5-2 Final Project Milestone Two Draft of Context and Market Analysis - Due Friday (HCM325 )

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1 5-2 Final Project Milestone Two: Draft of Context and Market Analysis Student's Name Institutional Affiliation Course Number and Name Instructor Name Date

2 II. Establish the Context a) Marketing goals The Consumer Value Stores (CVS) Health Corporation is the chosen organization that offers telemedicine technology services in its operational areas. To fully attain success in the market, there is a need to create marketing objectives that are set under best practices. According to the study by Westwood (2022) , the creation of marketing objectives by an organization should be aligned with the method description of their attainment. The marketing goals chosen by an organization should be measurable and attainable after the specified period by the firm. In most cases, there might be variations between the marketing goals of different organizations, but similarities are also identified. Thus, with the marketing goals set under the best practice, the product or service can gain success in the market. Therefore, Consumer Value Stores (CVS) Health Corporation should have a well-set marketing goal under best practices for telemedicine technology services. For the success of the telemedicine technology service in the market, CVS Health Corporation should focus on increasing customer value as a marketing goal. Increasing customer value is an important aspect that entails making the perception of a product or service to a customer of a higher reputation ( Panjaitan & Panjaitan, 2021) . CVS should look have increasing customer value as their marketing goal since it will help have a better reputation for the telemedicine technology service in the market. The organization can personalize its support interactions and prioritize customer success over-generalization to achieve this marketing goal. The telemedicine technology service should be structured so that customer receives satisfaction and the service delivery is high quality. In so doing, it is possible to attain increased customer value.

3 The second marketing goal that CVS Health Corporation should set is to increase brand awareness among consumers. As per Bilgin (2018) , brand awareness plays an important role in having huge market approval among the target audience for a service or product. CVS Health Corporation should apply personalization and better service as the main aspects for the achievement of increased brand awareness in the market. Having personal perception when it comes to customer satisfaction creates room for an individual's appreciation, and more customers will be attracted. Considering better service delivery for the telemedicine technology services, it is possible for reputation in the market and CVS brand will have better recognition in the market. Acquiring new customers is another marketing goal that CVS Health Corporation should set to attain success. Bringing a new customer is a goal that many customers perceive to achieve to attain their commercialization goals ( Margiono, 2020) . Improving the productivity of an organization is aimed at having a wider market base characterized by having enough customers. By CVS acquiring new customers, it will be possible for the organization to have enough consumer base to have increased incomes for their telemedicine technology services. The new customers can be acquired through content marketing and advertising which CVS should do under appealing concepts. b) Industry segment Industry segmentation is an important scheme that helps determine what to include in a product to attain consumer attention based on varying influencing factors. Through industry segments, it becomes possible for a service or product to attain certain standardization attributes for the betterment of the market. The major factors involved in the industry segment include; demographics, psychographics, payer mix, key success factors, market size, and regulatory influence ( Torkzadeh et al., 2021) . Considering all the factors, it is possible to attain an industry

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4 segment that satisfies every customer regardless of their social or economic status. Therefore, CVS Health Corporation must consider the pertained industry segmentation for their telemedicine technology service in the market. The identified target population for the service is people who are elderly and above 65 years. They are targeted because they are vulnerable to chronic diseases requiring regular checks and follow-ups, which will be offered through telemedicine technology. The unhealthy lifestyle behaviors among people within such group audience make their chronic diseases like heart disease and diabetes. Through telemedicine technology services, it will be possible for CVS Health Corporation to align check-up services in the online platform where consultation can be done and attained easily. Based on the physical studies of the target population based on psychographic factors, people above 65 like regular check-ups for other health issues apart from chronic infections. Most people within the targeted age have government health plans, but they offer minimal online consultation services; thus, it will be possible for the telemedicine technology service to prosper. The payer mix is thus postulated to be below 30% of the target population. The major success factors that will be considered in the service are the organization's consumers, operations, and strategic focus. Internet connection and health status will be the major influential factors for the success of telemedicine technology services. c) Target market The target market involves a group of current and potential consumers with which a product or service aims. Having the right target market for a product or service helps ensure a firm attains its commercial objectives ( Chondrakis et al., 2021 ). Choosing the correct target market improves sales, increasing an organization's productivity. The telemedicine technology service is aimed at the target market of older adults above 65 years who reside in the following

