Beruflich Dokumente
Kultur Dokumente
Matt Peters
Our History
Joe Coulombe founded Trader Joes in 1958. Its very first store opened in Pasadena, California and still remains open today. The chain of stores was first called Pronto Markets where it later changed its name to the well-known Trader Joes in 1967. Since 1979, a German Family known as the Albrect family, took ownership over Trader Joes.The Albrect family is also behind the supermarket chain Aldi. Trader Joes gained its clientele through Californian wines, which meant Trader Joes sold every type of Californian wine there was. Trader Joes currently have 395 stores open to customers with over 10,000 dedicated employees. Their well know for their low prices and privately labeled food products. Their friendly employees dress in Hawaiian shirts to add to the overall experience at Trader Joes.
Our Mission
Trader Joes Mission is to offer value and dedication to quality service through warm, friendly, committed employees., as well as offer quality products. They require a culture that supports loyalty and customer service through personal contact with the consumer. Trader Joes handpicks products they know their customers will enjoy. They dont buy a lot of branded items; instead they sell their own private labeled products. They strive to offer quality products at competitive prices to ensure that customers save as much money as possible.
P R I C E
P There are currently 395 Trader stores all across the UnitL Joes ed States. Located around maA jor cities/suburban areas with incomes such as C moderate Chicago and St. Louis. E
Trader Joes does not use traditional advertising that is seen daily. They dont believe in mainstream marketing tactics. Trader Joes carries its private labeled brands, specifically promotiong its brand when customers take their products home. Menus are found on their sites as well as recipes promoting Trader Joes products and spices. Promotions such as the Two Buck Chucks are notorious at Trader Joes. Trader Joes also sells cookbooks which provide recipies using all Trader Joes products. Trader Joes also issues out its Fearless Flyer which is a cross between consumer reports and a magazine. The fearless flyer serves as a newsletter, catalog, and a bit of a comic book. It gives the consumer a lot of interesting information about Trader Joes products. They also throw in witty, old-fashioned cartoons for an added comic relief.
P R O M O T I O N
Hawaiian Dip
We wear Hawaiian shirts because were traders on the culinary seas, searching the world over for cool items to bring home to our customers. And when we return home, we think grocery shopping should be fun, not another chore. So just relax and leave your worries at the door. Well sail those seven seas, you have some fun with our finds at your neighborhood Trader Joes. -TJ Website Trader Joes employees wear hawaiian shirts to add to the overall brand experience. They are fun to look at and unlike any other standard uniform. Trader Joes sells exotic foods and wearing their uniforms confirms their adventurous demeanor.
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Observational Research
According to MRI, the typical male and female shoppers of organic foods, range from ages 18-49. These consumers are: -Health conscious customers -Looking for good deals Trader Joes offers an array of products that are distinct from those sold in traditional supermarkets. They do not carry national brands, but rather a host of food and beverage products along with a number of healthcare selections. Products include chese, wine, ready-to-prepare foods, frozed items, produce, and ethnic choices, of which 75 percent carry a Trader Joes label. Most products are offerend at low prices (which differentiates Trader Joes from competitors such as Whole Foods and Bristol Farms) but are considered to be of high quality, bot in terms of taste and healthfulness. Trader Joes targets the health conscious consumer who is looking for quality products at a fair price. This company puts the consumer first when selecting only the best produce, and organic products.
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Quantitative Research
Surveys
Age
While asking this question for our research we were looking to see what the age of our target market is for shoppers at Trader Joes. This information helped us in our research and in finding ways to gear our advertisements towards our designated market. When receiving the results we discovered that 41% of consumers age18-29 shop at Trader Joe and 44% of people age 30-49 shop at the store as well, the other 15% of shoppers are over 50 and do not shop at the store as much. This gives us the information that our target market age is teens to middle aged shoppers.
