Trader Joes Case Essay Example for Free

Trader Joes Case EssayTrader Joes is an up and come up supermarket that is upbeat and even has employees wear Hawaiian shirt. This gives it a more relaxed and enjoyable shopping environment. The company selects small stores and only keeps about 4000 stock-keeping units. Eighty percent of those units conduct the Trader Joes brand. This initiates a quick turnover over rate. Trader Joes usual customers are college educated people living in urban areas and also college kids. The company makes it easier for these customers to buy different variety of items buy not having too much diversity that would cause shopping paralysis. With lower variety, Trader Joes can control quality much more effectively then it would with more options. Their product line has similar popular products that other supermarkets have except it is under the Trader Joes brand. The company also looks to find new interesting foods that I can add to the supermarket rather than following trends it tries to set the trends. It has options from staple organic fruits to exotic food like Belgian butter waffle cookies. When it comes to distribution Trader Joes purchases directly from the manufacturers and then ships the products right to Trader Joes distribution centers.Trader Joes doesnt charge its suppliers for advertising, couponing or slotting shelves. In exchange for this benefit, Trader Joes has asked suppliers to operate with Trader Joes in secrecy. The vendors cannot publicize the personal credit line relationship with Trader Joes in any matter. This strategy is to help prevent both consumers and competitors from gaining knowledge as to who produces the food that the store sells. Suppliers also do not like having the idea that that one store offers a lower cost version and not at the other.The pay offered at Trader Joes is also generous which helps produce a more enthusiastic crowd of employees. The company also contributes 15. 4% of an employees Gross income towards a tax deferred privac y fund. Many workers though feel that the company is losing its mom and pop shop type feel, and that the company is becoming more corporate. This is going to be an issue in the future as the company slowly grows. The company definitely doesnt want to lose the touch which makes it stand out from different supermarkets.