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Student Research Forum

SECOND PLACE -- Tasmin Plater: "Can CVS as a Company Survive without the Front Store or the Pharmacy?"

 Tasmin Plater and his award winning research poster

Research Category

Business Case Study

Research Purpose

The purpose of this study is to determine if CVS as a company could survive without the pharmacy department or the front store department. One of the key factors in this study will be the crossover, meaning the amount of customers who shop both the front store and the pharmacy. This piece of information is significant because if more customers come to CVS just for the pharmacy, we will need this part of the store. If more customers shop the front store, then this part of the store will be more beneficial to keep. However, if crossover is greater, then the reason so many people shop our stores is that we are equipped with both a front store and a pharmacy.

Research Methodology

We collected data about CVS customers. Specifically, we wanted to know what percentage of customers preferred the front store, the pharmacy, or both.

Research Conclusion

After collecting data, surveying customers, and dissecting the income statements of this location, we have come to the conclusion that the reason CVS is so profitable is that it has come up with a DNA that revolves around the pharmacy and the front store. During this study, we saw that at this location the pharmacy was slightly under-performing compared to the front store. Nevertheless, we found that if the crossover was not as strong as it was, CVS would not be as profitable as it is currently. The front store and the pharmacy together are directly related to the company's success.

Research/Practical/
Social Implications

This study is not only helpful to the store but to the community as well. The customers need to know when they walk into a CVS location, when they pick up their prescriptions and grab a coke, it is not only beneficial to them but it is beneficial to the entire company as well. CVS goes over and beyond to make shopping more convenient for its customers. By taking advantage of the fact that customers can go inside of a CVS location and get their everyday household goods while somebody fills their prescriptions, CVS will continue to have affordable prices. CVS also offers the CVS Extra Care Card program to our community; every four months, CVS pays customers back 2% of all the money they spent. This is just another way CVS/Pharmacy is supporting the community.