abhishreshthaa
Abhijeet S
CVS/pharmacy (commonly called CVS) is the second largest pharmacy chain in the United States, with approximately 7,027 stores in 45 states and Puerto Rico.[1] As the retail pharmacy division of CVS Caremark, it sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards and convenience foods through their CVS/pharmacy and Longs Drugs retail stores and online through CVS.com. It also provides healthcare services through its MinuteClinic healthcare clinics as well as their Diabetes Care Centers. Most of these clinics are located within CVS stores.
CVS is incorporated in Delaware, and is based in Woonsocket, Rhode Island. It was founded in Lowell, Massachusetts in 1963.
CVS/pharmacy used to be a subsidiary of Melville Corporation, where initially, its full name was "Consumer Value Stores". Melville later changed its name to CVS Corporation in 1966.
CEO Tom Ryan has said he now considers 'CVS' to stand for "Customer, Value, and Service".[2]
A CVS store without a pharmacy in Downtown Pittsburgh.
During the company's days as a regional chain in the Northeastern U.S., many of CVS's stores did not include pharmacies, as in some jurisdictions, pharmacies are required to label themselves as such.
Today, the company seldom builds new stores without pharmacies, and is gradually phasing out these shops that remain outside of New England. Any new non-pharmacy store is usually built in a more urban setting, where another CVS with a pharmacy exists within walking distance, such as downtown Boston or Providence. These stores usually lack a pharmacy and a photo center but carry most of the general merchandise items that a normal CVS/pharmacy carries, such as health and beauty items, sundries, and food items.
The paramount aim of ReignCom is to achieve optimization of each element of the value chain. In analyzing various elements, for example, inbound logistics (material handling, inspection, just-in-time delivery), outbound logistics (order processes, transport), marketing and sales (product development, pricing, promotion, distribution), service (on-site and off-site service, spare parts, customer care), organizations ought to gain insight not only into their own potentialities but also of their competitors' capabilities and competencies. The costs and value drivers of an organization are distinguished for each value activity. The value chain framework quickly made its way to the cutting edge of management zeitgeist as a powerful analysis tool for strategic planning. Its ultimate goal is to maximize value creation while minimizing costs. The ReignCom profit potential depends on its effectiveness in performing these activities efficiently. By doing so, the amount that the customer is willing to pay for the product exceeds the cost of the activities in the value chain. It is through this activity that the firm can gain the opportunity to generate superior value. A competitive advantage can then be achieved by reconfiguring the value chain to provide lower cost or better differentiation. The value-chain model is a useful analysis tool for defining a firm’s core competencies and the activities in which it can pursue a competitive advantage. Once the value chain is defined, a cost analysis can be performed by assigning costs to the value chain activities. The costs obtained from the accounting report may need to be modified in order to allocate them properly to the value creating activity. In this way cost leadership is achieved by the firm in the Industry it is operating. Cost leadership would then affect cost and pricing of the firms’ product and the more logical strategy that the firm would employ is to lower its product price due to lower cost of production. By doing so, they are gaining comparative advantage with its competitor. Reconfiguration of the value chain also means an innovative structural change with in the organization like for example a new distribution channel, or a different marketing and sales approach.
Aside, ReignCom had revolutionized the traditional value chain of computer manufacturing industry by introducing the direct to customer model and employed a global business to help it develop a set of metrics to judge business-unit performance which leads to better operations build-up keeping related costs on its proper norm. The increasing sales of the products by 10 percent by the next year. To be the leading supplier of MP3 players in all markets in which the company operates Sell off the products at competitive and profitable prices and maintain customer satisfaction To top competitors product technology by innovating the current product . The iriver H10 comes at a very costly price which may lead customer’s to purchase competitor’s products at an affordable price.
The various marketing objectives that will assist in the achievement in the product goal are:
Ø To be the leading supplier of MP3 players in all markets in which the company operates
Ø Increase in sales by 30 percent
Ø Increase in revenue by 15 percent
Ø Expanding distribution to department stores by 10 percent
A promotion campaign will be introduced to encourage present buyer to increase the use of the product. ReignCom MP3P’s has adopted the differentiated market for their products as its products are characterized in age, gender and desire for image. The MP3P’s is used by young adults and teenagers and for both male and female.
This product allows consumer’s to download not only their favorite music but also books and other literature which can be read and listened to. Additionally this Ipod can be used in your car and in other mobile settings.
– aimed at the middle to high class, therefore product will be positioned in department stores associated with prestige products. This will create a strong, clear and consistent image of the product in the consumer’s mind which is essential.
–ReignCom will give consumer’s one year warranty to assure consumers of the quality of the product. This will associate a level of quality with the brand and will not only increase brand loyalty and repeat services, but also sell products at a premium to competitors.
