This document provides an overview of Trader Joe's history and business model. It summarizes that Trader Joe's was founded in 1958 as Pronto Markets and opened its first store in Pasadena, California in 1967 under the Trader Joe's name. The company aims to offer quality products at affordable prices. Trader Joe's targets middle-income, health-conscious customers between ages 19-49. The document also includes the results of focus groups and surveys that found customers perceive Trader Joe's as having high quality, organic products and value. Competitive research showed Trader Joe's primary competitor is Whole Foods Market.
2. History
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Started in 1958
First called “Pronto Markets”
1967 name changed to “Trader Joe’s”
First Trader Joe’s opened in Pasadena
California- still open today
• Founded by Joe Coulombe
• Gained customer base through
“Californian” wine
• Mission: Offer value, and dedication to
quality service through
warm, friendly, committed
employees, along with a pledge to offer
quality products. They require a culture
that supports loyalty and customer
service through personal contact with the
consumer.
Founder
3. Four P’s of Trader Joe’s
•Product: Specialty foods generally
organic/healthy.
–Have their own brands typically do
not carry name brands
•Price: Prices range anywhere form $2.00
- $40.00 depending on product
•Place: Located around major
cities/suburban areas with high income
–Chicago, S.T. Louis
4. Four P’s Continued
• Promotion: Carry their own brand
specifically promoting their products.
• There are also in store advertising on
chalkboard.
• Menus on their site of dishes one can
make using Trader Joe’s products
• Promos such as Two Buck Chuck wines
– Promoting quality product for an
inexpensive price
6. Focus Group
Focus Group Questions
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What stores do you normally grocery shop at?
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Are you interested in eating healthy?
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Do you purchase organic foods?
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Have you been to Trader Joes?
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What is your perception of Trader Joes?
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What do you go to Trader Joes for?
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When you go grocery shopping do you care more about quality or quantity?
Key Insights
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The participants of our focus group were SIU students consisting of both male and
female. The ages of the participants varied from 20-25. The main idea that everyone in
the focus group had about Trader Joes is that they sell cheap wine. Everyone in the
focus group also agreed that Trader Joes quality is on the higher end, and that’s why
regulars go there.
7. Focus Group Cont.
• Trader Joes over other grocery stores due to
cheap organic food
• Regular shoppers they care about being
healthy.
• organic food and a unique selection of beer
and wine.
8. Target Market
• The projected target market
– MRI data
• Male and female ages 19-49
• Middle class $50,000-$74,000
– Psychographics
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Overeducated and underpaid
Health-conscious label readers
People with champagne tastes and beer money
Well-read, well-traveled people who appreciate good
value
• An eclectic assortment of foodies, college students, sugar
friends, and health nuts
-The Trader Joe’s Adventure: Len Lewis
14. Primary Competition
• September 20, 1980
• Whole Foods Market is a foods
supermarket chain based in
Austin, Texas which
emphasizes "natural and
organic products.”
• 331 locations
• Merging SafeWay with their
Clarksville Natural Grocery
• 1984, Whole Foods Market
expansion
18. Brand Color
• Colors
– Red and Honey Brown
• These colors showing they an organic health conscious
company
• Employee Uniforms
– Hawaiian
– Colorful/Festive
19. Colors used in marketing
• How there colors are used in their marketing materials
• They do not use traditional marketing/advertising
• Their colors are used in their
• Logo and on the design of their bag
• Integrated within store front
• Design of website
20. Web Site
• Same colors as the
signage, both contain
Trader Joe's red and
paper bag brown.
• A "homey" feel.
• Same background though
out the entire site.
• Consistent visual
branding
34. Evaluation
• By using coupons that are brought into the store we can
determine if our ads are working.
• By Facebook clicks and Twitter views. We can determine if
these ads are bringing in customers.
• With in our events we will be able. To determine if our
customers are enjoying the Trader Joe’s brand and
experience.
