The moving of competitors into small formats for business expansion which are capable of competing well with multiple channels. It provided the competitors to expand their market share and hindered the progress of Trader Joe which would have been managed if Trader Joe would have adopted proactive strategies of entering into small formats on its own before the entry of any of the competitors.
Trader Joe is tended to a small store as expected of a super market which was even less than 10,000 square feet in majority cases. Trader Joe should have maintained its positions as a super market by providing its sophisticated customers with memorable shopping experiences and even by providing them enough space to park their vehicles which was again a major issue for Traer Joe store’s popularity.
Trader Joe limited its services to the better educated and sophisticated consumers and its expansion in music albums and pantyhose disappeared from stores and remained limited to wines for its sophisticated consumers. Limitations of types of consumers and products limitation affected the market positing of Trader Joe as all other segments did not find Trader Joe valuable for them as it does not offer them products of their own choice.
The company worked with a very deliberate growth strategy and opened just one store in a year. It severely impacted its expansion which was beneficial for the competitors of Trader Joe for expanding their businesses in markets which were not tapped by Trader Joe.
Trader Joe never emphasized on traditional advertising tools such as Coupon filled circulars in the newspaper on Sundays and no television commercials. Instead it adopted its own advertising strategy of issuing customer newsletter which is popularly known as “Fearless Flyer”. Trader Joe gained its customers mainly through word of mouth advertising. Like its competitors it never adopted advanced methods of advertising and promotion.
According to my analysis information provided in the case is in-depth and can be used for using tools and frameworks for their proper application in the study of Trader Joe.