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Pharmacy Service Improvement at Cvs

Essay by   •  November 23, 2015  •  Case Study  •  1,067 Words (5 Pages)  •  1,981 Views

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Pharmacy Service Improvement at CVS

When the founder created a brand name of CVS, they want to spread their essence and spirit of their brand which is Consumer Value Stores. They want to try their best to fulfill customers’ need to make more profit from them. However, in the case, they meet some problems about their service operation system triggering the high churn rate of their customers. So I am going to make an analysis of their current situation and give some recommendation to CVS to help them to release this situation.

Situation Study

Until 2002, CVS had been one of the biggest drop stores in the US. They possessed 4000 stores and created 24.2 billion dollars revenue in that fiscal year, which is much more than the competitive in the pharmacy industry. However, they found they have some customer service problems, which means their customers may not be satisfied with their service. Therefore, they launched PSI project to figure out what it is.

SWOT Analysis:

Strength:

High market share in Pharmacy industry;

Possess 4000 stores;

High increase of new customers;

High reputation of their brand.

Opportunity:

People’s increasing need in high quality pharmacy service.

Weakness:

Lots of problems in pharmacy fulfillment process;

Limited human resources management.

Challenge:

Competition with other brands of medicine stores;

High Customers churn rate;

Low quality of customer service oh pharmacy industry.

Define Problems

After their interviews and analysis, the PIS team found out the following problems about the CVS.

Firstly, the reason of customers kept going to CVS to get medicine is they did not believe another pharmacy rather than they were satisfied by CVS, which means they also had problems with CVS services.

Secondly, another reason customers are continually choosing CVS was they considered it will be a great trouble to switch from one pharmacy to another, but they liked CVS customer service.

Thirdly, importantly, their old customer defected their service rapid increased. The reason they could keep the high marker share was because they also attract more new customers compared with the leaving groups.

Objectives

In this situation, the senior manager of CVS considered their service did have some problems. So they focused on the pharmacy fulfill process, which are Drop-off, Data Entry, Production, Quality Assurance, and Pick-Up. PSI team found numerous problems in all this process, so I am going to fix these problems and give some recommendation to CVS.

Alternatives  

I believe all companies has limited resources, so they cannot spend on every problem they have. So I would like to give some alternatives from the following three aspects in a different dimension: the essence promotion, partnership improvement, and human resources management.

Firstly, launching TV commercial, advertising or videos to show their current fulfillment process and focus on how discrete and exactly they are to provide the medicine for their customers. I consider all the complaints from the customers is because they cannot get access to the procedure of the pharmacy fulfillment process, and nobody informs them what the employees are doing after the Drop-Of and Pick-Up counters. I believe CVS should play that videos in every store and whenever their customers are waiting on line, they can know how hard the employees in CVS are serving them and how serious they treat every prescription from every customer since the medicines are something related to everybody’s life. In this way, it can show their essence of the brand, which is Customers Value Stores.

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