CVS Health Marketing Strategy & Marketing Mix (4Ps)

Published in Services category by MBA Skool Team

Here is the marketing strategy of CVS Health which analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).

CVS Health Product Strategy:

The product strategy and mix in CVS Health marketing strategy can be explained as follows:

CVS Health is a medical and pharmacy services company. The product range of CVS is all daily use consumer items majorly consisting of pharmacy products. The booming healthcare sector in the US has helped CVS Health to grow at an exponential rate. It is the biggest health clinic chain and provider of prescription drugs. It provides a range of product and services which helps to provide affordable services of good quality at low costs. CVS has approximately 9600 stores all across the world, where the pharmacists at these stores prescribe affordable drugs and help patient to recover at low costs. In retail clinic sector they have a strong network of 1100 Minute clinics where medical practioners and nurses help people with minor problems, surgeries, screening and testing. They also monitor illnesses and counsel people.

They provide infusion services and have a network of approximately 140000 patients annually. The 85 infusion centers are the home to the largest network in the US. They have such a good stronghold because of their mergers and acquisitions they have taken over the years. They provide home services to the elderly people to establish a long term care services. The main purpose of the CVS is to provide healthcare services at low cost, quality and convenience. Convenience can be displayed by the fact that they are Minute Clinic within the vicinity of their CVS pharmacy stores, sometimes even walking distance.

Image: Wikimedia

CVS Health Price/Pricing Strategy:

Below is the pricing strategy in CVS Health marketing strategy:

The healthcare costs in the US have risen considerably in the past few years. In this rising price market, maintaining affordability and access to the healthcare facilities have been the utmost priority at CVS.

CVS uses various management pricing tools to cut down on pricing in its marketing mix, it is a big challenge they pose. They use three different types of value based models, which are:

Indication based formulary: It is the series of drugs that are given during the course of time for the treatment of a particular illness. They had medications on the specific level rather at broad level that aims to be competitive, low costs. They have a rebate structure as per drug based for patient.

Indication based pricing: Clients pay more in the case where the drug is explicitly mentioned to cover for the disease or illness; else it is paid less where clear explanation is not mentioned.

Outcome based pricing: The performance of the drug is evaluated, and attributes to be measured are calculated and analyzed and then the manufacturers pay retrospective rebates performance based. Value purchasing prices are there to ensure drug is sold at the actual value rather medicines the market prices.

CVS Health Place & Distribution Strategy:

Following is the distribution strategy in the CVS Health marketing mix:

In retail business, the location, size and scale of the stores are the important aspects to establish connect with the customers. CVS pharmacy has over 9600 store locations as of the year 2016. They have a huge network of 27000 retail pharmacists and 73000 pharmacy technicians who are on their toes to provide services to the people in need. There are 18 major distribution centers strategically placed in the United States which provide products via large fleet of truck services to keep the shelves packed with products regularly. The quantitative aspect of the fleet is large in numbers, approximately 300 owned tractors, 1500 private trailers, and third party logistics support of approximately 1100 vehicles.

The acquisitions have helped to increase their distribution network and bring in the best people in industry.

CVS Health Promotion & Advertising Strategy:

The promotional and advertising strategy in the CVS Health marketing strategy is as follows:

CVS has a large brand image in the US. Thus marketing and branding the image is a huge responsibility. They are known for its affordable costing. They have the goodwill of the people as they stopped the sale of tobacco products, as it cause great harm to health and it can’t be available in healthcare stores. This helped them a lot to improve its brand image and establish a clean accountable healthcare brand.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of CVS Health.


There are sales people, managers, staff and pharmacists which forms a big organization. CVS employs approximately 250000 people across the US. In total they employ 36000 pharmacists and clinicians. Also they are critical to rare diseases and have employed around 250 dedicated nurses for it.

Physical Evidence:

CVS pharmacy stores are the contact points as well as their Minute clinic. The services they provide are tangible in nature. They provide bills, medical reports which are the physical evidences.


Process is defined as the way through which a client has to undergo to avail the services. Checkups, monitoring and counseling the patients is a part of the process that CVS manages. The nurses also treat minor illnesses, and provide basic medication which all is the part of the process. Hence this gives an overview of marketing mix of CVS Health.

About CVS Health:

CVS Health is the healthcare services company and retailer of prescription drugs, cosmetics and daily care products. CVS is an abbreviation of Consumer Value Store and is headquartered at Woonsocket, Rhode Island.

Founded in 1963, it is the largest pharmacy chain in the world. It has both online and brick and mortar medium for its sales, also it provides healthcare services through Minute Clinic clinics.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse marketing strategy and 4Ps analysis of more brands similar to CVS Health. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.

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The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

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