This is what I have been able to write for the case. Help with Intro, Problem statement, Internal & External Analysis.

Introduction

Trader Joes stores are not prominent in many places and are also not well known across the world. The disadvantage to everyday low pricing will be prices cannot increase or drop for a long period of time; therefore, loosing profits might be possible due to changes in customer demands, customer view on company and competitor pricing, and revenue will relatively be the same through out. Not maintaining a substantial inventory count to meet customer demands can be problematic for retail shop Trader Joes. As well, little inventory is another leading issue that can cause loss of profits. As author of Psychology Today, Utpal Dholakia Ph.D., says from a published 1994 study conducted by marketing scientists Stephen Hoch, Xavier Dreze, and Mary Purk, the supermarket made more money when it kept its prices high. Lowering prices and keeping them stable simply didnt generate enough sales to sustain the lower profit margin. For stores too, EDLP doesnt pay off despite its seemingly obvious benefits. Top Secrets journalist says, The race to zero margin is a losing proposition for those who cant afford to invest consistently (i.e., sell at a loss) to get new customers (Blaise, 2017).

Problem Statement

The retail shop, Trader Joes, is in an unstable position that requires implementing several changes to business strategies, plans, and business to customer activities to build profitable customer relationships and accomplish the mission of Their mission is to be a nationwide chain of neighborhood specialty grocery stores.

External Data Analysis

Here are some worldwide issues outside of Trader Joes control including, but are not limited to, the rise and fall of trading stock market for retail supermarkets, economic changes and disasters and natural disasters (for example, tsunamis, tornadoes, crash of Trader Joes stock market). See Table Chart 1 for more info on external analysis in Exhibit 1.1.

Internal Data Analysis

Strengths of Trader Joes lie in customer demand, brand position and view to customers,

1. Criteria for Introduction is Single paragraph summarizing the main issues of case leading up to the problem statement.

2. Criteria for Internal and External Analysis Comprehensive, rational analysis of case data, applying business concepts and theories. SWOT

3. Criteria for Problem statement Single sentence, accurately and succinctly capturing the major problem to be resolved (not the symptoms). My guess is price.

4. Criteria for Control and Feedback Effective system to measure and control progress toward implementation goals with reasonable time frame, frequency, and feedback loops.

The Case to be analyzed must answer the 4 questions and help improve on what I have already

Apple Store openings arent the only place where long lines form these days. Early on a summer morning, theres a crowd gathered, eagerly awaiting the opening of a Trader Joes outpost. The waiting shoppers discuss all things Trader Joes, including their favorite items. One customer suggests the chain will be good for the neighborhood even though there are already plenty of grocery stores around, including various upscale food boutiques.

This is a scene that plays out every time the Southern Californiabased Trader Joes opens a new storesomething that only happens a handful of times each year. Within moments of a new opening, a deluge of customers makes it almost impossible to navigate the aisles. They line up 10 deep at checkouts with carts full of Trader Joes exclusive $2.99 Charles Shaw wineaka Two-Buck Chuckand an assortment of other exclusive gourmet products at impossibly low prices. Amid hanging plastic lobsters and hand-painted signs, a Hawaiian-shirt-clad manager (the captain) and employees (the crew) explain to first timers that the prices are not grand opening specials. They are everyday prices.

What is it about Trader Joes that has consumers everywhere waiting with such anxious anticipation? Trader Joes seems to have cracked the customer value code by providing the perfect blend of benefits to prices.

High on Benefits Trader Joes isnt really a gourmet food store. Then again, its not a discount food store either. Its actually a bit of both. One of Americas hottest retailers, Trader Joes has put its own special twist on the food price-value equationcall it cheap gourmet. It offers gourmet-caliber, one-of-a-kind products at bargain prices, all served up in a festive, vacation-like atmosphere that makes shopping fun. Trader Joes isnt low end, it isnt high end, and it certainly isnt mainstream. Their mission is to be a nationwide chain of neighborhood specialty grocery stores, said one business professor who does research on the company. However you define it, Trader Joes inventive price-value positioning has earned it an almost cult-like following of devoted customers who love what they get from Trader Joes for the prices they pay.

Trader Joes describes itself as an island paradise where value, adventure, and tasty treasures are discovered, every day. Shoppers bustle and buzz amid cedar-plank-lined walls and fake palm trees as a ships bell rings out occasionally at checkout, alerting them to special announcements. Unfailingly helpful and cheery associates in aloha shirts chat with customers about everything from the weather to menu suggestions for dinner parties. Customers dont just shop at Trader Joes; they experience it.

Shelves bristle with an eclectic assortment of gourmet quality grocery items. Trader Joes stocks only a limited assortment of about 4,000 products (compared with the 45,000 items found in an average supermarket). However, the assortment is uniquely Trader Joes, including special concoctions of gourmet packaged foods and sauces, ready-to-eat soups, fresh and frozen entrees, snacks, and dessertsall free of artificial colors, flavors, and preservatives.

