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University of Missouri Kansas City Store Experience Advantages Executive Summary

University of Missouri Kansas City

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Downtown Saint Joseph needs a grocery store to support the influx of new residents and businesses. Trader Joe's fits perfectly. First for the SOLUTION Instructions Summarize what you wrote in the Our Solution section. How do you solve the problem that your customers face? What makes your products or services compelling to them? EXAMPLE: Food Truck The Star-Liner Food Truck Our new food truck offers delicious, inexpensive Caribbean roast sandwiches and other regional favorites based on recipes that our award-winning chef adapted from his own Jamaican roots. We have secured a popular location in front of the Harrison Theater, which is within easy walking distance of both downtown and the local university. EXAMPLE: Car Wash Steam Team Car Wash We are the first car wash in the area to offer a superior new technology: a steam-cleaning system. Using only high-velocity steam vapor and no chemical detergents, our system provides the same speed and convenience of a brush-based car wash but with better results and without the risk of damage. The availability of both tunnel-based and handheld steam units means that we can differentiate on price as well, offering an inexpensive drive-through option for those in a hurry as well as premium services with a more hands-on approach from our "Steam Team" crew. Take a look at ATTACHMENTS especially at photo "plan"

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Running head: TARGET MARKET 1 Introduction When analyzing the target market of a Trader Joe's, there are essential aspects that must be considered. These aspects include; the current customer base, their competition, analysis of their brand, specific demographic target, and the psychographics target (Ponomarenko, 2019). Trader Joe's is a privately owned grocery that offers a variety of commodities from foodstuff to beer and many more. Brand Trader Joe’s possess a well-defined and distinct image in a crowded and competitive grocery space. As many groceries struggle with their market chains trader, Joe's is thriving immensely. Trader Joe’s has since expanded its stores from 229 interstate and 29 interstates. Even if trader Joe's doesn't hold a national brand, they focus on different things such as separate health care selections, and they offer wine and other diverse products. Before trader Joe’s enact this expansion at Downtown, thorough research was conducted. The study is well enlisted within the SWOT analysis, where they determined the relationship between education, distribution ability, and population. The careful full market research displays a connection between education and consumer’s choices. This indicates that's the better a consumer is educated, the more the consumer becomes interested in adventurous products at Trader Joe's grocery. The benefits the brand has include the trader joe's products are less expensive, but still, the quality of their products isn't comprised. The brand of trader Joe's is much respected that it drew people from diverse surroundings just to come and purchase their products. The product differentiation is another major strength because they possess a wide range of commodities that TARGET MARKET 2 are carried within the stores under private labels. Besides, they possess a robust alcohol selection that will be prudent for the neighborhood as a liquor store. Current Customer Base Trader Joe's existing customer base should be composed of singles, small families, students, and couples because of its comparatively small size package and space, thus eschewing more prominent families and bulky buyers. The fact that their goods are cheap and their quality isn't compromised means that the current customer base of Trader Joe is broad, although they run short of commodity, making potential customers go for products from competitors. The survey result also affirms the customer base at the Downton grocery store. The customer's annual household income ranges from 30,000 to 100,000, whereby those earning 100,000 and above are the most shoppers of Trader Joe's. This then shows that most customers are employed and educated, which will give Trader Joe’s upper hand of becoming a perfect choice from other competitors. It also shows that if even if they do not advertise or use social media, their customer base isn't affected. However, they aren't able to meet all customers’ demands, thus making other customers migrate to other groceries. Psychographic Characteristics The psychographic characteristics enable marketers to determine why customers make a particular purchase. Besides, this allows the grocery to choose a more specific psychographic target. For Trader Joe's, the best psychographic characteristics will be the lifestyles and interests or needs of the customers. It will be prudent for Trader Joe's to ensure that their goods are healthy enough and meet the needs of the consumer. The reason being the current populace is much concerned with lifestyle because of the prevalent diseases associated with taking GMO foods, and substance which high fat, sugar, and salt (Ponomarenko, 2019). This would be a plus TARGET MARKET 3 for Trader Joe's because they majorly offer organic foods that meet the expected health standards. As a result, most customers will be attracted to the Downton store irrespective of using social media and advertisements as other competitors use. The psychographic