Kelsey Alleyne-Carter

Professor Peter Zayicek

Marketing Principles
December 11,2023

Being a powerhouse in the supermarket business has afforded Trader Joe’s many
advantages. The shoppers at Trader Joe’s understand that they will get a variety of items ranging
in cultures and delicacies that are also not genetically modified all under one roof. The success of
the company is built upon a few factors, the biggest one being consumer trust. The die-hard
customers understand that the items they will receive will be quality tested for taste, uniqueness,
and value. Knowing this information, the consumers are enticed to spend more money and
support the business more.
In terms of food choices, Trader Joe’s has hit the nail on the head with allowing
consumers to expand their taste palettes. The huge variety of flavors and unexplored cultures
allows them to become experts in many different cuisines. Many people are not that adventurous
and tend to shy away from trying new food options. Trader Joe’s tries to do away with that type
of thinking and introduce people to many different types of foods at a low cost. According to the
Sydney Morning Herald, 68 percent of people eat the same breakfast at least twice a week. This
monotonous behavior does not induce an adventurous type of living, one which Trader Joe’s
aims to change.
Along with new and bold food choices they also carry a wide selection of basic groceries.
This includes a range of organic meats, poultry, seafood, fruits, vegetables and pastries. The
goals of Trader Joe’s and its employees is to foster an environment where patrons are excited to
try new products and rave about it to anyone they know. A few of their heavy hitting items are
especially the ones located in the freezer section.
Everyone knows that a little sweet treat could make anyone’s day just a smidge brighter.
Some of the more popular offerings include a frozen pumpkin cheesecake, strawberries dipped in
white chocolate, or my personal favorite the Hold the Cone Mini Ice-Cream cones which are tiny
versions of a fudge covered regular cone. These sweet treats are a great way to introduce
someone to the Trader Joe’s family. If I was to introduce a dessert option that could rival with the
top dogs, I would go with a simple lava cake. This is the perfect way to spice up an elegant
evening dinner or a regular lazy day when you might be feeling for something sweet. To
introduce this food offering, I will create an effective marketing plan that would be able to have
the dessert launched nationally.
 Marketing Plan
Trader Joe’s New Dessert Implantation Strategy

Written By Kelsey Alleyne-Carter

 Table of Contents

* Executive Summary
* Company Description
* Strategic Focus and Plan
- Mission
- Goals
- Core Competency and Sustainable Competitive Advantages
* Situation Analysis
- Market Summary
- SWOT Analysis
- Industry Analysis
- Competitor Analysis
- Customer analysis and Customer characteristics
* Market Product Focus
- Target Markets
- Points of Difference
-Positioning
* Marketing Program
- Product Strategy
-Product line
- Price Strategy
- Promotion Strategy
- In Store Demonstrations
- Recipes
- Coupons
- Social Media
- Place (Distribution) Strategy
* Implementation Plan and Milestones
 1. Executive Summary
The best way to incorporate an adventurous and inviting environment into your business is to
lead by example. The creators of Trader Joe’s did just that. They saw an avenue of business that
needed to be expounded upon and created their own lane. Marketing the best way they knew
how was to create an experience that allowed consumers to try new food items and new cultures
and flavor profiles. The goal of Trader Joe’s is to create a welcoming environment for customers
to revel in. Along with this awesome environment, customers will be treated to an extraordinary
experience whenever they step into a Trader Joe’s store. Between the employees that feel like
family, the constant rotation of food tastings and the exceedingly affordable prices the customer
is always being taken care of.

2. Company Description
Trader Joe’s was founded by Joe Coulombe in 1958. It was originally a convenience store
then eventually transitioned into becoming a grocery market in the 1960s. Although it originates
from the Golden State of California, business has expanded to a whopping 42 states. There are a
total number of over 500 stores throughout these various states. These stores carry a select
number of items for purchase most of which are unique.
The uniqueness of these products is due to the fact that Trader Joe’s employs private label
companies which make up 70% of the products carried. With these private label companies,
Trader Joe’s is able to lower the costs of items by at least 20% as well as have the option of the
foods to have no artificial flavors, colors or preservatives. This introduces a whole new market of
consumers that focus on the health and environmentally consciousness of the stores they support.
With over 50 years of customer satisfaction under their belt, Trader Joe’s continues to be a
pioneer in the supermarket industry. Appealing to customers needs, wants and desires has been
the mission from the beginning.

3. Strategic Focus and Plan

This section will cover the three values of a marketing plan that will affect the company in
the long run: 1. Mission, 2. Goals, and 3. Core Competency and sustainable competitive
advantages.
- Mission
The Mission of Trader Joe’s is to create a healthy and outstanding environment that fosters a
rewarding grocery shopping experience. With this shopping experience we want to provide our
customers with the best quality products at the best prices. We utilize the best ingredients that go
through a rigorous tasting panel process where quality is investigated thoroughly. Though our
products and the quality speak for themselves, we also make it our priority to employ very
knowledgeable, friendly, and passionate crew members. Our team members are expected to
maintain safe and inviting neighborhood stores; craft creative and informative signage to support
our customers’ understanding of our products; and create an environment in our stores that
imparts adventure, humor, and a warm sense of community. We want any person who walks
through our doors to feel welcome and actually want to come back.