5 places; Florida, Maine, Maryland, New Hampshire, Virginia, Arizona, California, Mississippi, and Idaho (place). The target people are major current and future markets for the product because they have increased health issues that need frequent check-ups, and thus consultation is increased. The target population also prefers immediate and quick responses, which can only be found through telemedicine technology. Therefore, with such aspects, the chosen service will be able to reach the target market and thus attain the commercial purpose. III. Market analysis a) SWOT analysis of the selected service Strengths  Patients do not require lengthy processes for the attainment of care.  There is a better utilization of human resources through telemedicine technology ( Delrahim & General, 2018) .  Teleconsultation takes minimal time compared to clinic services. Weaknesses  There is minimal response to more complicated emergency services.  Patient counseling might not be available since response structuring might contain certain schemes.  Physical examination of patients is not available. Opportunities  Advancing network connectivity in the US can make the service available to everyone.  The reputation of CVS Health Corporation can help the service reach a wider market.  Qualified personnel in the healthcare facility.

6 Threats  Competition from competitors.  Some places have a poor internet connection.  Privacy of the patient might be minimal. b) Assessment of the competitors The major competitors for CVS Health Corporation are Walgreens Company and Rite Aid. Walgreens Company Walgreens Company strengths  The firm operates in over 9000 locations countrywide, improving the service possibility to reach potential customers ( Barsky & Rhoades-Catanach, 2022) .  Technological advancement of the organization.  Walgreens Company has strategic partnerships with other healthcare organizations. Walgreens Company weaknesses  The organization has limited sales due to the declining market share.  The high debt being experienced by Walgreens Company is a weakness.  Financial woes past the Covid-19 pandemic. Rite Aid Strengths of Rite Aid  The organization has over 4000 stores in the United States, which allows it to have a wide market ( Hemphill, 2021) .  The online services of Rite Aid are a major boost for their services.  The wide reputation of the organization in the United States.

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7 Weaknesses of Rite Aid  Increased marginal pressure within the organization.  Financial woes past the Covid-19 pandemic.  Weak employee workforce of the organization. c) The current market position of CVS Health Corporation After the SWOT analysis and competitor’s assessment, the telemedicine technology service has a good market position since CVS Health Corporation is a highly reputable brand. Rite Aid and Walgreens Company have top competition during their operational base in the United States. In addition, the two companies have an increased reputation in the market, resulting in increased competition for CVS Health Corporation. However, the SWOT analysis of CVS Health Corporation provides a huge advantage due to the organization’s strength in the market and among consumers. Besides, CVS Health Corporation has minimal threats and weaknesses, which makes it have a strong foundation against any form of competition from Rite Aid and Walgreens Company. Therefore, CVS Health Corporation's market position can be presumed higher in terms of market and consumers than the two competitors. Thus, telemedicine technology services from CVS can have success in the market when launched.

8 References Barsky, N. P., & Rhoades-Catanach, S. C. (2022). Walgreens Boots Alliance: Deciphering Disclosures in Financial Statements (A) Tax Expense and Valuation Allowance Disclosures. In SAGE Business Cases . SAGE Publications: SAGE Business Cases Originals. Bilgin, Y. (2018). The effect of social media marketing activities on brand awareness, brand image, and brand loyalty. Business & management studies: an international journal , 6 (1), 128-148. Chondrakis, G., Serrano, C. J., & Ziedonis, R. H. (2021). Information disclosure and the market for acquiring technology companies. Strategic Management Journal , 42 (5), 1024-1053. Delrahim, M., & General, A. A. (2018). RE: The Acquisition of Aetna, Inc. by CVS Health Corporation. Hemphill, T. A. (2021). The US RETAIL PHARMACY INDUSTRY: DRUG STORE CHAINS, 21st CENTURY COMPETITION, AND INNOVATIVE BUSINESS MODELS. Journal of Competitiveness Studies , 29 (1/2), 32-51. Margiono, A. (2020). Digital transformation: setting the pace. Journal of Business Strategy . Panjaitan, F. A. B. K., & Panjaitan, H. (2021). Customer value is reviewed in terms of customer relationship learning and engagement: Evidence from the banking industry. Accounting , 7 (1), 89-94. Torkzadeh, L., Jalilian, H., Zolfagharian, M., Torkzadeh, H., Bakhshi, M., & Khodayari-Zarnaq, R. (2021). Market segmentation in the health tourism industry: a systematic review of approach and criteria. Journal of Policy Research in Tourism, Leisure and Events , 1-20.

9 Westwood, J. (2022). How to write a marketing plan: Define your strategy, plan effectively and reach your marketing goals (Vol. 4). Kogan Page Publishers.

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5-2 Final Project Milestone Two Draft of Context and Market Analysis - Due Friday (HCM325 )

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