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Trader Joe's MPA

Trader Joe's is a grocery store with over 500 small stores in the United States that offers a variety of exclusive products from around the world under private labels. While its target customers were initially college students, its customers now enjoy trying new foods without spending a lot of money. Trader Joe's competes by offering unique products at low prices in a healthy shopping environment through cost controls and passionate customers.

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Maria del Pilar Arango Maury
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18 views

Trader Joe's MPA

Trader Joe's is a grocery store with over 500 small stores in the United States that offers a variety of exclusive products from around the world under private labels. While its target customers were initially college students, its customers now enjoy trying new foods without spending a lot of money. Trader Joe's competes by offering unique products at low prices in a healthy shopping environment through cost controls and passionate customers.

Uploaded by

Maria del Pilar Arango Maury
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Where does it compete?

Trader Joes is a grocery retail store with +500 small stores (10,000 – 15,000 sqft) throughout the
United States. It offers a variety of exclusive and unique but limited (4,000 SKUs) selection of
diverse products from tastes from all over the world that usually include branding with descriptive
adjectives. TJ also sells 80% of private label goods with TJ’s branding. Its target customers were
initially college students but are actually customers who have good tastes and who like to try new
things but doesn’t want to spend a big deal of money. The company does minimal marketing,
doesn't do sales or coupons, has no self-checkout and no loyalty cards.

How does it compete?

Customers think that the products offered by TJ are unique and like they can´t be found un other
grocery stores that has allowed to increase the value perception that they get from the price.

The atmosphere of the stores and the non-processed products it offers has allowed customers to
perceive that they are making healthy and environmentally friendly choices.

Since they have limited space on shelves, they have limited offer of products allows customers to
not feel overwhelmed when selecting products and make the purchase.

Even though some products can be found at other supermarkets, customers perceive that TJ offers
lower prices and a better shopping environment.

TJ is able to have lower prices because it keeps its costs down by negotiating with suppliers by
purchasing goods in larger quantities.

They do the best in class products that they know customers will only shop at their store.

All of these have allowed TJ to create one of the most passionate fan bases in the grocery business
that in the end results in high revenues.

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