When looking at this data it shows who shops at Trader Joes depending on their gender. This is key because by finding this out we can focus on a specific gender to gear our advertisements towards. We found that 80% of females shop at Trader Joes and 20% of males shop at the store. This gives us the information that more of our market revolves around females.
Gender
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Since Trader Joes tries to focus on a fun shopping experience, this question gives us insight into who these customers are and gives us an advantage in making their grocery shopping experience a pleasurable one. The survey shows that 16% of people see grocery shopping as boring and 51% see it as a good experience. Showing that more people enjoy grocery shopping.
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How much do you care about the healthiness of what you eat?
On a scale from 1-5 5= extremely
This question was crucial since Trader Joes caters towards the healthy organic shopper. When we found this information it gave us key insight to which of our consumers care about their health and the healthiness of what they consume on a daily bases. The results of this information showed that 33% of people care about what they and 23% Really care about the healthiness of their food, showing that the other 12% some what care.
This graph shows the consumers who shop at Trader Joes and who know about the company. By finding those who know about Trader Joes and those who do not know about them it also gives us the opportunity to focus on making our advertisements specific to those shoppers. The results came out showing that 67% of people shop at Trader Joes and 33% do not. This lets us know that customers enjoy shopping at the store and have been there before.
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Since Whole Foods is a main competitor of Trader Joes this data lets us know how much of our target market shops at the competing store. With this information we can come up with more creative and specific ways to advertise towards our consumers. This graph shows that a majority of people, 20%, somewhat enjoy Whole Foods and the rest either do not prefer it or do enjoy the experience they get at this store.
We asked this question to decipher who thinks of Trader Joes when wanting a pleasurable shopping experience. Again since Trader Joes tries to make shopping there a great experience this question is key in our research. The graph shows that 58%, a majority of our participants think of Trader Joes when thinking of a pleasurable experience and 42% think of Whole Foods, 21% Jewel, 13% go for Dominicks, 5% think of Wal-Mart and 18% think of other stores. This puts Trader Joes on top when thinking of a pleasurable grocery shopping experience.
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Competitive Research
Whole Foods Market is a foods supermarket chain based in Austin, Texas which emphasizes natural and organic products. Whole Foods Market opened up on September 20, 1980. There are 331 Whole Foods locations as of July 2012. In 1978, 25 year old John Mackey and his girlfriend Rene Lawson borrowed $45,000 from family and friends to open a small natural foods store called SaferWay in Austin, Texas. Two years later, John Mackey partnered up with Craig Weller and Mark Skiles to merge SaferWay with their Clarksville Natural Grocery, resulting in the opening of the original Whole Foods Market. 1984, Whole Foods Market began its expansion out of Austin, first to Houston and Dallas and then into New Orleans with the purchase of The Whole Food Company in 1988. A year later, the company expanded to the West Coast with a store in Palo Alto, California. The company fueled rapid growth by acquiring other natural foods chains throughout the 1990s: Wellspring Grocery of North Carolina, Bread & Circus of Massachusetts and Rhode Island (banner retired in 2003), Mrs. Goochs Natural Foods Markets of Los Angeles, Bread of Life of Northern California, Fresh Fields Markets on the East Coast and in the Midwest, Florida Bread of Life stores, Detroit-area Merchant of Vino stores, and Natures Heartland of Boston. The companys 100th store was opened in Torrance, California, in 1999.
Primary Competitor
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Competitive Research
Secondary Competitors
Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois. There are currently 175 stored across northern, central, and western Illinois, eastern Iowa, and portions of northwest Indiana. It was founded in 1899 by Frank Vernon Skiff in Chicago, Illinois, as a door-todoor coffee delivery service then became a selfserve grocery store in 1932. In the 1960s Jewel expanded its store and co-mingled with Osco Drug store where it then became Jewel-Osco. Jewel sells a wide variety of food products, private and name brand labels, and sells a variety of alcohol. Dominicks was founded in 1918 by Dominick DiMatteo in Chicago, Illinois. Dominicks is owned by Safeway Co. and currently has 72 locations. In 1996, Dominicks introduced a new concept in grocery retailing that was known as Fresh Stores. It offers restaurant quality carryout food, specialty bakeries, delis, floral shops, and in-store dining. Dominicks sells a variety of products such as: baked goods, dairy, deli, frozen foods, general grocery, meat, pharmacy, produce, seafood, snacks, and liquor.
