What was once a small pharmacy owned by Galesburg native Charles R. Walgreen, Sr., in 1901, has grown into the largest pharmacy chain in the world. As of May 31 2014, Walgreens operated 8,217 stores all located in the United States.(Walgreens,2014) Walgreens offers its customers a variety of basic consumer goods including household products, convenience foods, personal care, beauty care, photos, and seasonal items, as well as over the counter medications. In addition to its well-known pharmacies, Walgreens also operates home care facilities and specialty, institutional and mail service pharmacies. Its Take Care Health Systems subsidiary manages more than 400 convenience clinics at Walgreens Drug Stores. (Walgreens/locations 2014) As of 2014, Walgreens Co. changed their name to Walgreens Boots Alliance Inc. The company, formed when US-based Walgreen Co. bought its European counterpart Alliance Boots, which included nearly 13,000 retail pharmacies in 10 countries, mostly the US and its territories and the UK, selling prescription and over the counter drugs along with health and beauty products and general merchandise. The Alliance Boots part of the company also includes wholesale operations serving more than 140,000 pharmacies, hospitals, and clinics in a dozen countries.(Walgreens Annual Report,2014) Walgreens main objective is to be America's most loved pharmacy-led health, wellbeing and beauty enterprise. Situation Analysis
Currently Walgreens is relying on reinventing its stores to attract the aging population and the new health care reform which is expected to bring 30 more million people into the system. CEO Greg Wasson said, “Our ‘plan to win’ was a journey to innovate and reinvent Walgreens for a new era of growth and value creation. Toward that end, we slowed new store growth to invest more in our existing store base. We looked at new, innovative retail concepts both in the U.S. and around the world. We made major acquisitions such as Duane Reade in New York City and drugstore.com, forged a strategic partnership with Alliance Boots and began a long-term strategic relationship with AmerisourceBergen. All of this culminated in a year of solid progress in fiscal 2013 and a five-year total shareholder return for our stock of 145 percent.” (Walgreens news 2014) Market Summary
The profile type for the typical Walgreens customer consists of the following geographic, demographic, and behavior factors. Geographics
Walgreens physical stores have set geographic target areas within cities of America. Two thirds of Americans live within three miles of a Walgreens community pharmacy. (healthcare, walgreens 2014) Urban cities tend to have more Walgreens locations in comparison to rural cities. Customers emphasize convenience when they are visiting a drug store, so it is an advantage for Walgreens to have multiple locations in bigger cities to reach as many customers as possible. Demographics
75% of Walgreens transactions come from female clients. (Hoover) 55% of Walgreens customers with smart phones use it while in the store. (Hoover) Behavior Factors
Behaviorally, there are many occasions that a person would need or want to visit a Walgreens. The benefit segmentation for consumer markets may be the most powerful appeal that Walgreens has. Market Needs
Walgreens is providing a “wellness experience” for customers at over 8,000 corners in America. Walgreens seeks to fulfill the following benefits that are important to its customers. (Walgreens Market Values 2014) Honesty, trust, and integrity with our customers, our shareholders, suppliers, the communities we serve, and among ourselves. Quality through consistent and reliable service, advice, and products across every touch point and channel. Caring, compassionate and driven to delivering a great customer and patient experience through outstanding service and a desire for healthy outcomes. A strong community commitment and presence built through...
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