5-1 Milestone Two

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1 5-1 Milestone Two: Marketing Strategy Framework 5-1 Milestone Two: Marketing Strategy Framework Paige Katz INT 640 International Marketing Strategy Dr. Pesakovic January 11, 2024

2 5-1 Milestone Two: Marketing Strategy Framework Marketing Strategy Framework There are two main audiences I believe will benefit CVS to target in India. The first one, much broader than the next, is families and parents. I think this is a group that will have a need for the services that will be provided. Between having young kids and at least one working parents, there will be a lot of small injuries and sickness that just needs a quick test or a check that it isn’t a big deal. The CVS clinics will help save the families a lot of time and money by not forcing them to go to a larger clinic or ER. Most importantly, the out-of-pocket cost is something that even a lower income family would hopefully be able to manage. The age range for the parents would be 25 years and up while the kids would be 0-18 years. The targets would be of multiple religious and political backgrounds with varying education levels; however, most would likely not have higher degrees. They would be middle class to lower class with a value in their family and spending money to keep them safe and healthy. The other target audience for the CVS MinuteClinics is young adults. College age students 18 to 24 who are either on limited or have no financial support from their families/parents. Many would be working part time jobs with low pay either living in school provided housing or paying their own cost of living. There is a lot of important balance for this age groups life. They have academic responsibilities, working responsibilities, social and familial responsibilities, and often their personal responsibilities feel like less of a priority (especially when they have to pay for it). The low cost of the clinics gives this group an easy and inexpensive healthcare option that they can get into their school schedule.

3 5-1 Milestone Two: Marketing Strategy Framework The marketing objectives for CVS, in short, are create brand recognition, cultivate audience loyalty, and retain any customer bases they create upon opening. The rivalry that CVS will face upon entering this market is all local clinics and hospitals. Most of which are specialized or run through larger hospitals (Top hospitals and clinics in India, n.d.). There are not many brands to recognize and while these locations are organized, they aren’t compiled to compete with a corporation. That does not mean they will not present as strong alternatives for the people of India. That is why CVS has to create strong marketing strategies to rope in those specific groups above as they work to expand their market. Through my research and in doing my TOWS analysis, there is a lot of benefit that comes from CVS expanding. It will affect both the company and their customers in positive ways. CVS has a very solid domestic reputation that can easily be found and carried to other countries. They offer well known and affordable medical services that are needed in many parts of the world. The healthcare sector in India is growing every year (Stiftung, 2022). Now would be a perfect opportunity for CVS to be the first to move in and capitalize off the need for reliable healthcare and growing access to the resources to provide that. The reputation CVS has might protect them against any instability as they would be operating as a foreign company and have strong financial backup (“About our company, 2023). CVS opening MinuteClinics in India would benefit from having affordable and genuine healthcare nearby for their families and themselves. Expanding to a new country also increases the share value and potential for profit. Looking back a few years at the revenue for CVS, even through the pandemic when most companies were posting loss, CVS was gaining. Their revenue, assets, and profit all increase by

4 5-1 Milestone Two: Marketing Strategy Framework at least $10 billion (“CVS Health Corp,” 2023). It would be preferable to continue this positive trend over the first couple years. There is a chance over the first sixth to twelve months that there is a downtick in profits as some of that should be invested into the expansion and improvements of the new clinics in India. It is more than likely a budget would be allocated to the international teams that is all a part of the larger corporate plans and balance sheets. In 2022, CVS held 34% of the market share for pharmaceuticals. The company opened virtual visits for the MinuteClinics in 2018 and the gross profit from 2018 to 2019 increased by almost $14 billion (Kaushal, 2023). The hope for the market share when expanding to was to grab more control over consumer spending. The market would be different but CVS already having so much stake in even just the pharmaceutical market gives them an incredible leg up. After the first year there should in an increase in the market share and their finances. Over the second year, there would be an increase even more so as CVS intends to work with the expanding medical sector and the changing healthcare policies from the government to improve the industry through the company. By 18 months there should be more than two or three locations with more on the way. As for branding, opening clinics in an area of need is a huge PR opportunity to gain more support back in the U.S. Giving back and being charitable in any way, even if the intentions, like in this case, are still to force profit and make a gain for the company, do really well in American markets. Consumers love companies that appear philanthropic; it increases brand loyalty. I believe it will have a somewhat similar affect in India. People would see a brand that is there for

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