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.