MSU NMDL SS14 Trader Joe's Digital Strategy

Trader Joe’s Digital Strategy:Keeping the Novelty Alive

Tyler Arens

Background• Opened first store in L.A.-area

in 19581

• Now has about 400 stores in 35 states1

• About 80% of products under private label 1

• Specializes in natural and gourmet-quality at a reasonable price point

• Recently named #2 Most Popular Grocery Chain in U.S.2

• More than $8 billion in annual sales and privately-held3

1http://www.huffingtonpost.com/2013/10/19/trader-joes-miami_n_4126150.html

2http://www.huffingtonpost.com/2013/07/23/trader-joes-best-grocery-chains_n_3639742.html

3http://www.tampabay.com/news/business/retail/trader-joes-to-open-in-tampa-on-friday-to-large-crowds-limited-parking/2170898

photo credit: guanatos via photopin cc

The Situation• Cult-like following with lots of customer buzz

and word-of-mouth• Virtually no traditional advertising• No sales or specials• Store openings attract great fanfare and

excitement• Ironically given its customer base, no social

media presence• Take advantage of brand loyalists to help you tell

your story through social media outlets

Target Audiences• Young

professionals/well-educated/urbanites

• Families/suburbanites• International traveler• Health conscious • Experiential/cultural

cooks• Wine enthusiasts• College town

inhabitantsphoto credit: juicyrai via photopin cc

Key Performance Indicators

• Increased foot traffic in TJ’s stores – increased sales

• More web traffic to TJ’s site as well as its social media platforms

• Engagement with customers via social media platforms and blogger outreach

photo credit: traderjoes.com

photo credit: ianqui via photopin cc

Big Idea-Localized Facebook Pages• Create individual

Facebook pages and Twitter handles for local stores

• One of TJ’s hallmarks is that it blends into local communities and treats guests as “neighbors”

• Allow stores to maintain close, niche feel

• Facilitate customer interaction with local store staff

Tools & Tactics

• Establish social media presence• Facebook & Twitter

• Build out mobile app• “Weekly Flier”

expansion• Blogger outreach• SEO/SEM• AdWords

photo credit: traderjoes.com

Leverage Customer Interest

Budget• Social media/app development and

maintenance=$1 million/annually

• AdWords=$80k/month

• SEO=FREE

• $2 million start-up budget

Summary

• Brand equity is strong• Maintain and

strengthen that brand equity while advancing into new digital territory

• Don’t compromise the uniqueness and novelty of the TJ’s brand photo credit:

http://www.huffingtonpost.com/2013/10/19/trader-joes-miami_n_4126150.html