CVS

Marketing Metrics

CVS Stock

Growth Strategies

CVS is one of the largest U.S pharmacy services provider

• $126.8 Billion in Net Revenue
• $4.58 Billion in Net Income
• Large Market Share

CVS Growth Rate

• 7.8%
• Due to:
• Increased Demand
• Generic Brands
• Recall
• Ex. Johnson and Johnson
• Plans for the future

• 2012 Stock Price: $48.35
• 2013 Stock Price: $71.57
• Current Stock Price: $89.84
• Walgreens Stock Price: $68.60

Marketing Mix

STP

Price

Product

• Higher drug costs compared to "big box" stores
• Offer low costs generics with higher profit margins
• Discounts for bulk purchases
• Pharmacuetical products = inelastic
• Front Store products = elastic

• Goods and services
• Front store and pharmacy
• Store brands and generic drugs
• Exclusive co-brands
• Seasonal products
• Immunizations

Postioning

Segmentation

E-Commerce

-Focuses on making it easier for customers to engage with CVS at any moment and most importantly to help our shoppers lead healthier lives,

Psychographic Segmentation

-Prioritizes strategies around a “super customer”

-Women

-Young 50's

Banning Tobacco

-First major pharmacy chain to stop selling tobacco

Occasion Segmentation

-Focus on specific purchase intervals

EX: Holidays

Benefit Segmentation

Targeting

-Grouping customers based on the specific functional or emotional benefits they seek

Ex: Beauty Products

Middle-Aged Women

- Make up 80% of CVS's customers

"We strive to improve the quality of human life."

Promotion

Place

• ExtraCare Cards
• myWeeklyAd
• ExtraCare Bucks
• In-store promotions
• Mobile App

• 7,600+ stores
• 46 states, District of Columbia, & Puerto Rico
• 900+ Minute Clinics
• 31 Specialty Pharmacys
• CVS.com

SWOT

Analysis

Threats

Strengths

• Other drug/convenience stores
• Walgreens, Rite Aid, Target and Walmart
• Government intervention

• Brand recognition
• Reliability
• Loyalty
• Convenience
• Boldness

Weaknesses

Opportunities

• Not selling tobacco products anymore
• People will go elsewhere for their pharmacy and convenience store needs

• Continue to produce better generic brands at a lower cost to the consumer
• International growth opportunities in South America
• Expansion of MinuteClinics
• Expansion of the services offered at these clinics

Four Theories of Excellence

Product Excellence

Customer Excellence

• ExtraCare rewards program
• Highly knowledgeable employees

• First to market products
• Quality brand name products at reasonable prices
• Reliable CVS brand products

Operational Excellence

Locational Excellence

• Thousands of stores across the nation

• Multiple distribution centers
• Strong supplier relationships

Mission Statement

"Above all else … our mission is to improve the lives of those

we serve by making innovative and high-quality health and pharmacy services safe, affordable and easy to access."

Ally Tremblay, Emma Weinreb, Kristen Vergine, Greg Bennett, Matthew Lague