Why Trader Joe's is So Successful/Its Marketing Secrets

I love stories of either companies that identified a target public to match a product to (such as in the article below) or a target public to market to (as Lowe's and several car companies have started marketing more towards women) Below, a very well-written article from PR Daily about why Trader Joe's is so successful at the former strategy. Enjoy!


http://www.prdaily.com/Main/Articles/11482.aspx

3 PR and marketing secrets from Trader Joe's

By Rosalie Morton | Posted: April 26, 2012

As a native of Pasadena, I have a special place in my heart for Trader Joe’s. The specialty grocer opened its first store in this California town in 1967.

Over time, America has embraced Trader Joe’s. Its stores sell an estimated $1,750 in merchandise per square foot, double that of Whole Foods. And this ridiculously successful, kid-friendly neighborhood market with a cult following is a brand built on booze.

Here are three marketing lessons we can learn from Joe Coulombe, the founder of Trader Joe’s, who created one of the most well loved markets in America:

Choose a specific audience that has a need.

Coulombe opened the first Trader Joe’s store to serve the overeducated and underpaid population of Pasadena—the journalists, teachers, museum curators and musicians. He chose this group because its influence is disproportionate to its salaries, and the members love to share their discoveries with friends.

Furthermore, Coulombe noted a strong correlation between alcohol consumption and education level, according to the travel and dining publication Gayote.

He understood that these folks liked to drink and appreciated quality alcohol. But couldn’t afford the really expensive stuff. So, if he provided them with good alcohol at a good price, he knew that not only would they buy it—they would tell their friends to buy it, too.

Build loyalty by addressing that need better than anyone else.

Coulombe stocked the first store with 70 bourbons and 100 scotches, according to Los Angeles magazine. In the 1960s, Trader Joe’s sold literally every California wine available. Coulombe bet on the booze, and he bet on value. He set out to prove that you could buy a decent bottle of wine for less than $10, and he built his empire on this notion.

He also secured an old license that leveraged a loophole in the fair trade laws, Gayote reported. This license enabled him to act as a wholesaler and develop a private label, which was actually the precursor to the infamous Charles Shaw wine—what many people refer to as “Two Buck Chuck.”

Create a sense of urgency and never stop innovating.

Once he conquered booze, Coulombe also knew this educated crowd had sophisticated and experimental palates. Trader Joe’s has an urgency to understand what their shoppers want even before they do. The company doesn’t follow trends; it creates them—from Mochi Ice Cream to Quinoa.

According to a Fortune article, a former senior executive revealed that the store’s biggest research and development expense is travel so it can find these taste-making (and tasty) foods. It’s through this sense of urgency and dedication to innovation that the company continues to captivate its audience.

And it has worked. Today, Trader Joe’s is known for its value-wine selection, “make your own six pack” craft beers and house-brand spirits, not to mention its house-label, limited run food. True devotees can tell you their favorite product that only comes once a year. (For me, it’s the Candy Cane Green Tea at Christmas.)

Nearly 50 years since the first store opened, the word-of-mouth continues, but now it’s amplified by an army of social media-savvy Trader Joe’s addicts. In fact, Trader Joe’s wine section has inspired a series of spin-off blogs: TJ’s Wine Notes, Trader Joe’s Wine Compendium, and TJ’s Wine List to name a few.

Rosalie Morton is an account executive at CRT/tanaka. A version of this story first appeared on the Buzz Bin blog.

