As the company to ever create an internet pharmacy, cvs corporate office has taken a new flavor to the pharmaceutical industry. Presently, Consumer Value Store is #53 of fortune 500 companies. The company operates primarily from prescription medications sales which accounts for 70% of the total revenues. CVS is really just about the most pervasive drugstore chains in America; it operates nearly 4,100 facilities, placing it side by side with three of the major competitors, Eckerd, Rite Aid and Walgreens. Within the Consumer Value Store lies PharmaCare, a subsidiary that is considered key to the company’s expansion and profit margin because of diverse managerial tactics it gives you to the company.
At first, the very first store opened its doors in 1963 selling health insurance and beauty aids. In the end of the same year, the chain grew to 17 stores averaging $3.3 million each year. Ever since then, the chain has become growing with a rather outstanding rate. Today CVS is successfully operating in well over 32 states in fact it is still expanding. During most of the 1990s, CVS has separated itself as among the most well managed chains in the national pharmacy industry, reaching the 4000 mark but still keeps growing. The company
CVS faces challenges from three major competitors. Specifically, Walgreens which holds 38% of market share is expanding for a price in excess of 400 new stores annually. Secondly, Eckerd currently the sixth largest U.S. market at 33% of market share is venturing the Phoenix market which offers long term growth. Finally, Rite Aid Corp with 30% of market share is intending to add around 300 private label SKUs including household chemicals, school supply and garden items just to name a few.
As a method of reevaluating marketing strategies, cvs contact is closing some of their stores. Approximately 230 has been shut down up to now since it is determined that disassociating off their chain of stores and malls to individual locations is going to be much more profitable as which not only target tourists, but also regular residents. According the 2004 agenda, CVS plans to start opening stores in Minneapolis, the 10th largest drugstore market in the US, and traffic areas including Chicago, Florida, Las Vegas, Phoenix and Texas for expansion.
CVS marketing strategies revolve mainly around expansion. Because the nations leading pharmacy with stores in additional than 32 states, CVS is gradually expanding its chain of stores in Florida. Currently, it provides opened two stores in Central Florida, nine within the Tampa Bay area and eight in South Florida. In addition, CVS has several stores under construction including two more in Central Florida, five in Tampa Bay and seven in South Florida. According to the Senior Legal Counsel, Michael B. Nulman, entry into the Florida market has been profitable beyond normal expectations because not merely has customer acceptance of the Florida stores been incredible, but sales figures in these new areas have been better than many previous locations.
Altering the format from the stores is yet another strategy that generates high profit margins. Moving through the convention 9600-square-feet prototype, CVS plan toward bigger and much better free-standing facilities led to 22 billion dollars in sales and ranked it second of top pharmacy in 2002 among its competitors. As opposed to the smaller stores, the 10,885 and 12,150-square-feet prototypes allow drive-through pick up that simultaneously serve two cars and provide a lot of convenience that is exactly what the CVS chain is wanting to achieve based on Alfred J. Callegarri Regional Director of Real Estate. Basically, the CVS chain attempts to succeed where its competitors have failed.
In addition to medicine, CVS sells many different other items. As being a pharmacy, it sells the stuff that one would find in a convenient store. CVS plus a number of supermarkets is addressing customer demands through providing one-stop-shopping and convenience towards the shopping experience. In accordance with the Food Marketing Institute, nearly all new stores and remodeled ones present an ever-wider variety of products and services in a single including wine, ATM services and greeting cards just to mention a few.
Although CVS product line sells at market price, it manages to get more customers than its competitors. Being a pharmacy, CVS is definitely the only pharmacy that uses scannable consumer discount cards. Conversely, Rite Aid has a reward program that provides a discount on specific markets, meaning only only a few stores take part in that program which renders it largely ineffectual. On ffsdrp other hand, CVS card-scanning strategy helps it win even the finicky customers. In addition, the pharmacy gives 2% off on non-prescription items then one dollar off every two prescriptions. Finally, the card enables cvs customer support to not only keep an eye on the buying habits of customers, but to communicate together more intimately and advertise accordingly.