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Brand Perceptions
Competitors such as Jewel-Osco and Dominicks do not pose a major threat to Trader Joes since they do not specialize in carrying organic foods. The organic foods that they do carry are very limited. Although these stores do not specialize in the same products as Trader Joes, they still get those customers who would shop there because Jewel and Dominicks have more of a selection in food items overall. Whole Foods, Trader Joes largest competitor poses a threat in that they sell similar products such as organic and healthy foods. By doing this, Whole Foods is catering to the same consumer as Trader Joes, but the lower prices at Trader Joes at Trader Joes keeps their customers coming back.
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Company - Food Donations - Aimes to Fight Hunger - Quality Standards - Specialty Foods - Organic / Healthy Foods - Own Brand - Cost-Pricing Strategy - Price range from $2.00 - $40.00 - Inexpensive Products - United States Based - 395 Grocery Stores - Suburban Areas
CSR
Product
Price
Global Position
Trader Joes
Whole Foods - Organic Farming - Quality Standards - Community Caring - Whole Trade - High-end Organic Products - Own Brand
- Premium Pricing Strategy - Expensive Products - Price range from $5.00 - $60.00
Jewel
- Basic Grocery Essentials - One Stop Shop Grocery Needs - Own Brand
Dominicks
- Basic Grovery Essentials - One Stop Shop Grocery Needs - Quality Products
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Competitve Matrix
S.W.O.T. Analysis
Strengths:
Carry
quality
organic
healthy
products
Fun
shopping
experience
Knowledgeable
staff
Inexpensive
products
Customer
loyalty
Opportunities:
Opportunities
to
grow
New
products
Demand
for
organic
foods
Online
marketing/increasing
advertising
Weaknesses:
Minimal
advertising
Geographic
concentration
(mostly
located
near
cities
and
suburbs)
Product
recalls
(products
being
questioned
on
USDA
approval)
Threats:
Heavy
competition
Substitute/similar
products
in
the
market
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Media Objectives
Sales Objectives
Our sales objective is to increase our annual sales by 10% in the Chicago land area.
Rationale
By reaching our audience during the busiest time of the year we are going to increase the sales by using our low budget guerilla advertisements.
Advertising Objectives
During the FY 2013 we plan to increase awareness of Trader Joes corporate social reasonability efforts including working with the Green Peace Organization. During the FY 2013 we plan to use our guerilla advertisements to simulate customer visits to Trader Joes stores in the Chicago land area by 10%.
Media Objectives
During the FY 2013 our media objectives are to reach our target audience in the Chicago land area on a quarterly basis. For the First Quarter we plan to establish our campaign and reach 25% of our target audience. By the Second Quarter we plan to increase our reach by 15% and reach 30% of our total audience. After the Third Quarter we plan to hit 40% of our target audience. By the end of the year, 50% of our target audience will have been exposed to our marketing campaign because it is the busiest time of year. $75,000 of our budget is going to guerrilla advertisements and special events.
