Post on 12-Jan-2017
Walgreens vs CVS
FCS Consulting Aja Crittendon
Shanice Edwards
Tenicha HudsonTashon
LawrenceBriawna McCall
Brandon Ross
INTRODUCTION
•Walgreens pharmacy is located at 411 W Lincoln Ave in
Charleston, IL.
•CVS pharmacy is located at 501 W Lincoln Ave in
Charleston, IL.
•Both are in the drugstore/pharmacy sector.
•For target market EIU undergraduate students, our
research question is how can our primary, Walgreens,
increase their profit by 5% in 6 months.
MULTI ATTRIBUTE MODEL (SAMPLE MODEL)The Sample Average Score range from -54 to 54The Sample Average Score for Walgreens is – 27.10The Sample Average Score for CVS is – 23.38Great customer
serviceConvenient
locationGreat product
qualityWide variety of
productsComfortable atmosphere Low prices
En 2.67 2.68 2.57 2.50 2.47 1.88
BWALG 2.17 2.35 1.98 1.92 1.97 1.95BCVS 1.72 1.97 1.50 1.60 1.48 0.32
INFORMATION CONTACT BEHAVIORS (STRENGTHS)Walgreens
•Informative Ads•Present Info on Packages•Search Bar on Website•Ads on Search Pages•1st on Google, Bing, & Yahoo
CVS•Informative Ads•Present Info on Packages•Search Bar on Website•Ads on Search Pages•2nd on Yahoo
INFORMATION CONTACT BEHAVIORS (STRENGTHS)Walgreens
•Scans Products Using Mobile App•Customer Reviews•Informative Marquees
CVS
•Scan Products Using Mobile App•Customer Reviews•Price Check Kiosk
INFORMATION CONTACT BEHAVIORS (WEAKNESSES)
Walgreens•Flyers/Bulletin Board•Not In Campus Special•No Ads In The DEN•No Price Check Kiosk
CVS• Flyers/Bulletin Board•Not In Campus Special•No Ads In The DEN•Marquee Not Informative•High-to-Mid Ad Position on Search Pages
FUNDS ACCESS BEHAVIORS (STRENGTHS)
Walgreens
•ATM Inside The Store•Store Gift Card•Nearby A Bank
CVS
•ATM Inside The Store•Store Gift Card•Nearby A Bank
FUNDS ACCESS BEHAVIORS (STRENGTHS)
Walgreens•Major Credit Cards Accepted•MasterCard, Visa, Am. Express, Discover•Accept Gift Cards & Checks•Mobile App Performs Transactions
CVS•Major Credit Cards Accepted•MasterCard, Visa, Am. Express, Discover•Accept Gift Cards & Checks•Mobile App Performs Transactions
FUNDS ACCESS BEHAVIORS (WEAKNESSES)
Walgreens•No Store Charge Cards
CVS•No Store Charge Cards
STORE CONTACT BEHAVIORS (STRENGTHS)
Walgreens•High Traffic Location•Two Drive-Thru’s•Store Coupons•Automatic Doors•Two Marquee Signs•Photo Center•Panther Shuttle Drop Off
CVS•High Traffic Location•Two Drive-Thru’s•Store Coupons•Automatic Doors•Three Marquee Signs•Photo Area•Panther Shuttle Drop Off
STORE CONTACT BEHAVIORS (STRENGTHS)
Walgreens•Ship To Store•Spacious, Well Lit Parking Lot•Two Entry Ways Going Into The Store•Redbox•Benches Right Outside The Store
CVS•Ship To Store•Well Lit Parking Lot•Alcohol
STORE CONTACT BEHAVIORS (WEAKNESSES)
Walgreens CVS•No Late Store Hours•Store Hours 8am-10pm•No Student Discount•Small, Tight Parking Lot•One Entry Way Into Store•Small Photo Area
•No Late Store Hours•Store Hours 8 am-10 pm•No Student Discount•Side Entrance Into Parking Lot Can Be Risky•With Starbucks Drive Thru Right By The Entrance Drivers Sometimes Come Around The Corner Too Fast
PRODUCT CONTACT BEHAVIORS (STRENGTHS)
Walgreens
•Wide Assortment•Sales Ad/Coupon Booklet In Store •Huge Aisle Signs•Information On Tags•Signs Color Coded By Category
CVS
•Wide Assortment•Sales Ad/Coupon Booklet In Store•Aisle Signs•Information On Tags•Alcohol
PRODUCT CONTACT BEHAVIORS (STRENGTHS)
Walgreens
•Large Seasonal Display•Cigarettes •Hallmark Brand Cards
CVS
PRODUCT CONTACT BEHAVIORS (WEAKNESSES)
Walgreens•Doesn’t Sell Alcohol
CVS•Small Seasonal Display•Small Aisle Signs & Not Color Coded•Doesn’t Sell Cigarettes
TRANSACTION BEHAVIORS (STRENGTHS)
Walgreens•Accept Credit Cards/Checks•Visible Registers•Products By Register•Impulse Buying•Adequate Counter Space•Electronic Scanner•Four Check Out Locations•Front, Photo Center, Pharmacy, And Beauty
CVS•Accept Credit Cards/Checks•Visible Register•Products By Register•Impulse Buying•Adequate Counter Space•Electronic Scanner•Check Out Location
TRANSACTION BEHAVIORS (WEAKNESSES)
Walgreens CVS
