CVS-CAREMARK
Jordan Beamish, Tyler Cassiday,
Mitchell Fidler, Tayler Johnson,
Makaela Moore
EXECUTIVE SUMMERY
 Founded in 1963
 Our vision: “We strive to improve the quality of human life”
 Our mission: “We provide expert care and innovative solutions in





pharmacy and health care that are effective and easy for our customers”
Our Values: Accountability, Respect, Integrity, Openness, Teamwork
CVS and Caremark merged in 2007
Currently have 7400 locations in the United States and Puerto Rico
Largest retail pharmacy in the United States
Currently trying to make changes to accommodate and profit from the
PPACA
CUSTOMER ANALYSIS
Women
Senior Citizens
 80% of CVS customers
 Discounts
 Handle family business
 Prescriptions
 Healthcare
 Questions about medication
 Food
 Convenience
 Personal products
 Coupons
 Simple shopping experience
COMPETITIVE MARKET ANALYSIS
 Walgreens
 Prescriptions
 Convenience products
 Higher Price
 Wal-Mart
 Generic prescriptions
 More shopping while you wait
 Longer wait times
 Express Scripts
 Delivery service
 Lack of generic prescriptions
 No brick and mortar store
ECONOMIC ENVIRONMENT
 Inflation
 Shortage of primary care physicians
 Supply/Demand of Healthcare Services
 PPACA
 MinuteClinic
TECHNOLOGICAL ENVIRONMENT
 New technologies
 Top rated mobile app
 http://www.youtube.com/watch?v=MVGMmCZjJmE
 Simplify the many services offered
 Website
POLITICAL AND LEGAL ENVIRONMENT
 PPACA
 MinuteClinic expansion
 Expansion of services
CULTURAL AND SOCIAL ENVIRONMENT
 Demographic trends
 Increase of insured Americans (PPACA)
 Aging population (65+ 80% increase since 2010)
 Increase of chronic diseases (healthcare spending)
SWOT ANALYSIS
Strengths
 Loyalty Card Program
 Loyal shopper base
 Acquiring Walgreens
customers
 Express Scripts feud
 Convenient stores
 Diversified
 Strong brand equity
Weaknesses
 Inconsistent store
experiences & execution
 Real estate
 Sales mix focuses on lower
margin (pharmacy vs. front
end)
 Leveraged from acquisitions
 High turn around in
employment rates
 Store security
SWOT ANALYSIS
Opprotunities
 Private label expansion
 Turn around acquired
stores (Eckerd, Osco, Savon)
 Store as a destination -
leverage healthcare clinics
 PPACA
 Shortage of primary care
physicians
Threats
 Traditional and non-
traditional competitors
 Integration of acquired
operations
 Shortage of pharmacists
 Mail Order Pharmacies
TARGET MARKET
 Young Adults
 Convenience items
 Specific needs
 Women
 Women make up 80% of CVS’s customers
 Family and personal items
 Prescriptions
 Senior Citizens
 Anticipating increase in elderly population
 Accommodating prescription plans

Offering customized prescription plans

Delivery Services
PRODUCT
 One stop shop, convenient services
 MinuteClinic
 Preventative care
 Flu shots
 Physicals
 1 hour photo
 Beauty products
 Pharmacy services
 Programs for chronic illness
 Programs for elderly
PLACEMENT
 High traffic areas
 Cities
 Busy intersections
 Close to hospitals
 Physicians can call in prescriptions
 College towns
 Communities
PROMOTION
 Coupons
 Loyalty Program: ExtraCare
 myWeeklyAd
 Celebrities
 http://www.youtube.com/watch?v=h-Vdlsi4jOQ
 http://www.youtube.com/watch?v=pkp03HdkUJs
PRICING
 Flexible pricing
 Coupons
 ExtraCare Bucks
 Discount allowances
 Discount cards – AARP
 ExtraCare Savings
MARKETING OBJECTIVES
Product Objective
▶
•
•
Increase proprietary product sales in store front products from 17% to
26% in the next four years
Placement Objective
•
Add 350 locations in the north west
•
Double Minute Clinic by 2016
MARKETING OBJECTIVES
 Product Objective
 Increase proprietary product sales in store front purchases from 17% to 26% in the
next four years
 Placement Objective
 Increase number of stores
MARKETING OBJECTIVES

Promotion Objective


Increase Extra Care sales by 3.4% over the next year
Price Objective

Increase rebates and discounts received by wholesalers and
manufacturers by 5% this year
MARKETING IMPLEMENTATION
 The objective for CVS is to expand the number of store and minute
clinic locations while cutting costs to CVS.
 While carrying a wide range of third party products, CVS is trying to
promote its own brand of these equal quality products by selling them
at a lower cost
EVALUATION AND CONTROL
 To asses the effectiveness of expansion, analysis will be taken semi-
annual surveys
 Preform annual cost analysis to determine the effectiveness of Minute
Clinic services to accommodate PPACA
RESOURCES
 2012 Annual Report - http://phx.corporate-
ir.net/phoenix.zhtml?c=99533&p=irol-reportsannual
 2013 3rd Quarter earnings call presentation - http://media.corporate-
ir.net/media_files/irol/99/99533/Q313/Q3_2013_Earnings_Presentation
_Slides.pdf
 CVS/Caremark corporate website - http://info.cvscaremark.com/our-
company/cvs-caremark-facts
 Informational brochures