trader joes.ppt.ppt

Presented By:Ally KarpsteinAngel Steagall,Trader Joes:A Unique Grocery StoreNeighborhood Grocery Stores with Foods and Beveragesfrom the Exotic to the Basics,Short History,Trader Joes began in 1958 as a chain of convenience stores called Pronto Markets”in the Los Angeles area.In 1967,the founder,Joe Coulombe goal was to expand the stores offerings and enhance their image.He doubled the floor space and offered hard-to-find,boutique domestic and imported wines and gourmet food items at outstanding prices.He decked out the stores with cedar plank walls and nautical dcor and garbed the Captain(the store manager),the First Mate(the assistant manager)and the Crew Members in colorful Hawaiian shirts.Trader Joes was officially born.Sales have grown an average of 23%a year since 1990.,OREGON LOCATIONS Beaverton:1753 S.W.Beaverton Hillsdale Highway Beaverton,OR 97005(503)626-3794 N.W.Portland:2122 N.W.Glisan Portland,OR 97210 S.E.Portland:4715 S.E.39th Avenue Portland,OR 97202 Lake Oswego:15391 S.W.Bangy Road Lake Oswego,OR 97035 Portland,Hollywood District:4218 N.E.Sandy Blvd.Portland,OR 97213 Eugene:85 Oakway Center Eugene,OR 97401,Where is,Trader Joes Overview,Trader Joes has stores in 19 states.Their mission is to bring customers the best food and beverage values along with the information to make informed buying decisions.They focus on delivering healthy choices for their customers.There are more than 2000 unique grocery items,including their private label,at honest everyday low prices.Their buyers travel the world searching for new items and work with a variety of suppliers who make unique and interesting products,many of them exclusive to Trader Joes.,All the private label products have their own angle,-i.e.,vegetarian,Kosher,organic or just plain decadent,and all have minimally processed ingredients,which is targeted directly to their target market,the health conscious consumer.They strive to source goods locally when ever possible,-Which results in a different product mix and price points in deli products,breads,dairy and fresh juices depending on availability in certain states.,Store Layout/Atmosphere,Only about 10%of the number of products found in a typical full-service supermarket.Trader Joes doesnt aim to provide everything you need.Instead,it entices you with things you never knew you wanted,like that tub of dried figs.Niche is to create an atmosphere where the customer feels shopping at Trader Joes is fun.Trader Joes stores are cramped.Clerks wander around in Hawaiian-print shirts,praising the newest cheese or chip and occasionally ringing a ships bell at checkout.The people who work in our stores are the front line,the first customer contact.They are the soul of Trader Joes.,Trader Joes Target Market,Trader Joe targets a brie-and-chardonnay audience with entices them with private-label brands with almost no promotion,stocking only items it can sell at a bargain price and still turn a profit.A consumer who wants to fill their cart with healthy and organic foods without breaking the bank.Health conscious environmentally conservative consumer.They aim to replicate the aura of a mom-and-pop store.,Merchandise Mix,“They taste it first”.A tasting panel tastes every product before they buy it.If they dont like it,they dont buy it.If customers dont like it,they can bring it back for a no-hassle refund.In order to maintain their pricing structure,they manage our store space well.Each of their products must stand on its own,meaning it must pay its own way.They dont have loss leaders or deep promotional discount programs.,They introduce about 10-15 new items a week.Their merchandise assortment(breadth)is limited compared to traditional grocery store.Each product must meet certain sales criteria in order to earn its way onto their shelves.They dont ask their suppliers to pay slotting,or promotional allowances.Products that dont sell well need are discontinued to make room for new and exciting products.They also have limited quantities of some items such as wines,nuts or dried fruits,which change vintages each year.,Unique Merchandise Mix,Organic veggiesFiber-packed,delicious blueberry-bran muffinsOrganic Gorilla Munch cereal and organic blueberry waffles,Organic Flax Pumpkin Seed Granola Organic evaporated cane sugar Ferrari Corano Fume BlancNutsDried fruitTrader Joses Habanero&Lime SalsaLeg of LambAfrican,Indian,and Thai simmer sauce,Trader Joes is a popular specialty grocery store with interesting healthy,organic,and exotic foods.,Notorious Two Buck Chuck,Charles Shaw is an easy drinking table wine sold exclusively at Trader Joes stores.The real draw for this wine is its rather humble price tag.The price is so low,some have deemed it Two Buck Chuck.”The price has been recently increased to$2.99 because of a cost increase to Trader Joes,however;it is still known as“Two Buck Chuck.”The price increase has not effected the demand for the notorious wine.,Price Structure,How they keep such honest,and low prices.Trader Joes mission is to bring the customer the best quality products at the best prices.Bargain hard and manage costs carefully.They manage their packaging,distribution and advertising costs well which results in lower prices to the customer.They dont change their prices unless their costs change.They stick to their Core Competencies:good food at the best prices!,Whenever possible they buy direct from manufacturers,in large volume.Maintain strong relationship with suppliers.They pay in cash,and on time,so their suppliers prefer to do business with them.Legal Constraints:Laws,taxes,deposit requirements and distribution costs are different in each state for a variety of products and because costs are different,prices may vary on the same item in different states.,Trader Joes focuses on Institutional Advertising,which is an attempt by the retailer to gain long-term benefits by selling the store itself rather than just the merchandise in it.They focus on a their niche,unique healthy and organic foods.Trader Joes does not have loss leaders or promotional discounts.The only advertise with their Trader Joes Fearless Flyer and their internet website.Trader Joes Fearless Flyer has been described a cross between Consumer Reports and Mad Magazine!The products they describe may be new,seasonal or simply a one-time buy on a great deal on products they think have added value to the customer with:top quality ingredients;entres that are ready to heat and serve in a hurry;products which have special recipes that are reduced in fat and calories;and wines and beers to go with favorite foods and special occasions.The Flyer is like described as a storybook of product stories.,Advertising,Creating a Positive Store Image,They design donation program at the requests of the local customers.Environmentally friendlyResponded to negative publicity and by February 1,2006,all eggs in Trader Joes private label will be from cage-free hens.,“Its fun to shop at Trader Joes”.Customers Quotes,I never knew food shopping could be so much fun!Some even call them The home of cheap thrills!“We like to be part of our neighborhoods and get to know our customers.”Trader Joes is committed to being active members in the communities where they have stores.,Trader Joes provides a clear positive image that is distinct from other retailers to promote long-term relationship with the customer.,Currently Trader Joes has expanded to over 200 stores in Arizona,California,Connecticut,Delaware,Illinois,Indiana,Maryland,Massachusetts,Michigan,Missouri,Nevada,New Jersey,New Mexico,New York,Ohio,Oregon,Pennsylvania,Virginia and Washington.Their future plans call for on-going development of new,one-of-a-kind food items at value prices,and continued expansion of our chain across the country,Sources,1Catawampus.“People Watching at Trader Joes.”http:/(Retrieved 25 October 2005).2Trader Joes.“2005 Trader Joes Company,Inc.”http:/(Retrieved 25 October 2005).3Tracking Trader Joes.“Not an official Trader Joe Site.”Http:/(Retrieved 25 October 2005).4The Human Society of The US.“Reports from the Streets:Volunteer Advocates Talk About Their Trader Joes Efforts.”http:/www.hsus.org/farm_animals/farm_animals_news/trader_joes_campaign_volunteers_report.html(Retrieved 25 October 2005).5Fast Company.“The Grocery Chain that Shouldnt Be.”http:/(Retrieved 25 October 2005).6Patrick M.Dunne and Robert F Lusch,5th eds.,Retailing(South-Western,part of the Thomson Corporation.2005),