Editor's Notes
Age:While asking this question for our research we were looking to see what the age of our target market is for shoppers at Trader Joe’s. This information helped us in our research and in finding ways to gear our advertisements towards our designated market. When receiving the results we discovered that 41% of consumers age18-29 shop at Trader Joe’ and 44% of people age 30-49 shop at the store as well, the other 15% of shoppers are over 50 and do not shop at the store as much. This gives us the information that our target market age is teens to middle aged shoppers.Annual house hold incomeBy finding the participants average annual income, it gave us an idea on what type of people and whom the different types of social classes are who shop at this store. The results showed that 17% of our participants make $50,000-74,000 a yearGenderWhen looking at this data it shows who shops at Trader Joe’s depending on their gender. This is key because by finding this out we can focus on a specific gender to gear our advertisements towards. We found that 80% of females shop at Trader Joe’s and 20% of males shop at the store. This gives us the information that more of our market revolves around females.
How much you care about the healthiness of what you eat?This question was crucial since Trader Joe’s caters towards the healthy organic shopper. When we found this information it gave us key insight to which of our consumers care about their health and the healthiness of what they consume on a daily bases. The results of this information showed that 33% of people care about what they and 23% Really care about the healthiness of their food, showing that the other 12% some what care. Have you ever shopped at Trader Joe’s?This graph shows the consumers who shop at Trader Joe’s and who know about the company. By finding those who know about Trader Joe’s and those who do not know about them it also gives us the opportunity to focus on making our advertisements specific to those shoppers. The results came out showing that 67% of people shop at Trader Joe’s and 33% do not. This lets us know that customers enjoy shopping at the store and have been there before.Do you consider grocery shopping a boring chore?Since Trader Joe’s tries to focus on a fun shopping experience, this question gives us insight into who these customers are and gives us an advantage in making their grocery shopping experience a pleasurable one. The survey shows that 16% of people see grocery shopping as boring and 51% see it as a good experience. Showing that more people enjoy grocery shopping.
How much do you prefer Whole Foods?Since Whole Foods is a main competitor of Trader Joe’s this data lets us know how much of our target market shops at the competing store. With this information we can come up with more creative and specific ways to advertise towards our consumers. This graph shows that a majority of people, 20%, somewhat enjoy Whole Foods and the rest either do not prefer it or do enjoy the experience they get at this store.When you think of a pleasurable experience, which grocery store do you prefer?We asked this question to decipher who thinks of Trader Joe’s when wanting a pleasurable shopping experience. Again since Trader Joe’s tries to make shopping there a great experience this question is key in our research. The graph shows that 58%, a majority of our participants think of Trader Joe’s when thinking of a pleasurable experience and 42% think of Whole Foods, 21% Jewel, 13% go for Dominick's, 5% think of Wal-Mart and 18% think of other stores. This puts Trader Joe’s on top when thinking of a pleasurable grocery shopping experience.
Whole Foods Market is a foods supermarket chain based in Austin, Texas which emphasizes "natural and organic products.” It opened on September 20, 1980.Number of locations 331 as of July 2012. John Mackey partnered up with Craig Weller and Mark Skiles to merge SaferWay with their Clarksville Natural Grocery, resulting in the opening of the original Whole Foods Market.In 1984, Whole Foods Market began its expansion out of Austin, first to Houston and Dallas and then into New Orleans with the purchase of The Whole Food Company in 1988. The company expanded to the West Coast with a store in Palo Alto, California a year later.
The website does use the same colors as the signage. Both contain the Trader Joe's red and paper bag brown. Also the website has a "homey" feel to it. It consists of a lot of old fashion stencils that give it an older feel. The website contains the same background though out the entire site. Nothing really changes with layouts.Visual branding is consistent throughout the website. Each page has the same layout that consists of the same background that has an old fashion homey feel. Nothing really pops out, just moderate designs that are easy on the eye and very interesting