Trader Joe’s Successful Positioning Strategy
Joe Coulombe poses in the store he helped establish - Trader Joe’s. Image courtesy of the New Yorker.
Positioning is not what you say but what people think of you. This basic concept is the foundation for organizations wanting to position themselves in today’s competitive market. To do this, an organization must identify its niche and communicate to its target publics accordingly.
“Positioning is the process and result of managing how an organization distinguishes itself with a unique meaning in the mind of its publics. That is, how it wants to be seen and known by its publics, especially as distinct from its competitors.”
Let us analyze how Trader Joe’s has successfully positioned itself against its competitors.
Trader Joe’s Strategy
When shopping at Trader Joe’s, it does not feel like you are shopping at any regular, big-box grocery store. Instead, you are greeted with fresh flowers and plants, unique décor specific to the store’s location, a relatively small store footprint, and no brand name products.
Shopping cart full of groceries at Trader Joe’s. Image courtesy of the Everygirl.
Despite the grocery chain’s quirks, it has gained a cult-like following among consumers. Trader Joe’s has successfully differentiated itself from its competitors in a heavily saturated market by positioning itself as a “national chain of neighborhood grocery stores.”
“Our products work the best when they’re sold as part of this overall customer experience within the store. We’re not ready to give that up. For us, the brand is too important, and the store is our brand.”
By offering a more curated and personal shopping experience, Trader Joe’s found its niche among its competitors. Rather than expanding its brand by selling online or wholesale, Trader Joe’s has prioritized the in-store experience for its customers. This approach has proved successful, considering the brand’s $13.7 billion net sales in 2019.
Positioning is Essential
Positioning is one of the first steps when strategizing a strategic communication campaign. This forces an organization to ask itself, “What makes us unique?” Understanding the key differentiators of your organization plays a vital role in how you communicate to key publics.
Without a clear position and niche, an organization will fail to grab an audience’s attention and fade into oblivion. Trader Joe’s has successfully risen above the static of everyday life by identifying its niche within the grocery store market and positing itself accordingly.
