Case Study: “No Ordinary Joe”

Trader Joe’s, a national retail grocery store targets consumers through its

promising mission statement, “At Trader Joe’s, our mission is to bring all our customers

the best food and beverage values to be found anywhere, and the information to make

informed buying decisions,” (Trader Joe’s). The mission statement stresses the

importance of a relationship between employees and consumers. The employee and

consumer relationship is strengthened in understanding how Trader Joe’s differs from

other retail stores in contributing to Trader Joe’s success.

Starting since 1967, Trader Joe’s aimed to separate itself from other retail grocery

stores. Trader Joe’s first started off as a convenience store and transformed to an

“adventurous food and beverage,” (Mallinger, 2007). The company began with seventeen

stores located in California. Today Trader Joe’s contains over two hundred and seventy

stores among twenty two states (Mallinger, 2007).

Trader Joe’s maintains a successful business today by following a consistent

strategic plan tying back to the Trader Joe’s Mission Statement. Trader Joe’s is unlike

other retail grocery stores because the store aims to provide an extraordinary shopping

experience unable to be found anywhere else. First off, seventy five percent of products

derive from the Trader Joe’s label. In addition, a wide variety of products are constantly

compared to its competitors Whole Foods and Bristol Farms. Unlike competitors, studies

show that Trader Joe’s offers products at much more reasonable costs in comparison to

other stores. Also, Trader Joe’s products are noted as flavorful while being filled with

health benefits. The store continues to deliver a unique shopping experience to consumers
by diversifying the product selection. Trader Joe’s diversifies its product selection

because it does not offer a product surplus, which are usually available in typical grocery

stores (Trader Joe’s).

The reasoning behind Trader Joe’s success is evident in its consumer and

employee relationship. The consumer and employee relationship continues to grow with

the following factor visible in the mission statement; the return policy. The Trader Joe’s

website states, “Our product guarantee: We tried it. We liked it! If you don’t, bring it

back for a full refund, no questions asked!” (Trader Joe’s). The following mission

statement instills a sense of trust upon consumers. Trust is a vital quality in building an

effective business. Promising full refund returns secures a trust upon Trader Joe’s

consumers. If a consumer feels comfortable shopping consumers with return to Trader

Joe’s. Promising a refund policy defines the importance of consumers.

Trader Joe’s continues to successfully achieve its strategy by providing a unique

shopping experience which includes catering to the needs of consumers. Trader Joe’s

produces a strong reputation through an alternate method of marketing. The Trader Joe’s

method of marketing does not include advertising, store coupons, and Trader Joe’s cards.

The retail grocery store heavily depends on its consumer relations. An example of relying

on consumer relations is evident in the “Frequent Flyer.” The “Frequent Flyer” is a

newsletter produced by Trader Joe’s. The newsletter informs consumers about upcoming

products and store openings. The newsletter is available via email and mail (Palmeri,

2008).
 Trader Joe’s also strengthens its consumer and employee relationship by building

an interactive community to consumers. Trader Joe’s CEO Dan Bane says employees are

instructed to “act as if your customer is looking over your shoulder all of the time,”

(Mallinger, 2007). If consumers have either a question concerning a product or unsure of

a product’s location in the store employees make an effort to help consumers. Also, if

consumers are unsure of a products flavor, an employee has the right to open the product

and distribute tasting samples to consumers.

The interactive shopping experience separates Trader Joe’s from its competitors

like Whole Foods and Bristol Farms. Trader Joe’s offers consumers with an experience

that is not found in most stores. For example, most stores do not have the right to open

products to sample a taste. However, Trader Joe’s condones and encourages the

distribution of sample tests to raise awareness about a product. An additional factor

contributing to Trader Joe’s store distinction is the environment that consumers are

exposed to. Employees were Hawaiian shirts, rustic paintings hang from the walls, and

managers sit in a Hawaiian straw hut. The environment builds a unique vibe that directly

impacts the shopping experience.

Building a strong consumer to employee relationship begins at the heart of the

company; the employees. Therefore, an employee’s attitude and work ethic is reflected

through the way companies treat its team. The employees share a direct impact on Trader

Joe’s. Trader Joe’s employees are recognized for their upbeat attitudes. The company

follows an effective strategy by providing employees with health care benefits. Health

care benefits are not limited to full time employees, but are also offered to part time

employees (Pamleri, 2008).

 During the present time, Trader Joe’s continues to thrive in success. Multiple

Trader Joe’s stores can be found across the nation. Trader Joe’s will thrive in success for

the many years to come because it truly values its consumers. The importance of

consumerism is visible in the “Frequent Newsletter” and the employees’ dedication to the

consumer. Consumers will return to a store in which they feel valued and appreciated.