Trader Joe’s SWOT Analysis, Competitors & USP

Posted in Lifestyle and Retail, Total Reads: 15602

SWOT Analysis of Trader Joe’s with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Trader Joe’s

Parent Company

Trader Joe’s




Lifestyle and Retail

Tagline/ Slogan

Your unique grocery store


Innovative, hard-to-find, great-tasting foods

Trader Joe’s STP


Taste, Income

Target Group

Creative, Middle and Upper Class


Great food, great price

Trader Joe’s SWOT Analysis


Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Trader Joe’s. Strengths are:

1. Credible brand: More than 50+ years old
2. Distribution network: Chain has more than 400 stores across the country
3. Supply Chain: Trader Joes obtain the right resources from suppliers and delivery the right product to customers in a timely manner
4. Unique Products: Chain can charge higher prices for their products, because consumers can’t get those products elsewhere

5. Customer Loyalty: When given a choice, customers are loyal to Trader Joes. Instead of targeting all customers, chain only needs to target new customers in order to grow their business

6. Strong Brand Name: This gives firm the ability to charge higher prices for their products because consumers place additional value in the brand


Here are the weaknesses of Trader Joe’s :

1. Product recalls has affected the brand image a few times
2. Geographic limitation means low market share
3. Limited Selection: Although the brand carries high-quality items, the store is not consider the your "One Stop Shop"


Following are the Opportunities of Trader Joe’s :

1. Expanding markets for private labels
2. Growing demand for organic foods
3. Online Market: The online market offers Trader Joes the ability to greatly expand their business

4. International Expansion: International markets offer Trader Joes new opportunities to expand the business and increase sales


The threats of Trader Joe’s are as mentioned :

1. Rising manpower cost
2. Substitute product: The availability of substitute products hurts chains ability to raise prices
3. Intense Competition

Trader Joe’s Competition


Below are the 3 main Trader Joe’s competitors :

1. The Kroger Co.
2. Whole Foods Market, Inc.
3. Safeway Inc.

The brandguide table above concludes the Trader Joe’s SWOT analysis along with its marketing and brand parameters. Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry.


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