– ReignCom products packaging will:
Ø Have product identification so easily separated from its competitors
Ø Product differentiation so it is unique
Ø using the most cost efficient method of packaging
CVS is incorporated in Delaware, and is based in Woonsocket, Rhode Island. It was founded in Lowell, Massachusetts in 1963.
CVS/pharmacy used to be a subsidiary of Melville Corporation, where initially, its full name was "Consumer Value Stores". Melville later changed its name to CVS Corporation in 1966.
CEO Tom Ryan has said he now considers 'CVS' to stand for "Customer, Value, and Service".[2]
A CVS store without a pharmacy in Downtown Pittsburgh.
During the company's days as a regional chain in the Northeastern U.S., many of CVS's stores did not include pharmacies, as in some jurisdictions, pharmacies are required to label themselves as such.
Today, the company seldom builds new stores without pharmacies, and is gradually phasing out these shops that remain outside of New England. Any new non-pharmacy store is usually built in a more urban setting, where another CVS with a pharmacy exists within walking distance, such as downtown Boston or Providence. These stores usually lack a pharmacy and a photo center but carry most of the general merchandise items that a normal CVS/pharmacy carries, such as health and beauty items, sundries, and food items.
The paramount aim of ReignCom is to achieve optimization of each element of the value chain. In analyzing various elements, for example, inbound logistics (material handling, inspection, just-in-time delivery), outbound logistics (order processes, transport), marketing and sales (product development, pricing, promotion, distribution), service (on-site and off-site service, spare parts, customer care), organizations ought to gain insight not only into their own potentialities but also of their competitors' capabilities and competencies. The costs and value drivers of an organization are distinguished for each value activity. The value chain framework quickly made its way to the cutting edge of management zeitgeist as a powerful analysis tool for strategic planning. Its ultimate goal is to maximize value creation while minimizing costs. The ReignCom profit potential depends on its effectiveness in performing these activities efficiently. By doing so, the amount that the customer is willing to pay for the product exceeds the cost of the activities in the value chain. It is through this activity that the firm can gain the opportunity to generate superior value. A competitive advantage can then be achieved by reconfiguring the value chain to provide lower cost or better differentiation. The value-chain model is a useful analysis tool for defining a firm’s core competencies and the activities in which it can pursue a competitive advantage. Once the value chain is defined, a cost analysis can be performed by assigning costs to the value chain activities. The costs obtained from the accounting report may need to be modified in order to allocate them properly to the value creating activity. In this way cost leadership is achieved by the firm in the Industry it is operating. Cost leadership would then affect cost and pricing of the firms’ product and the more logical strategy that the firm would employ is to lower its product price due to lower cost of production. By doing so, they are gaining comparative advantage with its competitor. Reconfiguration of the value chain also means an innovative structural change with in the organization like for example a new distribution channel, or a different marketing and sales approach.
Aside, ReignCom had revolutionized the traditional value chain of computer manufacturing industry by introducing the direct to customer model and employed a global business to help it develop a set of metrics to judge business-unit performance which leads to better operations build-up keeping related costs on its proper norm. The increasing sales of the products by 10 percent by the next year. To be the leading supplier of MP3 players in all markets in which the company operates Sell off the products at competitive and profitable prices and maintain customer satisfaction To top competitors product technology by innovating the current product . The iriver H10 comes at a very costly price which may lead customer’s to purchase competitor’s products at an affordable price.
The various marketing objectives that will assist in the achievement in the product goal are:
Ø To be the leading supplier of MP3 players in all markets in which the company operates
Ø Increase in sales by 30 percent
Ø Increase in revenue by 15 percent
Ø Expanding distribution to department stores by 10 percent
A promotion campaign will be introduced to encourage present buyer to increase the use of the product. ReignCom MP3P’s has adopted the differentiated market for their products as its products are characterized in age, gender and desire for image. The MP3P’s is used by young adults and teenagers and for both male and female.
This product allows consumer’s to download not only their favorite music but also books and other literature which can be read and listened to. Additionally this Ipod can be used in your car and in other mobile settings.
– aimed at the middle to high class, therefore product will be positioned in department stores associated with prestige products. This will create a strong, clear and consistent image of the product in the consumer’s mind which is essential.
–ReignCom will give consumer’s one year warranty to assure consumers of the quality of the product. This will associate a level of quality with the brand and will not only increase brand loyalty and repeat services, but also sell products at a premium to competitors.
– ReignCom products packaging will:
Ø Have product identification so easily separated from its competitors
Ø Product differentiation so it is unique
Ø using the most cost efficient method of packaging