MSU NMDL SS14 Trader Joe's Digital Strategy
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Transcript of 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