purchasing behaviour of students. A Comparison of the strengths and weaknesses of each of the three data collection methods. Suggestion of ways in which marketing managers could use your findings on shopping/purchase determinants to improve business performance | Contents 1. Introduction 2. Fieldwork Results 2.1. Price 2.2. Quality 2.3. Discounts 2.4. Personal Preference and taste 2.5. Brand Reputation 2.6. Other peoples reviews 3. Analysis of data Collection Method 3.1. Advantage and disadvantages of collection methods 3.2. Summary of the three research methods 4. Practical implications of findings 5. Appendix A. Focus Group B. Interview 1 C. Interview 2 D. Observational shop 1 E. Observational shop 2 1. Introduction Within this report explores the factors influencing students choices of branded grocery products when grocery shopping through a three types of data collection methods, which are a Focus Group, two Face-to-face- interviews and two observational shops. After analysing the findings the advantages and disadvantages of the research methods are discussed...
Words: 13815 - Pages: 56
...Whole Foods 365 An analysis of Whole Foods 365’s target market and probability of success in Las Vegas. By Justin Thornley Abstract This report will define Whole Foods 365’s target market. It will then describe that target market. Then the report will make an effort to analyze Whole Food 365’s ability to compete in the Southern Nevada market. Finally, we will look at its competitors and determine if a Whole Foods 365 would be successful. Primary Target Market To find Whole Food 365’s primary target market we will look at the locations of the stores that Whole Foods plans to open. We will then look at the demographics of those areas. The Whole Foods 365 website lists 3 locations with plans to open a stores at each location in 2016. The three stores are located in Los Angeles, CA, Lake Oswego, OR, and Bellevue Square, WA (1). In addition to the city names that the website listed addresses were also provided. * 2520 Glendale Blvd Los Angeles, CA 90039 * 11 S State St Lake Oswego, OR 97034 * 300 Bellevue Square Bellevue, WA 98004 Using the addresses above we can learn more about the demographics and markets Whole Foods 365 hopes to cater to. To do this, the Nielson lifestyle segmentation system will be used. This system allows users to input zip codes and receive demographic information about that area, including information about lifestyle and shopping habits. After analyzing the zip codes from the three stores I found some common demographic themes...
Words: 1691 - Pages: 7
...Loblaws – Porter’s 5 Forces Suppliers Small Suppliers – low bargaining power (at the mercy of their grocery store customers) - Category-leading Product suppliers – in a better position: grocers are obliged to carry their products (often as loss-leaders) to attract and retain customers - • How strong is the position of sellers? • Are there many or only few potential suppliers? • Is there a monopoly? • Do you take inputs from a single supplier or from a group? (concentration) • How much do you take from each of your suppliers? • Can you easily switch from one supplier to another one? (switching costs) • If you switch to another supplier, will it affect the cost and differentiation of your product? • Are there other suppliers with the same inputs available? (substitute inputs) - Number of suppliers - Size of Suppliers - Switching Costs - Unique service/product - Ability to substitute Substitutes low - medium- If a product can be easily substituted, then it is a threat to the company because it can compete with price only - Substitute performance - Cost of switching - Buyer willingness Competitive Rivalry – Fierce competition amongst various grocery stores • Is one player very dominant or all equal in strength/size? • Are there exit barriers? • How fast does the industry grow? • Does the industry operate at surplus or shortage? • How is the industry concentrated? ...