analysis helps in determining whether Trader Joe's market is founded upon customers' characteristics such as lifestyle, values, interests, or attitudes (Ponomarenko, 2019). This will allow Trader Joe’s to develop better target products, promotions, staff behaviors, as well as the store's layout and designs. Since Trader Joe's pay employees better than other competitors, that are around $ 17.36 per hour and health benefits of about $85a month. This affirms that Trader Joe's employees are friendly, and they provide products to their clients, and they are knowledgeable about the products within their stores. Also, the employees should wear colorful attires in a casual atmosphere, and the new products should be identified on the chalkboards as it will be more beneficial than employing large industry promotions, yet Trader Joe’s is small. Demographic Target Trader Joe’s perfect demographic target should be the singles of ages 18-25 and the young couples of ages 25-35. Purposely because the singles are potential customers who will easily travel and opt for purchasing at the Traders Joe’s groceries regardless of their location. The youths who are still single prefer traveling or walking around, so they will prefer a grocery that's furthest as compared to the one nearer. Mostly if they realize the commodities are of more exceptional quality. The young couples are also potent customers and target because they tend to shop more for themselves and their growing family. As a result, they will be the best targets for Trader Joe. So, trader Joe’s has to strive to satisfy the needs of the young couples and the singles as they are most potential consumers as compared to the aged couples. These demographic ages TARGET MARKET 4 are considered because they tend to love fresh and ready commodities as compared to the aged. Thus, they will be perfect customers. Strategy From the SWOT analysis, it is evident that Trader Joe's effectively incorporated the Four P's price, product, promotion, and place (Ponomarenko, 2019). However, it seems there is a fifth strategy include called culture. It’s because Trader Joe strives to deliver to customers a shopping experience that is exceptional, interesting, and distinctive. Besides, they offer commodities that are fresh, tastier, and organic, not forgetting their quality as well as the shopping adventure that ensures they are distinct from their potent contenders within the market. This is termed as a culture because it spins around the consumers continuously appreciating their adventure and discovery. The strategy used by Trader Joe’s is similar to its target market segment and isn't built based on attempting to please every sector of the business. Things against Trader Joe’s There are aspects about Trader Joe's that do not sit well will everybody. Even if it has numerous success and opportunities. There are so many loopholes that make them under disadvantageous to their competitors, thus not competing favorably. First, the very fact that the shopping space is about 8000 sq. This makes it have smaller parking that might inconvenience and scare potential customers away. Lack of involvement in social media makes it be placed behind in the current era of technology. Hence they will end up being outdated by the clients who have embraced social media as a channel of marketing. The fact that its space is smaller, it can't offer a variety of commodities as compared to a store that is in a larger area can offer. Also, Trader Joe’s isn’t embracing advertisements, thus limiting the awareness about their stores. Besides, they face the challenge of recurrent unavailability of products, thus inconveniencing TARGET MARKET 5 employees from accessing whatever commodities they require, thus making them visit other stores for the commodities they lack. Lastly, they are disadvantaged by the small target market, private labels, and saturation of grocery stores in St. Joe. TARGET MARKET 6 References Ponomarenko, A. A. (2019). B2B marketing of innovative service: go-to-market strategy of MiX company. SWOT Analysis – Downtown Trader Joe’s MGT 695 Group Members: Corey Bertini, Jacob Noonan, Brad Meyer, Hetham Almehmadi Strengths ❖ Convenience: Downtown residents or those working downtown will have a full, trendy grocery store “around the corner” ❖ Inexpensive options. Customers consider Trader Joe’s to have inexpensive options thus as an affordable option contrary to its other competitors such as Whole Foods Market, Inc. Mainly, this arises from the cheap prices of all its food products and services. These cheap prices across all their products, from turkey corn dogs to cookie butter. Even at cheap prices, Trader Joe’s still main and has not comprised the quality of its food. Trader Joe’s is able to offer cheap but quality products for it makes most of them in-house. More so, Trader Joe’s only avails its manufactured products exclusively to only its locations. ❖ Differentiation: Trader Joe’s has a selection of products that are only carried within their stores under private labels. They also have a robust alcohol selection that will be the de facto neighborhood liquor store. ❖ Footprint: Trader Joe’s stores are as small as 8,000 square feet, making it easier to fit a store within existing areas downtown than a bigger store. ❖ Brand: Trader Joe’s has acquired a respected brand that will draw people from surrounding communities. ❖ Competitive wages for employees: Trader Joe’s pays an average of $17.36/hr, making it one of the better paying jobs in the retail sector in Saint Joseph. Additionally, employees