PART+II+INDUSTRY+REPORT

Trader Joe's is a private brand label that conducts a Niche marketing strategy describing itself as the "neighborhood store." The firm has been growing at a steady pace, offering a wide variety of organic and natural food items that are hard to find, enabling the business to enjoy a distinctive competitive advantage. Apart from the many strengths of Trader Joe's, the most prominent is their commitment to quality and lower prices. The company has worked hard to manage this economic image of value for its products that competitors, even giant retail stores, are unable to meet. Trader Joe's is not an ordinary store it is unique because he does not market itself like other grocery store do or requires membership to enjoy its low prices, at Trader Joe's its everyday low prices available to everyone. How is the company able to do this? According to their top management they execute this by combining high quality and appealing prices by buying directly from their suppliers. The firm states that "every penny we save is every penny our customer saves" (Trader Joe's 2010). Their employees are its most valuable asset and therefore they ( do you think this is necessary) are treated respectfully and trained efficiently to provide the first-class service to the company's customers. Each customer is given personal attention and the company is very open to customer feedback. Delighted customers have displayed loyalty to the brand name since 1967 (Trader Joe’s, 2010). With its successful Niche marketing and product differentiating strategy, Trader Joe's should continue acquiring more market share and increase its loyal clientele. As Trader Joe’s popularity increases, their store sizes do not increase at this same pace. An average Trader Joe's store is approximately 15,000 square feet whereas traditional retails stores are 50,000 square feet (Speizer, 2004). The small size of the stores creates a cramped atmosphere for customers, while its long lines and tight parking spaces are another inconvenience. Trader Joe's sales are generated by the loyalty of its customers and through their word of mouth. Trader Joe's does not believe in marketing and gimmicks that prevents it from growing at an even faster rate. It is not very common to hear people say that they did not know that such a retail store exists.
 * Strengths and Weaknesses **

**Recommendations: ** Trader Joe's is a perfect example of a Niche market store that has a very successful product differentiation strategy by focusing on their customer needs, taking care of their employees and continuing to provide great quality products. Today nature/organic foods are in high demand, but can be very expensive. Trader Joe's has made this possible by bringing together healthy choices that do no put too much of a dent in its customers' wallets. If Trader Joe's should continue to operate with this strategy they certainly have a brighter horizon to see. When the company success is inevitable it should also increase their store sizes at a similar amount when they know their stores are the places of their business. Trader Joe's should increase their store sizes to enable an evenly comfortable and delightful experience for its valued customers. Although firms that conduct Niche marketing usually do not intend to reach out to the broader market, Trader Joe's has such a successful and a value-oriented business that it should advertise its store in the local newspaper. Advertising in a local newspaper would be in line with its conservation strategy and would reach its local and potential customer base that may know about and value its products.

Trader Joe's being a market niche holder should keep up their efforts to continously innovate to meet their customers everyday changing needs. Even in these times of economic hardship, Trader Joe’s future looks bright, what Trader Joe's offer is what its customers value. Loyal customers have come a long way to support Trader Joes, increasing this loyalty base is what the compnay should strive to. Furthermore, if Trader Joe's continues to be successful within the niche market, it could possibily gain suffient capital to expand to international markets. With international markets in mind comes new challenges but keeping the core company objective to supply quality products at low prices is what we believe custumers hold valuable making success inevitable.

WORKS CITED //Trader Joe's Our Story //. (2010). Retrieved October 20, 2010, from []

Speizer, I. (2004, September). //Shopper's Special-Workforce Management, Crain Communications, Inc//. Retrieved October 20, 2010, from [staffing/feature/shoppers-special/index.html]

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