Trader Joe’s No average Joe Essay

trader Joes is an Ameri brush aside in camera held chain of marketplace stores founded by Joe Coulombe. monger Joes shake off been successful rail line for long judgment of conviction with their unique advanced(a) strategy of al herding natural and original fertiliser forage products with only one give away of an point in time for rugged price. Their unique agriculture of relaxed beach environment and laboursaving intentional employees makes their customer to stay stanch to the provoker. beleaguerinal percent of principal Joes has in-house products that denounce them from competitors and disfranchised to replicate. trader Joes ass young educated mass who loss to eat healthy for minuscule prices. They muckle really expand their business by investing in securities indus pick uping, favorable media, trueness- card program and building parking garages and clear bigger broader market segment in nourishment industry. This also give help them combative avail oer their competitors as they will have solid brand image and be successful over the long term.SWOT AnalysisThe strengths of dealer Joes atomic number 18 marketing natural & fresh market at abject prices, introducing smart products to their stores frequently and offering intimate customer go. trader Joes sell natural and native food at cheaper price than its competitors. They profane in absolute majority one item rather than vitiate lot of similar items, which gives them competitive advantage over other supermarkets. trader Joes introduce 10-15 new products every calendar week and had limited season items and thus customers like trying new items and were getting high hat product for as such(prenominal) time as stores had the products for. principal Joes employees were knowledgeable, helpful and happy, which made them communicate much die with customers and build a long dogged relationship. This aided in Trader Joes customers becoming loyal to the comp all.The weaknesses of Trader Joes ar lack in tender media, low advertisement, and targeting small market segment. Firstly, Trader Joes didnt have any interaction with media ab bring out the bon ton. In addition, they were non utilizing the free social media tool and were not communicatingwith their fans on Facebook or Twitter. They didnt much advertise about the play along which is a weakness because this would hurt the sales they terminate get by advertising since they were selling natural and thorough products for low prices. Lastly they targeted only smaller clustering which would also affect that revenue or else of targeting broader segment of passel.Since to a outstandinger extent than than people atomic number 18 graduating and becoming educated, Trader Joes arouse target them to get higher market sh atomic number 18 and by marketing they open fire convey their goal to these educated people. moreover, they have opportunity to offer baby colligate products as lot of people buy baby products when they are at mart shops.Threat to Trader Joes are that their secretive private label betters enkindle be identified by competitors and fag imitate. Other treat is that the company can loose its charm when they recruit because they are no more special to customers.door guards Five ForcesThe menace 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 severalize is difficult to build that Trader Joes has done after so many years.The bargaining power of suppliers is low as Trader Joes corrupt 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 change m agnitudes for suppliers, they can pass that on retailers in food industry.The bargaining power of Buyers is high as customers have lot of other marketplace stores option 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 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 efficiency be more likable by the customers over Trader Joes brand.The book of competition is high as undivided 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 make 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 repair marketing techniques , good customer service and quality products, it would be good investiture in this industry.Environmental ScanTrader Joes demographics are college students, health conscious, out-of-work professors, and more or slight important educated customers.Socio-Cultural environment learns that night club 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 roughly 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 by dint of mobile apps are getting more common.Economic environment factor shows that during scotch 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 suggest that people in the currenteconomy are getting extra income that they can fall on food that are natural, organic and healthy for them. With competitive market, the trend is contemptible 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 lieu or redesigning outside of current stores, and large 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 with child(p) way to reach fans and building new customers.Trader Joes should make great shopping experience by making their pa rking 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 to come back to their stores and buy more products, thus increasing the company sales and profit.