Trader Joe's Case

In: Business and Management

Submitted By hdavies624
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Trader Joe’s Case Study
Management Issues – After reading the case a couple of times, I think that Trader Joe’s may only have a couple of issues. One issue that I think may be their largest is the fact that they choose to have small stores. People feel cramped and they tend to become agitated, than in return can rub off on other customers and their employees. I think they can have a slightly larger store, keeping the same amount of products. This would make the store have more room in the isles and for people to move around more easily. The other issue I found could be their locations. They tend to have locations that are out of the ordinary and a place people would not normally go grocery shopping. This tends to turn most people off from shopping at certain locations.
Discussion Questions
1. I believe Trader Joe’s uses the management process in many different ways.
Planning- Most supermarkets carry upwards of 45 thousand different products, while Trader Joe’s only carries about 4 thousand. This gives people a lesser variety but a greater chance of buying the product. It is less of a chore to pick between 4 different brands than 12. When they have a product that is not making a profit or not enough profit, they remove it from their inventory and bring in something new. They also use customer feedback for this process as well, which keeps their customers satisfied and coming back to their stores. Another way of planning for Trader Joe’s is their marketing. They spend about 0.2% of their sales on marketing while super and mega markets are spending roughly 4%. Trader Joe’s goes by word of mouth also, so this is a huge advertising cost that they do not have to spend money on. This is another reason Trader Joe’s prides itself on customer satisfaction and retention.
Organization – Each employee of Trader Joe’s is to not only learn about the products they offer but…...

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