Thought-Starter On Managing A Wider Walgreens Footprint

J.B. Davis 17 July 2013

Innovative Retail Brand

Traditional Retail Brand

X §  Healthy & Daily Living = P. Label To Store Brand §  Boots = Global §  Drugstore = Channel, SKUs

Innovative Health Brand

Traditional Health Brand

Walgreens Could Have “Just” Become A Better Retailer…

Innovative Retail Brand

Traditional Retail Brand

X §  Healthy & Daily Living = P. Label To Store Brand §  Boots = Global §  Drugstore = Channel, SKUs

§  Expanded Pharmacist = Better Leveraging §  Medication Management = Greater Connectivity §  Online = Customer Centricity

Innovative Health Brand

Traditional Health Brand

…But They Expanded Meaning Of Pharmacy…

Y

Innovative Retail Brand

Traditional Retail Brand

§  Healthy & Daily Living = P. Label To Store Brand §  Boots = Global §  Drugstore = Channel, SKUs

§  Expanded Pharmacist = Better Leveraging §  Medication Management = Greater Connectivity §  Online = Customer Centricity

§  Patient Release = “Integrated Delivery” Redefined §  Chronic Disease / MTM = Holistic View §  ACO = Staying With Curve

Innovative Health Brand

Traditional Health Brand

…And Began Evolving Into True Healthcare Brand

Y

X

Z

…Which Has Numerous Benefits…

Wider Diversity Of Growth Opportunities

Higher Margins In Healthcare Versus Retail

Greater Potential Shareholder Value

…And Creates New Challenges To Manage

Functional / Emotional Drivers Of Retail Brands Not Necessarily Same As Healthcare Brands

Wider Frame Of Reference = Steeper Points Of Parity And

Difference Plus Additional Digital

Expectations

Healthcare Brand Architectures Often

Typified By Myriad Of Branded Processes And / Or Services

Centrality Of Maintaining Relevance

Of Core Business Among Suddenly More

Diverse Holdings