CVS Alexander Martin | Demarquis McIntyre | Drea Gonzalez | Jessica Trippler | Melissa Brady | Ryan Miller | Timothy Gorski
Background • CVS stands for Customer Valued Service • Purpose: Helping people on their path to better
health • First CVS store, selling health & beauty products was founded in 1963 in Lowell, Massachusetts by brothers Stanley and Sidney Goldstein and partner Ralph-Hoagland • In 2009, CVS reached the opening of the 7,000th store, located in Little Canada, Minnesota
Problems & Opportunities • Problems
• Less convenient store locations than Walgreens • High prices for medicine & food • Limited to the United States
• High amount of employee turnover • Stores aren’t open for 24 hours
• Opportunities
• Stronger loyalty card program
• Expand company internationally
• Hire an actor for commercials to establish an identity • Enhance acquired stores (Osco, Mark Drug Chain,
Savon, etc.)
Strengths & Weaknesses • Strengths
• One of the highest customer loyalty programs with
over 500 million users • Top 20 company in the Fortune 500 • Active walk in clinics in nearly half the country • Net income of over $4 billion
• Weaknesses
• Suffers from poor security and thefts • Few locations than main competitor
• Going forward, ending the tobacco sales will lose
them an estimated $1.2 billion • Large amounts of budget spent importing their drugs
Target • Primary • Consumers 25-50 years old • Male and female
• Secondary • Children 3-12 years old • Teenagers 13-18 years old
• Tertiary • Young adults 19-24 years old
Promotion Plan • Objective • Boost summer sales/promote healthy living • Summer & health products Outdoor • Kids toys/beach toys • Healthy food/snacks •
• Strategy & Tactics • Promote family activities, exercise, fun & traditions • Rewards card • Ex: buy a certain quantity of one product and get
double or triple points •
Exchange points for product of consumer’s choice
Promotion Plan (Continued) • Strategies & Tactics (Continued) • Start a CVS organic brand • Open up fresh food sections Fruits & vegetables • Have samples • Offer more organic canned foods •
• Mobile App • Buy a certain product, get another product for free •
Ex: Buy sidewalk chalk, get a pack of bubbles for free
• Scan codes for discounts on summer products
Promotion Plan (Continued) • Strategies & Tactics (Continued) • Ads • TV commercials • Newspaper • Public transportation/bus shelter •
Create outdoor bus shelter spray mists to promote CVS •
Sprays water mist to cool commuters
• Flyers • In store •
Redeemable coupons for that day
Ad Example • Bus shelter example • Big, bright, colorful beach ball on top • Sides of shelter would encourage family time,
summer fun, & being healthy