M2 trader joes branding

Question 1

how did joseph coulombe set himself apart from 7-11

Answer 1

• started selling local wines; 7-11 didn’t sell alcohol
• modeled after stew leonard: got small selection of high quality/artisan pdts from small businesses (willing to sell it to him for decent price since they weren’t able to get into any other stores)
• targeted a dif segment from 7-11; “yuppies”

Question 2

what makes TJs different from most grocery stores today

Answer 2

• smaller, way less pdts and less choices –> easier for consumers; don’t get overwhelmed
• no coupons
• sells mostly house/TJs brand (but pdts outsourced from name brands)

Question 3

pros/cons of TJs outsourcing and selling it as their own

Answer 3

pros:
- only sell house brand –> don’t need to advertise
- no in-store competition –> loyalty
- can swap supplier to get pdt for lowest price
- little market research bc they know ppl buy the name brand

cons:
- limited transparency/difficulty tracing organic pdts to the source
- if name brand has recall –> you also have a recall (brand contamination)

Question 4

TJs recipe for success

Answer 4

• pos image based on quality and value
• target higher income niche group
• seasonal pdts/high turnover
• outsource to competitors to decrease spending

Question 5

What makes TJs marketing successful

Answer 5

• post followers’ recipes on social media –> gets ppl to engage
• podcast is like talking directly to consumers –> makes them feel like part of the family and creates pos word of mouth