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Back to the Basics: A Definition of PR

Back to the Basics: A Definition of PR

Even for those in the industry, arriving at a conclusive definition of public relations is a struggle. This was a highly-debated conversation among members of the Public Relations Society of America last fall and while I believe the organization’s definition is sufficient still others balk at it. C’est la vie. The purpose of this post isn’t to give you the textbook definition of public relations as in the “ongoing two way communication between an organization and its target publics” but to describe it in a more clear way as I would at a networking event to potential clients. To do that effectively, I think it’s best to clear up some misconceptions and look at some things I learned early in my professional career about how public relations fits into the traditional business model:

Stop segregating public relations and marketing. While they are not entirely interchangeable, they are very much of the same family. Here’s the difference: I specialize in how products and services are communicated and for all intents and purposes you could call me a marketing communications manager just as easily as you do a PR rep. Here’s the difference: I don’t necessarily dictate what products or services a company should offer or what they should be priced at.  For example, Aurora Casket Company purchased a memorial stationery company. I wasn’t involved in that decision but am involved in the media relations, direct mails, emails and advertisements that help communicate that. 

PR reps and agencies are most effective when working on a fully-integrated campaign: The most effective marketing and public relations efforts are those that are built on a full-blown campaign that includes research and integrated marketing tactics. I can’t guarantee distributing a press release will garner you more clients or that I’ll build the best website possible if I don’t have the opportunity to learn more about your industry and your competitors. But, I do promise profitable bottom-line results if given the chance to do a brand analysis and create a direct mail with a QR code that goes to a website with more information that will be hyperlinked into a press release so that it is optimized for Google rankings and shared on social media. “Repetition is the key to learning” and different communication mediums are more effective with different target publics. I had a professor who often wrote “insufficient tactics” on our campaigns in college and I’m thankful he did because, quite frankly, to be most effective you need to make sure all your bases are covered.

Do not think I’m not concerned with metrics. I love numbers. In a past life I would have been a mathematician (which I’m sure blows your mind as I was a com. major). Please understand, everything we do for our clients is with the intention of raising the bottom line. Relationships raise the bottom line. Think about all the “lightweight contacts” you have with someone that eventually convince them to hire you as a (insert profession of choice here). Or dates you go on before you get married. Whatever. Sometimes measuring exact tactics precisely can be difficult but public relations is much more than that “feel-good” stuff. Which leads me to my next point…

My job is so much more than handing out water bottles, throwing parties and calling reporters. Or what you otherwise see on TV programs that don’t do public relations any favors. PR is so much more than “publicity” (I utterly despise that word) and I can’t say I’ve ever been involved in any guerilla marketing. Not to say that either aren’t utilized as part of a larger strategy. However, my primary focus, particularly as many of our clients are B2B professional services, is leveraging your expertise and reputation in the mind of those who might hire you.

I hope that this post helps bring clarity to the industry and I apologize if I sound severe. Let me emphasize that I love what I do, love working hard for our clients and love how public relations is a creative outlet for overcoming some of businesses' biggest challenges. It’s fun, but it’s still business. ‘Til next time, I hope you enjoyed Beth’s basics.

If This Isn't an Argument for the Necessity of Public Relations

I don't know what is. The latest Nielsen Survey concluded that earned media is the most trusted. The full survey results can be found at the link and in the content below. As our graphic designer Sean Garza puts it "public relations is just how marketer's are reaching today's consumer." 


http://www.dmnews.com/report-earned-media-most-trusted-form-of-advertising/article/235915/?DCMP=EMC-DMN_iMktingNewsDaily

Report: Earned media most trusted form of advertising

JoAnn DeLuna

April 10, 2012

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Ninety-two percent of consumers trust earned media, including word-of-mouth and recommendations from friends and family, above other forms of advertising, Nielsen revealed in its “Global Trust in Advertising Survey.”

Despite these findings, the survey also found the majority of advertising dollars are spent on traditional and paid media.

“Although television advertising will remain a primary way marketers connect with audiences… consumers around the world continue to see recommendations from friends and online consumer opinions as by far the most credible,” said Randall Beard, global head, advertiser solutions at Nielsen, in the report. “As a result, successful brand advertisers will seek ways to better connect with consumers and leverage their goodwill in the form of consumer feedback and experiences.”

Nielsen polled more than 28,000 online consumers in 56 countries in Africa, the Americas, Asia-Pacific, Europe and Middle East for the survey. The surveyed period was conducted in 2011 between Aug. 31 and Sept. 16.

