A Case Study of Trader Joe's chain of Californian specialty stores that has become an American staple with 474 locations in 43 states. How has Trader Joe's managed to differentiate itself from huge competitors like Whole Foods? The answer lies in their market orientation which implements a strongly customer-focused approach. Success is also achieved through a unique combination of private label products and a shopping experience that has helped develop a beloved brand with a loyal customer base. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayA brief overviewTrader Joe's (TJ's) traces its quirky and cool roots to California, where it opened in 1967 thanks to the Joe original - Joe Coulombe (Trader Joe's, 2018). The name serves to provoke imagery of South Sea traders. This nautical motif has remained a presence in the company over the years and is synonymous with its charming store brand. In 1972, TJ's launched its first private label product - a bag of granola - and never looked back (Trader Joe's, 2018). Today, stores offer more than 80% private label items, which has helped build customer loyalty. According to Mallinger and Rossy (2007), TJ's targets more educated consumers because they tend to be more open to the unique product offerings offered by the stores. However, with its roots in California, it is likely that another consumer segment is natural food savvy shoppers, which has led the store to offer healthier (e.g. organic) versions of good many of its products. Although TJ's claims it is a specialty store, it has the stereotype of an unpretentious, good value health food store, which differentiates it from Whole Foods, which earned the nickname “Whole Paycheck.” From the beginning, Trader Joe's mission was to provide quality food and drinks at a good price. Creating value for its customers has been at the heart of its mission. As they say: “We only focus on what matters: good food + good prices = value”. TJ's is able to offer everyday low prices through their private label items that they purchase directly from suppliers. The quality of the items speaks for itself through the sales volume. According to a report from Super Market News, TJ's had $13.3 billion in sales in 2017. Even though Whole Foods is still ahead at about $16 billion, the fact that TJ's is competing without selling of national brands and without keeping prices low is impressive. Over the past few years, Trader Joe's has gained something of a cult following among adventurous eaters. New products are constantly being added to shelves, others are being removed, while true favorites remain like Mandarin Chicken, Triple Ginger, and Cauliflower Gnocchi, to name a few. These Trader Joe's brand treasures aren't the only thing that keeps customers coming back. The company has truly redefined the shopping experience with its enhanced customer service and cool, laid-back vibe. Trader Joe's and Its Market Orientation Trader Joe's marketing orientation can be observed through its integrated, customer-focused strategy that allows the company to provide value to shoppers, not just through its products butalso through the culture of the store it creates. Kotler and Armstrong (2016) describe successful companies as those that have "a passion for understanding and satisfying customer needs...that motivate all members of the organization to contribute to building lasting customer relationships based on value creation” (p. 28). This is exactly what TJ's has achieved through customer focus and its internal corporate structure. Customer orientation According to Kohli and Jaworski (1990), customer orientation is the main element of a company's market-oriented strategy. The foundation of TJ's success lies in the privileged relationships it creates with its customers. These relationships are the company's primary tool for gathering market information. According to Matt Sloan, vice president of product marketing, TJ's doesn't use any customer data, but "the company relies on its associates to facilitate the kind of customer intimacy that allows it to have the products and offer the experiences customers want” (Yohn, 2018). ). This strategy has worked remarkably well over the years. TJ's is committed to customers through its friendly, helpful and knowledgeable staff. They encourage customer feedback which can be submitted online, via feedback boxes in each store or in person to a member of staff. This allows Trader Joe's to customize each store's offerings to meet the specific needs of shoppers in that location. TJ's commitment to its customers is demonstrated through its returns policy which states: "Our product guarantee: we tried it!" We liked it! If you don’t, bring it back for a full refund, no questions asked.” This not only allows TJ to receive product feedback, but it also creates a sense of trust between the company and the customer. Narver and Slater (1990) describe customer orientation as “understanding enough of one's target buyers to be able to continually create superior value for them.” By creating an open and comfortable dialogue with its customers, TJ's is able to know exactly what their customers value and respond effectively to their needs. This customer-focused, face-to-face strategy has been so successful that TJ's does not employ any major marketing programs. According to marketing manager Tara Miller, the company's biggest marketing expense is the "demo station" where product samples are distributed to each store each day. Additionally, Trader Joe's produces a monthly flyer – “The Fearless Flyer” – which tells interesting stories and facts about new products. Interestingly, TJ's relies primarily on word of mouth from its customers to promote its products and brand. This signifies how strong and successful its customer-centric approach is. Company Structure Trader Joe's high level of customer service is achieved through a company-wide effort that promotes its market-oriented philosophy. According to Kohli and Jaworski (1990), market orientation is effective when it is clearly communicated and adopted by all members of an organization. To integrate its market orientation, TJ's seeks employees who will uphold their company's values. All employees undergo training that includes “communication, teamwork, leadership and product knowledge skills.” This investment in employees is essential to TJ's high level of customer service. Kohli and Jaworski (1990) argue that market orientation requires a coordinated effort and that the more connected an organization is across its departments, the morethe market orientation of this company is great. TJ's fosters a "friendliness" environment in which employees share responsibility for all tasks, from shelf stocker to cashier. They offer excellent salaries and provide opportunities for advancement within the company. In fact, every supervisor was once a bagger. Even CEO Dan Bane is known to continue working in stores. Trader Joe's customer-focused philosophy is ingrained in its employees at the local level and stays with them as they progress through the company, allowing them to implement it every step of the way. Within Trader Joe's, market orientation appears to have created a beneficial ecosystem that has improved the organization's internal functions and, in turn, enabled it to better meet the needs of its customers. As Kohli and Jaworski (1990) suggest, "a market orientation appears to provide a unifying focus for the efforts and projects of individuals and departments within the organization, thereby leading to superior performance." Changing Needs of customers is essential to a market-oriented strategy (Kohli & Jaworski, 1990). Trader Joe's rather minimalist technique of gathering market information appears to be able to put him at a disadvantage when it comes to reacting to the market. However, over the years they have adapted their product range to evolve with their customers' preferences. For example, the growing trend of health-conscious shopping over the years prompted TJ's to finally ensure that all of its private label items were free of trans fats, artificial flavors and artificial preservatives, as well as non-GMO . Additionally, although they don't consider themselves a health food store, TJ's has a wide range of organic options. Responding to market needs has allowed them to satisfy their current customers and also attract a wider market as they expand their product offerings. Trader Joe's: The Trader Joe's brand is able to build brand value through its unique core product (i.e., its food). and through its augmented product (i.e. the purchasing experience). Baines et al. (2017) assert that “successful brands create strong, positive, and lasting impressions through their communications and connect psychological feelings and emotions, not just their functionality” (p. 374). Trader Joe's achieves this by treating its store like its brand. It's not just about their products or the business environment, it's both together. The Product Line Like most grocery stores, TJ's carries the basic products that people buy frequently and that are available in most stores. Buying such products does not require any thought or practice and the brand is less important. However, it is the way TJ's creatively innovates its product lines that sets it apart from its competitors. They offer all the basics, but they also offer unique and novel versions of these products (for example, chili lime tortillas vs. plain corn tortillas or cookie butter vs. peanut butter) . These unique products help shoppers differentiate themselves from competitors' options, strengthening the Trader Joe's brand. Additionally, it appears that TJ's understands the concept of Product Life Cycle (PLC) which refers to a series of stages that a product goes through from its development to its eventual commercialization. decline. As stated on the TJ website: “If an item doesn't pull its weight in our stores, it goes to something else” (Trader Joe's, 2018). Understanding the life cycle of their products is crucial tothe success of TJ, as the continually innovative product line has become an integral part of their brand. Kowitt (2010) writes that "the genius of Trader Joe's is to stay ahead of Americans' increasingly adventurous palates with interesting new items." New product development involves a series of connected steps from idea generation to commercialization. At Trader Joe's, some ideas for new products come from customer feedback. However, TJ's is also committed to anticipating customers' needs and offering them products they didn't know they wanted. Baines et. al. (2017) assert that when it comes to product development, “the procedures adopted by an organization reflect its attitude to risk, its culture, its strategy, the product and the market, and above all, its