Strong products should be grown or maintained. Weak or unprofitable lines should be sold or discontinued as soon as possible. "Four basic factors are critical in the decision to manage individual product lines.
Consumer demand
Cost to produce
Gross margin
Total sales volume" (Berry, 2012).
Going through the process of developing a marketing plan will help CVS to figure out how they are going to draw people into their stores and sell them things beyond discounted generic drugs. A provides the market with a source of discounted drugs among other products. This market need is important today as many Americans are faced with the dilemma of using their limited income on food or meds. A pharmacy should seek to fulfill the following benefits that are important to their customers.
Selection: The pharmacy needs to offer a wide range of medication, both originals as well as generic alternatives.
Accessibility: Products should be distributed through their conveniently-located store front
Customer service: The pharmacy should recognize the value of having outstanding customer service. By exceeding all of the customer's expectations, they are ensuring repeat customers and many referrals.
Pricing: The pharmacy's prices have to be noticeably better than other local pharmacies (Pharmacy Marketing Plan, 2012).
CVS also needs to conduct some marketing research in order to ensure their success in the market. One method that they can use would be to conduct several focus groups in order to gain insight into the targeted customer's mind and the processes of their decision making. These focus groups help to provide the pharmacy with a wealth of information. In addition they could hand out surveys to current customers. Having a carefully designed survey is paramount to ensuring that the data collected is accurate and applicable. The surveys can help provide insight into the barriers that people face when buying products from a pharmacy as compared to other retail shops. The last source of marketing research that CVS can do is an in-depth analysis of the pharmacy industry, focusing on consumer decision models within the industry. Cumulatively, all of this market research will help the store to lay out a plan on how to move forward in the market (Pharmacy Marketing Plan, 2012).
The keys to CVS's success include: repeat customers, low overhead and operating costs and superior prices and service. In the drug store business the prescription department is the profit core and center of the business. The prescription department ranks as one of the most profitable sections in the pharmacy and has a significant influence on other department sales. The pharmacist should, therefore, concentrate on making this department the central
Focus of the drug store. Other merchandise may be carried based upon clients' needs and what the drug store's competition is offering (Drug Stores Business and Industry Profile, 2004).
A broad line of merchandise may be carried to appeal to a wide range of shoppers. "Some of the items generally carried by a drug store include: cosmetics/fragrances, cigarettes and cigars, small art and crafts items, hair care/skin care products, magazines/books, film/film developing, vitamins, greeting cards, batteries, disposable diapers, blank videotapes, oral hygiene products, contact lens solutions, diet aids, pet food, and candy. Some drug stores have added a cooler with beverages and snack foods" (Drug Stores Business and Industry Profile, 2004).
In order to be successful, the management of a drug store must know its competition, have a vision as to the markets that it can cultivate, promote a helpful atmosphere for both clients and employees, and strive...
This relationship has an effect on the payment rates that CMS sets. Higher cost pharmaceutical therapies are systematically reimbursed below acquisition cost (i.e., the payment system is biased against full reimbursement for higher cost therapies). Reimbursement compared to acquisition cost for the top IO pharmaceuticals by total expenditures indicates that 9 of the 10 are significantly under reimbursed." Clinical Trials Report: Congress established Medicare beneficiaries numbering 40 million with a prescription
Pharmaceutical industries have to operate in an environment that is highly competitive and subject to a wide variety of internal and external constraints. In recent times, there has been an increasing trend to reduce the cost of operation while competing with other companies that manufacture products that treat similar afflictions and ailments. The complexities in drug research and development and regulations have created an industry that is subject to intense
While it is definitely true that these companies spend a great deal of money on research and development, for which they certainly deserve and in fact need to be compensated (not to mention their right to make a profit, and the fact that profit potential is a major driver in innovation), the amount of profit and compensation that comes solely from the United States is inordinate when compared to
Pharmaceutical Companies, Intellectual Property, and the Global AIDS Epidemic For this case study, six questions had been asked. The first one is: Should pharmaceutical companies distribute drugs at low cost in third world countries? What are the pros and cons of such an approach? The second one is: What are the principal arguments of pharma companies who oppose making exception to IPR laws for developing countries? What are the arguments by
It so happened that Russian doctor Karlov was trying to find patients for another clinical trial for an experimental drug, and Ershov fit the requirements to enter the study. "They told me the treatment was safe," says Ershov. "I trust my doctor completely." Like 90% of Karlov's other clinical-trial patients, he immediately signed the consent form (Lustgarten, p. 1). Russia is one of those countries that suffers from high
Management of Continuum of Care Services As the new director appointed for the Medicare and Medicaid Services (CMS), I realize the climbing costs of payments of these two programs and have met with the other members to come up with a plan of that will help enforce the strategies and guidelines in the state of North Carolina that can help us follow a budget that will assist the overall national requirements
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now