Trader Joe's Case Study

Retaining a Niche Position in Low-Cost, High Quality Food Retail

Publication Date	October 2008
Publisher	Datamonitor
Product Type	Report
Pages	11
ISBN Number	not applicable
Product Code	DAT13657

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Summary

Introduction

This report on Trader Joe's forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It focuses on how the retailer has created a niche for itself in the US market by providing low cost, predominantly private label goods that are novel and of high quality.

Reasons to Purchase

Gain insight into the methods used by important industry players to give them a competitive edge
Identify specific areas for operational improvements
Capitalize on the knowledge of experienced companies when entering a new niche or market

Content

Catalyst
Summary
Analysis
- Private Labels Enjoy Growth At Times Of Economic Downturn
- Trader Joe's Has Developed A Niche Position In Food Retail
- The Company's Products Are 80% Private Label, Yet Maintain A Premium Positioning
- The Company Has A Loyal Customer Base, With Annual Sales Reaching Over $6 Billion
- Company Growth Has Been Strong And Well Targeted
- Its Stores Have Moved From A West Coast Bias To The East Coast
- The Company Targets Affluent, Well Educated Consumers, Leading Many Stores To Be Located In College Towns
- Trader Joe's Keeps Its Costs Down In A Number Of Ways
- The Company Frequently Rotates Its Product Mix, Getting Rid Of Poor Sellers
- The Company Sources Products Itself, Cutting Out The Middlemen
- Stores Are Small, And Located In Non-Prime Locations
- The Company Relies On Quirky, Unconventional Marketing Techniques To Stand Out From Competitors
- Trader Joe's Quarterly Newsletter Is Its Primary Communication Vehicle With Its Customers
- The Company Produces Low Key Radio Adverts To Promote Its Genuineness
- Trader Joe's Stores Have A Nautical Theme That Helps It Stand Out From The Crowd
- Stores Hold Frequent Sampling Sessions To Introduce Consumers To New Products
- Two Fan Websites Have Been Created, Showing The Amount Of Devotion Felt For The Brand
- Trader Joe's Will Have To Work Hard To Maintain Its Differentiation In Future
Appendix
- Case Study Series
- Methodology
- Secondary Sources
- Further Reading
- Ask The Analyst
- Datamonitor Consulting
- Disclaimer
List Of Tables
- Table 1: Market Value Of Food Private Label In The Us, 2002-2012, $M
List Of Figures
- Figure 1: Trader Joe's Has Spread From The West To East Coast Of The Us
- Figure 2: Trader Joe's Flyer Is Written In A Whimsical Way With Old Fashioned Pictures
- Figure 3: Trader Joe's Stores Have A Nautical Theme, While Even Top Management Wear The Staff Uniform Of Hawaiian Shirts