As the company to ever create a web-based pharmacy, cvs reviews has brought a new flavor to the pharmaceutical industry. At present, Consumer Value Store is #53 of fortune 500 companies. The company works primarily from prescribed drugs sales which makes up about 70% of its total revenues. CVS is really one of 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. In the Consumer Value Store lies PharmaCare, a subsidiary which is considered key to the company’s expansion and profit margin due to diverse managerial tactics it provides to the company.
In the beginning, the initial store opened its doors in 1963 selling health and beauty aids. By the end of that same year, the chain grew to 17 stores averaging $3.3 million annually. Since that time, the chain continues to be 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 one of the most well managed chains in the national pharmacy industry, reaching the 4000 mark but still is increasing. The company
CVS faces challenges from three major competitors. Specifically, Walgreens which holds 38% of market share is expanding at a rate of more than 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 likely to add around 300 private label SKUs including household chemicals, school supply and garden items just to name a few.
As a means of reevaluating marketing strategies, cvs corporate office is closing some of their stores. Approximately 230 has been shut down up to now because it is determined that disassociating from other chain of stores and malls to individual locations will likely be a lot more profitable as that not only target tourists, but in addition regular residents. According the 2004 agenda, CVS intends to start opening stores in Minneapolis, the 10th largest drugstore market in the united states, and high traffic areas like Chicago, Florida, Las Vegas, Phoenix and Texas for expansion.
CVS marketing strategies revolve mainly around expansion. Because the nations leading pharmacy with stores in more 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 to the Florida market has become profitable beyond normal expectations because not just has customer acceptance of the Florida stores been incredible, but sales figures within these new areas happen to be much better than many previous locations.
Altering the format from the stores is another strategy that generates high profits. 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. Instead of the smaller stores, the ten,885 and 12,150-square-feet prototypes allow drive-through pick up that simultaneously serve two cars and supply a lot of convenience which can be what the CVS chain is seeking to achieve according to Alfred J. Callegarri Regional Director of Property. Basically, the CVS chain tries to succeed where its competitors have failed.
Together with medicine, CVS sells many different other things. As a pharmacy, it sells the things which one could find in a convenient store. CVS in addition to a quantity of supermarkets is responding to customer demands through providing one-stop-shopping and convenience to the shopping experience. In accordance with the Food Marketing Institute, the vast majority of new stores and remodeled ones provide an ever-wider selection of services and products in one place including wine, ATM services and greeting cards just to name a few.
Although CVS product line sells at selling price, it manages to have more customers than its competitors. As a pharmacy, CVS is definitely the only pharmacy that utilizes scannable consumer discount cards. Conversely, Rite Aid features a reward program which offers a reduction on specific markets, meaning only only a few stores participate in that program which renders it largely ineffectual. On ffsdrp other hand, CVS card-scanning strategy helps it win even the finicky customers. Additionally, the pharmacy gives 2% off on non-prescription items and something dollar off every two prescriptions. Finally, the credit card enables cvs reviews to not only keep an eye on the buying habits of customers, but to speak with them more intimately and advertise accordingly.