Trader Joe's: Gourmet Food Outlet Discount Warehouse
• Retailer Type
Trader Joe’s is considered as discussed in (Kotler & Keller, 2015) as a “gourmet food outlet discount warehouse” (p.538) As soon as you hear the word gourmet food, you think of the word expensive. Trader Joe’s has really worked on making good quality food affordable.
• Service Level
Trader Joe’s has a self-selection service level that they offer. Customers can come into the store and find the products they wish to purchase. If you notice that theirs a product that they like, but is not in stock, you can ask one of the sales associates to help you, which they have many times.
• Target Market- who is the chain trying to attract the most?
The chain is trying to attract middle class families that are looking for a different experience then their regular supermarket.
• Product Assortment
Trader Joe’s is known for its product assortment of upscale specialty food and wine at lower prices. Every store carries about 2,000-3,000 products, compared to 55,000 that are sold in your traditional supermarket. They also have a large assortment of gluten free, vegan and organic products, that are reasonably priced.
• Price …show more content…
Trader Joes has very competitive prices, as discussed on Trader Joe.com which states that “everyday prices on all of our great products — no sales, no gimmicks, no clubs to join, no special cards to swipe.
We buy direct from suppliers whenever possible, we bargain hard to get the best price, and then pass the savings on to you. If an item doesn’t pull its weight in our stores, it goes away to gangway for something else. We buy in volume and contract early to get the best prices. Most grocers charge their suppliers fees for putting an item on the shelf. This results in higher prices... so we don’t do it.” As a longtime customer, I can say that they really live to this pricing
strategy.
• Atmosphere
The atmosphere is very friendly and welcoming, they have a lot of drawings from the turn of the century that are very comical. One drawing in particular that I remember seeing in the store is one of Benjamin Franklin and he was talking about his experience while shopping at Trader Joe’s.
• Private Label Offerings
Most of the private labels are under the Trader Joe’s name, some private labels Trader Joe does not want us to know about store brands decisions.com “revealed more than a few secrets including that its pita chips are made by Stacy's, a division of PepsiCo's Frito-Lay, and its yogurt is supplied by Danone's Stonyfield Farm. Trader Joe's wants neither its shoppers nor its competitors to know who's making its products. And many suppliers aren't that keen on consumers knowing that they produce a lower-cost version for Trader Joe's either,” according to the report.” This was interesting even for me to find out, that most of the products in Trader Joe’s were made by mainstream manufactures.
Trader Joe’s is considered as discussed in (Kotler & Keller, 2015) as a “gourmet food outlet discount warehouse” (p.538) As soon as you hear the word gourmet food, you think of the word expensive. Trader Joe’s has really worked on making good quality food affordable.
• Service Level
Trader Joe’s has a self-selection service level that they offer. Customers can come into the store and find the products they wish to purchase. If you notice that theirs a product that they like, but is not in stock, you can ask one of the sales associates to help you, which they have many times.
• Target Market- who is the chain trying to attract the most?
The chain is trying to attract middle class families that are looking for a different experience then their regular supermarket.
• Product Assortment
Trader Joe’s is known for its product assortment of upscale specialty food and wine at lower prices. Every store carries about 2,000-3,000 products, compared to 55,000 that are sold in your traditional supermarket. They also have a large assortment of gluten free, vegan and organic products, that are reasonably priced.
• Price …show more content…
Trader Joes has very competitive prices, as discussed on Trader Joe.com which states that “everyday prices on all of our great products — no sales, no gimmicks, no clubs to join, no special cards to swipe.
We buy direct from suppliers whenever possible, we bargain hard to get the best price, and then pass the savings on to you. If an item doesn’t pull its weight in our stores, it goes away to gangway for something else. We buy in volume and contract early to get the best prices. Most grocers charge their suppliers fees for putting an item on the shelf. This results in higher prices... so we don’t do it.” As a longtime customer, I can say that they really live to this pricing
strategy.
• Atmosphere
The atmosphere is very friendly and welcoming, they have a lot of drawings from the turn of the century that are very comical. One drawing in particular that I remember seeing in the store is one of Benjamin Franklin and he was talking about his experience while shopping at Trader Joe’s.
• Private Label Offerings
Most of the private labels are under the Trader Joe’s name, some private labels Trader Joe does not want us to know about store brands decisions.com “revealed more than a few secrets including that its pita chips are made by Stacy's, a division of PepsiCo's Frito-Lay, and its yogurt is supplied by Danone's Stonyfield Farm. Trader Joe's wants neither its shoppers nor its competitors to know who's making its products. And many suppliers aren't that keen on consumers knowing that they produce a lower-cost version for Trader Joe's either,” according to the report.” This was interesting even for me to find out, that most of the products in Trader Joe’s were made by mainstream manufactures.