Strategies
What is Trader Joe’s Strategy?
What is Trader Joe’s strategy? The strategy encompasses carrying highly selective products, offering private-label products, offering small, neighborhood stores that exude warmth, providing attentive employees and offering extraordinary value.
Trader Joe’s is committed to providing selective products that cannot be found in grocery stores. It does not carry commodities such as soft drinks. The company prides itself on the quality of its private label products, which account for 70 percent of the product offerings. Personnel at Trader Joe’s scour the world for products free of preservatives, artificial colors or flavors or genetically altered ingredients. They taste-test all foods considered for private labeling. If the taste testers are unanimous in their high recommendation of the product, Trader Joe’s buys it and relabels it. The result is assured quality that other groceries stores do not attempt.
The value that Trader Joe’s offers to customers includes “taste, quality, private labeling and price” according to the CEO Don Bane, and the strategy is successful. Grocery stores measure profitability by sales-per-person hours. Whereas Whole Foods bragged about 52 sales-per-person hours as referenced in the article, Trader Joe’s averaged 212 during the same timeframe. It is clear that the unique branding strategy of Trader Joe’s differentiates itself from all other grocery store chains, and that differentiation as a corporate strategy can produce dramatic results.
If you love TJs, tell us why! If you don’t, I’d like to hear that too!
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Banks and mortgage lenders are not really in the Real Estate investing business. In fact they are really in the lending business and they want to collect interest on loans and the fees they get for servicing and so forth. But, they must deal with the large number of defaulting loans. Unfortunately for banks, many are not permitted to keep these non-performing assets on their books. This creates opportunities for investors to buy the banks’ problem properties. But, buyer beware; do your homework and make sure that you understand you will be buying “As Is” unless you manage to get the bank to fix the property before you take it over. You may find properties for sale on the banks’ own Web sites: Bank of America, Countrywide and U. S. Bank each have some.
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