CVS SKINCARE MARKET ANALYSIS
CUSTOMER RECORDS: ~556,000 | DATES: 1/2020 TO 10/2023
DATA SOURCES: CVS, AMAZON, TARGET, SEPHORA, ULTA, WALMART, WALGREENS
Unique Strengths, Weaknesses, Opportunities & Threats
CVS vs Walgreens
ANALYSIS SUMMARY
CVS has clear strengths to build upon, but also faces competition from Walgreens in key areas. To stay competitive, CVS should refine its product offerings based on feedback, emphasize its strengths in marketing campaigns, and strategically address its weaknesses. By capitalizing on opportunities presented by Walgreens' shortcomings, CVS can create distinct marketing campaigns that attract a broader customer base.
Strengths (CVS vs Walgreens) - What CVS does well compared to Walgreens:
Lip Tint Color: CVS's lip tint products have favorable mentions.
Neutralizes Redness: CVS's products effectively neutralize skin redness.
"Smells like Heaven": Products from CVS have been praised for their pleasant fragrance.
Moisture Overload & "I love this CC": CVS offers products with intense moisturizing capabilities and popular CC creams.
Oils, Tanning Drops, Cleansing Oil, Lip Balm, Sheer Lips: These products/categories are areas where CVS has a comparative advantage.
Threats (CVS vs Walgreens) - Areas where Walgreens excels compared to CVS:
Gentle Cleansing, Rich Cream, Refreshing Properties: Walgreens has been commended more for these qualities in their products.
Worth the Buy, Well-Hydrated, Dermalogica, Nice Smelling: Walgreens receives more positive mentions in these areas.
Cleans without Residue, Clean without Over Drying, Activating Serum: These are further product-related strengths for Walgreens.
Weaknesses (CVS vs Walgreens) - Negative aspects associated more with CVS than Walgreens:
"Great light moisturizer": Despite the positive phrasing, this could suggest that while CVS offers lightweight moisturizers, they may not provide enough hydration.
Lip Balm: CVS lip balms might have issues or unfavorable comparisons.
Opportunities (CVS vs Walgreens) - Negative aspects associated more with Walgreens, presenting opportunities for CVS:
Smell Turned Me Off: There are fragrance-related complaints about Walgreens products, giving CVS a chance to promote their pleasantly scented products.
Overall Analysis
CVS shines in product categories like lip tints, oils, and the ability to neutralize skin redness. They also have a range of products with favorable smells.
Walgreens, on the other hand, is lauded for its gentle cleansing products, hydration capabilities, and certain branded products like Dermalogica.
While CVS faces challenges with certain product categories and offerings, there are also clear opportunities. By focusing on Walgreens' shortcomings, especially in product scent, CVS can strategically position itself to attract more customers.
MARKETING IMPLICATIONS
Leverage Strengths:
CVS should promote its products that neutralize redness, offer intense moisture, and have favorable fragrances. Highlighting these in marketing campaigns can solidify its position in these areas.
Given the popularity of CVS's lip tints, oils, and tanning drops, these products can be positioned as top sellers in marketing promotions.
Address Threats:
Walgreens' strength in gentle cleansing, hydration, and specific branded products like Dermalogica suggests that CVS needs to either improve or better promote similar products.
Counteract these threats by launching or emphasizing CVS's own gentle cleansers, hydrating products, or partnering with other popular brands to draw in customers.
Improve on Weaknesses:
Feedback about lip balms, SPF products, and tanning mitts indicates areas of improvement for CVS. Conducting further research on these products or seeking customer feedback can help improve the quality and perception of these items.
Marketing campaigns can also address these weaknesses once improvements have been made, signaling to customers that CVS listens to feedback and constantly evolves.
Capitalize on Opportunities:
The negative feedback on Walgreens' product scents is a clear opportunity. CVS can emphasize its range of pleasantly scented products, perhaps through a "Scent Satisfaction" campaign.
Furthermore, CVS could offer scent samplers or in-store scent stations for customers to experience these fragrances firsthand, turning Walgreens' weakness into a unique selling proposition for CVS.