PRINCIPLE OF MARKETING

SUBMITTED TO: MR.HASSAN JAVID SUBMITTED BY ABDUL QAYOOM (09-2647) SUBMITTION DATE SEPT 16, 2010

Introduction:
Medco Health Solutions Inc is a healthcare company and retailer of pharmaceutical products. Its offer cost-effective health care services to private and public employers, labor unions and government agencies. Medco became an independent company in August 2003.Medco founded in 1983 by Martin Wygod. It was named one of Fortune magazines 2010 World's Most Admired Companies. T he company is engaged in the in-store and mail order retail of pharmacy and related products. The company is a top US pharmacy benefits management (PBM) firm and, through its Accredo Health unit, a leading specialty pharmacy as well The product line of the company includes prescription and generic, drugs equipment to control diabetes, ostomy and incontinence supplies, and other medical equipments. In addition to this, it is busy in offering various services such as clinical management, clinical services, pharmacy management, physician services, online services, a health and safety program and other related services. It offers its products through internet to 60,000 independent and chain retail pharmacies. Medco operates nine mail-order pharmacies and six call center pharmacies, and it partners with a nationwide network. The company mainly works in the US, Sweden, Netherlands, Germany, and the UK. Medco Headquarter is in Franklin Lakes, New Jersey, and United States. Medco is making pharmacy care better for people with constant conditions and who need medications on a continuing base. Medco has specialist pharmacists trained in specific chronic conditions. Each specialist is trained in the medications used to treat those specific chronic conditions. If a safety alarm arises Medco specialists work with the member and his or her doctor to help avoid harmful drug relations. The company recorded revenues of $59,804.2 million during the financial year (FY) ended December 2009, an increase of 16.7% over FY2008. Medcos mail-order business generated $22 billion in 2009 net revenues and is one of the largest pharmacy operations in the United States. The operating profit of the company was $2,265.9 million during FY2009, an increase of 12.3% over FY2008. The net profit of the company was $1,280.3 million in FY2009, an increase of 16.1% over FY2008.

SWOT Analysis Strengths:

Strong Services Portfolio Strong Financial Performance Market Leader in Mail-Order Pharmacy Sector Efficient Use of Resources

Weaknesses:
Limited Liquidity Position Limited Operating Margin Geographical Concentration

Opportunities:
Favorable Demographic Changes Growing E-Retail and Mail-Order Business Strategic Acquisitions and Alliances

Threats:
Intense Competition Government Regulations Increasing Counterfeit Product

Major Competitors Companies

CVS Caremark Corporation Catalyst Health Solutions, Inc.

Location
(Woonsocket, RI) (Rockville, MD) (St. Louis, MO)

Express Scripts, Inc.

CVS Caremark Corporation SWOT Analysis

Strengths
One of the largest retail loyalty programs with more than 500 million card holders through its extra care program. Leading a head of other Pharmacy benefits companies. Company has demographic locations in almost 25 states with 570 outlet units. Almost 200,000 employees are providing their excellent services at different segment of CVS Company. The company ranking has been magnificent in Fortune 500, being at 18th position in year 2010. The company ranks first in specialty pharmacy and prescription providence. The company provides the biggest platform for the nurse practitioners. Active and efficient customer care centre.

Weaknesses
Turnover held by the company are very insignificant. Store experiences vary from time to time being very inconsistent. Its demographic locations are not comparable to the real estate of Walgreen. Security check at the CVS stores is not efficient and ill organized as many cases of armed robberies have been reported.

Opportunities
The company has been making certain acquisitions and mergers that have positively affected the company stability, after merger with Caremark, the place from where the company history has started; it has acquired Long Drug Stores, Eckerd, Savon and Osco. The beauty 360 stores by CVS Caremark adjoining to pharmacy locations are in process of extension to more locations. U.S market has grown tremendously for generic drugs as well as anti aging drugs. Photographic market at the entrance of the stores has proved to be a charm for certain number of customers.

Threats
Incompetent web services as online orders are not entertained. Market competition with other pharmaceutical industries like Walgreen and Pfizer. Huge revenue required for importing the drugs, especially from Canada. Lack of experienced pharmacists along with instability in growth of the company.