- Goals
Non-Financial Goals
1. To remain one of the top grocery stores in America.
2. To enter 100% of the existing Trader Joe’s grocery stores at full selling capacity and
distribution.
3. To introduce a new product line every 6 months according to positive feedback and
sales.
4. To continue to encourage a positive consumer experience and increase consumer
satisfaction even more.
Financial Goals
1. To multiply dessert profits by 10%.
2. To continue to keep all stakeholders contented by maintaining a profitable business
by receiving as high of a Return on Investment (ROI) as possible.
3. To have a significant growth in earnings over the course of the next year.
4. To become one of the top selling desserts with the highest volume sold.
- Core Competency and Sustainable Competitive Advantage
On the matter of core competency, Trader Joe’s seeks to provide a product that relays a
restaurant quality dessert from the comfort of one’s own home. The product will be of high
quality that is in line to compete and exceed other frozen brands of the same dessert. Flavor, ease
of cooking and consistency will be maintained at an exceptional level.
Using these core competencies, the company will work hand in hand with the suppliers and
distributors to keep quality at a high level throughout the manufacturing and shipping processes
of production. The standards of these products should never be able to be questioned. Every
single product should be upheld to the same baseline standard of excellence. There is a specific
taste and quality that the customers will be expecting.

4. Situation Analysis
The situation analysis gives the basis of the current environment of the intended market. In
this in-depth analysis I will begin with a Market Summary then a concise SWOT analysis.
Following that I will delve deeper into several different analysis including 1. Industry, 2.
Competitor, and 3. Customer. I will also define the Customer Characteristics as well.

*Market Summary
There is never a specific need for a dessert but there is always a want. Because sweet
treats are not necessary the idea must be a very spectacular one. The want for a gourmet
feeling/tasting dessert will be marketed more towards those with a sweet tooth. This market
segmentation will group together those who indulge in chocolates, who enjoy desserts on the
sweeter side and those who enjoy a quick and tasty finishing dish. According to a consumption
trend, analysis and statistic report done early 2023, a whopping 17.4% of restaurants offer lava
cakes on their menus. This report also stated that the dominating diet of consumers who sought
after these lava cakes were vegan or gluten free. The also concluded that consumers and they are
eaten these cakes as a snack. This allows two separate market segmentations to emerge meaning
the target audience will be varied.
The market competition includes Target, Amazon, Kroger, HEB, and Walmart to name a few.
Although these competitors might give some resistance the overall market isn’t saturated with a
quality and differentiated products that can compare to Trader Joe’s. Because the product line is
 so expansive there are several target markets that will be catered to. The other companies do not
have such a range of products which would limit them in the future.
In terms of trends, there are always certain holidays, demographics, seasons, and cultures that
can be put to use. Flavors such as pumpkin, peppermint, and coffee can be marketed to those
who prefer an addition to the basic chocolate flavor. These trends can lead to multiple leads in
terms of product engagement and product differentiation.

*SWOT Analysis
Strengths Weaknesses
- The dessert will complement - Consumers may not
other items in the frozen want to overindulge in
dessert section. such a sweet treat so
- The ease of cooking will the sales might not be
gives customers a great as great as a more
experience. common grocery item
-The cooking doesn’t have to such as milk or eggs.
take place in a set place; any - Employees might
heat source can create the need to give a taste test
perfect atmosphere for the whenever possible to
dessert to be heated up. convince customers the
taste is delectable.
Opportunities Threats
- There are multiple -Customers might not want
avenues to segment the an overly sweet dessert and
market by introducing new might opt out for a more
flavor combinations under healthier alternative.
the same family of dessert -Other grocery stores that
- Those who are health carry the same items may be
conscious might indulge in a rival
any of the gluten free, -Consumers might want to
vegan and low sugar recreate the dish at home
options which could be which would decreases
marketed towards their demand.
demographic.

