Distribution Of Rite Aid Pharmacy

1620 Words Mar 5th, 2016 7 Pages
Rite Aid Pharmacy is aiming to make itself as a cost leadership company in the national drug retailer industry. The cost leadership strategy focuses on focuses on lower cost and differentiation than their competitors (Barney & Hesterly, 2012). Businesses using the cost leadership strategy focuses on making lower prices and can still make a satisfactory profit. The cost leadership can charge a lower price but can still make about the same amount of profit with its competitors. Rite Aid has been successful in implementing this strategy. In 2006, Rite Aid introduced their retailer annual Management conference and Trade Fair known as “Build Our Business” or “BOB” to more than 15,000 stores, employees and main managers. “BOB” was portrayed by an actress representing a Rite Aid customer. The woman playing “BOBs” goal was to convey the importance of customer service to Rite Aid. The conference was created to train employees about Rite Aid’s customer service and merchandising strategies. The first day of the conference showed clips of “BOB” not receiving the level of customer service from Rite Aid that they were striving for. This was shown as the conference’s theme, "Make a Difference. Make it Personal." This was to reiterate to employees that "people are loyal to people and experiences, not the store itself," The CEO, Mary Sammons, believed that there are three things that can happen to give a customer a bad opinion of Rite Aid: “1.) a perceived lack of respect for the customer 's…
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