Trader Joe’s targets a unique market of individuals. Targeting a specific group of people is the best way to do it. Target that group and waste all focus and energy on them instead of trying to cater to every individual. It is nearly impossible to cater to every target. There is almost always going to be people out there that will despise a company for whatever reason. Trader Joe’s has found a great target of individuals that there will almost always be a market for and gave everything they have to targeting them. Essential to business success is a thorough understanding of your customers (Abrams 2012).
To begin with, Joe Coulombe bought a chain of convenience stores that was on the verge of going out of business by quickly losing customers to 7-Eleven convenience stores that had just came to the area. Joe’s convenience stores could have stayed in business if he would have thought of made to orders. Sheetz in the north eastern part of country developed the made to order and it still today one of a kind. A made to order or MTO as Sheetz calls it, offers basic foods built to the customers preferences, bringing fast food to a convenience store. This would have over taken the 7-eleven and could have boomed in California.
Trader Joe’s markets to the more wealthy, educated individuals and more recently started to cater to super heathy individuals. One of the new markets that Trader Joe’s could approach is more of a cultural market depending on the area of the store. For example, a Trader Joe’s in Miami could sell Cuban, Haitian, and Jamaican food products. The culture of the island countries like the small store feel, most cultures for the most part like the feeling of the small market. There is money to be made there and it also does not take away the other target markets that Trader Joe’s is based off of. If they picked just about any other market then they might lose their original customers. However, Trader Joe’s targets random individuals as well. Trader Joe’s is for the most part in bigger cities and when people from the country or smaller cities visit the bigger cities they tend to visit and buy one or two things. It is kind of almost like a tourist attraction in a way.
For the time being, Trader Joe’s will still be perceived as a narrow market store for at least a few more years to come. It will still be a special market until it has more competition. Without competition it will be unique, since it will be the only store available for crazy rare products.
It is very simple for large super markets to take some of Trader Joe’s market. It is just as simple as it sounds, sell the same products. The larger super markets could sell the same products at an even higher price than Trader Joe’s. Why go to two different stores to buy products when the possibility to buy all the products at one store exist just to save a couple extra pennies or dollar. It would be inconvenient to go to two stores. If this were to happen, Trader Joe’s would have to expand their small store into something larger to sell a few ordinary items instead of all unique items.
One of the businesses I would personally like to open up in the future is a financial readiness business. I think young adults like myself need more guidance in life when it comes to finance. Targeting young adults would be a major part of my market. Getting started on the right foot out of high school or college is tremendous. Teaching them how to spend money wisely and coordinate a plan for the future. Another target market is individuals facing retirement in the near future. Have to make sure that they will be able to live when they retire, if they will barely get by or live comfortably. Anther target of individuals are parents. Parents want their children to succeed in life and today most people relate success with a degree. To get a degree, money is needed and a lot of it. I believe that my military background and success so far in life at a young age will help me with my competitors tremendously. I am easily able to relate to my main target group being the young adults. My targets meet the criteria of sizable, it must be large enough to profitably sustain your business(Abrams 2012). My background will help me out so much so I will push that forward to get the people to come to me.
Finding your target market is very important to do. Pleasing everyone and everything is very hard to do, nearly impossible. Pick a target market and stick to it. However, the target market for your business right now may not always be your target market in the future. Stay on your toes and adapt to change.
Abrams, R. (2012). Entrepreneurship: A Real-World Approach. (pg.98-115)Palo Alto, Planning Shop.
Trader Joe’s © (2015). Our Story. Retrieved from http://traderjoes.com/