KINNEY DRUGS INC.“EXPERIENCE THE DIFFERENCE”

Emily A. SudolPortfolio ProjectBUSS100: Business PrinciplesInstructor Latosha Tate

HISTORYWas founded by Burt KinneyGraduated Albany College of

Pharmacy in 1901The first store opened in

1903First store in Vermont opens

in 1970Becomes employee owned in

2008

(Syracuse, 2014)(Kinney, 2014)

COMPETITION:

Kinney’s competitionRite AidWalgreensCVS

(Wesleyan, 2012)

(Cpnwz, 2013)

(Evanstonedge, 2013)

HOW KINNEY’S STANDS OUTExcellence in customer servicePut’s the needs of their customers and employees

above anything elseStrong supporter of local communitiesDonates to

Local food banksLocal schoolsToy’s for TotsChildren’s Miracle Network

MANAGEMENT:Comprised of a board of directors, corporate officers, and the many managers and supervisors running the storesThere are also pharmacy managers, they are in charge of only the pharmacy and the technicians that work with themThey also have their own managers that come from corporate to check on the pharmaciesThe managers at the store levels hire the employees and run things at the storesThey have managers themselves that come from corporate to check on the stores a few times a month

(Kinney, 2014)

PRODUCTION:There are 99 stores located in central and northern New York and also in Vermont

The headquarters for Kinney’s is located in Gouvernuer, NY

That is also where the warehouse is located

The warehouse holds all the supplies and products Kinney’s sells

PRODUCTION CONT.Some of the supplies for the pharmacy comes from the warehouse, mostly they get supplies from central fill located in Buffalo

Some of the supplies for the pharmacy comes from the warehouse, mostly they get supplies from central fill located in Buffalo

Some filled right in the stores

The bottles, caps and other supplies for the pharmacy come on truck once a week

HUMAN RESOURCES:Rich McNulty is the Vice President of Human Resources at Kinney DrugsHe works mostly in the corporate officesThe store managers are also trained to be an extension of the human resources departmentThe managers handle the hiring and firing, and also do the reviews with the employeesIf there were any major issues then the corporate offices would be brought in to handle it alongside the managers

(Kinney, 2014)

MARKETING:Kinney’s many techniques for marketing and advertising

Weekly sales flyers TV ads Monthly Value card Ads Free home delivery Milk clubPrice buster sales

MARKETING, CONT.…

The value card helps saves customers money on select items in the stores

They also get 10% off Kinney Brand products everyday

There are monthly Value card ads on select items throughout the store.

Sales on key popular items to draw in customers to stores.

FINANCE:They forecast by using SKU numbers to determine just in time sales needs to help keep inventory at a lower level. This also allows them to determine what funds they will need short term.

They look at salary costs and operating expenses per store to determine short term needs.

The look at expansion and renovation plans to determine long term financial needs.

Needs of future and current retirees expenses (Kinney, 2013)

FINANCE, CON’T...

Short term financing

Bank line of credit

Trade credit, buy on terms such as 2/10; net 30

Sale of stock(Kinney, 2013)

FINANCE, CON’T…Long term financingLong term bank notesInvestment in expansionTreasury stocksBondsPromissory notes to former stockholders

(Kinney, 2013)

REFERENCES:Cpnwz. (2013). Rite –Aid logo. Retrieved from

http://cdn3.cpnwz.us/wp-content/uploads/2013/06/rite-aid-logo-300x2531.jpgKinney. (2013). Kinney Drugs, 2013 Annual Report. Kinney. (2014). Kinney Drugs History. Retrieved from

https://secure.kinneydrugs.com/pages/history.phpKinney. (2014). Kinney Drugs Management. Retrieved from

https://secure.kinneydrugs.com/pages/management.php

REFERENCES, Syracuse. (2014). Drug Store Sets Opening Date. Retrieved fromhttp://www.syracuse.com/news/index.ssf/2014/12/new_cny_drugstore_sets_opening_date.htmlWalgreens. (2014). Walgreens. Retrieved from http://www.walgreens.com/default.jspWesleyan. (2012). CVS. Retrieved from http://transportation.wsa.wesleyan.edu/cvs/