Marketing analysis relates to studying the attractiveness of a specific market within a particular industry. CVS Health is an American pharmaceutical chain and a health insurance provider. To improve its current position within the field or develop a new marketing strategy, the company needs to review their successes and shortcomings. Moreover, to stay competitive, it is necessary to analyze their internal and external strategic factors, which could potentially open an exact possibility of expanding business. This essay will evaluate the company’s strengths and weaknesses and provide recommendations to maintain and strengthen its position in the market.
It is essential to note that CVS Health is a successful American pharmacy and healthcare chain with thousands of stores at its disposal. Before 2014, the company was known as CVS Caremark Corporation (Lyles, 2017). The brand focuses on selling pharmacy services, specializes in health clinics, and possesses the Digital Innovation Lab, which works on developing apps and smart devices for better healthcare services. CVS Health aims to grow its customer base by implementing extra services and better assistance.
Therefore, the company can provide various health works from the flu vaccine to urinary infection diagnosis. Its Digital Innovation Lab first presented their work in 2015, when it introduced a mobile app that lets users scan paper prescriptions, generally making their lives easier (Lyles, 2017). Moreover, the chain gave healthier nourishment options such as fresh fruits, vegetables, and organic foods (Racine et al., 2017). Furthermore, they launched services that used artificial intelligence to predict whether a customer requires interventions.
Additionally, CVS marketing experts stated that they wanted their promo materials to become pellucid by 2020. Consequently, they promised to showcase truth in their marketing materials without altering their appearances, such as shape, wrinkles, skin imperfections, and body flaws for both male and female models (Rothaermel, 2021). They have also been working on a unique digital Beauty Mark that is implemented to ensure that the images are not altered in Photoshop or other programs.
Considering its strengths, the brand is easily recognizable since it is a trustworthy competitor within the field. The company is known worldwide, which makes it more challenging for its competition to be noticed. Moreover, its main business strength is a chain synergy of interdependent divisions, which reinforces its competitive abilities. The company emphasizes convenience when it comes to the consumers and their prescriptions. Furthermore, another strong side of the chain is a tremendous penetration into the American retail pharmacy market.
As for the weaknesses, one of the most significant vulnerabilities is the company’s business model’s inimitability since it tends to be appropriated by the competitors or newcomers, who apply similar marketing tactics to gain advantage. Furthermore, another fragility of the chain is its dependence on the American market. The brand has limited influence anywhere outside the USA, which makes its business model deficient. Therefore, CVS Health’s business is heavily dependent on the U.S. retail market and its regulatory changes, which is why it is essential to develop various strategies to reduce the dependence levels.
Political trends within the business scope is another important factor. Since the U.S. has recently held an election, some policies were bound to change for all the industries and companies. Despite the fact that CVS Health does not have an international market, it is still a prevalent choice in the domestic market. Since the new president has recently started his presidential career, his administration did not change anything concerning the markets’ recent changes. However, since he is progressive and liberal, the government is expected to allow CVS Health to develop worldwide and provide its services to Latin America.
Considering that Joe Biden is liberal and openly supports Obama’s political plan, it is fair to expect that some healthcare policies would return and influence CVS Health. For example, he promised to build affordable medical care and provide government subsidies, which will affect the company. However, the policy that would influence the business the most would be the reduction of drug prices, which would directly impact the price policies of the company and the revenues. Moreover, new price policies will encourage people to buy more drugs, which would substantially increase profits.
CVS Health actively participates in political life to aid in shaping public policies that can directly impact the company. For example, the firm complies with the federal and state laws concerning lobbying (CVS Health). Moreover, it generally concentrates on policy issues that can potentially impact CVS’s healthcare delivery across the country. Therefore, the company actively communicates with the policymakers to ensure that nothing would negatively affect business. Furthermore, to ensure that good relations with elected officials are maintained, the brand makes contributions at the state level to promote their interests and to support the best policymakers (CVS Health). These activities have been highly influential since the policymakers are interested in improving the company’s position by constructing better policies for both the brand and the U.S. citizens.
The marketers target women because there are lots of beauty products at the company’s disposal. The company’s primary target markets are people older than 35, mostly female, with a college degree or other education (Numerator). CVS has positioned its brand as an aid to females, who are frequently busy to the point that they had to multitask to accomplish several things simultaneously. Moreover, they redesigned a part of their stores to attract more women by ensuring the decrease in waiting time as well as providing for wider shopping aisles, more beauty products, and better customer service. The brand wants to appear customer-friendly, active in its position, and generally better than its competition.
Furthermore, considering the unfavorable marketing issues, the company’s competitors tend to copy its marketing strategies, usually appropriating them for their business model. Moreover, the brand could improve its privacy since some scandalous events of the past could significantly damage its reputation. Additionally, it should aim at the younger generation, which also needs quality healthcare and available drugs, especially in times of the worldwide pandemic. Nevertheless, they should not forget about technological development, since if they fall behind their competitors, they could lose their business.
In conclusion, marketing is a relevant issue for any company, especially when it comes to such giants as CVS Health, which is an American pharmaceutical chain aimed explicitly at people older than 35. To become more successful in its field, the company should consider all the factors concerning the internal and external strategic factors. Furthermore, the company should adequately weigh all its weaknesses and strengths to improve its business model and appeal more to the customers. Moreover, it should expand its business in Latin America and worldwide.
References
Numerator (n.d.). CVS. Web.
Lyles, A. (2017) Pharmacy benefit management companies: Do they vreate Value in the US healthcare system?. PharmacoEconomics 35, 493–500. Web.
CVS Health (n.d.). Political activities & contributions. Web.
Racine, E. F., Kennedy, A., Batada, A. & Story, M. (2017). Foods and beverages available at SNAP-authorized drugstores in sections of North Carolina.Journal of Nutrition Education and Behavior, 49(8), 674-683. Web.
Rothaermel, F. T. (2021). Strategic management. McGraw-Hill Education.