Mktg 464 - Trader Joe’s Case

Nathan Ubiles

MKTG 464

TC Dale

Trader Joe’s Case

1/10/15

Problem Statement

Although Trader Joe’s is somewhat set apart from your average grocery store they are

considered a traditional grocery store compared to retailers that have expanded assortment to

include grocery. The problem here is that these new giants in the grocery industry i.e. Walmart,

Target, etc., have contributed to the loss in market share for the “average traditional” grocery

store. As stated in the case study, traditional grocery stores have lost roughly 15% of market

share to hybrid retailers selling grocery over between 2001 and 2011.

Alternative Evaluation

To address this issue of declining market share the alternative solutions are listed

below:

Alternative 1: Do Nothing

Pros: Market share is evaluated over the entire industry. Trader Joe’s was stated to have

4.7% year over year sales growth. This change in market share may not be directly

affecting Trader Joe’s. The infamous one-stop-shop concept may be a dying concept of

the 2000’s where the young adult millennials have taken notice of smaller specialty

shops.

Cons: A static company is usually a dying company. The idea that the “target market” is

the educated professor is humorous considering that Trader Joe’s has seem to invest

very little in marketing. The few aspects of marketing described in the case were more

limited to advertising and promotion. Without an active marketing strategy Trader Joe’s

will limit their understanding of their customer, how they are changing, and frankly,

who they are missing

Alternative 2: Digital Marketing Campaign

Pros: Data on their customer can help better understand how, why, when, and what

they shop for. Tapping into social networking sites like Twitter and Facebook can help

create better branding and positioning for the company. Millennials can’t seem to take

their eyes off their mobile devices which are basically constant advertising vehicles.

Using social networking to promote limited time items, new items, new store openings,

can all drive traffic which in turn generates revenue. Social networking sites can also be

used for feedback or suggestions, again, allowing Trader Joe’s to better understand their

customer. Opt-in email newsletter rather than a physical flyer will grab more attention

from the younger crowd as well and exit surveys or email survey can help build data to

insure necessary changes in alignment with the customer.

Cons: These campaigns can be costly. The worst case is that through all the

campaigning, no increase in sales occur. Second, is that it could discourage the current

client base. They may find that Trader Joe’s is becoming too “corporate’’, invasive, or

“cutting edge” and the current target segment may be lost.

Alternative 3: eGrocery

Pros: Trader Joe’s parking lots are a mess; with the available technology, one shouldn’t

have