Ana Maria Guay
Trader Joe’s marketing. An enigma wrapped in a spoonful of cookie butter.
With no traditional marketing techniques like television commercials or loyalty cards and only Facebook, Instagram, and a newly opened YouTube account to speak of, this grocery store chain should hardly register.
So why are so many people (myself included) willing to squeeze through packed parking lots and wait in long lines for a single box of Trader Joe’s apple cider donuts?
The 4 Ps of Trader Joe’s Marketing Strategy
The 4 Ps of a well-balanced marketing mix – Product, Price, Place, and Promotion – are a great lens we can use to talk about what makes Trader Joe’s so successful. They’ve made strategic choices in each category that have helped them rise to the top.
Trader Joe’s Products
Trader Joe’s is well-known for their products, and for good reason. Their aisles are full of healthier-for-you snacks, frozen dinners, condiments, and more, with clear labels for items that fit specific dietary restrictions. Trader Joe’s is known for being a safe place for people with allergies and intolerances to shop. Whether you’re looking for some dairy-free dips or gluten-free spice blends, someone in a Hawaiian shirt will be able to guide you to the perfect product for your dietary needs.
Even with all that variety, Trader Joe’s carries far fewer items than most grocery stores. While the average grocery store carries around 50,000 SKUs, Trader Joe’s carries 4,000 – less than 10% of the average. This limited selection simplifies shopping and allows them to focus on high-demand products, from popular seasonal items like their apple cider to their beloved Everything But The Bagel seasoning blend.
Trader Joe’s Pricing
The pricing at Trader Joe’s is generally considered value pricing – relatively low prices for each item. Part of this is because the vast majority of their products are private-label, cutting out middlemen and reducing marketing costs that impact the price of each individual product. Their low prices are especially valuable for health-conscious shoppers who are searching for healthy food on a tight budget.
Trader Joe’s Placement
Trader Joe’s isn’t on every corner, and that’s a conscious choice. They usually choose smaller stores near high-traffic roads. This makes shopping there convenient in two main ways:
- People are frequently passing right by the store location, making it relatively easy to stop by on their way to or from something else.
- Shoppers are able to get in and out quickly because of the relatively few aisles and small store footprint.
Trader Joe’s Promotions
Surprisingly, Trader Joe’s spends very little on traditional advertising. Instead, they rely heavily on word-of-mouth marketing and a cult-like following built on customer satisfaction and store experience. In-store signage, product packaging, and the quirky tone of their famed “Fearless Flyer” newsletter serve as their primary promotional tools. This unique approach allows them to maintain a fun, personable brand voice while spending far less on external advertising than their competitors.
Takeaways from Trader Joe’s Marketing
Other than a cart’s worth of pumpkin spice products, cheese, and wine, of course… here are some of our main takeaways from Trader Joe’s marketing strategy.
Don’t be afraid to break the rules
Trader Joe’s marketing does everything…wrong.
That is, the store routinely breaks the rules of retail marketing. For example, while other franchises pivoted eagerly to online shopping in the digital age, Trader Joe’s has always spotlighted its brick and mortar stores. In fact, it’s the chain’s mantra: the store IS our brand.
It seems wildly counter-intuitive, but it works incredibly well. Trader Joe’s pours money into factors that affect the customer experience, like staff training—they pride themselves on friendly, knowledgeable employees—and free samples, its largest marketing expense. A great in-store experience creates loyal customers and stellar word of mouth, the best organic marketing possible.
Speaking of organic…
Stick to a strong brand
Trader Joe’s leans into the qualities its brand has come to represent: family-owned, local, and healthy. Unlike more expensive competition like Whole Foods, for example, Trader Joe’s markets itself as the best option for healthy food and gourmet-style treats on a friendly budget.
It also capitalizes on shoppers’ preference for buying local and for family-owned businesses, rather than the big-box corporate feel of larger grocery stores. Just look at the contrast between Trader Joe’s stores, with their homey handwritten signs and decor that reflects the local area, to the sterile look of megastores with white tile and industrial freezers.
Unique products matter
Trader Joe’s is a masterclass in product differentiation—making your products stand out among the rest.
With most of their products carried under the Trader Joe’s name (and their source a closely guarded secret), their stock has an unbeatable aura of uniqueness, aided by quirky packaging and product names like their “Everything But the Bagel” seasoning.
Trader Joe’s also carries about a tenth of the products as other grocery stores, and it turns out many buyers prefer the curated selection to an overwhelming amount of choices. Combined with limited seasonal runs, Trader Joe’s has perfected playing on customers’ FOMO, encouraging them to grab their favorites while they can.
Outside the box content
Trader Joe’s favors social media platforms that put a personable face and voice to the brand, like their podcast series Inside Trader Joe’s or their recently opened YouTube channel.
Based on these platforms, the store’s creative content emphasizes fun recipes and informative glimpses into how their products are made. Both podcasts and videos give their audience a tantalizing sense of pulling back the curtain on their favorite store, with eccentric, humorous content on topics like the making of cheddar cheese.