Words: 1598 - Pages: 7
...Trader Joe’s is a growing chain of grocery stores with a difference. Whilst not a monstrous chain store, Trader Joe’s emphasises small stores which sell a selection of goods hard to find elsewhere at lower prices. The fact that quality goods come at such low prices is just one reason why the Trader Joe’s company has become so successful. From humble beginnings, the company has now grown into a multi-billion dollar giant. This may seem strange when the small and far less numerous stores of Trader Joe’s are compared to the number and size of stores associated with other grocery store giants. Even so, Trader Joe’s can now boast of two hundred and forty branches across nineteen states. Not bad for a company which started out as a number of convenience stores in Los Angeles in 1958. When competition from 7-Eleven stores threatened, the owner of the stores, which were then called Pronto Markets, decided to expand his business by starting to sell gourmet food at reduced prices. As such, the idea of high quality goods at low prices was started along with the new name, Trader Joe’s, in 1967, named after the owner, Joe Coulombe. A big part of the stores’ success immediately came from the fact that the majority of the produce sold is sold under the company’s private label. As such, Mr Coulombe immediately created a trusted product, which, as it was also cheap, drew in the customers, creating a loyal clientele. As the number of items on sale is accordingly low compared to huge...
Words: 413 - Pages: 2
...analyze the degree of alignment between Trader Joes organization stated values and the organizations actual plans and actions. This paper will explicate the differences of degree of alignment between Team D’s group members individual values and the organizations values of Trader Joes; as reflected by Trader Joes plans and actions. Trader Joe’s was established in the 1950s as a convenience store. In 1967, Trader Joes changed its course and created larger grocery stores that offered hard to find, great tasting food (Our Story, 2012) with the Trader Joes brand name. The idea was to have innovative products that customers could save money on. Trader Joes does not believe in carrying an item that sits and does not sell. Doing this will eliminate product waste and different products can be brought in that will be higher in demand. This also saves both Trader Joes and the consumer money. Trader Joes vision is “great food plus great prices equals value” (Our Story, 2012). Trader Joe’s does not charge a suppliers fee to stock products on shelves like other grocery stores. This saves also saves the consumer money. Trader Joe’s two main goals are great products and great prices. This is important because consumers want to save money on products, yet eat...
Words: 1104 - Pages: 5
...Case Study: Trader Joe’s In 1958, Trader Joe’s first began as a small convenience store named Pronto Markets. Trader Joe’s didn’t receive their Trader Joe’s name until 1967 when they opened up a store in Pasadena. Mr. Coulombe had transferred his stores into an oasis of value and started putting innovative, hard-to-find foods in the Trader Joe’s name. By doing this Trader Joe’s was able to cut costs and save you money. In 1979, Mr. Coulombe sold the Trader Joe’s chain to the Albrecht’s, own about 9,000 Aldi markets in the United States, Europe, and Australia. “Value” is a concept that both Mr. Coulombe and the Albrecht’s take very seriously. Value not only means providing great prices on great products—no sales, no gimmicks, no special shopping clubs to join, no reward cards required for sales, but also by buying directly from suppliers whenever they can by rotating the “not-so-popular” products from the shelves to make room for something different. At Trader Joe’s their philosophy is great food plus great prices equals’ value. To help contribute to that philosophy, Trader Joe’s believes in promoting from with-in. Trader Joe’s believes that it nurtures its employees with a promote-from-within philosophy, and its employees earn more than their counterparts at other chain grocers. Outlet managers are highly compensated, partly because they know the Trader Joe’s system inside and out because managers are hired only from within the company. Future leaders are enrolled...
Words: 801 - Pages: 4
...Trader Joe’s Trader Joe’s who’s grocery store chain has been known for its affordable prices, unique food and friendly staff continues to be ranked as one of the most ethical companies in the U.S. Due to recent changes in our governments healthcare system, there was a moment in 2013 that the company faced a dilemma that involved deciding whether or not to change their part-time employees health benefits. For years, Trader Joe’s has offered healthcare coverage to its part-time employees at reasonable prices while paying their part-time staff very generously compared to other grocery chains. On August 30th 2013, Trader Joe’s CEO, Dan Bane sent employees a confidential memo stating that the company would no longer be offering healthcare coverage for anyone working fewer than thirty hours a week. When the news was first announced, many thought Bane’s decision was heartless and many believed that there had to be a good reason for Bane’s decision; after all not too many companies in the U.S. offer health benefits to part-time employees. Immediately negative news hit article headlines, pointing out only one statement in the letter Bane wrote to all Trader Joe’s employees, “With low-wage workers eligible for tax subsidies to buy health insurance next year, the company has calculated that offering medical coverage to part-timers who work 18 hours or more is no longer worth the cost”. Of course Trader Joe’s part-time employees immediately became upset and started to question...
