Trader Joe's is an American chain of convenience stores, which is specialized in selected foods and beverages. It is very successful and manages to keep a strong brandname. Let's take a look at what we can learn from Joe Coulombe, the founder of the chain.
1. Choose a specific target group, which has a need
The first store was opened in Pasadena in 1967. There used to be a large group of overqualified, but badly-paid people - teachers, journalists, curators, musicians. These people love to tell their friends when they find something interesting. Therefore, they have a greater influence than what one would expect from their wallet.
In addition, Coulombe discovered information about a high correlation between education and alcohol consumption. The selected group liked good quality alcohol beverages, but they did not have much money. If someone offered quality at a reasonable price, there would not only buy but also tell your friends.
2. Loyalty will ensure that you cover the needs of customers better than others
Coulombe was able to provide a bottle of wine of decent quality for aprice under $ 10. He also secured a license as a wholesaler in order to sell alcohol under his own brand. Decent drinks at very low prices soon became popular.
3. Create a sense of urgency and continue innovating
Coulombe understood that his clients are sophisticated and well informed. Thus he enabled them to experiment: His company does not follow trends, they create them. The biggest cost of market research of the company lies in traveling expenses to taste new foods.
Even now, 50 years after opening the first store, people spread a lot of references about Trader Joe's. Social media multiplied this effect. True fans of the chain will tell you that they find their favorite product on the shelves only once a year in the right season, but they don't mind waiting.
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