“Promoting Healthy Choices and Active Living”
Target’s Enterprise Application Team approached us with a proposal to improve engagement in their Pharmacy Rx Program. It was our mission to improve Target’s pharmacy in three specific areas: health education, pharmacy and prescription services, and program promotions. We desired to make Target’s pharmacy synonymous with health and wellness.
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Target Pharmacy Services: Health & Wellness
1. Target Pharmacy
Services: Health
& Wellness
December 5, 2012
Revised 2018
Thomas Associates Global, LLC
& the University of Minnesota -
Carlson School of Management
4. People in general are living longer and population is expanding
78 Million Baby Boomers starting retirement from 2008
U.S. healthcare industry is large and consists of about 17% or $2.38 trillion
of the U.S. GDP
U.S. annual retail pharmacy industry is $200 billion
Over the next 20 years, demand for pharmaceutical, health and wellness
products will increase
3Current Situation & Industry Trends
5. Walgreens
•Largest U.S. drug
retailer
•Most nationally-
recognized
Pharmacy
Services provider
•Retail
Pharmacy
Market Share:
31.2% (2011)
•350 Pharmacy
Service Clinics in
the U.S.
CVS
•Second largest
U.S. Pharmacy
Services provider
•Retail
Pharmacy
Market Share:
25% (2011)
•Fills more than 1
billion
prescriptions per
year
•734 Pharmacy
Service Clinics in
the U.S.
Walmart
•High annual full-
store retail sales
of $444 billion
•Retail
Pharmacy
Market Share:
12% (2011)
•Goal is for guests
to “save money
and live better”
•158 Pharmacy
Service Clinics in
the U.S.
Mail-Order
•Competitive sales
•Retail Pharmacy
Market Share:
18.5% (2011)
•Used for
convenience,
savings,
guidance, 24/7
service and
accuracy
Target Pharmacy
and Clinic Services
•44 Pharmacy
Service Clinics in
the U.S.
•Accounts for
only 3% of all
Clinics in the
market
•Retail
Pharmacy
Market Share:
2-13%
4Competition
7. 6Pre-SWOT
Strengths
•Brand and store loyalty/exclusivity
•Convienience
•Pharmaceutical and drug pricings for brand
and private label products
•Existing Retail Health clinic
•Philanthropy
Weaknesses
•Number of clinics
•Target Pharamacy website design and
usability
•Pharamacy & Clinic visibility
•Pharamacy & Clinic hours
•Exisiting health screening visibility
Opportunities
•Online pharamcy
•Markets with no existing Target Pharmacy &
Clinics
•Private label growth in pharmacy retail
Threats
•Mail-order prescription drugs
•24/7 walk-in clinics
•Stores like CVS & Walgreens that are known
as a pharmacy
SWOT
8. 7Typical Guest
Woman in her mid-40’s
Household income ~ $65,000
Primary household shopper
Well-educated
Guest
Behavior:
Thoughtful
With Spending
Aware of
Pricing
Perceptive of
Brand Value
Appreciative of
Community
Involvement
9. 8Big Idea: Health & Wellness
Phase 1: Hit Your
Target Health IQ
Phase 2: Take On
Your Target
Personal Trainer
Phase 3: Join The
Target Wellness
Circle
11. 10What is Target Health IQ?
One-hour comprehensive health screening that measures:
• Resting heart rate
• Fitness
• Diet
• Blood pressure
• Sugar levels
• BMI
Results
Physical Tests
Guided
Conversations
Family History
12. 11What is Target Health IQ?
The results will be broken up into three categories:
Red – Guest must see a doctor immediately to address specific
health issues.
Yellow – Guest should have concerns, schedule a visit to the
doctor, and make changes in their lifestyle based on the
suggestions provided.
Green – Guest appears to be healthy and can make small healthy
improvements based on the suggestions provided that will enhance
their health.
13. 12Why in our Pharmacy Services?
