Numbers Behind CVS Decision by Rags Srinivasan

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Numbers Behind CVS Decision

Published on Nov 19, 2015

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PRESENTATION OUTLINE

NO CIGARETTES FOR YOU

PHARMACY CHAIN CVS DECIDED TO STOP SELLING CIGS

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WE DELIVER HEALTHCARE

CIGARETTES CAUSE PRODUCT MIX INCONGRUENCE

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WHAT CUSTOMER JOB?

IS THIS REALLY BETTER TARGETING AND POSITIONING?

BUT ...

YOU COULD SAY THE SAME ABOUT PHOTOS AND LIQUOUR?

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WHEN YOU LOOK AT NUMBERS

COMPETITORS ARE NOT GOING TO GAIN

TARGET STORES DID THE SAME

CIGARETTES ARE NOT PROFITABLE AND COSTLY TO STOCK

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THEY ARE QUITTING A BUSINESS

That is losing customers fast
Has other bigger channels
Not a big revenue or profit source
And erodes brand image

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WHAT IS THE OPPORTUNITY COST?

COST OF PATH NOT TAKEN

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What else could they do?
Drop-in Clinics
Quantified Self Devices
Natural Food

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AND FORCES COMPETITORS TO REACT

YOUR MOVE WALGREENS AND RITE AID

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A GREAT STRATEGIC DECISION

BASED ON NUMBERS AND COMPETITIVE ADVANTAGE

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DO YOU KNOW YOUR NUMBERS

AND WHAT CUSTOMER JOBS TO TARGET?

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THERE IS LOTS WHERE THIS CAME FROM

RAGS SRINIVASAN @RAGS

Photo by Nina Matthews Photography

Rags Srinivasan

http://iterativepath.wordpress.com