Marketing Management

REQUIREMENTS

1) READ: CASE 03: “CVS’s $68 Billion Bid to Bring One-Stop Shopping to Health Care” posted on Canvas, in Cases module

2) WRITE: READ & ANSWER ALL 3 QUESTIONS (LISTED BELOW)

· Your written submission should NOT exceed two (2), double-spaced pages

· Use standard 8.5" by 11" size, double-spaced, 11- or 12-point font of your choice, and appropriate margins

· Include YOUR NAME, TUmail, Section #, and “CASE 03: CVS + Aetna” at top of page. Please DO NOT create a cover page.

· Work that is incomplete or not submitted in proper form will receive zero (0)

· DUE: FRIDAY, October 19, BEFORE CLASS; submitted on CANVAS

3) IN CLASS: BE PREPARED to discuss YOUR ANSWERS during class on October 19.

4) GRADE: TOTAL potential = 2 Points

· UP to 1 ACTIVITY Point for paper submitted to CANVAS before DEADLINE

· Work that is incomplete or not submitted in proper form will receive a zero (0)

· Turnitin similarity score >50% will be further reviewed and may receive a zero (0)

· +1 ACTIVITY Point for active participation in class on day case is due

5) LATE: PENALTIES FOR SUBMITING WRITTEN ASSIGNMENT AFTER DEADLINE

· Minus 50% If submitted after DEADLINE , but BEFORE 5:59 PM on FRIDAY, OCT 19

· Minus 100% If submitted AFTER 6:00 PM FRIDAY, OCT 19

QUESTIONS

On Wednesday, October 10, the acquisition of health insurer Aetna Inc. was approved by the US government. The Justice Department’s OK to proceed (with certain conditions) allows the largest merger ever in this industry to move forward. Reports suggest that the combined company has the potential to “transform” how consumer health care is delivered in this country.

1) What marketing-environment conditions might enable CVS to benefit from acquiring Aetna? What synergies or economies of scope could justify their diversification into health insurance?

2) Look up what the business press and analysts have said about this merger and what it will mean for the new, combined company. If you were Chief Marketing Officer (CMO) at Walgreens or Rite Aid – CVS’s two largest competitors in the drug store space – how do you propose that your company responds to shifts that are likely to occur? How should your firm’s marketing strategy evolve or change?

3) Do you think this new model of healthcare delivery will change how YOU use health care, or will your behavior stay mostly unchanged?

MKTG 2101: CASE 03: CVS + Aetna 1 10.19.2018