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Budget Breakdown
Event Price Lollapalooza $5,375 MJ Statue $8,100 Chicago Bean $3,500 Ribfest $3,180 Facebook $1,400 Billboard $7,500 Twitter $0 Hot air balloon $23,000 Broccoli Trees $3,500 Total $55,555
Price
$3,500
$5,375
$0
Lollapalooza
MJ
Statue
Chicago
Bean
$8,100
$23,000
$7,500
$0
$3,500
$3,180.00
$60
Ribfest
Facebook
Billboard
TwiJer
Hot
air
balloon
Impressions Breakdown
10000
Impressions
13,000
Millenium
Park
Facebook
600,000
Twi<er
Billboards
Chicago
Tribune
500,000
Lolapalloza
Michael
Jordan
Statue
400000
200,000
Rib Fest
Event Impressions Millenium Park 13,000 Facebook 600,000 Twitter 500,000 Billboards 200,000 Chicago Tribune 200,000 Lolapalloza 180,000 MJ Statue 80,000 Rib Fest 55,000 Hot Air Balloon 400,000 Broccoli 10,000
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Media Schedule
FY
2013
Jan
Traditional
Billboard
1
Billboard
2
Facebook
Twitter
Chicago
Tribune
Non-
Traditional
Lollapaloo
za
Ribfest
Organic
Bean
Hot
Air
Balloon
Jordan
Statue
Broccoli
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
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Traditional Advertising
Online/Social Media
Facebook
Trader Joes will be advertising through the social media network of Facebook. This advertisement will be a yearlong running campaign. Viewers and consumers will be able to click on banner ads and print out a coupon for 10% off your next dinner entre. The ad will cost a total of $1,400 for 7,000 clicks at .02 cents per click. The total possible impressions for Facebook will be 600,000.
Trader Joes is going to update their Twitter page with new promotions and specials. The promotion is going to be free and run by interns, and it will be running the whole year. The total possible impressions for Twitter is 500,000.
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Traditional Advertising
Newspaper
Trader Joes will be running 2 print ads on the Chicago Tribune for one week in the spring and fall months. For a 3.22 x3.5 space it will cost about $4,200 for an entire week. We will be running two ads in two different seasons so the grand total will be $8,400. This ad will feature Trader Joes slogan Its whats for dinner and it will be a preferated coupon that will be easy for the consumer to tear out and store in their pocket fot 10% off a any frozen dinner. The total possible impressions for this ad 200,000.
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Traditional Advertising
Billboards
Also included in our traditional advertising, we will be running two billboards. Each billboard will feature a giant fork to represent the pole that holds up the sign. One of the billboards is going to run in the summer months of June, July and August. The total cost of the first billboard is $7,500. The second billboard is going to run November, December, January, and February. The total cost of the winter billboard is going to be $10,000. These billboards will be displayed on highway 294 headed eastbound into Chicago. The total possible impressions for these billboards will be 200,000.
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Non-traditional Advertising
Hot Air Balloon
Our first steps in non-traditional advertising will include a hot air balloon. This air balloon will be customized in a new and unique way. The balloon portion of the hot air balloon will be in the shape of a head of broccoli. The basket where the people ride on will be in the form of Trader Joes everyday paper bag. The bottom of balloon will have the simple Trader Joes logo so that when it is up in the air people below will be able to see the company name. The total cost to have the balloon customized and ready to fly is $23,000. The total possible impressions for this as will be 400,000. This air balloon will run in the during the late spring and late fall months as it is the time where hot air balloon rides are most popular.
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Non-traditional Advertising
Millenium Park Organic Bean
Trader Joes will be building and presenting a smaller replica of the Bean in Millennium Park promoting the new slogan Trader Joes, its whats for dinner. The base of the replica will be made of wood and the outside of the bean will consist of hundreds of coupons for Trader Joes. The replica will be sited in Millennium Park for two weeks in April and May. Employees will be hired to work around the facility during the daytime passing out Trader Joes coupons. Production of the Bean will be roughly $2,500 and an additional $1,000 will be handed out through coupons. The total possible impressions for this ad will be 13,000.
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Non-traditional Advertising
Fests
Lollapalooza Traders Joes will be vending at Lollapalooza Chicago the first weekend of August. Lollapalooza is a three-day music and arts festival presented by Perry Farrell. Promoters working Trader Joes will be handing out samples of foods and non-alcoholic beverages along with a book of coupons. The foods and drinks that are being distributed throughout the festival will be items that could be purchased at Trader Joes stores. The total cost of the booth for the entire festival will be $7,000 and we will be handing out $3,000 worth of coupons. The total possible impressions during this even is 180,000.
