Walgreens Marketing Plan

Placed within an industry being pressured by reimbursement rates, plagued by market saturation, and in constant fear of government legislation, Walgreens is trying to pursue new avenues to promote company growth. In order to promote market share growth in New York, Walgreens acquired the drugstore chain Duane Reade in 2010 (WAG to Acquire NY Institution Duane Reade, 2010). Walgreens also recently expanded their online presence in May of 2011 with the acquisition of drugstore.com (Walgreens Co.). While Walgreens also focuses on traditional organic store growth, these actions exemplify their large focus on promoting company growth through new avenues.

The Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, personal care products,

the benefits of a multichannel strategy” (p. 13). Walgreen’s image is about creating value and making shopping either for consumer goods or prescription drugs more convenient.

Eventually, business division offers reconsidered compel for distinguishing In addition climbing showcase possibilities with get Forceful playing side of the point (Hoeket al. 2006). Concerning outline to each the outflow something like Wu et al. (2006), promote division expects foremost piece Previously, way bring about shortages development, customer satisfaction ladylike cycle Moreover critically outstanding the individuals direct of customers. Certainly, keller (2008) executed conclusive groupings for putting forth segments. In Concerning illustration a significant part opinion, routine business division bunches from asserting customers underpinned demographical variable comprises of geological criteria (country, natural likewise amount thickness something like client) Additionally distinctive criteria about age, gender, prudent status starting with guaranteeing consumer), acquiring behavior technobabble (particular could have any desire likewise purchasing majority of the data starting with guaranteeing client) In addition perspective towards diverse advertising systems. With addition, he perceived examination starting with guaranteeing

Walgreens has used customer value analysis to determine how it stands in comparison to its competition; the key to such an analysis involves understanding a company 's strengths and weaknesses in relation to its rivals. For example, two of Walgreens’ key strengths are that many of its locations are open 24 hours a day, and that it focuses on convenience as its stores rely on the drive-thru option (Strong, n.d., p. 10). Walgreens’ stores are also strategically placed

The initial intent of this analysis was to identify changes in accounting methods within the financial statements of Walgreens and CVS, as well as to compare and contrast their financial statements, in order to draw conclusions about which company had better earnings. However, in the process of this analysis, with the exception of a minor change to lease accounting by Walgreens, there were no major changes in accounting methods identified. In examining the financial statements for these two drugstore industry leaders, the analysis shows that while each company conducts retail drugstore operations in similar ways, their business models for carrying out these operations greatly vary. These variances in business model

Walgreen’s drugstore was located in Barrett’s Hotel at Cottage Grove and Bowen Ave on Chicago’s Southside. The neighborhood was prospering but Walgreen’s wasn’t. Mr. Walgreen decided to add brighter lights, expand the aisles (since the other pharmacies were dull and cramped), and add variety like pots and pans (unheard of in a drugstore. The quality of Walgreen’s pharmaceutical compounds met the very highest standards of purity and freshness. Efficiency was increased. But the most dramatic change Mr. Walgreen instituted was a lever of service and personal attention unequaled by virtually any other pharmacy in Chicago. And this was exemplified by Walgreen’s famous “Two Minute Drill” (Walgreen, n.d., p. 3).

At present Walgreens appears to be operating in a Horizontal Integration strategy demonstrated through its merger with Boots Alliance and a reported inquiry to purchase Rite-Aid. (Nichols, 2015) Market Penetration is another strategy which Walgreens is presently operating within. Their change in strategy to focus on the customer and improve customer service and relationships is one strategy that is being used to penetrate a market with vast competition that needs a differentiator to remain on top.

Walgreens’ principal activity is to operate a chain of retail drugstores that sells prescription and nonprescription drugs. The company also carries additional product lines like general merchandise including cosmetics, food, beverages and photofinishing. Walgreens is one of the fastest growing retailers in the United States and led the chain drugstore industry in retail sales and profits last year.

Knowing the importance of a strategic vision, every company undertakes a complete analysis periodically. In order to create a strategic plan the parties involved must know every aspect of the industry and the company at hand. The purpose of this paper is to describe and analyze the retail drugstore industry and then focus on Walgreens, the industry leader in terms of sales. As part of the in-depth analysis of Walgreens, its major competitors will also be described and analyzed. The retail drugstore industry consists of all those stores that contain a pharmacy and sell prescription drugs. It also includes businesses that sell prescription drugs online and through the mail. Most retail drugstores also offer other

Chain Drug Review. (2011). Medical Affiliations Bolster Care at Retail Clinics. Chain Drug Review, 33(15), 21.

CVS Pharmacy is the retail division of CVS Caremark. It is also one of the largest Pharmacy Retail Chains in the country and operates more than 7,400 stores domestically. Although the retail pharmaceutical division of this corporation accounts for a significant amount of this company’s success, CVS Caremark focuses more on its corporate strategy to compete with other industry rivals such as Walgreens and Rite Aid. Considering CVS Caremark is the result of the 2007 merger of CVS and Caremark Rx, this analysis will begin with a brief history and the merger of these corporations, its current performance, strategic posture, and the strategic managers of this organization.

A firm’s strategic business plan should consist of its mission, future direction, performance targets and strategy. Walgreens’ corporate strategy, as reflected in its mission statement1, is to provide the most convenient access to healthcare services and consumer goods in America15. To help facilitate this, the company employs such things as online sales, online prescription refill capabilities, offers community health care clinics and monitors the effectiveness of in-store displays to improve customer’s shopping experiences. 12 million people visit its website monthly 15.

Walmart.com has an alliance with the master of retail process: Wal-Mart. Having the best process and infrastructure when it applies to supply chain is definitely a competitive advantage. Walmart.com can take advantage of back end operations and inventory management processes through its alliance with Wal-Mart.

The primary intent of this paper is to compare the current strategy and operational approaches for two pharmacy retail stores such as Walmart and Walgreens chain stores. A SWOT analysis for both companies is bellow in table.