Trader Joe's is a neighborhood grocery store chain with over 300 locations that provides a unique shopping experience. It offers high-quality products at low prices in stores smaller than conventional supermarkets. While aware of Trader Joe's, some low-income and international customers perceive it as expensive and not meeting family needs due to limited exposure. To expand, Trader Joe's could increase advertising targeting cultural products, ready-made meals, and store hours to overcome perceptions while reinforcing its value proposition of quality, price and shopping experience.

1. Trader Joe’s YourNeighborhoodGrocery Store

3. Ownership: Joe CoulombeAldi

4. Revenue

5. Over $6 Billion per year

6. $1300 per sq.ft., double the supermarket industry average

7. Growth

8. 15 new stores per year

9. 23% average annual sales growth since 1990

10. Size

11. Over 300 stores in more than 25 states

12. Hours of Operation: 9AM-9PM

13. Stores

15. Low-Tech

16. Island-themed décor

18. TJ’sCompetitors

19. TJ’sAppeals to…

20. TJ’sProducts

21. Price

22. Place

23. Promotion

24. Data Analysis

25. Survey

26. Culver City Vons Site Interviews Low income demographic; store located 15 minutes from nearest Vons 100% TJ’s awareness, many had also shopped at TJ’s Non-shoppers(mostly Latino-Americans) perceptions of TJ’s: Expensive Not aligned with the needs of a large family

27. International Students Interviews [Approx 60 days in US - limited exposure to TJ’s]

28. Interview with a Trader Joe’s Captain 18 year TJ’s veteran; guarded and often non-responsive Only carrying best sellers leads to customer complaints Company evolving; carrying new items, Paper towels, condiments. “Location affects customer base”. “Trader Joe’s considers anyone who sells food a competitor!”

29. Questions to Consider

30. Overcoming Perceptions Action : Increase Print Advertising Target appropriate segments Choose smaller, neighborhood publications. Showcase unique cultural product that they cannot find at larger stores. Get them in the store.

31. Increasing Business Action - Expand Quick Service Ready Made Meals Advertise Fearless Flyer Radio Ads Create “Neighborhood Eating Area” Condiments, napkins, microwave Expand Store Hours.

32. Product and Location Expansion

33. To Conclude In order to TJ’s to continue its growth Reinforce value proposition. - High Quality , Low Price and Shopping Experience. Making it more difficult for competitors to clone our model.