Trader Joes is a gourmet foodies delight, featuring everything from organic broccoli slaw, organic strawberry lemonade, creamy Valencia peanut butter, and fair-trade coffees to corn and chile tomato-less salsa and triple-ginger ginger snaps. Trader Joes sells various items that are comparable to other stores, like organic vanilla yogurt, almond milk, extra pulp orange juice, smoked gouda cheese, and roasted garlic hummus. But the quirky retailer also maintains pricing power by selling things that are uniquely Trader Joes. Try finding Ginger Cats cookies, quinoa and black bean tortilla chips, or mango coconut popcorn at any other store.

More than 80 percent of the stores brands are private-label goods, sold exclusively by Trader Joes. If asked, almost any customer can tick off a ready list of Trader Joes favorites that they just cant live withouta list that quickly grows. People go into the store intending to buy a few favorites and quickly fill a cart. I think consumers look at it and think, I can go and get things that I cant get elsewhere, says one food industry analyst. They just seem to turn their customers on.

Low on Prices A special store atmosphere, exclusive gourmet products, helpful and attentive associatesthis all sounds like a recipe for high prices. Not so at Trader Joes. Whereas upscale competitors such as Whole Foods Market charge upscale prices to match their wares (Whole Foods, Whole Paycheck), Trader Joes amazes customers with its relatively frugal prices. The prices arent all that low in absolute terms but theyre a real bargain compared with what youd pay for the same quality and coolness elsewhere. At Trader Joes, were as much about value as we are about great food, says the company. So you can afford to be adventurous without breaking the bank.

All that low-price talk along with consumers perceptions is valid. A recent report from Deutsche Bank compared prices at Trader Joes with those at Whole Foods for a basket of 77 productsa mix of perishable items, private-label products, and non-food items. Trader Joes was 21 percent cheaper than Whole Foods and had the lowest price on 78 percent of the items. Even when comparing private-label brands, Trader Joes was 15 percent cheaper. Whats more, Trader Joes price advantage has been increasing, a point that is particularly telling given that Whole Foods has focused strategically on lowering its prices over the past few years.

How does Trader Joes keep its gourmet prices so low? By maintaining a sound strategy based on price and adjusting the nonprice elements of the marketing mix accordingly. For starters, Trader Joes has lean operations and a near-fanatical focus on saving money. To keep costs down, Trader Joes typically locates its stores in low-rent, out-of-the-way locations, such as suburban strip malls. Notorious for small parking lots that are always packed, Trader Joes points out that spacious parking lots require more real estate and that costs money. Its small stores with small back rooms and limited product assortment result in reduced facilities and inventory costs. Trader Joes saves money by eliminating large produce sections and expensive on-site bakery, butcher, deli, and seafood shops. And for its private-label brands, Trader Joes buys directly from suppliers and negotiates hard on price.

Finally, the frugal retailer saves money by spending almost nothing on advertising. Also, it offers no coupons, discount cards, or special promotions of any kind. Trader Joes unique combination of quirky products and low prices produces so much word-of-mouth promotion that the company doesnt really need to advertise. The closest thing to an official promotion is the companys website or The Fearless Flyer, a newsletter mailed out monthly to people who opt in.

In the absence of traditional advertising, Trader Joes most potent promotional weapon is its army of faithful followers. If you doubt the importance and impact of fanatical Trader Joes fans, just check out the numerous fan sites (such as traderjoesfan.com, whatsgoodattraderjoes.com, clubtraderjoes.com, livingtraderjoes.com, and cooktj.com) where the faithful unite to discuss new products and stores, trade recipes, and swap their favorite Trader Joes stories.

Something Extra Although the simple calculation of benefits to prices equates to strong value, theres something bigger that plays in Trader Joes favor. Beyond all the wonderful and unique products, friendly staff, quirky store design, the combination of all these things produces synergy. It adds up to an atmosphere and kind of trust that eludes most companies. One industry observer who is not a fan of grocery shopping sums it up this way:

Walking into a Trader Joes, my demeanor is noticeably different than when Im shopping anywhere else. Somehow I dont mind going there. At timesand its still hard for me to believe Id say this about shoppingI actually look forward to it. Trader Joes does something pleasant for my brain, as it does for millions of others. Theres more transparency in my dealings with TJs than most other places. Authenticity is something you can feelits crucial to the buzz. Trader Joes proves that even when you get the other elements of the experience right, people still matter most.

Finding the right price-value formula has made Trader Joes one of the nations fastest-growing and most popular food stores. Its 482 stores in 45 states now reap annual sales of at least $13 billion by one analysts estimate (the private company is tight-lipped about its financial results), an amount that has quadrupled in the past decade. Trader Joes stores pull in an amazing $1,750 per square foot, more than twice the supermarket industry average. In Consumer Reportss Best Supermarket Chain review, Trader Joes has occupied one of the top two spots every year for the past five years.

Its all about value and pricewhat you get for what you pay. Just ask Trader Joes regular Chrissi Wright, found early one morning browsing her local Trader Joes in Bend, Oregon.

Chrissi expects shell leave Trader Joes with eight bottles of the popular Charles Shaw wine priced at $2.99 each tucked under her arms. I love Trader Joes because they let me eat like a yuppie without taking all my money, says Wright. Their products are gourmet, often environmentally conscientious and beautiful ... and, of course, theres Two-Buck Chuckpossibly the greatest innovation of our time.