cobbs pgn trader joe's case competition
TRANSCRIPT
Driving Efficiency and Engagement
PGN Spring 2016 Pledge Class Case Competition Sunday, March 27th, 2016 Kevin Clark | Henry Cobbs | Elise Kletz | Maddy To
Industry Overview
Background Weaknesses Recommendation Results
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_ Quality
Price
Regional grocery chain
Background Recommendation ResultsWeaknesses
Meet Julie and August• 35 years old• Live in Ballwin, MO• $85,000 combined
annual salary• Want to provide safe,
organic food for their toddler
• Value fair trade and labor
ResultsWeaknesses
Meet Addie• Single, recent college
graduate• Living in Chelsea, NYC• $48,000 annual salary• Loves experimenting in
the kitchen with different cuisines
• Health conscious
Background Recommendation
Trader Joe’s SWOT Analysis
Background Recommendation ResultsWeaknesses
Strengths
Opportunities
Threats
Weaknesses
• Walmart is cheaper and faster• Amazon Fresh is more efficient• Whole Foods is higher quality
• Authenticity and humanity • High quality foods• Use of space • Cult following
• Technology for cheap advances in efficiency
• Leverage public's love for the brand
• Building community value
• Lack of advertising • Dated interiors • Excruciating lines
Summary of Recommendations
Background Recommendation ResultsWeaknesses
Connect with
communities served
Harness technology to reduce
waits
Engage and inspire customers
Redesign store
aesthetic
Existing Store Aesthetic
Background Recommendation ResultsWeaknesses
• Redesign store aesthetic to be more thoughtful and elegant
• Reclaimed wood and shipping containers save money and the environment
• Local artisans craft and donate one-of-a-kind light fixtures and pieces
Background Recommendation ResultsWeaknesses
Local, Sophisticated, and Eco-Friendly
Background Recommendation ResultsWeaknesses
Whimsical Touches• Local children design
and paint murals for the store
• Creates fun, dynamic space, especially for families and children
• Stores feel less ”corporate”
• Integral aspect of the community
• Drives loyalty
Background Recommendation ResultsWeaknesses
Trader Joe’sCommunity Hub
Background Recommendation ResultsWeaknesses
Community performance space Community art on display
Trader Joe’sCommunity Hub
Background Recommendation ResultsWeaknesses
Community events bulletin Tables for community dialogue
Trader Joe’sCommunity Hub
Snap!by Trader Joe’s
Background Recommendation ResultsWeaknesses
No additional cashiers, kiosks, or square footage
Instantaneous checkout
Symbolizes trust and honor
Becomes viable competitor to convenience stores
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Recipe Traderby Trader Joe’s
Background Recommendation ResultsWeaknesses
App adds required ingredients to digital shopping list
Users submit and curate community of recipes
Fosters community and loyalty
Inspires culinary discovery using T.J. products
Harnessing Social Media
Background Recommendation ResultsWeaknesses
Begin official accounts
Beautiful, compelling photography; does not feel like an “ad”
Call to action: captions lead customers to Snap!, Recipe
Trader, and our stores
Inexpensive paid options push content to
more users
Promote seasonal and rare foods we stock
Background ResultsWeaknesses Recommendation
Financials and ResultsCosts for Implementation
Added Value(profit per year) at 2% profit margin
Brand Value Effects
Redesigning Store Interiors (457 Locations)
$5.5 million every 10 years
$2-3 million Gives stores artisanal feel and youthful image
Community Hub (457 Locations)
$2.3 million now, $0.5 million per year
$1 million Neighborhood entertainment place
Snap! $1 million now, $.1 million per year
$1-2 million, increasing over time
Increased convenience and ease-of-use store
Recipe Trader $.25 million now, $50,000 per year
$.2 million, not including brand value
Becomes a crucial part of recipe community
Joining Social Media $.15 million per year $2 million Increases recognition among younger audiences
Background ResultsWeaknesses Recommendation
Financials and Results$10B Annual
Sales$12B Annual
Sales10 Years
Social Media Outreach
• Current fan-made FB page: 185k likes
• Whole Foods/Aldi's: 2M likes, so 1500%+ growth of social media interaction feasible within 2 years
Community and Brand Equity
• Community Hub leads to longer stays and increased loyalty
• Community and artisanal events provide a free and unique entertainment experience, increasing Trader Joe's brand value
Convenience and Design
• Streamlined and more appealing interior emphasizes new product selections, increasing sales in this sector 40%
• Snap! self-checkout app prevents hundreds of customers per day walking out due to lines
Appendix Defining Place in Market
Interior Redesign
Community Hub
Snap! Recipe Trader Social Media