After examining Trader Joe’s, and comparing it to Michael Porter’s generic strategies it was not very clear which method it was attempting to follow. It possesses qualities of both differentiation as well as price leadership. We believe that it is following focused differentiation but with a side of price leadership. This is demonstrated through the way that the company runs its stores, the products placed inside them, as well as its low price points. In daily operations it is very far from your average grocery store. Typically, these stores are comprised of much less area but pull down more money per square foot. It differentiates itself in a multitude of ways. This differentiation ranges from the very schematic of the store, to the product itself, and finally to the customer service. The way the store is laid out changes from time to time, this directs traffic flow in one direction or another. This leads people around the store in a different way, exposing them to more products, as well as giving it a unique feel that big box grocery stores cannot replicate. Some say that this gi...
Lowe’s grew through strategic choice by heavily focusing on key functional areas involving research and development (R&D), marketing, and logistics. Lowe’s important R&D investments included the creation of two prototype stores. The first prototype with 147,000 square feet catered to large markets and the other with 120,000 square feet catered to smaller markets (Rouse, 2005). Lowe’s used these store prototypes to help guide their continued growth and store placement. The prototypes also aided the company in designing future stores more efficiently with respect to energy and sustainability (Lowe’s Companies, Inc., n.d.). Furthermore, Lowe’s marketing strategy concentrated on attracting new customers and enhancing current customer satisfaction. To bring new customers to the store, Lowe’s engaged in a pull marketing strategy (Wheelen & Hunger, 2012). The com...
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).
Over the years, the American department store has developed and evolved as not only a commercial business but also a cultural institution. While it has weathered many storms and changes since its inception and throughout history, its most predominant enemy has been a change in the lifestyle of the American people (Whitaker, 2013). As the customer’s needs and wants have shifted, department stores have struggled to keep up with demands. It has been argued that the decline of the department store has been ongoing for the last 50 years (Whitaker, 2013). This dissertation aims to understand how the department store has historically played a role in consumer culture and spending, and additionally, how this has evolved and changed in today’s retail market. Although department stores may not be able to take all the credit for inventing modern shopping, they certainly made its conventions and conveniences commonplace. They set a new standard for the way the consumer should expect to be treated, the type of services that should be provided, and the convenience that should attend the process of acquiring the necessities and niceties of life all in one place. They made shopping into a leisure pastime. This environment meant shopping was a means of freedom to look around, pick up objects with no obligations to buy. As one historian remarked, department stores: “encouraged a perception of the building as a public place, where consumption itself was almost incidental to the delights of a sheltered promenade in a densely crowded, middle-class urban space” (Whitaker, 2006). Although this perception and view of the department store has changed over the years, this paper aims to follow the trail of how and why that happened.
Definition of Main Problem: There can be no argument that Wal*Mart has revolutionized the discount retailing industry. Furthermore, CEO Glass and COO Soderquist have stepped in at the helm of this company and continued to take it in the right direction by quadrupling sales and profits from 1987 to 1993. The main problem they now face is how to sustain their phenomenal performance, and becoming number one has magnified this issue. No longer can they just sneak into small towns where the only competition is the local merchant’s shop. No longer can they copy larger companies like Sears and J.C. Penny’s because of their size and scope. The fact is, Wal*Mart is bigger than these companies and their direct competitors Kmart and Target are doing everything in their power to close that gap. They are lurking not so quietly in the shadows, benefiting from Wal*Mart’s past choices, successes, and failures. They are there to blow the whistle if Wal*Mart steps outside the lines. Wal*Mart may be growing, but at a rate under 10% for the first time in years. Shareholders are concerned, the press is relentless, and many obstacles lie in their path if they hope to continue the trends Sam Walton set so ambitiously in 1962.
