Primary and Secondary Target Markets for Walgreens - Case Study Example

Walgreens Company Overview Walgreeens is the largest drug chain retail store in America with over eight thousand stores in fifty states. The company prides itself for being the top drug selling drug store in America ahead of its competitors serving four million customers daily and filling over four hundred prescriptions every day (Bacon, 2004). This paper aims at identifying the target market of Walgreens, both primary and secondary targets. Market segmentation is pivotal to tailoring strategies and offerings that are necessary for the continued success of the company in a competitive pharmaceutical market. Understanding the target market is not only important for tailoring strategies but also developing these strategies in a manner that communicates unique products and services relevant to individuals in the targeted group (McDonald & Dunbar, 2012). This paper seeks to analyse the target groups so as to find out the most important characteristics about them and use those characteristics to promote the products and service delivery. In turn, this increases sales. Primary and secondary target markets The primary target for Walgreens is women aged between 25-54 years of age. These are likely to have two or more children. Women in this age group also are likely to be primary caretakers of one more elderly parent or a relative. The individual in the target group is also likely to have completed high school and earns not less than $48000 annually (Bacon, 2004). Women in this age bracket have been identified as the primary target since they do not only shop for themselves but also for the children, the family members and the seniors present in her life as the primary caregiver. The target market in this case is built around the family concept. Research shows that 30% of American women adults help at least one family member or friend with personal needs such as household chores, or attending to their health care needs. The second target group for Walgreens are the senior American citizens. These are adults who have attained the age of 65 years and beyond. These individuals represent 12% of the population and the number is expected to rise by 2030, to 19%. Walgreens is likely to benefit from this category as aging people require more medication and prescription drugs than the young people due to illnesses associated with aging. They require more medication to improve the quality of life as well as extend it. It is estimated that the number of medication and prescriptions for seniors is 800% greater than in the young population. This is according to the Centres for diseases control (CDC) As such; capturing this age group will result to huge revenue potential for the company. Senior citizens are also more vulnerable to lifestyle diseases such as diabetes, hypertension and congestive heart failure. The company has the necessary assets to address this challenge. Target group chosen, Americans with chronic diseases Walgreens target market also includes people living with chronic diseases in America (Zikmund & Babin, 2013). Research shows that a third of American adults today live with at least one chronic disease with the centres for disease control (CDC) saying that nearly half of all American adults are living with at least one chronic condition. These diseases include hypertension, kidney related diseases, Diabetes and cancer. They are among the top killers in America and patients spend a considerable amount of money trying to fight these diseases. The adults include both male and female mostly above the age of forty. This is a get good target market for Walgreens as the people affected spend a lot of money fighting these illnesses. Walgreens has the capacity to supply the needed drugs to the people. As such, this group is a potential major revenue earner for the company. A telephone survey that was conducted in 2008, nationwide about five chronic diseases, being high blood pressure, lung conditions, heart conditions, diabetes and cancer showed that 36% of adults both women and men in the US have one of the above disease with 13% percent saying they live with at least two of these diseases. The study revealed that 23% of adults have high blood pressure, 12% have lung related illnesses including asthma, 10% of those interviewed have diabetes and at least 3% have cancer. 29% revealed that they have an adult relative or friend living with a chronic disease. This goes to show that the company can profit in a major way if they designed their campaign to target this group of adults who live with at least one chronic disease. Men over 50 years of age, living in lower income households make up 48% of this group with women constituting to 52%. Caucasian makes up to 69% of adults living with at least one chronic condition while Hispanic makes up to 12% with African-American constituting to 11% and the other races up to 6%. 59% are married or living with a partner while 12% are separated, 4% widowed and 24% single. 14% are likely to have less than a high school diploma, 32% have a high school diploma with 26% having a college diploma and 26% with degrees. These statistics are as per the survey by pew internet and American life project survey conducted in 2008. Market position Walgreen is the top selling drug company in the US ahead of serious competitors, CVS. It is the nation’s leading drug selling store, highest earnings, and same store sales increases, prescription drug market share as well as prescription sales per store. It is also the most admired chain in the food and drug store category making Walgreens a leader in the pharmaceutical field. This is one of the company’s strength. Walgreen outsold CVS with nearly $ 7 billion in 2006 (Ferrell & Hartline, 2008).As such it has established itself as a trusted brand name in the country. This trend however seems to be changing as close rivals CVS are slowly taking over the market, as shown in the chart below. Conclusion Walgreen despite being the leader in pharmaceutical field in America needs to retain its market position by distinguishing itself from competition. It has done so by offering customer convenience (McDonald & Dunbar, 2012). This should be the main focus for the company. They can do so by designing stores that cater for customers who are looking to get in and out of the store quickly. They can create loops in the stores that allow quick access and service for the customers. It would also wise for Walgreens to expand its online presence to cater for more customers online. This way, the company will improve and retain its current market position as the number one in the nation. Reference list Pew internet and American life project survey, November-December 2008. Zikmund, W. G., & Babin, B. J. (2013). Essentials of marketing research. Australia: South- Western Cengage Learning. Bacon, J. U. (2004). Americas corner store: Walgreens prescription for success. Hoboken: Wiley. Ferrell, O. C., & Hartline, M. D. (2008). Marketing strategy. Mason, OH: Thomson South- Western. McDonald, M., & Dunbar, I. (2012). Market Segmentation: How to Do It and How to Profit from It. Chichester: John Wiley & Sons. Read More