This international marketing plan seeks to identify and evaluate the best foreign markets for TJ’s by selecting market indicators that are potentially impactful on consumer acceptance of TJ’s and its unique culture and brand by Francis Ukpolo and Kerry Andrews

1. MBA 686 International Marketing
The Futurist:
Kerry Andrews
&
Francis Ukpolo
Trader Joe’s
International Marketing Plan

2. MBA 686 International Marketing
Executive Summary
o Trader Joe’s seeks to expand its brand by entering its first market outside of the United States
o This international marketing plan seeks to identify and evaluate the best foreign markets for TJ’s
by selecting market indicators that are potentially impactful on consumer acceptance of TJ’s and
its unique culture and brand
o Upon identifying the best entry markets for Trader Joe’s, thereafter we will evaluate the cultural
dimensions and develop an entry mode and marketing strategy for the corresponding markets

3. MBA 686 International Marketing
SWOT Analysis
• Unique Natural Products
• Strategically Placed Stores
• Public Image
• Low Prices
• Supply Chain
• Strong Competition
• Geographic Concentration
• Product Recalls
• Limited Product Selection
• International Expansion
• Product Expansion
• Supply Chain Expansion
• Inflation
• Competition
• Consumer Trends and New Concepts
Strengths Weaknesses
Opportunities Threats

4. MBA 686 International Marketing
Foreign Market Indicators
1. The Big Mac Index – The Index measures purchasing power parity among nations.
2. Alcohol Consumption – A portion of TJ’s revenue is generated by the sale of alcohol.
3. Health spending per person – TJ’s focus on natural foods appeals the health conscious.
4. Income Level Category – Countries that have an increasing middle class tend to shift focus towards necessity items to
trendy items.
5. Divorce Rates – In the U.S., men grocery shop in almost equal numbers to women.
6. Per Capita Income – A high per capita income indicates strong purchasing power.
7. Competitive Conditions – Evaluating the competition before entering the market will help TJ determine best practices
and pitfalls to avoid.
8. Consumer Receptivity to Foreign Products – Consumer receptivity to foreign products is critical in determining TJ’s
potential for success.

5. MBA 686 International Marketing
Foreign Market Assessment for Trader Joe’s
Country Big Mac
Index
Alcohol
(Litres)
Health
Spending
Income Level
Category
Divorce
Rates
Per Capita
Income
New Zealand $3.08 8.9 $1,163 5 2.63 $30,200
Canada $3.01 7.8 $1,939 5 2.46 $43,400
Chile $2.78 7.2 $289 4 0.38 $18,700
Poland 2.09 8.1 $248 4 1.1 $20,900
Italy 2.95 8 $1,676 5 0.27 $30,600
Greece 5.43 9.2 $965 5 0.76 $24,900
Switzerland 4.93 10.8 $3,857 5 2.8 $46,200
Norway 6.06 6 $3,182 5 2.2 $55,900
Denmark 4.49 11.5 $2,785 5 2.81 $38,300
United Kingdom 3.32 11.2 $1,675 5 2.6 $37,500
Sweden 4.28 7 $2,145 5 2.4 $41,900

6. MBA 686 International Marketing
Foreign Market Matrix Results
Rank Country Score
1 Canada 9.67
2 New Zealand 9.50
3 Italy 9.47
4 Sweden 9.38
5 United Kingdom 9.29
6 Switzerland 9.24
7 Denmark 9.10
8 Norway 9.01
Indicators TJ’s Importance Weight (IW)
Big Mac Index 20
Alcohol 20
Health Spending/Person 10
Income Level Category 20
Divorce Rates 10
Per Capita Income 20
Competitive Conditions 0
Receptivity to Foreign Products 0
TOTAL 100

7. MBA 686 International Marketing
Hofstede Analysis Results
0
10
20
30
40
50
60
70
80
90
100
Power Distance Individualism Masculinity Uncertainty Avoidance
Canada
New Zealand
U.S