get competitive benefits at an average of $85/mo for health, vision, and dental insurance. ❖ Existing supply chain: Trader Joe’s has existing corporate structures and systems that would not require everyone to “reinvent the wheel.” ❖ Store experience: Trader Joe’s has deployed private labels in stores that do not carry any baggage from prior experience. To build trust, shoppers are given taste tests that lead to sales. ❖ Fewer headcount needed than competitors: Due to the size of the store, Trader Joe’s can be more selective than larger stores and draw their best talent. Weaknesses: ❖ Parking: Depending on the location parking and the security of the parking location would be a problem. Smaller lots available downtown limit the ability to add additional parking. ❖ Higher prices: Due to the smaller volumes and more niche products the prices may be higher than other options. ❖ Lack of social media involvement: Trader Joe’s rarely engage and participate in social media marketing. Such is despite the current explosion of social media. Therefore, the lack of Trader Joe’s at participating in social media marketing is a major weakness for it placed them behind the technological era. Arguably, the continuity of such a habit has the potential of them being outdated by the competitors who are embracing and using the social media as a marketing channel. ❖ Smaller selection compared to competitors: A smaller store cannot over the same wide range of products that a store in a much larger footprint can. ❖ Frequent unavailability of their products: Trader Joe’s has been encountering the weakness of frequent unavailability of their products. Consequently, their customers are unable to access whatever product(s) they need. Such actions, without any doubt disappoints their customers. As a result, through such, Trader Joe’s motivates their customers at visiting their competitors to access any of the products they might be missing. Collectively, have high chances of resulting towards Trader Joe’s losing most of its customers to its competitors such as Safeway grocery. ❖ Break shoppers’ habits: All potential customers currently have their needs met by a competitor even if that option is less convenient. It will be an obstacle establishing new shopping habits with customers. ❖ Lack of advertising: No advertising would limit how quickly the population would be aware of the new store option and it will be hard to spread awareness on limited time promotions. ❖ Private labels: Many customers have specific brand preferences on certain items that would not be met. ❖ Small target market: Trader Joe’s has been known to possess a small target market. Such is a weakness for it means that Trader Joe’s only appeals to specifically a small crowd of consumers in the grocery industry. Focusing on a small number of the consumers within the operating industry has the potential of limiting Trader Joe’s to making more sales or even expanding. As such, Trader Joe’s should focus on a large and broad target market which will help achieve more sales. ❖ Saturation of grocery stores in St. Joe: This grocery store would not meet an unmet product demand need, but it would meet an unmet location need. Two new grocery stores have been added in the last four years. (Price Chopper and a second Aldi) ❖ Limited purchasing behavior ■ ■ Supplemental store: A shopper often will not be able to get their full list of grocery items at this store. Less likely to spend large amounts of money: Smaller transactions do not add up in revenue as quickly. Need a higher rate of transactions to remain solvent. Opportunities ❖ Open property: Due to the large amount of vacant buildings in downtown St. Joseph, there are several properties that could be potentially renovated or rebuilt to house a grocery store. ❖ Downtown St. Joseph renovation: A major opportunity for all sorts of businesses, not just a grocery store, is the fact that the city of St. Joseph has recently made a major push to renovate and improve the downtown area. These renovations and improvements include adding new architecture, attracting and offering live entertainment, and increasing the promotions for many events and businesses downtown. This eagerness to have businesses move in could attract a grocery store as both a need for those working and living downtown and also to draw more people down to that area. ❖ St. Joseph’s rich history: The city of St. Joseph has a rich and deep history that extends hundreds of years with many famous events and people passing through such as the starting point for the famed Pony Express, death place of Jesse James and a popular stop along the Missouri River. Because of this, many local businesses and residents have great pride in making St. Joseph a popular and successful location. A grocery store, especially one that appeals to local residents, would only boster the pride that is within this city. ❖ Logistics: Due to the convenient location downtown is being right off of Interstate 229 and Interstate 29, the potential for foot traffic or those looking for a quick stop is almost limitless as logistically downtown is placed between two heavily-traveled interstates. Also, due to these interstate systems running through St. Joseph, there are many individuals living outside of the city who commute in for work and therefore would need a grocery store available to offer products before their commute home. ❖ Missouri Western State University: St. Joseph has the privilege of having a prestigious university among the community, thus allowing more opportunities for individuals who