Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Various retail approaches in retail managements
Three strategies for retail management
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Question 1 I think Trader Joes follows cost leadership, differentiation and focused strategy. Cost Leadership According to the article, Trader Joe’s focuses on lower cost and higher quality products in order to attract customers’ eyes. Trader Joe’s is quite small which is less than 10000 square feet. In this way, company can save on lot of cost on the place, electricity and water spending. They do not have hire a lot employee for that. This company also choose not doing advertisement on newspaper and television commercial which save a large amount of spending. Also, since the Trader Joe’s buyer purchase a large of quantity in each of SKU’s at a very low price because the buyer can directly purchase from the manufacturers instead of work …show more content…
Trader Joe’s focuses on a lot of unknowing products in order to satisfied customers’ curiosity. Trader Joe’s also not selling same products, their products change all the time. They put 10 to 15 new products each time into the store which makes customer feel like playing a treasure finding game when they shopping in the store. In this way, customers are more willing to shopping at Trader Joe’s. Trader Joe’s also followed the statement into the cost leadership strategy that they do not set up a large shopping center area, instead of a place less than 10000 square feet which carry less items than normal market. It shows that, people would rather like to shopping in the area with less items because it can save their time of finding the products and consideration of buying products. Competitive advantage Secrecy is the mainly competitive advantage for Trader Joe’s. Trader Joe’s would never share the information of their suppliers as well as who is making to product to the competitors and customers. In this way, Trader Joe’s can keep their selling price less than other market. Customer loyalty is another competitive advantage. Trader Joe’s doesn’t provide membership card to the customer, however customer still would like to choose Trader Joe’s just because of this
...ir advantage. Franchises such as Walmart, manipulate product advertising and put items in specific places to increase chance of sales.
A strong upward and downward communication chain underscores the management and organizational style adopted by Trader Joe's. This means fostering a belief that the store group operates as a team and that individual opinions are valued, rather than an environment where people speak out and are either not heard or have their opinions suppressed (Workforce, 2005). (Schermerhorn, 2012) The company applies its pursuit of value to every facet of its operations” (p.W-99).
My organization, Trader Joe’s, is not an international business. Their stores are all located in the United States; therefore, I chose Whole Foods, who is a main competitor of Trader Joe’s for this assignment.
Their ability to distribute the cut rate from their operating proficiencies in supply chain management and cash flow, permits them to offers items at discounted rate and a lower price than their competitors. For Costco the meaning of being the low-cost provider while also differentiating from the competitors is ambiguous at best. Costco’s CEO, Jim Sinegal, is certain that low priced, and the high value merchandises are exactly what is needed maintain and achieve a staying power in the industry. Costco also entices their customers with low prices on designated set apart products available only at their stores. Within these designated products, Costco provides a limited selection of nationwide brand-named merchandises in some wide categories. Their approach comprises of selling a limited number of items, keep their costs down, maintain a high volume, compensate employees well, ensure that customers buy their memberships, and target upscale small-business owners through their business only
...to purchase food, don’t have any choice but to shop in the local mini-marts that usually have limited availability of products.
I agree with you when you mentioned how Trader Joe’s differentiate itself from other grocery stores. Grocery retailers are very competitive, and Trader Joe’s does a good job at offering good-value pricing by lowering their prices.Trader Joe’s care about the most compact detail to attract customer and I find Trader Joe’s service very unique because like you mentioned, the company offer some ingredient online and free samples. However, I think in the long term, Trader Joe not promoting their company will hurt them. I’m not saying Trader Joe’s will go out of business, but the top grocery retailers invest a lot of money to promote their products and trying to compete with them will be difficult. Having loyal customer and demonstrating the importance
To start with, Trader Joe’s does not follow the traditional retail best practices that most other supermarkets follow. Stores are smaller, which have proven to generate more profit and keep operational costs down. Over 80% of their products are their own private label. They state that their private label is superior to other brands (Garcia, 2016). This is not just a statement, it is true. Store brands typically have a cheaper look,
Lastly, big companies can also use their money in buying off the shelves spaces to minimize the products from the small companies from being displayed on the shelves. The big companies also introduce new products or rebrand old ones in order to take more shelve
They offer their customers lower prices than traditional stores, and like Costco, they sell their products in bulk to keep members interested. What makes them a threat to Costco is the cost of becoming a member to shop at their stores. For Costco’s basic membership, known as a Business membership, a price increase had to occur to outweigh price increases from their suppliers. This led to the Costco Business membership annual fee being set at $55. When looking into the case study assembled by Thompson, Peteraf, Gamble, and Strickland (2014), they point out that Sam’s Club is able to offer similar benefits to its members.
Oliver’s market competes with rivals by its pricing strategy. They set their everyday prices on traditional grocery items eight to ten percent below Safeway’s prices. They also price its natural foods just below Whole Foods. Beside that they use promotion and advertising as another weapon to compete in the market. They have a Direct to You program that offers a ten percent discount to seniors on Wednesdays before 4:00 p.m. They also have a staples program which compares prices to Safeway for everyday items.
Publix strives to utilize the industry-wide differentiation strategy. Although Publix isn’t open 24/7 and does not have self-checkout (which also plays a role in its strategy), it focuses on providing the best customer service and facility presentation. The grocery store chain sets itself apart from the competition by keeping their stores as neat, organized and clean as possible; as well as Publix strives to provide the highest degree of customer service and accommodation as possible. Not only is the staff friendly and knowledgeable, they are encouraged to assist customers to the best of their abilities, they even help with carrying out the groceries to your car and assist in loading. As mentioned before,
Another part of Amazon’s retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase. Amazon does not have to maintain inventory on slower-selling products. This strategy has made Amazon a ‘long tail’ leading retailer, expanding its available selection without a corresponding increase in overhead costs.
Burger King delivers value to their customers through their products, prices, and place and promotion strategies - (“BK doesn’t just promise value, they actually deliver value”). Burger king has been in existence for 60 years and is growing rapidly in many other countries. Burger King delivers quality, great tasting food which satisfies ones need or wants and captures the value of customers even before the first purchase is made. Burger King has products very unique from other competitors such as KFC and McDonalds. The difference is that Burger King does not limit their customers in terms of what they eat. For example, when I spoke to a customer also big fan of Burger King, he mentioned that the sauces are left public for the customer to decide on which sauce to have rather than giving the customer one kind of sauce such as McDonalds and KFC. The cold beverage is also self-help service in which customers can help themselves to a bottomless drink. This way the customer feels free to choose what satisfies the need or want.
Price and advertising strategy: PepsiCo Overhauls Statergy. PepsiCo plans on saving 1.5 billion dollars in...
Department stores do not manufacture products nor create their own brands of merchandise, their products are not differentiated. As a result, consumers have low switching costs, customer loyalty is low, as they can easily purchase similar products elsewhere. These lower the barriers to entry, allowing new entrants a chance to gain customers.