Specifically, 70% of consumers surveyed indicated they trusted online consumer reviews, while 50% of consumers found emails they consented to receive were credible.

Nielsen also found 58% of respondents trust owned media, such as messages on company websites.

Confidence in paid television, magazine and newspaper ads has declined precipitously since 2009. While 47% of consumers surveyed said they trusted these three channels, over the last three years, trust in paid television decreased 24%, trust in magazines decreased 20% and trust in newspaper ads decreased 25%.

Faith in search engine results increased over the last five years. Forty percent of global respondents said they believed such ads, an increase from 34% in 2007. Forty-two percent of respondents also found the ads relevant.

“The growth in trust for online search and display ads over the past four years should give marketers increased confidence in putting more of their ad dollars into this medium,” stated Beard in the report.

There is also growing consumer confidence in ads on social media and mobile channels. Thirty-six percent of global respondents deemed ads on social networking sites credible and relevant. Twenty-nine percent of consumers said they trusted SMS ads, a 61% increase since 2007.

“Nielsen's survey shows that there is still much potential for marketers looking to reach the right audience through advertiser-driven messages,” Beard said in the report.

Cemeterians Seeking Alternatives to Traditional Bronze Memorials

FOR IMMEDIATE RELEASE 

Media Contact:      
Beth Parker
859.291.4302
Beth@TheEisenAgency.com


Facebook @ Aurora Casket Company
LinkedIn @ Aurora Casket Company

Twitter @ AuroraCasket

Cemeterians Seeking  Alternatives to Traditional Bronze Memorials

Rising costs blamed for decline of bronze memorial sales

Aurora, IN — April 4, 2012—Cemetarians are noticing a decrease in bronze memorial sales, with 62.5 percent citing cost as the major reason for the decline. In a recent survey, the majority of cemetery professionals indicated they would consider alternatives to traditional bronze memorials. Since 2002, the price of copper, the primary component in traditional bronze memorials, has risen from less than $1 per pound to more than $4 per pound.  The rising cost of bronze memorials has resulted in fewer sales and rising theft, said survey respondents.

Aurora Casket Company issued the survey to cemetery professionals around the United States. Aurora recently partnered with Michigan-based Whitehall products to develop an alternative to traditional bronze memorials.  The Aurora Memorial has a similar appearance and performance to traditional bronze memorials, yet they are composed of recycled aluminum encased in solid bronze.  According to Aurora Senior Vice President of Sales and Marketing Tim Dugan, Aurora Memorials are up to 40 percent less expensive than traditional bronze.

“Aurora Memorials allow us to offer a great value to our families,” said Jeff Gamble of Gamble Holding Company in Decherd, Tennessee.  “We can now give them the appeal, look and durability of traditional bronze memorial at a more affordable price.”

Aurora Memorials are available with a 30-year warranty and a defect-free guarantee. For more information on Aurora Memorials, visit www.AuroraAdvantage.com.

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About Aurora

Founded in 1890, Aurora is the largest family-owned funeral service supplier. Aurora caskets are proudly made in the United States and Canada, with headquarters based in Aurora, Indiana. For more information about Aurora products and services, visit www.auroracasket.com.

Aurora Casket Featured on Aging Care

Our favorite casket company was featured on Aging Care, a website dedicated to those taking care of elderly relatives. The full article is at the following link and below. Glad to have been involved in this project.

http://www.agingcare.com/Articles/funeral-planning-in-advance-149751.htm

The Legacy Conversation: Talking About Funeral Arrangements

By Lacy Robinson

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Of the many less-than-pleasant tasks a caregiver must take on, one is making arrangements for how a loved one will be remembered. Fear is often a motivating factor as only a fourth of Americans pre-plan their funeral, according to the Funeral Memorialization Information Council. It is emotionally challenging to think about end-of-life decisions. Yet by initiating this conversation now, everyone involved will be in a more comfortable position later. Planning at the time of loss can be a difficult experience as emotions run high or arguments and brash decisions may occur. Here's how you can respectfully encourage those you care for to verbalize their desires and plan a personalized, meaningful goodbye.

