As the company to ever create an online pharmacy, cvs corporate address has brought a new flavor to the pharmaceutical industry. Presently, Consumer Value Store is #53 of fortune 500 companies. The company works primarily from prescription drugs sales which makes up about 70% of the total revenues. CVS is in fact one of the most pervasive drugstore chains in America; it operates nearly 4,100 facilities, placing it side by side with three of its major competitors, Eckerd, Rite Aid and Walgreens. Within the Consumer Value Store lies PharmaCare, a subsidiary which is considered key to the company’s expansion and profit margin because of diverse managerial tactics it offers to the company.
At first, the initial store opened its doors in 1963 selling health and beauty aids. In the end of this same year, the chain grew to 17 stores averaging $3.3 million per year. Since that time, the chain has become growing in a rather outstanding rate. Today CVS is successfully operating in well over 32 states in fact it is still expanding. During a lot of the 1990s, CVS has separated itself as one of the most well managed chains inside the national drug store 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 for a price in excess of 400 new stores each year. Secondly, Eckerd currently 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 intending to add around 300 private label SKUs including household chemicals, school supply and garden items just for example.
As a means of reevaluating marketing strategies, cvs corporate address is closing some of their stores. Approximately 230 has been shut down to date because it is determined that disassociating using their company chain of stores and malls to individual locations will likely be far more profitable as that does not only target tourists, but in addition regular residents. According the 2004 agenda, CVS plans to start opening stores in Minneapolis, the 10th largest drugstore market in america, and 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 than 32 states, CVS is gradually expanding its chain of stores in Florida. Currently, it has opened two stores in Central Florida, nine within the Tampa Bay area and eight in South Florida. Furthermore, CVS has several stores being built including two more in Central Florida, five in Tampa Bay and seven in South Florida. In accordance with the Senior Legal Counsel, Michael B. Nulman, entry in to the Florida market has been profitable beyond normal expectations because not only has customer acceptance of the Florida stores been incredible, but sales figures during these new areas have been a lot better than many previous locations.
Altering the format of the stores is another strategy that generates high profit margins. Moving from the convention 9600-square-feet prototype, CVS plan toward bigger and better free-standing facilities ended in 22 billion dollars in sales and ranked it second of top pharmacy in 2002 among its competitors. Rather than the smaller stores, the 10,885 and 12,150-square-feet prototypes allow drive-through pick up that simultaneously serve two cars and offer a lot of convenience which can be exactly what the CVS chain is wanting to achieve based on Alfred J. Callegarri Regional Director of Real Estate. Basically, the CVS chain tries to succeed where its competitors have failed.
In addition to medicine, CVS sells a number of other items. As being a pharmacy, it sells the very things which one could find with a convenient store. CVS plus a variety of supermarkets is answering customer demands by offering one-stop-shopping and convenience towards the shopping experience. According to the Food Marketing Institute, the majority of new stores and remodeled ones present 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 selling price, it is able to get more customers than its competitors. Being a pharmacy, CVS is the only drug store which uses scannable consumer discount cards. Conversely, Rite Aid includes a reward program which offers a discount on specific markets, meaning only very few stores get involved in that program which renders it largely ineffectual. On ffsdrp other hand, CVS card-scanning strategy helps it win even the finicky customers. Furthermore, the pharmacy gives 2% off on non-prescription items and one dollar off every two prescriptions. Finally, the credit card enables cvs phone number not only to keep track of the buying habits of consumers, but to speak along with them more intimately and advertise accordingly.