By shaping the consumer experience in a systematic and synergistic fashion and tapping into emerging cultural trends, Trader Joe's has taken the concept of providing groceries and created a differentiated, competitive brand. This article will examine the chain's consumer base by detailing an innovation analysis framework and observing relevant consumer trends the store is targeting. With this in mind, a look at the store's dynamics helps to outline principles essential to the company's success.
A. Offerings — the products and services delivered to a customer. Innovation types in this category include:
1) Product (improvements in product performance, specifications or quality).
2) Product system (the products/services bundled together in an interchangeable fashion to provide economies of scale for the manufacturer and personalized product offerings for the consumer).
3) Service (innovations in providing services, either related to a product offering or as its own offering).