Breaking the ice

This is an instance where getting started is at least half (if not more) of the battle. Similarly, the sooner you have this conversation, the better, as the focus will be on a legacy rather than loss when your parents are younger and healthier. However, regardless of their age, what is most important is that you take the first step now.

There is no formulaic way of broaching this dialogue as each family is unique in the way they handle sensitive topics.

Many people recommend setting a time and starting with a statement that demonstrates that you care about your parents' interests and the well-being of the family. For example, you may begin with "Mom and dad, I know this may be an uncomfortable topic, but would you be open to talking about your funeral service and some of the ways you wish to be remembered? When the time comes, I want to know that we are carrying out a ceremony that you want rather than stressing with one another over the details."

Others recommend talking about your own funeral arrangements or pre-planning efforts as a way of breaking the ice, perhaps even inviting them with you to a funeral home so you can go through the arrangement process together.

Another method is to start informally, asking your parents about some of their favorite traditions and how your family will continue those traditions for generations to come before finding a natural transition to the memorial service.

Your parents may resist, saying "Don't make a fuss. I don't want a ceremony. Just bury me and be done with it." It is best to gently remind them the purpose of the funeral service – that it serves as a time for the living to come together as a community and celebrate a life lived as an essential part of the grieving process. Keeping this larger focus in mind will help guide both of you when deciding on the finer details of the ceremony.

Guiding the conversation

After you've taken the first step, what is it that you talk about? Your funeral home is your best resource as its staff can clarify the different services and selections available and help you create a meaningful, personalized ceremony based on your loved one's final wishes and the emotional needs of your family. If your parents are willing, a funeral director can sit down with them to discuss the arrangement process in detail, at no cost to you and your family. If you so desire, you can put your family member's wishes on file with the funeral home and even elect to prepay to secure today's prices, particularly as inflation affects everything from college tuition to dry cleaning.

While this process does cost money, it is another way to negate expenses in the future and can be funded through life insurance, a bank trust agreement or an insurance policy through the funeral home. Although this is an option to consider, it is not a necessary part of the planning process.

Funeral homes have other resources you can use outside of this meeting, such as funeral planning guides and online forms. Some have even adopted online platforms, such as Aurora Casket Company's Advisor, to lead you through the process, allowing you to plan collaboratively with your parent at your own convenience. If going to the funeral home is unrealistic at this time, families can download a free planning guide, find answers to common questions and locate funeral homes at www.FuneralPlan.com.

Keep in mind you do not have to follow these guides in order. As previously mentioned, it may be best to start with discussions such as your parents' favorite places to visit, favorite songs and favorite memories before transitioning to more difficult topics. These types of conversations will assist you in planning a personalized ceremony. You can also start with larger topics such as rather they would prefer to be buried or cremated before progressing to other aspects of their remembrance service.

Do your research

For most, planning a funeral is not a one-day affair. Take your time, do your research and create a service that is best for your family, ensuring the ceremony is personalized and within your budget.

Pay careful attention to what your parent has to say, committing it to writing and verbalizing it back to them to communicate understanding. If there are certain topics they would rather not discuss now, ask if they would be comfortable talking about them later. Respect your parents' decision to decline comment on certain topics as over-persistence may make them feel as though you have something other than their best interests in mind. Being prepared and timing can mitigate these kinds of negative reactions.

You never know, what feels like a daunting task may be rewarding for both parties in the end. Take this as your opportunity to have some authentic conversations with your loved one and let your parents know the legacy they have had in your life.

Next: Funeral Planning Checklist

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Lacy Robinson, CFSP and senior professional development trainer at Aurora Casket Company, specializes in helping funeral directors partner with families to create funerals that honor both their basic and personal needs at the time of loss. For more information on Robinson and Aurora, visit www.AuroraCasket.com.