Ribfest
Trader Joes is going to hand out samples of food that can be purchased at the Trader Joes stores. Some examples of the food that is going to be handed out are ribs, pot roast, chicken, and other foods in the same genre as Ribfest. Trader Joes is going to rent a 10X15 space, which in total is $1,180. The promotion team is also going to hand out about 1,000 coupons and free bags that are also sold in Trader Joes stores. Ribfest is a five-day festival during the July 3rd-7th. and the total costs of advertising there is going to cost $4,180. The possible impressions for this event is 55,000.
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Non-traditional Advertising
Jordan Statue
Trader Joes is going to do a promotion by putting their signature Hawaiian shirt uniform on the Michael Jordan statue in front of the United Center, and by placing a Trader Joes bag in his hand. The promotion will take place during two Bulls games, in which overall costs $1,800, and two Black Hawks games which is the same price. The price for renting the statue has the initial costs of $900. The dates that this promotion is going to run are January 26th, March 29th, October 19th, November 3rd. The total possible impressions for this event is 80,000.
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Non-traditional Advertising
Broccoli Trees
We will be placing cardboard cutouts of a forks with the Trader Joes logo going into the tree as if it were broccoli. We will be placing several of these in Grant Park, the most well-known park in Chicago. We will run this event every other week through the months of May through September. This encourages healthy eating and where these healthy products can be purchased. The total cost of this event is $3,500 with the total possible impressions being 10,000.
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Evaluation
By using coupons that are brought into the store we can determine if our ads are working. By Facebook clicks and Twitter views we can determine if these ads are bringing in customers. With in our events we will be able to determine if our customers are enjoying the Trader Joes brand and experience. This will help us get a better understanding of whether or not our campaign was successful. If it is successful we will consider pushing more of our budget to create longer schedules to run our ads. If it is unsuccessful we will cut more traditional advertising and gear our focus on guerilla advertising so that we can generate more of a buzz than that of a traditional ad.
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Appendix
http://hobbies.whatitcosts.com/buy-hot-air-balloon.htm http://blackhawks.nhl.com/club/schedule.htm http://www.nba.com/bulls/schedule FRAZIER, C. D. (2011, February 3). Farm workers protest Trader Joes. New York Amsterdam News. p. 3. Trader Joes Sees The Light. (2010). Greenpeace Update, 14-15. Landman, B. (2008). Trader Joes to Californicate on UWS. New York, 20. Trader Joes cage-free eggs. (2006). Natural Health, 36(5), 22. The Trader Joes Adventure: Turning a unique approach to business into a retail and cultural phenomenon, (2005). Chicago money.cnn.com/2010/08/20/news/companies/inside_trader_joes_full_ version.fortune/index.htm http://www.slideshare.net/joan_gg/trader-joes-on-the-go-7645190 Meet the original Joe. Fortune Magazine (Cable News Network)
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http://www.traderjoes.com/careers/store-crew.asp http://www.traderjoes.com/about/index.asp www.traderjoes.com/pdf/guides/guide-food-keeper-brochure.pdf http://www.wholefoodsmarket.com/about-our-products/organic-food/ organic-food-faqs http://www.dominicks.com/ShopStores/Our-Story.page http://www.britannica.com/EBchecked/topic/303492/Jewel-Osco http://ezinearticles.com/?The-Cost-of-Billboard-Advertising-in-Chicago--Are-Outdoor-Billboards-Worthy-Investments?&id=4353112 Kowitt, Beth (August 23, 2010). Inside the secret world of Trader Joes. Fortune. CNN.com. Retrieved 2013-11-23 SNs Top 75 Retailers for 2011. Supermarket News. January 2011. Retrieved 2013-01-25. http://www.manta.com/c/mm33crv/trader-joe-s-co-inc
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