approach to the relationship customer” (p. 368). . The nature of Trader Joe's relationship with its customer dictates its product development. This allows TJ's to produce something new and potentially risky because they have confidence in their loyal customers who trust the Trader Joe's brand. For product development, Trader Joe's uses "product developers" who travel the world in search of traditional, tasty and interesting foods that can be brought to their shelves (Inside Trader Joe's, 2018). This has allowed Trader Joe's to develop an extremely diverse product line that truly represents the flavors of the world, from China to India to Mexico and beyond. The company creatively packages items from different countries or regions with names like Trader Giotto's (Italian food), Trader Ming's (Chinese food), and Trader Jose's (Mexican food). This packaging is not only a nod to the countries that inspired the food, it is memorable and reinforces the brand. The Buying Experience Just as important as the tangible products a company offers is the augmented product they offer because it can be the factor that differentiates them from others. a competitor. The shopping experience TJ's creates is its augmented product. Kowitt (2010) describes Trader Joe's as "a fun, quirky discovery zone that elevates food shopping from a chore to a cultural experience." Walking into TJ's is like walking into a fancy farmers' market, but the vibe remains down-to-earth and fun. All workers wear Hawaiian shirts, employees are called “crew members,” store supervisors are “mates,” and managers are “captains” (Trader Joe's, 2018). There is no intercom system but rather a maritime bell that crew members use to communicate. Kids run around trying to find the hidden stuffed animal for a chance to win a lollipop. Each sign and product description is created in chalk by a team of local artists. Employees are available to answer any questions you may have but are not pushy salespeople. Baines et. al. (2017) assert that “by developing positive emotional connections with a brand, consumers can gain reassurance through their purchases from the brand” (p. 376). Trader Joe's offers that special atmosphere that customers have come to associate with their brand and keeps them coming back. The future Trader Joe's presents itself as "a national chain of neighborhood grocery stores." This juxtaposition constitutes its greatest challenge: how to grow while remaining small? Yes, their product line is innovative and delicious, but the cornerstone of their success is the customer experience. If they lose this charm, they will effectively place themselves at the same level of. |. 2018].

Essay / A Case Study of Trader Joe's chain of Californian specialty stores that has become an American staple with 474 locations in 43 states. How has Trader Joe's managed to differentiate itself from huge competitors like Whole Foods? The answer lies in their market orientation which implements a strongly customer-focused approach. Success is also achieved through a unique combination of private label products and a shopping experience that has helped develop a beloved brand with a loyal customer base. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayA brief overviewTrader Joe's (TJ's) traces its quirky and cool roots to California, where it opened in 1967 thanks to the Joe original - Joe Coulombe (Trader Joe's, 2018). The name serves to provoke imagery of South Sea traders. This nautical motif has remained a presence in the company over the years and is synonymous with its charming store brand. In 1972, TJ's launched its first private label product - a bag of granola - and never looked back (Trader Joe's, 2018). Today, stores offer more than 80% private label items, which has helped build customer loyalty. According to Mallinger and Rossy (2007), TJ's targets more educated consumers because they tend to be more open to the unique product offerings offered by the stores. However, with its roots in California, it is likely that another consumer segment is natural food savvy shoppers, which has led the store to offer healthier (e.g. organic) versions of good many of its products. Although TJ's claims it is a specialty store, it has the stereotype of an unpretentious, good value health food store, which differentiates it from Whole Foods, which earned the nickname “Whole Paycheck.” From the beginning, Trader Joe's mission was to provide quality food and drinks at a good price. Creating value for its customers has been at the heart of its mission. As they say: “We only focus on what matters: good food + good prices = value”. TJ's is able to offer everyday low prices through their private label items that they purchase directly from suppliers. The quality of the items speaks for itself through the sales volume. According to a report from Super Market News, TJ's had $13.3 billion in sales in 2017. Even though Whole Foods is still ahead at about $16 billion, the fact that TJ's is competing without selling of national brands and without keeping prices low is impressive. Over the past few years, Trader Joe's has gained something of a cult following among adventurous eaters. New products are constantly being added to shelves, others are being removed, while true favorites remain like Mandarin Chicken, Triple Ginger, and Cauliflower Gnocchi, to name a few. These Trader Joe's brand treasures aren't