Valley Drug Mart: The Lawton Entry Essay, Research Paper

Situation ANALYSIS

George Farin is the exclusive owner of the Valley Drug Mart that he has built in his hometown of Middleton, Nova Scotia, over a period of 15 old ages. The concern has thrived and grown through the acquisition of the towns & # 8217 ; lone competition and the resettlement to a 7000 square pes edifice.

After 15 old ages in concern, Mr. Farin has learned that a major pharmaceutics Lawton & # 8217 ; s Drugs would be opening in a new strip promenade about one kilometer from his concern. With a population of about 4,000 people Mr. Farin believes that the country can non back up two big pharmaceuticss. The inquiry of how to vie against a major concatenation threatens Mr. Farin. His apothecary’s shop though, has acquired the aims for which every successful concern strives, growing, societal duty and endurance.

Mr. Farin has several cardinal elements that are in his favor. He is strongly committed to the success of the community through his shop and himself. He understands how of import his stakeholders are to the success of his little concern. His shop is customer-driven, in a clip when quality and service are of import.

The gap of Lawton & # 8217 ; s brings about chances for Mr. Farin, the opportunity to reenforce his concern doctrine making a strong customer-driven Drug Mart.

PROBLEM IDENTIFICATION

The job confronting Mr. Farin is how to last against a big organisation, viz. Lawton & # 8217 ; s Drugs. Mr. Farin must invent a scheme and tactics to keep Valley Drug Mart & # 8217 ; s market portion which will let him to vie successfully with Lawton & # 8217 ; s Drugs.

Choice OF DECISION CRITERIA

The scheme selected must see the consumer. The undermentioned standards must be present in order for the option to accomplish success:

1 ) Increased convenience

2 ) Increased quality

3 ) Increased service

4 ) Increased comfort

The above standards will find if the option selected will be successful one time to the full implemented.

IDENTIFICATION OF ALTERNATIVES

Mr. Farin is faced with the job of maintaining his market portion in a little town where at that place now is competition. The followers is a list of possible options:

1 ) Do nil. Hope that the Valley Drug Mart has a strong adequate market niche within the community to defy competition. Mr. Farin is already a well-known member of the community and his Drug Mart patrons many community events.

2 ) Create strategic confederations with the other pharmaceuticss in the country. This could supply for economic systems to scale in purchases of pharmaceutical and front shop points and an of import information web.

3 ) Advertise and market his shop more. Offer a particular nest eggs card to Valley Drug Mart members. Produce a circular with vouchers in it. Sponsor the new wave to drive around local occupants who require medical intervention to Halifax. Tie the Drug Mart in with other non-competing retail merchants, Internet Explorer: he might interchange promotional stuff with a nearby pizza franchise. Each of the two retail merchants may hold to offer, with each purchase, price reduction certifications for purchases at the other shop. Extended concerns hours. Offer a computerized wellness ticker ( similar to Shoppers Drug Mart ) . Become a subdivision station office. Offer an unbelievable no inquiries asked return policy. Keep contest drawings ( a mailing list will be created as an outgrowth ) .

Analysis OF ALTERNATIVES

Alternate 1

The pros of this option are that it does non necessitate the execution of anything and will non necessitate any extra financess to be set out. Mr. Farin has already been really antiphonal to the demands of his stakeholders in the past and this should let him to keep his market portion.

The cons of this option are that it does non run into the standards criterions. None of the standards is increased with this option, they all remain at their current degrees. This alternate incorporates premise into the factor, which will non vouch success.

Alternate 2

The pros of this option are that it will make a strong information web among the druggists. This information web could supply an increased service to the clients because more information will be available to the druggist. The buying power of the

shops will besides increase due to the confederation, economic systems to scale. This will cut down the cost of everything from sundries to medicine. The lower cost of goods could let the pharmaceuticss to buy quality points at a lower cost. This therefore increases the quality of the merchandises while take downing the cost to the client. An increased degree of comfort could be attained by the client because they know their druggist is seeking to assist them in the best manner he/she can.

The con of this option is the absence of client convenience when a strategic confederation is formed with the other pharmaceuticss. The clients convenience is in no manner increased. There may besides be some in the confederation who will make more taking than giving. As good, Mr. Farin or other druggists may non be comfy sharing their market information, new pharmaceutical cognition etc. with others.

Alternate 3

Ad promotes Valley Drug to people who antecedently ne’er shopped at the shop. Coupons addition concern particularly with today & # 8217 ; s value scruples client. The chauffeured new wave additions service and convenience to the clients, all while advancing the Valley Drug Mart. Forming a strategic confederation with a non-competing retail merchant supports the community. Widening concerns hours increases the convenience to the customers/community. Offering a computerized wellness ticker offers the client a piece of head, cognizing that no two drugs will hold a harmful interaction. Overall the client will experience comfy cognizing the pharmacist/drug shop is looking out for them. Becoming a subdivision station office will offer the client convenience. The return policy will connote to the client that if they are non happy with their merchandise, Valley Drug attentions and will do it right. Keeping competitions increases concerns and provides a great mailing list to direct out newssheets and studies, which could farther increase concern. Offering the above will supply the community with a high quality of service and convenience, perchance seting them in front of their competition.

The cons to this option would be the clip and cost needed to implement the options. The Valley Drug Mart may besides hold to increase staff to supply some services mentioned, Internet Explorer. the subdivision station office, extended shop hours.

DECISION/RECOMMENDATION

The option that would offer the greatest wages while run intoing the determination standard is alternate three, to publicize and market the Valley Drug Mart more. This option will non merely maintain Mr. Ferin & # 8217 ; s market portion but will increase it leting the Valley Drug Mart to successfully vie against Lawton & # 8217 ; s Drugs.

Execution

The advertisement and marketing the Valley Drug Mart can be split into two countries. Short and long footings programs.

Short Term

-Produce a particular members card that will let clients to obtain price reductions.

-Produce a hebdomadal circular to administer in the local newspaper, in the local mail.

-Begin to research the cost of implementing the new wave plan.

-Do an in-depth study of the community to see how many people would utilize the new wave, and how frequently.

-Begin treatment with local insurance companies to see if they would supply insurance in return for publicizing infinite on the new wave.

-Begin treatment with the local service nine ( ie. rotary nines ) to see if they would supply a driver and perchance pay for all or portion of the gas.

-Begin researching to happen a local non-competitive retail merchant who would be interested in interchanging promotional stuff.

-Implement new improved return policy.

-Hold a meeting with staff to discourse thoughts for competitions and get down the draws.

-Begin research into computerized wellness ticker system.

-Begin research into opening a subdivision station office.

Long Term

-If economically executable implement computerized wellness ticker system.

-Hire on more staff to run the station office and shop if necessary.

-Implement the new wave plan.

-Implement promotional exchange with a local non-competitive retail merchant.

-Offer extended hours.

-Begin get offing with names from competition draws.

Execution of the above will increase Valley Drug Mart & # 8217 ; s market portion, hence leting Mr. Farin to successfully vie with Lawton & # 8217 ; s Drugs.