Trader Joe s Case Study Analysis
Tatiana Tripp
Trader Joe’s Case Study Analysis
COM 742
11/19/2014
The current problem is that advertising and growth can lead to an end of the
“quirkiness” that is currently Trader Joe’s strongest attribute. Already, a bit of authenticity from the original stores has slipped away from expansion. A former employee, as shown in the case study, said “In the early days we never tried to be a neighborhood store.”1 There is no question that trying to incorporate more traditional advertising and thus, competing with large grocery retailers is the wrong direction for the company. More subtle advertising that builds upon the current strengths would be the best. The important thing to consider is if new ways to advertise would help achieve further profits and popularity without compromising the original culture of the store. Solution 1 - Focus extra advertising on millennials (recommended course of action)
Coulombe’s strategy was to create a place “for overeducated and underpaid people”.2 Beth Kowitt of Fortune said “for this crowd of urbanites and college kids,
Trader Joe’s is nirvana.”3 Trader Joe’s claimed that 80% of its customers went to college and the company has described its target market as “intelligent, educated, inquisitive individuals…[who are] well-travelled…”4 These descriptions of Trader Joe’s target market are exactly what millennials are today.
Education, technology, and food, are important to millennials. Millennials are the most educated generation with 63% having a bachelor’s degree.5 Eight in ten millennials say it is “cool to be smart”.6 More than 70% of millennials worldwide said they would consider career opportunities abroad7 and they travel for pleasure more
1
Ager & Roberto pg.10 Ager & Roberto pg.2
3
Ager & Roberto pg.6
4
Ager & Roberto pg.6
5
http://ryanjenkins.com/2013/09/16/22shockingstatsaboutmillennialstohelpyoucharttomorrowschang e/ 6 http://themillenniallegacy.com/themillennialgeneration/welleducated/
7
Trader Joe’s Case Study Analysis
COM 742
11/19/2014
The current problem is that advertising and growth can lead to an end of the
“quirkiness” that is currently Trader Joe’s strongest attribute. Already, a bit of authenticity from the original stores has slipped away from expansion. A former employee, as shown in the case study, said “In the early days we never tried to be a neighborhood store.”1 There is no question that trying to incorporate more traditional advertising and thus, competing with large grocery retailers is the wrong direction for the company. More subtle advertising that builds upon the current strengths would be the best. The important thing to consider is if new ways to advertise would help achieve further profits and popularity without compromising the original culture of the store. Solution 1 - Focus extra advertising on millennials (recommended course of action)
Coulombe’s strategy was to create a place “for overeducated and underpaid people”.2 Beth Kowitt of Fortune said “for this crowd of urbanites and college kids,
Trader Joe’s is nirvana.”3 Trader Joe’s claimed that 80% of its customers went to college and the company has described its target market as “intelligent, educated, inquisitive individuals…[who are] well-travelled…”4 These descriptions of Trader Joe’s target market are exactly what millennials are today.
Education, technology, and food, are important to millennials. Millennials are the most educated generation with 63% having a bachelor’s degree.5 Eight in ten millennials say it is “cool to be smart”.6 More than 70% of millennials worldwide said they would consider career opportunities abroad7 and they travel for pleasure more
1
Ager & Roberto pg.10 Ager & Roberto pg.2
3
Ager & Roberto pg.6
4
Ager & Roberto pg.6
5
http://ryanjenkins.com/2013/09/16/22shockingstatsaboutmillennialstohelpyoucharttomorrowschang e/ 6 http://themillenniallegacy.com/themillennialgeneration/welleducated/
7