Nordstrom utilizes experiential retailing to create a unique and sophisticated store experience. Upon entering a Nordstrom’s department store, consumers are presented with wide open walking aisles, lightly perfumed scents, and shades of black, gray, white, and creams. All of these components appeal to Nordstrom’s target market: opulent consumers who deserve these luxurious expenses. Furthermore, the color choice of Nordstrom’s logo and store designs suggest luxury. The company logo incorporates black, which suggests sophistication, and white, which signifies simplicity and purity. Every Nordstrom store is decorated with sophisticated shades of ivory and cream which symbolizes the store’s refinement. The stores also include warm colors of brown through wood furniture to give customers a warm and inviting environment to shop in. In addition to the physical environment, Nordstrom is extremely particular in only hiring “nice, capable people” according to Forbes. With this strict-hiring technique, the company maintains a high level of customer service and stays close to its mission statement of providing “outstanding service every day, one customer at a time.” The company positions the company around creating value for the customers, which allows for its
Shopping/Merchandising: Each Whole Foods store maintains a special environment for their customers, such as ambient lighting, natural displays, and educational demonstrations, to encourage the shopper to be a repeat customer and even share their experience with friends and family.
The competitive pressures that Oliver’s Market must be prepared to deal with are the pressure associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry and the pressure associated with the threat of new entrants into the market. They must be prepared to face with the rival stores, Trader Joe’s, Costco, and Whole Foods who had recently entered in the sales territory with brand new stores and so far Wal-Mart and Target also had announced plans to develop regional supercenter, that is, large –format discount center into their territory.
Nordstrom retail stores have large hallways, and everything is presented in a very classy manner. The color scheme includes pale yellows, whites, and gold, to provide a more elegant appearance in the store in order to make the shopped feel special. The design is also seen through product organization. Compared to stores like Macy’s, which organize their products based on brand, Nordstrom organizes their products based on lifestyle. Because of this, it is easier for shoppers to find clothes similar to their style as opposed to by brand. In effect, shoppers will purchase more products. This also is a type of experiential retailing, where Nordstrom customers are able to experience the elements of their lifestyle within one section. More so, the product presentation will draw people’s eyes to products, even if they are not looking for it. This gives Nordstrom a competitive advantage in relation to other similar retail stores because it makes their store look more glamorous and high-end. While other stores may focus on value, Nordstrom utilizes the retail positioning strategy to make a customer feel more high-end and
Jack Hitt, author of “The Theory of Supermarkets,” writes, “Most supermarkets begin with produce; others open with flowers. The idea is to introduce the consumer into a realm of freshness and crispness, of color and beauty.” The freshness and crispness was created by the use of a sprinkler system that periodically waters the vegetables. This leads the customer to believe that the vegetables were just picked from the garden. Along with the fresh fruits and vegetables there is a bakery. In Hitt’s essay he mentions the smell of grocery stores, “The aroma is of containers.” However, the smell of Walmart was one of fresh breads, rather than plastic containers. The freshly baked bread reminded me of how hungry I was, enticing me to buy food that looked good, rather than food that was
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,
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.
Given the dominance and fiercely competitive nature of Wal-Mart and Target within the big box discount retail industry, Dollar General avoided competing head-to-head with these larger rivals by differentiating a classic generic bu...
The freedom to choose and globalization helped in the establishment of modern super markets. A standard supermarket displays more than 30,000 items (Cross, 2000:55). Assu...
Walmart needed high levels of growth to continue to survive and saturation of domestic market. Global retail expansion has attracted many large-sized companies with targets to increase business profits and market share. Global expansion not only attracts large organizations but also small to medium-sized companies, companies new to international expansion, as well as those who are already expanding in the international arena. However, there are also well-known retailers who failed in their expansion in certain global markets due to regulatory, legal and cultural challenges, competition, and attempting to change local shopping behavior. The lower pricing strategy was their basic strategy to expand Walmart’s philosophy, “Every Day Low Price” to all parts of the world. The only challenge was the distribution system; the company had given in to union demands from the state-run. Walmart was not influenced. The marketing strategies still involved huge discounts and great values on all of their products, similar to strategies in their home country: maintaining low prices every day, especially middle-class customers, yet maintaining profits. They also suggested
There are many reasons for choosing to go into a store to purchase items needed. For instance, having some assist you in finding what you need, or just answer questions about the product. It is also a way to get out of the couch, away from the television, or off the computer. Another feature is you can see and examine what you are going to purchase, helps in the decision making for most people. You know the minute the salesperson ring you up the product are yours to take home and use right away. It also makes return on items simple, take it back to where you bought and get an exchange or a refund if needed. For the draw backing for in store shopping is you do spending hours looking for the right product or in the lines trying to just purchase it. Or listening to all the people around you and all the additional noises you hear in stores. Not to mention store have set hours on when you can shop and when you can not, this is something which can change with assign on the door.