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Case Analysis: Trader Joe's

In: Business and Management

Submitted By wengie
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Case Analysis: Trader Joe's

Problem
Trader Joe's offers products aimed at sophisticated consumers interested in finding good bargains. It has expanded with this demographic for years, and it's assumed that the expansion will continue in the following five years. It is better for Trader Joe's to keep current demographic, but it has limited selection of products. For example, some customers are complaining that Trader Joe's doesn't have coke, so they have to go somewhere else to get it.

Analysis
Trader Joe's has had success in the past with a demographic of well-educated customers. Trader Joe's stores are fairly small are typically located near colleges. They offer products that cannot usually be found anywhere else. Most of the products are very healthy and organic. However, some things have changed and now there is competition. For example, Wal-Mart has adopted a small business strategy to compete with small stores. This is a big threat for Trader Joe's because Wal-Mart has many customers and has a large variety of products. Whole Foods Market also competes and provides natural and organic food. It maybe harder for Trader Joe's to keep current customers or attract new clients. Trader Joe's should have a wide selection of products to attract customers and gain market shares.

Alternative
Trader Joe's could survey what new products its customers would prefer to have, and allow customers leave feedback on what products they like. Since the stores are small and it's impossible for Trader Joe's to enlarge existing stores, Trader Joe's could replace less popular products with the new products. However, it could disappoint customers who like the replaced products. And most importantly, since many products that Trader Joe's has now display Trader Joe's labels, import other products may dilute Trader Joe's brand.

Another way to solve the problem is private

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