the only thing that keeps customers coming back. The company has truly redefined the shopping experience with its enhanced customer service and cool, laid-back vibe. Trader Joe's and Its Market Orientation Trader Joe's marketing orientation can be observed through its integrated, customer-focused strategy that allows the company to provide value to shoppers, not just through its products butalso through the culture of the store it creates. Kotler and Armstrong (2016) describe successful companies as those that have "a passion for understanding and satisfying customer needs...that motivate all members of the organization to contribute to building lasting customer relationships based on value creation” (p. 28). This is exactly what TJ's has achieved through customer focus and its internal corporate structure. Customer orientation According to Kohli and Jaworski (1990), customer orientation is the main element of a company's market-oriented strategy. The foundation of TJ's success lies in the privileged relationships it creates with its customers. These relationships are the company's primary tool for gathering market information. According to Matt Sloan, vice president of product marketing, TJ's doesn't use any customer data, but "the company relies on its associates to facilitate the kind of customer intimacy that allows it to have the products and offer the experiences customers want” (Yohn, 2018). ). This strategy has worked remarkably well over the years. TJ's is committed to customers through its friendly, helpful and knowledgeable staff. They encourage customer feedback which can be submitted online, via feedback boxes in each store or in person to a member of staff. This allows Trader Joe's to customize each store's offerings to meet the specific needs of shoppers in that location. TJ's commitment to its customers is demonstrated through its returns policy which states: "Our product guarantee: we tried it!" We liked it! If you don’t, bring it back for a full refund, no questions asked.” This not only allows TJ to receive product feedback, but it also creates a sense of trust between the company and the customer. Narver and Slater (1990) describe customer orientation as “understanding enough of one's target buyers to be able to continually create superior value for them.” By creating an open and comfortable dialogue with its customers, TJ's is able to know exactly what their customers value and respond effectively to their needs. This customer-focused, face-to-face strategy has been so successful that TJ's does not employ any major marketing programs. According to marketing manager Tara Miller, the company's biggest marketing expense is the "demo station" where product samples are distributed to each store each day. Additionally, Trader Joe's produces a monthly flyer – “The Fearless Flyer” – which tells interesting stories and facts about new products. Interestingly, TJ's relies primarily on word of mouth from its customers to promote its products and brand. This signifies how strong and successful its customer-centric approach is. Company Structure Trader Joe's high level of customer service is achieved through a company-wide effort that promotes its market-oriented philosophy. According to Kohli and Jaworski (1990), market orientation is effective when it is clearly communicated and adopted by all members of an organization. To integrate its market orientation, TJ's seeks employees who will uphold their company's values. All employees undergo training that includes “communication, teamwork, leadership and product knowledge skills.” This investment in employees is essential to TJ's high level of customer service. Kohli and Jaworski (1990) argue that market orientation requires a coordinated effort and that the more connected an organization is across its departments, the morethe market orientation of this company is great. TJ's fosters a "friendliness" environment in which employees share responsibility for all tasks, from shelf stocker to cashier. They offer excellent salaries and provide opportunities for advancement within the company. In fact, every supervisor was once a bagger. Even CEO Dan Bane is known to continue working in stores. Trader Joe's customer-focused philosophy is ingrained in its employees at the local level and stays with them as they progress through the company, allowing them to implement it every step of the way. Within Trader Joe's, market orientation appears to have created a beneficial ecosystem that has improved the organization's internal functions and, in turn, enabled it to better meet the needs of its customers. As Kohli and Jaworski (1990) suggest, "a market orientation appears to provide a unifying focus for the efforts and projects of individuals and departments within the organization, thereby leading to superior performance." Changing Needs of customers is essential to a market-oriented strategy (Kohli & Jaworski, 1990). Trader Joe's rather minimalist technique of gathering market information appears to be able to put him at a disadvantage when it comes to reacting to the market. However, over the years they have adapted their product range to evolve with their customers' preferences. For example, the growing trend of health-conscious shopping over the years prompted TJ's to finally ensure that all of its private label items were free of trans fats, artificial flavors and artificial