Words: 1880 - Pages: 8
...Case Study 1: Examining Emotions, Attitudes, and Job Satisfaction Trader Joe’s Strayer University Examine the approach Trader Joe’s uses to promote a positive work environment for its employees. Determine at least three (3) ways in which Trader Joe’s is able to increase job satisfaction and performance. Whether or not Trader Joe’s knows it or not, they are in an environment that is experiencing emotion and mood contagion. This works both ways from the customer to management and vice versa. Customers go to the store in anticipation of a fun and friendly environment. This is exactly what they get. This is generated by a positive philosophy that starts from the top and works its way down. This is also driven by the concept of emotional labor; a situation where a person displays organizationally desired emotions in a job, (Schermerhorn, Osborn, Uhl-Bien, & Hunt, 2012). Trader Joe’s founder Joe Coulombe states that his store have “cheerful guides sporting Hawaiian shirts” (Schermerhorn, Osborn, Uhl-Bien, & Hunt, 2012). The tones of his stores are friendly and upbeat and his hiring practices ensure he has people that meet those needs. Directly from Trader Joe’s website; “Where fun, food and opportunity align” and “A Career For The Adventurous” (Trader Joe's: Home>Careers, 2014) Trader Joe’s also hits on all five of the components of job satisfaction. The work itself; he hires people that have a passion for food and want to work for a company that has the same general...
Words: 1351 - Pages: 6
...supermarkets tend to sell products grown or manufactured locally. So what sets these regular supermarkets apart from one another? Aside from price differences and a few differing product offerings from store to store, there aren’t very many differences. This is where stores like Whole Foods and Trader Joe’s come in and break the “boring” grocery store mold. Unlike other chain supermarkets and grocery stores, Whole Foods and Trader Joe’s are specialty foods stores. They offer a variety of the freshest foods and ingredients grown both locally and from around the world. These stores are also very popular for their sustainability efforts that range from the organic products they sell to the paper bags they use when bagging customers’ purchases. These companies are also very well known for not only satisfying their customers, but they pride themselves in how they treat their employees. Although both of these stores have become more popular over the years and have generated considerable profits, Trader Joe’s has made its way to the top of the best grocery stores list and its loyal customer base is continuing to expand. In a 2014 survey of more than 27,000 Consumer Reports subscribers, Trader Joe’s...
Words: 1683 - Pages: 7
...Aldi in the International Market Foundation & History In 1920 and 1922 Karl and Theo Albrecht, the famous Aldi brothers, were born as sons of a miner which lived in Schonebeck, a suburb of Essen. When the father fell into unemployment the mother founded and started working at grocery-store. Both brothers learned a commercial profession in a retail trade, growing up with the mother owning/working at the grocery store. In the beginning of the Second World War the brothers had to serve for military service. After the war, when returned home, the Aldi brothers took over their parents` grocery-store. Step by step they expanded to a chain of stores. In 1948 they founded the “ALbrecht DIscount” company, which was later on named ALDI. Within no time, the Albrechts had 13 grocery stores, which expanded more and more. In 1955 the enterprise already counted 101 subsidiaries, in the following five years the number of subsidiaries rose to 300. In 1961 the joint brother company came to an end because both brothers went on their separate ways and started separate companies. Karl Albrecht ran the chain of stores on the South side of the Ruhr and Theo Albrecht took over the business in the North. The simple arranged Aldi subsidiaries spread rapidly in the Federal Republic of Germany. In 300 towns the brothers ran 600 Aldi subsidiaries. In 1962 the first well-know “bona fide” Aldi supermarket opened in Dortmund. In 1976 the company developed an international esteem due to expansion...
Words: 1687 - Pages: 7
