Duane Reade is known to be one of the country's leading full-service drugstore.
It was established in 1960, at the center of one of the busiest streets in New
York i.e. on Broadway between Duane and Streets in Manhattan. The name 'Duane
Reade' was taken from its predecessor company. As of today, Duane Reade is
considered by many as the fastest growing drug-stores in New York. Duane Reade
stocks pharmacy-related products and services, also carries large amount of OTC
(Over-the-Counter) items such as medications, cosmetics, health, beauty aids,
seasonal products, entertainment related products, and both refrigerated and
non-refrigerated foods. Not only that Duane Reade offers these various
products, it also offer 24 hours health services, with low-cost health clinics
staffed by medical practitioners.
Its classification of retail Operations is Chain
stores; "they are owned and operated as a group by a single
organization". Today, Duane Reade has "grown to become the most
recognized drugstore chain in metropolitan New York; it operates over 253 stores
both in commercial and residential areas". Duane Reade as a drug store,
being operated as a group, and owned by a single Organization has recently
merged with one of its strong competitors 'Walgreen', to create larger chain
stores.
Usually, the level of services for drug-stores is
said to be "Low to moderate" i.e. according to my marketing text book
'MKGT'; Duane Reade as a drug-store, doesn't provide a wide range of services,
instead it provides services like consulting (health related issues), liberal
returns policies, gift wrapping, and personal shopping. Duane Reade doesn't
offer credit delivery, alteration, or online shopping. However, its
"product assortments" includes merchandises with "limited
depth" such as household supplies, cleaning product, hosiery and pet
foods. In terms of Price, Duane Reade merchandises' prices are moderate, simply
because it's one of the marketing Mix strategies used to keep and maintain
business viability and sustainability i.e. for substantial market position and
force. Gross margin for drug-stores is also said to be low. This is summed by "subtracting
total sales of merchandise after the total cost of goods sold". Duane Reade as
one of the Drug stores, expects profit when it makes constant and high sales.
What differentiates Duane Reade from the rest of its competitors is the effective implementation of the Retailing mix. Duane Reade originally known to be a drug store, doesn't limit itself to pharmaceutical products and prescriptions, instead it also offer various product assortments(Product). It engagement in good publicity, advertisement, sales promotions also positioned and defined it business(Promotion). Having several Duane Reade stores situated in strategic market places, is another good organizational decision (Place); their stores layout and atmosphere is something that can be very appealing to prospective customers. Duane Reade uses colors to differentiate where items are located(Presentation). For example, the purple color 'New look'….(Cosmetics products aisle), the green color tells you where to find food items and the blue for any health related issues. Duane Reade won't become what it is today, if it had failed to implement these core strategies.