Demographic Profile AMM 120 Nov. 26, 2014 Tara Kitada AMM 120 Kitada Introduction Trader Joes is a not a typical grocery store, it stock consists of almost 80% private label products. The company tries to be a local market that caters to the community much like a mom and pop store. Each store has customized visuals to the city of the grocer. For example, the Brea franchise has historical Brea street signs painted on the back wall to promote the old town feel. The staff wears Hawaiian shirts to reinforce the vacation/ jetsetter atmosphere. The products are for the health conscience consumer since many of the products offered are vegetarian, vegan, gluten free, and non-GMO. The packaging also reflects the culture of the cuisine inside. For example, the orange chicken is labeled as “Trader Mings” instead of “Trader Joes.” I chose this business because it is one of my favorite stores to buy my groceries from. I also think the diversity in the store is interesting to observe. I’ve seen elderly people shopping next to Millennials and both reach for the same product. Not many companies can cater to the dissonance in multiple generations. Demographics (Sieting, 2012) Age: 20 -60 yrs. old Female $50,000 - $70,000 Race was not specified Single Employed Bachelor’s degree or higher While I could not find a specific source showing the family structure, the packaging and grouping products in fours makes one assume that there are targeting approximately four 2 AMM 120 Kitada people per household. Psychographics The target consumer for a Trader Joes has a sense of adventure. “Joe identified the well educated, adventurous middle class as his target market” (Coriolis, 2006). But as an educated and adventurous person, the target customer is also immensely busy. The consumer is focused on eating healthy and maintaining a balanced diet. Lifestyle is important to the consumer. For example, many of the consumers are vegetarian or vegan so they tend to cook at home more than eating out due to the limited options. The original Joe, founder Joe Coulombe, said he targeted the out of work professor because the education is there, but also the need for a good deal. There is also a target for the college students or recently graduated students who are becoming educated, lacking funds, and needing healthier options. This section of the market is focus on where the products are sourced from and whether or not they were made ethically. Trader Joe’s has catered to this crowd by purchasing Fair Trade coffee beans and chocolate. Many of the frozen meals offered by Trader Joe’s are targeted at this group as well as the working mother since they are the healthier option to fast food or other name brand products in regular grocers. 3 AMM 120 Kitada Analysis Brea Orange County California Population, 2013 estimate 40,963 Female persons, percent, 2010 51.2% 50.5% 50.3% White alone, percent, 2010 67.1% 74.1% 57.6% Black or African American alone, percent, 2010 1.4% 2.1% 6.2% American Indian and Alaska Native alone, percent, 2010 0.5% 1.1% 1.0% 18.2% 19.2% 13.0% 0.2% 0.4% 0.4% 4.4% 3.2% 4.9% Hispanic or Latino, percent, 2010 (b) 25.0% 34.2% 37.6% White alone, not Hispanic or Latino, percent, 2010 52.7% 42.6% 40.1% High school graduate or higher 2008-2012 91.1% 83.6% 81.0% Bachelor's degree or higher2008-2012 41.0% 36.6% 30.5% 2.81 3.01 2.93 $82,055 $75,566 $61,400 Asian alone, percent, 2010 Native Hawaiian and Other Pacific Islander alone, percent, 2010 Two or More Races, percent, 2010 Persons per household Median household income, 2008-2012 3,114,363 38,332,521 (Census, 2014) The major employer Jones Lang La Salle Real Estate Management employs roughly 1,000-4,999 employees. The Brea location of Trader Joe’s has a clientele whose income is much higher than the typical target customer. Based on the community’s education statistics, Brea’s population fits in well with the educated segment of the Trader Joe’s target consumer’s demographics. In regards to the actual products that Trader Joes offers to the Brea location, I feel the store is blossoming. The packaging reflects the target consumer’s household size with many products containing 4 servings. The food stocked in the stores is supposed to emulate the delicacies that a jetsetter would consume during a vacation and the Brea income allows for vacations. On my visit to the store on Friday, Nov. 22, 2014 at 3:15pm, I noticed many of the typical demographics that Trader Joe’s targets. Many of the customers were female ages 20 to 30, but many had their 4 AMM 120 Kitada boyfriends/husbands with them. I could not tell their education or income levels based on my observation. The location of this Trader Joe’s is prime due to its proximity to several universities, colleges, and suburbs. Cal State Fullerton and Fullerton College are with in twenty minute drive. This particular section of Brea is known as tri-city because three city’s boarders touch. Trader Joe’s is able to target Brea, Placentia, and Fullerton residents in this strategic location. It is also very close to the 57 Freeway allowing easy access for the community. I believe this location is catering well to its clientele who are slightly different than their designated target market. 5 AMM 120 Kitada Works Cited Coriolis Reseach. 2006. Understanding Trader Joes. Retrieved from: http://www.coriolisresearch.com/pdfs/coriolis_understanding_trader_joes_final.pd f Sieting, Terry. 2012. Trader Joe’s Marketing Plan. Retrieved from: http://www.slideshare.net/sietingt/trader-joes-digital-marketing-plan U.S. Census Bureau: State and County QuickFacts. Data derived from Population Estimates, American Community Survey, Census of Population and Housing, County Business Patterns, Economic Census, Survey of Business Owners, Building Permits, Census of Governments. (2014). Retrieved: http://quickfacts.census.gov/qfd/states/06/0608100.html 6