aspire to shop at places different than those offered in town already. Along with potential customers, having the university among the city can also provide employment opportunities for college students looking for a summer job or part-time job while enrolled in class. ❖ Public transportation: St. Joseph currently has the St. Joseph Transit which operates throughout the entire city and even to some surrounding areas. This public transit allows individuals who may not have access to a car or other vehicle, the opportunity to venture downtown and shop or simply walk around. St. Joseph also has Uber and Lyft, providing even more opportunities for those without vehicular access the ability to still go downtown and potentially shop, or at the very least increase foot traffic. Threats ❖ Grant uncertainty: Much of the development that is improving downtown is driven by grants. We cannot guarantee these grants will continue, causing uncertainty about further downtown revitalization. ❖ Perceptions of downtown: Our survey data has revealed many concerning items about downtown. Of the 103 responses, a significant percentage associate downtown with feelings of old buildings, crime, and parking issues. ❖ Substitute Product: Trader Joe’s could encounter a threat in its substitute for its products. There are numerous and readily available substitute products to those of Trader Joe’s. Such presence of numerous and readily available substitute products possess intense threats to Trader Joe’s. For instance, it hurts the ability of Trader Joe’s supply chain to raise the prices of their products. ❖ Wal-Mart’s neighborhood markets: Trader Joe’s has its main threats as Wal-marts neighborhood markets. Notably, Wal-Mart has been involved in recently having its main goal as increasing its neighborhood markets section. Such would be a threat to Trader Joe’s for these neighborhood markets , which are led by Wal-Mart- the world’s largest retail- will directly compete with Trader Joe’s small market. Possibly, such would result in Trader Joe’s losing its charm since its stores will no longer be special to their customers. ❖ Established competition: The Saint Joseph community has several established grocery stores. These establishments have the ability to change their pricing and selections to undermine competition. Additionally, grocery delivery is a growing segment and may negate some of the benefits of being conveniently nearby. Trader Joe’s encounters stiff and intense competition from its top 3 competitors which include Safeway Inc, The Kroger Co. and Whole Foods Market, Inc. ❖ Stagnant or decreasing population: Anecdotal evidence is showing decreases in population for Saint Joseph with other counties like Andrew growing. This may impact the number of customers who believe they are within driving distance of a downtown store. ❖ Proximity to Kansas City: Part of the draw of Trader Joe’s is the unique selection. Other Trader Joe’s stores are within driving distance in the Kansas City metro area. This will limit our regional draw to communities and potential customers that live nearby. ❖ Low income/purchasing power: Saint Joseph has economic issues that may prevent success for stores that aren’t competing on price. Data shows that Saint Joseph has median incomes at 82.7% of the national average, per capita income at 78.8%, and 25% of the population below the poverty line. Additionally, 2017 estimates show violent crime is 50% higher than the national average and property crime is 2.9% the the national average. ❖ Crime: St Joseph has above average crime with higher crime rates in the downtown areas. 2017 estimates show violent crime in Saint Joseph is 50% higher than the national average and property crime is 2.9% the the national average.1 ❖ Supply chain logistics: The downtown area is tougher to maneuver trucks in that the areas the other grocery stores are. ❖ Zoning and historical status restrictions: Some otherwise prime locations will not be accessible. These restrictions will be an obstacle towards building a new store. ❖ Parking: Existing parking may be inconvenient or too small for customers. "Wolfram|Alpha: Computational Intelligence." https://www.wolframalpha.com/. Data for “Saint Joseph” article. Accessed 24 Feb. 2020. 1 ...
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Running head: EXECUTIVE SUMMARY SOLUTION

Executive Summary Solution
Name
Institutional Affiliation
Date

1

EXECUTIVE SUMMARY SOLUTION

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Executive Summary Solution
The problem that required solving was that at the present market conditions, all the grocery
stores in St. Joseph was located on or very close to the Belt Highway, which is on the East side
of town. Realized was that there are no major grocery providers in the downtown area, which is
on the west side of town. The people living Downtown had to travel a significant distance
through traffic to meet their grocery needs. Also realized was that there was an influx of new
residents in the downtown area as well as new employment opportunities that continually
increased the severity of the issue. The solution provided for the unmet need was the
establishment of a Trader Joe’s store in the downtown area. This article is an executive summary
of the presented solution with further descriptions of what makes the products and services
compel the target customers.
Firstly conducted for the solution of having a Downto...

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Carnegie Mellon University

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