As the company to ever create an online pharmacy, cvs number has taken a new flavor to the pharmaceutical industry. Currently, Consumer Value Store is #53 of fortune 500 companies. The company operates primarily from prescription medications sales which accounts for 70% of its total revenues. CVS is in fact 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.
In the beginning, the initial store opened its doors in 1963 selling health insurance and beauty aids. By the end of this same year, the chain grew to 17 stores averaging $3.3 million each year. Since that time, the chain continues to be growing in a rather outstanding rate. Today CVS is successfully operating in well over 32 states which is still expanding. During a lot of the 1990s, CVS has separated itself as among the most well managed chains within the national pharmacy industry, reaching the 4000 mark yet still is growing. The company
CVS faces challenges from three major competitors. Specifically, Walgreens which holds 38% of market share is expanding at a rate of over 400 new stores annually. Secondly, Eckerd typically the sixth largest U.S. market at 33% of market share is venturing the Phoenix market that offers long term growth. Finally, Rite Aid 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 mention a few.
As a method of reevaluating marketing strategies, cvs email address is closing a selection of their stores. Approximately 230 continues to be shut down up to now because it is determined that disassociating from other chain of stores and malls to individual locations will likely be far more profitable as that not only target tourists, but additionally regular residents. According the 2004 agenda, CVS wants to start opening stores in Minneapolis, the 10th largest drugstore market in the united states, and high traffic areas such as Chicago, Florida, Las Vegas, Phoenix and Texas for expansion.
CVS marketing strategies revolve mainly around expansion. Since the nations leading pharmacy with stores in than 32 states, CVS is gradually expanding its chain of stores in Florida. Currently, it offers opened two stores in Central Florida, nine inside the Tampa Bay area and eight in South Florida. Additionally, CVS has several stores being built 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 been profitable beyond normal expectations because not just has customer acceptance from the Florida stores been incredible, but sales figures within these new areas have been better than many previous locations.
Altering the format of the stores is yet another strategy that generates high profit margins. Moving through the convention 9600-square-feet prototype, CVS plan toward bigger and 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 10,885 and 12,150-square-feet prototypes allow drive-through pick up that simultaneously serve two cars and provide significant amounts of convenience that is just what the CVS chain is trying to achieve in accordance with 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 a variety of other items. Being a pharmacy, it sells the particular things which one would find at a convenient store. CVS in addition to a quantity of supermarkets is addressing customer demands by providing one-stop-shopping and convenience to the shopping experience. In accordance with the Food Marketing Institute, the majority of new stores and remodeled ones provide an ever-wider number of products and services in one place including wine, ATM services and greeting cards just to mention a few.
Although CVS product line sells at market price, it manages to have more customers than its competitors. Being a pharmacy, CVS is the only drug store that uses scannable consumer discount cards. Conversely, Rite Aid features a reward program that offers a discount on specific markets, meaning only very 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. In addition, the pharmacy gives 2% off on non-prescription items and something dollar off every two prescriptions. Finally, the credit card enables cvs customer service number to not only keep an eye on the buying habits of clients, but to communicate with them more intimately and advertise accordingly.