As the business to ever generate a web based pharmacy, CVS has brought a completely new flavor to your pharmaceutical business. At the moment, Shopper Value Retail outlet is #53 of fortune 500 organizations. The company operates primarily from prescribed drugs profits which accounts for 70% of its full revenues. CVS is definitely just about the most pervasive drugstore chains in the usa; it operates virtually 4,100 services, positioning it facet by side with 3 of its key opponents, Eckerd, Ceremony Aid and Walgreens. Within the Customer Benefit Store lies PharmaCare, a subsidiary which is regarded important towards the company’s expansion and profit margin because of diverse managerial tactics it provides into the organization.
In the beginning, the first shop 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 per year. Since then, the chain has been growing at a rather outstanding rate. Today CVS is successfully operating in well over 32 states and it is still expanding. During most of your 1990s, CVS has separated itself as one of the most well managed chains in the national drug shop business, reaching the 4000 mark and still is growing. The company
CVS faces challenges from a few significant competitors. Specifically, Walgreens which holds 38% of market share is expanding at a rate of more than 400 new stores per year. Secondly, Eckerd at present the sixth largest U.S. market at 33% of market share is venturing the Phoenix market which offers long term growth. Finally, Rite Support Corp with 30% of market share is planning to add around 300 private label SKUs including household chemicals, school supply and garden items just to name a few.
Major Trends in Industry
As a way of reevaluating marketing strategies, CVS is closing some of their stores. Approximately 230 has been shut down so far because it is determined that disassociating from other chain of stores and malls to individual locations will be much more profitable as that 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 high traffic areas such as 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 has opened two stores in Central Florida, nine in 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 towards the Senior Legal Counsel, Michael B. Nulman, entry into the Florida market has been profitable beyond normal expectations because not only has customer acceptance in the Florida stores been incredible, but product sales figures in these new areas have been better than many previous locations.
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