What Is Walgreens Alliance?

Walgreens BootS Alliance, Inc.

Walgreens Boots Alliance, Inc. is a holding company that owns the retail pharmacy chains Walgreens and Boots, as well as several pharmaceutical manufacturing, wholesale, and distribution companies. Walgreens bought the majority stake in Alliance Boots on December 31, 2014, and formed the company on December 31, 2015. The total price of the acquisition was $5 billion in cash and 144.3 million common shares with a fair value of $10.7 billion.

In August 2012 Walgreens purchased 45% of the company for $4.0 billion and 83.4 million common shares with an option to purchase the remaining shares within three years. Walgreens became a subsidiary of the newly created company after the transactions were completed. The company began trading on the NASDAQ under the symbol.

Will Walgreens succeed?

Walgreens is trying to make its in-store offerings more attractive to consumers, but will it work? If it doesn't, that could make Walgreens a risky investment and put its impressive streak of dividend increases in danger. Walgreens said it can give vaccine to tens of millions of Americans.

The company cautions that any gains it will get from that will likely just barely offset the negative effects of the Pandemic. If Walgreens wants to stay competitive with Amazon, it needs to make some serious changes to its business. One way that it is doing that is by focusing more on its retail operations and expanding its offerings to encourage customers to keep coming into stores.

Walgreens announced it was selling the bulk of its pharmacy business to AmerisourceBergen just before the earnings release. The company announced last year that it would invest $1 billion in VillageMD and that it would open up to 700 primary care clinics in the US over the next five years. Consumers will be able to make a trip to the doctor's office while visiting their local Walgreens pharmacy with the clinics.

The best reason to invest in Walgreens is its dividend. The average stock on the S&P 500 pays 1.6%, but with a yield of 3.8%, you're earning a better yield. The company has an impressive track record of increasing dividends.

Walgreens BootS Alliance: A Strategy for Developing Brand Awareness

Walgreens Boots Alliance can narrow down their target audience into specific groups using the technique of the segmenting. Market segment surveys are used to get customer specific information that could be used to create groups. Walgreens Boots Alliance can divide the market into small groups after understanding the buying behavior of customers.

It can be done by looking at the characteristics of customers. The strategy focuses on developing brand loyalty by offering premium products. The company can find different ways to develop differentiation leadership, such as by focusing on the reliability, durability, benefits and distinctive features of products, by developing strong brand recognition and by increasing expenditure on marketing efforts like celebrity endorsements and sponsorships.

Walgreens Boots Alliance can achieve competitive advantage by adopting a variety of products and services. A high number of stars and cash cows will indicate good performance, whereas a high number of question marks and dogs will be a cause of concern for Walgreens Boots Alliance. The marketing strategy of Walgreens Boots Alliance is evaluated using the product classification.

Brand awareness is the basis for brand equity development. The Walgreens Boots Alliance brand is well known and can be recalled by customers. The company can measure brand awareness by conducting surveys.

The high brand awareness is anchor to other associations. It increases brand visibility that can help Walgreens Boots Alliance. The customers' repeat purchase behavior can be rewarded by Walgreens Boots Alliance.