I easily overlooked the
fully stocked fridge at my parent’s house until I got to college and needed to
feed myself. Before I got to U of M, I could care less where the ingredients
from dinner were from, so long as a meal was on the table by 6:00pm. Throughout
college I have found cooking to be a temporary escape from studying and
homework. There are also days I need to be able to whip up a meal in 15
minutes. Trader Joe’s has become my
go-to grocery store for any occasion for a number of reasons.An island escape: the lively atmosphere of Trader Joe’s
Trader Joe’s has created
an environment that makes grocery shopping an exciting destination, rather than
a mundane weekly task. The employees wear an assortment of Hawaiian shirts and
the décor of the store is Polynesian and tropical,
with bold and vibrant signs labeling the items. The physical environment and
layout of the store provides strong situational influences that create positive
effects on consumers’ feelings towards taking their time and relaxing while
grocery shopping (Babin/Harris). Trader Joe’s has managed to shift the value
their consumers’ receive from their products from a functional, utilitarian
value of providing nourishment, to a more hedonic value that comes from the
immediate gratification of being on an island getaway full of exotic foods (Babin/Harris). I never used to think of
grocery shopping as a fun activity until I started going to Trader Joe’s.
One-of-a-kind Products
The main
draw to Trader Joe’s over another grocery store is the selection of items sold
exclusively under the Trader Joe’s private label that I cannot find at other
retailers. Though much smaller than a traditional grocer, the options seem
endless when it comes to unique and flavorful food options. Trader Joe’s has a differentiated approach to
marketing, as they serve multiple market segments with unique product offerings
under the Trader Jose’s, Trader Giotto’s and Trader Ming’s labels
(Babin/Harris). They also serve the vegetarian segment, gluten-free segment,
and even have products geared at kids. How has Trader Joe’s managed to get the
flavors down to a science that are sure to please the taste buds of their
customers? In order to ensure new product rollouts will inspire repeat
purchases and be a viable customer favorite, Trader Joe’s has a “Tasting Panel”
that puts new products through a rigorous process in order to approve around
10% of the products they sample (Berman). Additionally, Trader Joe’s conducts
qualitative consumer research through interviewing customers with a few product
specific questions when they return a product that they did not like. This is especially useful for keeping a pulse
on the market and determining trends in taste preferences.
See what other customers are
saying:
High-quality food + low prices= every shopper’s dream
Since there is a perception of Trader Joe’s
being wholesome and for the health conscious market, there is often a misconception
that Trader Joe’s prices are similar to Whole Foods. Trader Joe’s manages to
offer comparable products to Whole Foods at nearly half the price (Business Insider). As a frequent customer, I
have come to find that a lot of the products I purchase at Trader Joe’s are
actually significantly cheaper than if I had bought them at Meijer or Kroger. I would have never originally thought that a
seemingly specialty grocery store could offer prices competitive with a
generic, traditional grocer.
Trader Joe’s places an
emphasis on everyday value and has said:
“We have low prices, every day. NO coupons. NO
membership cards. NO discounts. NO glitzy promotions or couponing wars at our
stores. We offer the best everyday values, every day.”
All products sold at
Trader Joe’s that are part of the private label are guaranteed to meet the
following requirements:
- No artificial flavors or preservatives
- No synthetic colors
- No MSG
- No genetically modified ingredients
- No partially hydrogenated oils (artificial trans-fats)
Blog by: Naomi Kiura
Sources:
Babin/Harris (2014)
Consumer Behavior
Berman (2010) Competing in
Tough Times: Business Lessons from L.L.Bean, Trader Joe’s, Costco, and other
World-Class Retailers