preservatives, as well as non-GMO . Additionally, although they don't consider themselves a health food store, TJ's has a wide range of organic options. Responding to market needs has allowed them to satisfy their current customers and also attract a wider market as they expand their product offerings. Trader Joe's: The Trader Joe's brand is able to build brand value through its unique core product (i.e., its food). and through its augmented product (i.e. the purchasing experience). Baines et al. (2017) assert that “successful brands create strong, positive, and lasting impressions through their communications and connect psychological feelings and emotions, not just their functionality” (p. 374). Trader Joe's achieves this by treating its store like its brand. It's not just about their products or the business environment, it's both together. The Product Line Like most grocery stores, TJ's carries the basic products that people buy frequently and that are available in most stores. Buying such products does not require any thought or practice and the brand is less important. However, it is the way TJ's creatively innovates its product lines that sets it apart from its competitors. They offer all the basics, but they also offer unique and novel versions of these products (for example, chili lime tortillas vs. plain corn tortillas or cookie butter vs. peanut butter) . These unique products help shoppers differentiate themselves from competitors' options, strengthening the Trader Joe's brand. Additionally, it appears that TJ's understands the concept of Product Life Cycle (PLC) which refers to a series of stages that a product goes through from its development to its eventual commercialization. decline. As stated on the TJ website: “If an item doesn't pull its weight in our stores, it goes to something else” (Trader Joe's, 2018). Understanding the life cycle of their products is crucial tothe success of TJ, as the continually innovative product line has become an integral part of their brand. Kowitt (2010) writes that "the genius of Trader Joe's is to stay ahead of Americans' increasingly adventurous palates with interesting new items." New product development involves a series of connected steps from idea generation to commercialization. At Trader Joe's, some ideas for new products come from customer feedback. However, TJ's is also committed to anticipating customers' needs and offering them products they didn't know they wanted. Baines et. al. (2017) assert that when it comes to product development, “the procedures adopted by an organization reflect its attitude to risk, its culture, its strategy, the product and the market, and above all, its approach to the relationship customer” (p. 368). . The nature of Trader Joe's relationship with its customer dictates its product development. This allows TJ's to produce something new and potentially risky because they have confidence in their loyal customers who trust the Trader Joe's brand. For product development, Trader Joe's uses "product developers" who travel the world in search of traditional, tasty and interesting foods that can be brought to their shelves (Inside Trader Joe's, 2018). This has allowed Trader Joe's to develop an extremely diverse product line that truly represents the flavors of the world, from China to India to Mexico and beyond. The company creatively packages items from different countries or regions with names like Trader Giotto's (Italian food), Trader Ming's (Chinese food), and Trader Jose's (Mexican food). This packaging is not only a nod to the countries that inspired the food, it is memorable and reinforces the brand. The Buying Experience Just as important as the tangible products a company offers is the augmented product they offer because it can be the factor that differentiates them from others. a competitor. The shopping experience TJ's creates is its augmented product. Kowitt (2010) describes Trader Joe's as "a fun, quirky discovery zone that elevates food shopping from a chore to a cultural experience." Walking into TJ's is like walking into a fancy farmers' market, but the vibe remains down-to-earth and fun. All workers wear Hawaiian shirts, employees are called “crew members,” store supervisors are “mates,” and managers are “captains” (Trader Joe's, 2018). There is no intercom system but rather a maritime bell that crew members use to communicate. Kids run around trying to find the hidden stuffed animal for a chance to win a lollipop. Each sign and product description is created in chalk by a team of local artists. Employees are available to answer any questions you may have but are not pushy salespeople. Baines et. al. (2017) assert that “by developing positive emotional connections with a brand, consumers can gain reassurance through their purchases from the brand” (p. 376). Trader Joe's offers that special atmosphere that customers have come to associate with their brand and keeps them coming back. The future Trader Joe's presents itself as "a national chain of neighborhood grocery stores." This juxtaposition constitutes its greatest challenge: how to grow while remaining small? Yes, their product line is innovative and delicious, but the cornerstone of their success is the customer experience. If they lose this charm, they will effectively place themselves at the same level of. |. 2018].

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