Trader Joe’s is a good example how
the marketing mix is utilized to the full advantage of the store. For product,
Trader Joe’s products set it apart from other typical grocery stores. Trader
Joe’s bring different products from around the globe. These products come from
exotic locales, farms and dairies. The buyers of Trader Joe’s are always on the
look out for new, interesting and great tasting food and drinks to bring to its
market. Generally, Trader Joe’s
offers new foods and beverages frequently. An average of 15 new products is
introduced every week at the grocery stores. There are always new products on
the shelves and this is the company’s way of creating innovative and exciting
shopping experience for its market. This is one way of keeping the market
interested and creating new demands for the stores. At the same time, it
creates opportunity to target a wider market range every time it introduces new
products.
Aside from new products, Trader
Joe’s also assures its customers that all the products they carry are safe and
healthy foods. It guarantees that all private label products come from
non-genetically modified ingredients. Inside the store, the product
logos/labels of No Artificial flavors, preservatives and coloring, No MSG and
No Added Trans Fats lead the customers to their choice of healthy products.
This not only brings the products differently to the customers but it also
distributes the products to its market as being synonymous to quality health
foods. At the same time, Trader Joe’s offers guarantee for its products by its
policy of “We tried it! We liked it!
If you don’t, bring it back for a full refund, no questions asked”. This again
attracts the customers to shop at Traer Joe’s.
In
terms of product as marketing strategy, the different product available to its
market is its main strength. This attracts more customers, those who are
catered by the new products, and the regular customers will be offered new
products to buy, thereby solidifying their patronage to Trader Joe's. However,
this same offering of new products can be a marketing weakness. This is because
the constant renewing of products will make it harder to earn the loyalty of
its customers. Customers have the tendency to stick to what they like and want
consistency.
The
Price of the products at Trader Joe’s is another one of its marketing
advantages or strength. The prices of the products are relatively lower when
compared with other grocery store. For instance, in its 2008 Flyer the price of
California Orange is 29 cents every day, which is only about 69 cents per
pound. This is a good price for the customers since the price is higher at
other stores. Since the price of the products at Trader Joe’s is relatively
lower, it is able to reach wider market. Similar with the availability of
variety of products, the price enables it to target not only the middle income
families but also those in the lower income bracket. However, again this
strength can be its own weakness since the customers correlate price to
quality. Though the low income bracket may be catered by the low prices, Trader
Joe has the potential of losing the middle income and higher income target
market who believes that they should pay for quality foods only.
In
terms of Place, Trader Joe’s are strategically located in the community or
neighborhood. In fact its slogan “Your neighborhood grocery store,” is not just
a mere slogan. Its strategic location, right within the neighborhood, is its
strength in terms of marketing strategy. By bringing the store in these strategic
locations, what started out as a chain of convenience stores are now over 280
stores in more than 23 states. Its successful expansion is also because of its
choices of locations for its stores. At the same time, in it finds way to
conveniently bring the customers to its doors by integrating in its promotional
products, web sites and campaigns not just its location maps but including
door-to-door driving instructions. By bringing the new products to the heart of
its target market, right within the communities, Trader Joe’s was able to
expand gradually. However, in terms of
weakness, Trader Joe’s limited itself to the “neighborhood”, thereby limiting
its target market only to that specific locality. It then fails to reach the
other localities or major commercial districts not fitting the “neighborhood”
description.
When
it comes to Promotion, the main strength of its promotion is this integration
into the community. Trader Joe’s, integrates itself to the community by being
involved in community events. It even solicits and sponsors donations and
benefit activities for the community. At the same time, for every community
sponsored benefit, such as for the local school or hospital, there is always a
coordinator at the local Trader Joe’s. This marketing campaign allows more
visibility for the store within the community or neighborhood.
At
the same time, Trader Joe also has its Fearless Flyer, which is also another of
its strength in terms of promotion. The Fearless Flyer is a customized flyer
for every region of Trader Joe’s. The flyer informs the customers of the
currently available and new products at its local Trader Joe’s. Also included
in the flyer are the facts of these new products and the prices. The flyer is
available in its site and in its local stores. The flyer is one of the best
marketing materials for the stores since it directly introduces the new
products to the customers.
In
terms of weakness in promotion, Trader Joe’s limited and customized promotions
fail to target other markets. Though the involvement in local community is
effective it fails to attract the outside of the community market. Similarly,
the flyer is very limited since it targets its already solid based market and
did not target other market.
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