Trader Joe�s by hkx3mP08


									Courtney Dalke
    Mary Giles
   Somer Reed
 “Your  Neighborhood Grocery Store”
 Started as small chain of convenience stores
  called Pronto Markets in 1958
 Changed their name and the way they do
  business in 1967
 Sell innovative, hard-to-find, great tasting foods
  at competitive prices
  • Buy direct from suppliers when possible
  • Buy in bulk and contract early
  • No supplier fees for item shelf space
 Today, Trader   Joe’s has a total of 339 stores
 5,500   employees
 About   $7.2 billion in revenues for fiscal year
   College-Educated
   White homeowner
   Median age of 44
   Median household income of $64,000
   Cost-conscious, health-conscious label reader, not tied
    to national brands
   Well-travelled
   Profiles:
    •   “Frugal foodies”
    •   “Iconoclast”
    •   Health-conscious, ecologically sensitive parent
    •   Child free working couples and singles
    •   “Indulgers”
 Bring customer the best food and
  beverage values they can find anywhere
  and the information they need to make
  informed buying decisions
 More than 2,000 unique grocery items
 Private label products have own "angle"
  • great flavor, unusual recipes, high quality
   ingredients, special nutritional claims, and all
   natural ingredients
 Work to be a part of the neighborhood
  • Examples: silent auction to benefit a local
    elementary school, health fair sponsored by
    community hospital
 Maintain    low prices by smaller and plainer
  • Use plain packaging
  • Carry small variety of products
  • More turnaround on products
     Allows larger quantities of perishable
      items closer to the expiration date at
      better prices
   Gourmet foods
   Organic
   Vegetarian
   Unusual frozen foods
   Imported foods
   Domestic and imported wine/beer
   “Alternative" food items
   Basics
   Personal hygiene products
   Household cleaners
   Vitamins
   Pet food
   Plants, flowers
   Strengths                              Weaknesses
    • Competitive prices                    • Lack of advertising
    • Selective variety of                  • Compete against other
        products from around the              organic stores that support
        world                                 local farms in the area
    •   Care about the products             • Buy produce from other
        they sell (no preservatives           areas
        or artificial colors, product
    •   Buy directly from suppliers
        whenever possible
    •   Care about health of
    •   Treat employees well
 Opportunities             Threats
  • Expansion into more      • Local Food Co-Op
    states                   • Whole Foods
  • Buying local produce     • Local Grocery Stores
    and vegetables           • Local Farmers Markets
  • Have an in-house
  • Provide cooking and
    canning classes to

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