8. MBA 686 International Marketing
Canada and New Zealand have been
identified as the best fit for TJ’s initial
foreign expansion effort. A full
marketing plan development is required
on these two countries to further assess
the proper entry method.
Large Market
Weak Competition
Great Infrastruture
Highly Competitive
Grocery Industry
High literacy level and
skilled workfroce
Receptive to foreign
investors
Canada New Zealand
Foreign Market Selection

9. MBA 686 International Marketing
Canada’s National Business Environment
Canada has a population just less
than 30 million people in a country
twice the area of the United States.
The heritage of Canada was French
and English; however, significant
immigration from Asia and Europe’s
non-French and English countries
has broadened Canada's cultural
richness. Canada's three major cities
are distinctively, even fiercely
different from one another even
though each is a commercially
thriving metropolitan center.
People Government Geography
In 2012, European and U.S.
sovereign debt worries, together
with the consequent lessening of
demand for commodities, resulted in
weaker than expected stock
markets and reduced confidence
levels throughout much of the world,
including Canada. For 2013, GDP
growth for Canada is expected to be
moderate, at around 2%. The
Canadian dollar spent much of 2012
trading slightly above par to the U.S
dollar. Inflation continues to remain
very low (McCarthy, 2013).
Canada is located on the upper
portion of North America. It is made
up of thirteen distinct provinces.
Alberta is the largest populated
province. However, British
Columbia is home to Vancouver and
Ontario is home to Toronto. Each
province is known for their distinct
culture.

10. MBA 686 International Marketing
New Zealand’s National Business Environment
New Zealand has a population of
slightly less than 4 million people with
most living in the key cities. The large
majority of the population (89%) has
a European heritage, primarily
English. Therefore, English is the
predominant language and
Christianity the largest religion. The
standard of living is high, and their
literacy rate is 100%. The state
provides extensive social services for
the welfare of its citizens, and has
one of the most comprehensive
health care programs in the world.
People Government Geography
New Zealand gained its
independence from the British in
1947 and models its government
structure to the British parliamentary
system. The government in New
Zealand provides funding to help aid
the growth of local business and it
does not present trade barriers that
discourage foreign investors for
entering the market.
The country has about 270,000
square kilometers and consists of
two islands (The North Island and
the South Island).

11. MBA 686 International Marketing
Canada’s Market Size and Potential
Canada’s economy relies heavily on
its natural resources especially its
metal production, logging, and oil
sectors. The natural resources
account for 13 percent of its GDP and
about 50 percent of its exports. The
abundance of metal in Canada has
allowed for the country to excel in its
manufacturing sector with the
automobile and aircraft industry.
About 950,000 Canadians work in
natural resource sectors, while
another 850,000 people are
employed serving those sectors
Economy Infrastructure Media & Technology
According to the Canadian
Infrastructure Report Card, the
infrastructure in the country has
been rated “Fair”. The report gives
Canada an overall grade of “Fair”
for
its roads
Canada received a “Good” rating for
its water infrastructure despite the
fact that some of its infrastructures
rated “Very Poor” for the conditions
of their water pipes
Canada has excellent
telecommunications and currently
has one of the world’s highest levels
of universal telephone service.
Canadian communication systems
include satellite communications,
national data networks, optical fibre
networks, cellular telephony, cable
TV, and virtually universal Internet
access. Canadians have greater
access to cable television service
than the people of any other nation.

12. MBA 686 International Marketing
New Zealand’s Market Size and Potential
New Zealand follows a free enterprise system
with orderly marketing products. The nation
depends heavily on its international trade and
deals with a wide range of trade partners. Its
biggest trade partners are Australia, the U.S,
China, and Japan. According to Forbes, New
Zealand’s economy is closely tied to
Australia’s, and both held up better than most
during the global financial crisis. The
downside to the resilience of its economy is
that the New Zealand dollar has appreciated,
making the country’s agricultural exports
more
expensive. The higher prices have helped to
push up unemployment to 7.3%—the highest
level since 1999.
Economy Infrastructure Media & Technology
New Zealand has a great road
infrastructure. Like most European
countries the traffic runs on the left
hand side. The government recently
proposed to spend $21 billion on the
development of their roads and
another $0.7 billion on public
Transportation.
The water management system in
New Zealand has faced a lot of
criticism over the years due to its
heavy pollution problem, which is a
result of its increasing activities in
Agriculture.
According to the New Zealand Sectors
Report, New Zealand has well-developed
telecommunications infrastructure. The
Government is working with the sector
through the Ultra-Fast Broadband (UFB)
and Rural Broadband Initiative (RBI)
programs to improve Internet access and
speed for all New Zealanders.
The telecommunications sector is
domestically focused, and is not a significant
contributor to exports. Telecommunications
businesses globally and in New Zealand are
having to develop new business models to
meet the increasing demand for high speed
data, particularly with the rapid adoption of
smartphones and other mobile devices. At
the same time revenues from traditional
fixed-line telephony services are declining.