Advantages
•Draws existing Target guests
into the pharmacy
•Can utilize existing clinics (for
the pilot)
•Cross-promotions and product
suggestions can boost sales
Challenges
•Not all Target stores have
clinics
•Educate our Team Members to
run this program
•Creating a marketing campaign
that will attract existing
customers to utilize this serivce
Purpose: Enhance the Target brand in becoming synonymous with health and
wellness. If Target guests receive this health screening, they will become aware
of way to better their personal health and wellness.
14. 13Timeline & Cost
Develop
each
screening
component
Month
0-3
Create
educational
brochures
Month
4-5
Test
program in
select
Target
Clinics
Month
6 -12
• $54,000 = printing of paper materials to be
used (e.g., recommendation handouts) ($1,000
x 54 clinics)
• $4,914,000 = 1 additional staff member per
clinic ($91,000 salary x 54 clinics)
Pilot
Program:
$4,968,000
• Creating a new space for a small exam room
and waiting area
• Operational costs (i.e. tools, material, staff
time)
• Cost of staff for training and operation
Expansion
16. 15What is your Target Personal Trainer?
Clinic team members will be knowledgeable and
helpful to guests
Analysis provided will explain guest results in
relation to ideal levels and national averages
Product recommendations will refer guests to
products within Target stores
Product recommendations will follow categories
of Target Health IQ results
17. Clinic team members will be able to provide superior guest
service and promote products throughout Target stores.
16Why Personal Trainers?
Advantages
•Provides enhanced services to
existing Target guests
•Guests become more familiar
with Target products and
departments
•Goodwill in community built
into Target programs
Challenges
•Creating recommendations
leading to healthier guests
•Training team members to give
proper analysis
recommendations
•Having enough team members
to provide convenient and
friendly service
18. 17Timeline & Costs
Create
recommen
-dations
from
guidelines
Month
0-3
Train
clinicians
to utilize
program
Month
4-5
Test
program in
select
Target
Clinics
Month
6 -12
•$7,500 to construct recommendations through market research
•$270,000 for $500 per person for training team clinicians for two days
(54 clinics with 10 team members making $91,000 a year each)
•$27,000 or $500 per person for two days of training new team members
Pilot Program:
$304,500
•$3,645,600 or $400 per person to license team pharmacists
•$6,015,240 or $660 per day for two day training costs
•$1,320 a person for two days training new team members
Expansion:
$9,662,160
20. 19What is the Target Wellness Circle?
Improving Pharmacy section in the Target
Circular
In-store promotion
Advertising nationally and locally through
magazines
Sponsorship and headlining of existing
community events on health and wellness
21. 20Why join the Target Wellness Circle?
Phase 1 and 2 can only be successfully implemented
through support from Phase 3 of advertising and
promotion.
Advantages
•Improving visibility of Target
Health IQ
•Circular already exists, so no
extra expense
•Enhanced corporate
responsibility image
•Attracting new customers
into the store
Challenges
•Ensuring we are not
duplicating advertisement
•Pharmacy advertisements
currently a low priority
•Securing a partnership with a
magazine for a celebrity
Target doctor
22. 21Timeline & Costs
•No extra direct costs. Indirect costs from the opportunity cost of the
other items the pharmacy products replace.
Improving Pharmacy Services
section in the “Target Circular”
•NegligibleIn-store promotion
•To advertise in Women’s Health with a total circulation of
1,575,425 readers: Full Page - $177,605 x 4 months = $710,420
Advertising nationally and locally
through magazines
•The cost of sending staff out for the day along with
the equipment needed.
Sponsorship and headlining
existing community events on
health and wellness
Develop
phases 1 & 2
Month
1-6
Improve
Pharmacy
section in
circular and
in-store
promotion
Month
6-12
Advertise
through
magazines
and
community
events
Month
9-12
27. •Higher sales
•Greater Guest loyalty
•Enhanced image
Benefits
Target Guests more likely
relate their own health and
wellness to the Target Health
and Wellness Program
•Existing resources
•Low-cost structures
•Feasible timeline
Implementation
with relative
logistical and
financial ease
26Concluding Thoughts
28. 27Bibliography
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