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Trader Joes in Denmark: Situational Analysis

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    Nowadays, the citizens of Denmark care a lot about sustainability efforts. The market place for ethical, sustainable, healthy products is developing fast. As we know, Denmark is at the second top position in sustainable development. The present liberal conservative Government’s Programs focus on growth, welfare, and renewable products. The Danish Government introduced the move towards sustainable development as a long-term process.

    The Danish people pay attention to ethical issues while purchasing and consuming products. Trader Joe’s, thus, has a large potential market in Denmark with natural, ethical and sustainable products. Trade in organic foods is widespread throughout Denmark. The country has a long tradition of organic farming, and over the years organic food production has increasingly attracted attention from politicians, authorities and organizations.

    The products are commonly sold mainly through ordinary places of purchase such as supermarkets, but also through market sales, subscription sales, internet sales and farm outlets are common. After this type of analysis, it is easier to deduce that most consumers in Denmark accept and prefer organic foods, which Trade Joe’s provides. In the mornings, most adults drink coffee or tea and eat rye bread or white bread with cheese or jam.

    These products are commonly found in Trader Joe’s. The target market in Denmark, is defined as young people from years 20-40, amongst which the majority are currently employed. This means that during the day they are in search of a fast and highly nutritional meal, which can be eaten in the office quickly. Trader Joe’s can provide for that need in Denmark with a quick and healthy meal plan. Private enterprises are considered to be key actors in achieving sustainable development in Denmark.

    Therefore it is essential that companies take an active part in the efforts to improve the environment and contribute to green industrial development. A large number of companies in Denmark, thus, are sustainable and ethical and have high ranks among sustainable companies all over the world, like Danisco, Chr. Hansen Holding and tec.

    Many of the sustainable companies have products in traditional grocery stores, which are the biggest competitors of Trader Joe’s. Meanwhile, some local food factories and restaurants in Denmark are also very big competitors for Trader Joe’s, even though they may not serve food with very ethical resources. Such companies like Danish Crown, CP Kelco and etc, are competitors because they have been in the market for a long time and are familiar with the local customers. Fortunately, many of the restaurants in Denmark serve dishes at high prices.

    Even though the products of Trader Joe’s are not priced the lowest, it will not become a disadvantage when it is launched into the new market. Lastly, supermarkets, such as SuperBrugsen, traditionally have a smaller selection of sustainable products. Those products in supermarkets are relatively cheap, which means these supermarkets is also a competitor of Trader Joe’s, providing Trader Joe’s with a price advantage.

    As in many of the Western Civilizations, the Danish have an aging population that is changing the overall demands of consumers. Not only are they leaving behind unhealthy habits, like smoking cigarettes, they are also leading healthier lives. “Many older consumers feel better using so-called natural products and this is expected to drive increased demand for such grocery items as organic food. ” This cultural trend is one which will continue to strengthen the Trader Joe’s brand personality in the years to come. Cost of products is an increasing concern to these populations because of those receiving pensions. Pensioners are expected to be provided a less comfortable standard of living than in previous years as their benefits will be stretched over longer periods of time.

    European countries differ significantly from those of Scandinavian countries, significantly so when it comes to food cultures. Not only are the roles food plays in their culture different, but the views of how those foods they eat effect their bodies differ as well. Dr. Dominique Bouchet, Professor of International Marketing at Odense University conducted specific research related to this topic. When the issue is the relation between the product and the body, the priorities in the two countries differ: in Denmark it is emphasized above all that the products are healthy, whereas in France the main issue is the better taste. ”

    The Danish culture is more accepting of international companies and integrating them into their lifestyle. According to Euromonitor, more international chains, like Starbuck’s are entering into the Danish market.  This Trend is important because the success of Trader Joe’s rides on the extent to which the Danish population accepts the American company. Danes eat most of their meals at home and in private settings, although public dining places ranging from small hot dog stands to fancy restaurants are available and are used.

    For lunch, however, the Danes “seek out Lunch at a work place, school, or institution is either homemade or available in kitchens or canteens. ” This opens a window for Trader Joe’s quick-meals, which is described in detail later. Trader Joe’s supports healthy lifestyles and sustainability efforts. In the Nordic countries people talk more about nature in man than about culture versus nature, just like many people try to behave naturally. ”

    As more people talk about nature and natural products, “The demand for and production of organically grown foods have grown, and most supermarkets offer a range of organically grown vegetables, meat, and dairy products. ” As the social conversations are steering towards healthy lifestyles and natural products, Trader Joe’s will more easily be able to make it’s way into those conversations and the marketing efforts will be supported through word of mouth.

    Additionally, the Danish have strong trends towards their overall health and wellness, supported in part by national health campaigns supported by the government. One of the governmental campaigns that would help support the efforts of Trader Joe’s is how the Danes are encouraged to “consume more fruit and vegetables (six portions per day), another campaign urged them to eat more fish (twice a week) and a third promoted exercise (one hour a day for children and half an hour per day for grown-ups). This growing interest in leading healthy lifestyles and living well its projected will have an influence on supply and demand of healthy/natural/sustainable products and services.

    According to Euromonitor, “it is expected that sales of healthy foods like fish, vegetables and yogurt will continue to increase while sales of foods high in fat, salt and sugar content will decline.  Organic, healthy foods will have significant growth amongst all age groups, including babies/infants, twenty-something’s, and middle-age adults. Lastly, Trader Joe’s will be entering into a market that is growing. “The organic food industry has increased its market share in Denmark as Danes have looked to improve their diets. ”

    As sales of organic foods have become more popular, “it is also a consolation to know that the animals have been treated in a humane manner.  Sustainable practices are becoming more important and the Danish are recognizing the benefits of these practices. Danes are becoming increasingly interested in health and wellness, and Denmark’s aging population together with rising rates of obesity means that more consumers feel better using so-called organic products. As the trends for a healthier lifestyle, increasing wellness practices, and cultural support for both, Trader Joe’s is positioned to see great success in Denmark.

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    Trader Joes in Denmark: Situational Analysis. (2016, Oct 09). Retrieved from

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