Case Study Of Trader Joe's Whole Foods

1552 Words 7 Pages
Trader Joe’s is focusing on the product innovation and selling groceries and wine for a cheap price. Due to customers understanding and knowledge, customers know that they can get products from Trader Joe’s for high-quality with stable low price. However, Whole Foods has gotten a harder time differentiating. Its company response is not encouraging customers, according to a recent report (Lutz, 2014).). In addition, Trader Joe’s is not only focusing on the price, but product, promotion and place as well.
In product, Trader Joe’s products are simple, and each of ingredients will not take half of package. Other reason of becoming forefront of supermarket is that there are variety of products. It starts from Italian, Mexican, Indian, Chinese,
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This company also cuts out the intermediary and purchases a lot of its food directly from the suppliers whose products are lower expenses and more saving for customers, then, suppliers send their food to Trader Joe’s distribution center and send it to stores. Traditional grocery store usually purchases their food through a distributor which will cost more, therefore, Trader Joe’s decided not to purchase products through distributor. One more reason is that they use less money on their marketing. This company is known for not using as much money on their marketing and advertising as its competitors. Indeed, it excludes even have an official Facebook or Twitter page. There are chances, we probably hear this word through words of mouth. Therefore, they can convince customers to be “advertisers,” and promote stores in various ways (Co, 2015). Trader Joe’s is one of many business cases that concentrating on the cheaper prices, and less on maximizing satisfied instances. There is resulted in such high levels of customer satisfaction. A new study of customers in North America finds, when it comes to customer satisfaction, no grocery chain tops Trader Joe’s. Indeed, Trader Joe’s is rated best, followed by Public and Whole Foods. Ranked first reason is atmosphere and fast checkout, and second reason is being cleanliness, courteous staffs, products selection and accurate pricing (Mcneal, 2013). The pricing in the Trader Joe’s is not only convenient for customers, but also for their daily life. The frozen products are a working mom’s dream come true. The frozen products are usually less than $5. Trader Joe’s has slogan “We shop the world for you” is the implicit promise of relatively few products categories. Both Costco and Trader Joe’s add to the shopping experience by giving the customer a sense of finding something unexpected at excellent prices. For instance, the wine “two buck chuck” sold by Trader

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