13. MBA 686 International Marketing
Competitive Environment
o There is limited competition to Trader
Joe’s in Canada
o Pirate Joe’s is an unauthorized retailer
which resells TJ’s products purchased
by the owner once a week
o Planet Organics is another competitor
with eigth locations.
o There are two major competitors in
the grocery store market (Foodstuffs
and Woolworths)
o Weak competition in the natural or
organic product line
New ZealandCanada

14. MBA 686 International Marketing
Entry Mode Selection
o The first option to gain entry into Canada
is to acquire TJ’s nearest competition in
the country.
o Pirate Joe’s
o Planet Organic
o Choice Market
o Second option is to partner with a major
real estate management company to
identity best locations and leasing
aggrements
o A strategic alliance with one of the
two major market competitors would
be ideal. Foodstuffs, a locally owned
grocer with a non-traditional business
structure, a co-operative would be
the first choice. The co-operative
structure suggests TJ’s will be able
to maintain a high level of
independence despite the alliance
New ZealandCanada

15. MBA 686 International Marketing
Target Market
o Adults 18-50
o Middle class income level
o Highly educated
o Located in urban areas
o Adults 18-50
o Middle class
o Highly educated
New ZealandCanada

16. MBA 686 International Marketing
Marketing Objectives
o Open ten Trader Joe’s store by the end
of 2014
o Each store reporting profit margins of
6% by end of 2014
o Have 10% year over year revenue
growth with a mature profit margin of 8%
o Open four Trader Joe’s stores by
June 2015
o Open a flagship store in Auckland by
December 2014
o Establish supply chains for
perishable items such as eggs, milk,
etc.
New ZealandCanada

17. MBA 686 International Marketing
Marketing Strategies
Product Pricing Promotion Distribution
Focus on the “Four Ps”

18. MBA 686 International Marketing
Marketing Strategies
Product Pricing Promotion Distribution
New ZealandCanada
o Determine which products have the
strongest appeal to local consmers
o Click to insert text

19. MBA 686 International Marketing
Marketing Strategies
Product Pricing Promotion Distribution
New ZealandCanada
o Pricing in Canada will be adjusted based on
purchasing parity between Canada and the
United States
o Competitive pricing strategy will also be
employed
o It is important for TJ’s to retain its image as a
low cost natural grocer when there are other
competitors such as Whole Foods in the
market.
o Click to insert text

20. MBA 686 International Marketing
Marketing Strategies
Product Pricing Promotion Distribution
New ZealandCanada
o TJ’s will employee many of their current
promotion strategies in Canada
o TJ’s will continue to use the frequent flyer, and
in store sampling as well as stylized signage
and displays within the store
o Print ads will be purchased in small
independent publications as well as local
newspapers
o Internet banner ads will be purchased on
locally based sites
o Click to insert text

21. MBA 686 International Marketing
Marketing Strategies
Product Pricing Promotion Distribution
New ZealandCanada
o For British Columbia and Alberta, TJ’s will take
advantage of existing supply chains in
Washington
o Train or truck will be used to ship TJ’s products
from its existing suppliers
o Efforts will be made to utilize the supply chains
by the acquired Planet Organics Company for
TJ’s perishable items
o International products will be flown or shipped in
to the two Major ports of Canada, Port Metro in
Vancouver, and the Port of Toronto
o Click to insert text

22. MBA 686 International Marketing
Final Recommendations

23. MBA 686 International Marketing