*Industry Analysis
Because many people are choosing not to eat out as often the market for frozen foods and
desserts have skyrocketed. Using your freezer prevents food waste once a product is packaged
correctly. Those who have busy lifestyles need a quick and easy alternative to traditional eating
out at a restaurant. These frozen food substitutes will allow those who need a quick grab and go
item to be serviced.
*Competitor Analysis
 Although there are several competitors in the market, the standards set forth by the Trader
Joe’s brand will set the products apart. Competitors may have a lower price point but do not have
the flavor necessary to gain repeat customers. The taste, quality and repeated successfulness of
Trader Joe’s lava cakes will satisfy customers to keep purchasing the item.
*Customer analysis and characteristics
By increasing the customer value, a loyal customer is made. This process includes using
certain benefits such as quality, convenience, and both pre- and post-sale service. Employing
these tactics will ensure customer loyalty and trust. These will be the necessary focal point to
remain in good graces with the customers.
5. Market product focus
*Current markets
At the base of any successful product are the core beliefs and the advantages over other
products that are similar. Through the marketing strategies of product development, the aim is to
sell a new product to a current market. The current market is saturated with plenty of sugary
desserts that already appeal to the current customers.
*Target Markets
- The demographics targeted include all ages, genders, ethnicities, incomes, and
occupations. Anyone who shops at Trader Joe’s is a part of the target audience.
- Psychographics
There is a special targeted market which include people who have a sweet tooth. This market
also includes those who might be having a dinner party and want something sweet to entertain
their guests with.
*Points of Difference
The Points of Difference include the high quality chocolates and varied ingredients used to make
these lava cakes.
*Positioning
The main approach to positioning would be the smaller target audience that Trader Joe’s
has. This approach is called differentiation positioning which involves a smaller market niche
which is the goal of all Trader Joe’s stores. The brand boasts a unique and welcoming store
design, and an overall healthier and environmentally sound lifestyle. Because the products are
GMO free and mostly private label these tie in perfectly into this method of positioning.
6. Marketing Program
*Product Strategy
-Product line
The different flavors that will be released include Plain Chocolate, Matcha, Coffee, Red Velvet,
and Chai. There will also be a Gluten free as well as a Vegan and Dairy Free version. This
amount of product differentiation is necessary to the changing of diets within those who shop at
the stores. In order to lessen the risk of cannibalization the newer products should only be
released seasonally. This is so the already small market doesn’t get overwhelmed with the
number of choices that are given at one time. If the matcha, red velvet and coffee are all out
together it might be an overhaul of products all at once.
*Price Strategy
Because this product is a little more on the higher scale of products the price will be a
little more increased. The average price of a frozen lava cake from a competitor is around $4.99
for a two pack. Introducing a four pack with top quality items should go for at least $11. This
ensures that there is enough profit being made and the ingredients stay of the best quality. The
price will stay the same for any specialty flavors that are released.
*Promotion Strategy
In all Trader Joe’s stores signs next to certain products illuminate an item that is a great
pairing with the product its next to. Knowing that stores already implement these practices
wouldn’t make it uncommon for a small placard to be put next to the newly unveiled lava cake
products. These paired items could include a basic vanilla ice cream that is normally paired with
most chocolate items or a simple whipped cream that could also be bought in stores. Another
way to promote not only the frozen lava cakes but also bring attention to other items in the dairy
section might include having printed or digital recipes for a homemade whipped cream. This
would allow consumers to walk around the store to another section and purchase more products
all while being excited about trying the new product.
-In Store Demonstrations
Within the store there are several stands that allow customers to watch the employees take the
same products featured on the shelves of all Trader Joe’s stores and prepare them directly in front
of them. Using these stands
-Recipes
Recipes whether given in person or accessed digitally can be another great way to boost
customer interaction. This interaction is vital to keep customers wanting more. These positive
interactions will reinforce the customer business relations.
-Coupons
Although Trader Joe’s does not create there are already low prices and great quality that
trader joes offer there could be a promotion that if you buy a pint of any icer cream flavor you
can get a dollar off your next purchase of the lava cake. This will encourage repeat consumers.
Even if the shopper does not enjoy the lava cake, they still would have bought another item
making up for the dollar off.
-Social media
Through social media mediums such as Facebook, Instagram, YouTube Pinterest, and Twitter we
will give content creators the opportunity to showcase their talents featuring this Trader Joe’s
product. They will be the ones to give the product some hype and allow customers to see the
many different ways they could use this product. This may be marketed through couples’ pages
targeted towards a simple at home date night dessert idea, through fitness and self-care pages as a
form of relaxation from a possible stressful week. Through these paid ads content creators will
bring traffic not only to their social media pages but also to the Trader Joe’s social media pages
which will reinforce positive customer relationships.
*Place (Distribution Strategy)
The distribution strategy is not an overly complicated process because Trader Joe’s gets
their food items straight from the distributor. This method cuts down on costs and eliminates the
middle man.
9. Implementation Plans and Milestones
Implementation Plans are simple because Trader Joe’s marketing is all within the
company. The tasks and responsibilities are evenly distributed between the managers and
employees.
 Annotated Bibliography

1. “General FAQ’s.” Trader Joe’s, www.traderjoes.com/home/FAQ/general-faqs. Accessed

11 Dec. 2023.

Trader Joe’s website gives an overall synopsis of the marketing tactics, food options and buyer
trends that occurs in stores. Through this website I was able to get a clearer picture of the
familial occurrences that happen at Trader Joe’s as well as the way the stores operate as a
whole. The Frequently Asked Questions page allowed me to get a deeper insight into the
buying and distributing process at Trader Joe’s.

2. Vitalsource Bookshelf Online,

mbsdirect.vitalsource.com/reader/books/9781264218783/epubcfi/6/32[%3Bvnd.vst.idref
%3Dchapter01]!/4/2/224/2%4039:75.

Marketing Principles textbook outlines the many different marketing terms and

3. Writing a Marketing Plan for Your Food Business - Province of Manitoba,

www.gov.mb.ca/asset_library/en/pathways/writing-marketing-plan.pdf.