Segmentation and Target
Segmentation and Target Market
MKT571
October 28, 2013
Segmentation and Target Market Trader Joe’s is an organic grocery food store that is one of the best known organic food chains. By listening to the consumer and adjusting to the changing consumer market, Trader Joe’s had built a brand equity that is continuously growing. Trader Joe’s faces stiff competition from other large organic food chains therefore must stand out and adapt to the consumers’ needs. Marketing strategies are important to communicate to the consumer more effectively and help target the consumer to their product. Trader Joe’s segments its products by psychographic, behavioral and demographic characteristics and targets a variety of consumers. There is an increasing number of people changing their habits to include organic products which is why Trader Joe’s targets these areas. In the next few paragraphs we are going to discuss these areas along with how Trader Joe’s is segmented in the organic food store industry.
History
Trader Joe’s is a unique grocery store. It started as a convenience store in 1958 in California, but in 1967 it opened as a new concept in Pasadena, California. Freed from the convenience store image, it now had a romantic travel and leisure image of the South Seas. The store was also a very strong food outlet, featuring specialty items such as real sourdough bread, whole coffee beans etc. It appealed to people at all income levels (Loeb, 2012).
The privately held company 's sales last year were roughly $8 billion. Trader Joe 's has a deliberately scaled-down strategy. The company selects relatively small stores with a carefully curated selection of items. Its stores sell an estimated $1,750 in merchandise per square foot. The company has no debt and funds all growth from its own coffers (Kowitt, 2010).
The rise of Trader Joe 's reflects Americans ' changing attitudes about food. It sells billions of
MKT571
October 28, 2013
Segmentation and Target Market Trader Joe’s is an organic grocery food store that is one of the best known organic food chains. By listening to the consumer and adjusting to the changing consumer market, Trader Joe’s had built a brand equity that is continuously growing. Trader Joe’s faces stiff competition from other large organic food chains therefore must stand out and adapt to the consumers’ needs. Marketing strategies are important to communicate to the consumer more effectively and help target the consumer to their product. Trader Joe’s segments its products by psychographic, behavioral and demographic characteristics and targets a variety of consumers. There is an increasing number of people changing their habits to include organic products which is why Trader Joe’s targets these areas. In the next few paragraphs we are going to discuss these areas along with how Trader Joe’s is segmented in the organic food store industry.
History
Trader Joe’s is a unique grocery store. It started as a convenience store in 1958 in California, but in 1967 it opened as a new concept in Pasadena, California. Freed from the convenience store image, it now had a romantic travel and leisure image of the South Seas. The store was also a very strong food outlet, featuring specialty items such as real sourdough bread, whole coffee beans etc. It appealed to people at all income levels (Loeb, 2012).
The privately held company 's sales last year were roughly $8 billion. Trader Joe 's has a deliberately scaled-down strategy. The company selects relatively small stores with a carefully curated selection of items. Its stores sell an estimated $1,750 in merchandise per square foot. The company has no debt and funds all growth from its own coffers (Kowitt, 2010).
The rise of Trader Joe 's reflects Americans ' changing attitudes about food. It sells billions of
References: Kowitt, B. (2010). Inside the secret world of Trader Joe 's. Retrieved from http://money.cnn.com/2010/08/20/news/companies/inside_trader_joes_full_version.fortune/ Lebos, J. L. (2012). Say it ain 't so, Joe. Retrieved from http://www.connectsavannah.com/savannah/say-it-aint-so-joe/Content?oid=2136303 Lewis, L. (2005). Fostering a Loyal Workforce at Trader Joe 's. Retrieved from http://www.workforce.com/articles/fostering-a-loyal-workforce-at-trader-joe-s Loeb, W. (2012). Aldi 's Trader Joe 's is a Winner. Retrieved from http://www.forbes.com/sites/walterloeb/2012/05/17/aldis-trader-joes-is-a-winner/ Smyszkowski, . (2012). Trader Joe 's. Retrieved from http://storify.com/smyszkowski/trader-joes