Marketing Blog
An interesting article I recently came across was about Amazon’s new venture within the pharmaceutical industry. Just last week, the company launched its services for providing Amazon Prime members access to prescribed generic medications. The company’s subscription plan is referred to as the RxPass (01/24/2023). With it, members have unlimited access to a variety of medications that treat conditions such as high blood pressure, anxiety, and acid reflux.
What’s more interesting is that existing Amazon Prime members not only can receive the benefits of free two-day delivery shipping, Prime video streaming, and low-competitive pricing, but with an additional charge of $5, members can obtain needed medication to treat common medical conditions. In addition, members who are prescribed multiple medications have unlimited access to the available medicines provided by Amazon at just the flat rate of $5, allowing them to save time and money, as opposed to shopping at CVS or Walgreens. The charge is about half the amount an individual would pay for prescription drugs online (specifically Amazon Pharmacy).
The RxPass was Amazon’s following
venture after they introduced Amazon Pharmacy back in 2020. Preceding that; the
company purchased PillPack in 2018, which was an online pharmacy company
developed out of Massachusetts in 2013. Remarkably, Amazon noticed an
opportunity to provide customers with a simple-to-use system where they could supply
medication to customers through their delivery services. Gathered reports
detected that U.S. households using Prime membership increased significantly
was one of the factors causing the company’s entry into the pharmaceutical
market. As a result of this venture, pharmaceutical companies like Rite-Aid,
CVS, and Walgreens have been struggling to retain customers. According to CNBC
news, the three companies combined lost approximately $11 billion in market
value back in 2018.
The value proposition I detected
in Amazon’s advertising scheme was that it saved time and money and provided
customers with a simple-to-use system that allows them to access products
required for their well-being. The contents the company inserted into the
media, whether it be through its website, news channels, or social media
platforms, all expressed the company’s efforts to make its products readily
available and cost-affordable. In addition, their website lists details and
customer reviews about the products. Unlike the major companies that focus on
selling their brand and distracting buyers with bold lettering and some vibrant
artwork, Amazon keeps it simple. Instead, the company displays pictures,
similar items, customer reviews, product details, and supportive content that
presents the buyer with satisfying information. With the company’s amazing
reputation in online retailing, many are already aware of how easy it is to
purchase almost anything. Now, customers of the elderly age or unwell can make
purchases with just a click of a button.
Truthfully, Amazon’s robust
attitude has allowed them to take on new ventures and enter new industries. The
pharmaceutical industry is a billion-dollar business that Amazon has its gaze
upon, and so far, they have satisfied customers’ demands. Through the company’s
methods, a few challenges have arisen. Contracts and agreements were some of
the challenges experienced throughout the company’s journey. Hospitals and
Pharmaceutical companies see Amazon as a threat, and some are not on board with
the company’s entry. However, the Apex company still progresses forward with
goals of reaching every target customer in an expedient manner.
Much of what I discovered from
researching the company illustrates its insatiable appetite for success.
Obstacles and boundaries are minor setbacks for the company, though, with time
and proper planning, Amazon always seems to bounce back. For example, the
company ended its Amazon Care services back in 2022 because it realized it lacked
the ability to fully sustain a significant number of customers. So, efforts
were shifted, and out came the RxPass. Now, customers have the luxury of
ordering prescribed medication and receiving them in two days.
work-cited:
https://www.aboutamazon.com/news/retail/introducing-rxpass-from-amazon-pharmacy-a-5-prescription-subscription-that-helps-prime-members-who-take-multiple-medications-save-time-and-money
https://www.fiercehealthcare.com/health-tech/amazon-care-shutting-down-end-2022-tech-giant-said-virtual-primary-care-business-wasnt
https://www.youtube.com/watch?v=RZKpHgw3Usg
https://www.seattletimes.com/business/amazon-pulls-the-plug-on-its-health-care-service-amazon-care/
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