•No One-click Shopping On Mobile App Or Website•Two Check Out Locations•Front And Pharmacy
•No One-click Shopping On Mobile App Or Website
CONSUMPTION BEHAVIORS (STRENGTHS)
Walgreens•On-site Vaccination•Flu-shots•Convenient Items•Care Instructions On Merchandise•Pharmacy On Call
CVS•On-site Vaccination•Flu-shots•Convenient Items•Care Instructions On Merchandise•Pharmacy On Call
CONSUMPTION BEHAVIORS (WEAKNESSES)
Walgreens•No Convenient Care•Nurses/Doctors On Site To Medicate Patients
CVS•No Convenient Care•Nurses/Doctors On Site To Medicate Patients
DISPOSAL BEHAVIORS (STRENGTHS)
Walgreens•Reusable Bags•Available For Purchase•Return Policy•Trashcans
CVS•Reusable Bags•Available For Purchase•Return Policy•Trashcans
DISPOSAL BEHAVIORS (WEAKNESSES)
Walgreens• No Recycling Program•Bring In Old Plastic Bags To Be Reused Again
CVS•No Recycling Program•Bring In Old Plastic Bags To Be Reused Again
COMMUNICATION BEHAVIORS (STRENGTHS)
Walgreens•Name On Shopping Bag (B2C/C2C)•TV Ads/Sales Ads (B2C)•Email List (B2C)•Coupons•Survey On Receipts (B2C)•Social Media (B2C/C2C)•Customer Reviews/Comments/Questions
CVS•Name On Shopping Bag (B2C/C2C)•TV Ads/Sales Ads (B2C)•Email List (B2C)•Coupons•Survey On Receipts (B2C)•Social Media (B2C/C2C)•Customer Reviews/Comments/Questions
COMMUNICATION BEHAVIORS (WEAKNESSES)
Walgreens•No Comment Box In Stores
CVS•No Comment Box In Stores
CULTURE•Both Drugstores•Both Retailers Have A Pharmacy• Consumers Utilize Drive-thru•Convenience For Consumers• Both Retailers Offer Vaccinations
SUBCULTURE•More Mature Consumers Health Conscious• Walgreens Offers Discounts For Having Medicare And Senior Citizen Discounts• Both Retailers Offer A Health And Beauty For Women•Offer Coupons In Circular Ads• CVS Offers Alcohol• Frequent Drinkers And College Students •Have Circular Ads For Deals
SUMMARY OF CONSUMER ANALYSIS
•Key Strengths:• Informative Ads, Educated Sales Associates, •Accepting Major Credit Cards Like Mastercard, Visa, American Express And Discover. •A Pharmacy That Offers More Than One Drive-thru, The Convenience Of Ship To Store •Wide Assortment, On Site Vaccinations And On Site Photo Development
SUMMARY OF CONSUMER ANALYSIS
Key Weaknesses When It Comes To The Designated Target Market:•The Lack Of Advertising On Eastern’s Campus Is A Weakness In Information Contact•Not Representing EIU In The Products Sold Is A Weakness In Product Contact. •Prices Are A Bit High For Target Market •Not Selling Alcohol
MARKETING PROPOSAL•Promotion:•Advertising In The Campus Book Special And In The DEN (Daily Eastern News) Would Increase Information Contact For The Students. •Both Are Free And Readily Available To All Students Around Campus.
•Bulletin Boards Around Eastern's Campus.• Locating The Highest Trafficked Areas And Hanging Flyers Could Inform Students Of Current Sales And Daily Deals.
•Another Major Source Of Advertising Is From The Students Themselves. •This Can Be Done Through Discounts Or Special Deal Days For Students, Which Will Draw In A Bigger Audience To Walgreens
MARKETING PROPOSAL•Price:•Most Students Income Is Relatively Low So Discounts Would Definitely Be Appealing To This Market•Host Special “Panther” Days Where There Is A Discount For Being A Student At EIU. •Student Discounts Could Increase Profit. •Offers Them A Small Discount Than Anywhere Else And Could Possibly Buy More.
•Offering More Of An Incentive To Get A Rewards Card In Every Customer’s Hands •Could Increase The Amount Of Repeat Customers.
MARKETING PROPOSAL•Product:•Offering “Go Panthers” Propaganda And EIU Paraphernalia Could Increase Product Contact•People In The Charleston Area Are Supportive Of EIU•Offering Such Products Could Be A New Source Of Revenue•Offering A Small Selection Of Alcohol With Strict Regulation•The Addition Of Alcohol Would Help Them To Better Compete With CVS
MARKETING PROPOSAL•Place:•Staying Open An Extra Hour •Put Them Apart From The Competition•College students tend to stay up longer and this increase in availability would increase their sales possibly.