These days, it’s critical for brands to communicate a clear vision of what the brand stands for, and to viewed as empathetic to consumers. This builds trust, loyalty, and ultimately allows brands to win in their market. Does CVS’ rebrand signal a bold new direction for pharmaceutical brands?
U.S. pharmaceutical retail chain CVS recently announced they have stopped selling tobacco products from their retail stores. They had announced in February that the sale of tobacco products conflicted with their health care mission and planned to remove tobacco from their stores by October, but they reached their target ahead of schedule.
The American Pharmacists Association called on drugstores to stop selling tobacco in March 2010 and CVS is the first large chain to cease doing so.
The move is indicative of the company’s wider public relations initiatives and rebranding. The decision to remove tobacco products aligns to the company’s long-term healthcare mission, and as reported in Forbes reflects their recent rebranding from “CVS Caremark” to “CVS Health” as they seek to serve a “broader healthcare commitment” and change the future health of Americans.
#OneGoodReason, One Great Campaign
The announcement has made headlines as an especially bold move by CVS, financially as well as strategically, and CEO Larry Merlo has publicly voiced that the withdrawal of tobacco products is expected to cost the company approximately $2 billion in annual sales, or 3 percent of company revenues.
It represents a brave commitment to their new health-centric branding and the message has been reinforced by the company’s PR and marketing activity.
Already CVS have had a hugely positive response on social media, including congratulations from First Lady Michelle Obama. Asking followers to share inspirational reasons for quitting smoking using the #OneGoodReason hashtag, they’ve really captured people’s imaginations and encouraged users to engage.
The pharmaceutical industry typically struggles to generate marketing messages that resonate with users, and CVS’ anti-tobacco stance has certainly made them stand out, as well as putting pressure on their competitors to join suit.
They have also supported their position with research showing how the withdrawal of tobacco products will benefit U.S. customers. In a soon to be published CVS study in the journal Health Affairs, the company’s data suggests that bans at pharmacies in Boston and San Francisco led to more than 13 percent fewer tobacco purchases.
Furthermore, as reported by USA Today, “Smokers didn’t just switch where they bought cigarettes and other tobacco products, some stopped buying them altogether. [This can be concluded because] about 900 households in the two cities recorded everything they bought after the bans went into effect.”
In an interview with Troyen Brennan, CVS’ chief medical officer in the same article, CVS voiced that “if the results were extrapolated for pharmacies across the USA, it would lead to 65,000 fewer deaths a year.”
A New Direction for Pharmaceutical
The withdrawal of tobacco products from CVS and the success of the associated social media activity is notable for a number of reasons.
1. Prioritizing Long-Term Strategy Over Short-Term Revenue Streams
While there will inevitably be a direct hit on established revenues, the withdrawal of tobacco products aligns to CVS greater commitment to improving the health of U.S. citizens. To an extent, CVS is banking on the opportunity that a clear, positive perception of their brand will be more valuable than any income made from tobacco sales.
2. Commitment To Wider Branding & Healthcare Messages
As their #OneGoodReason campaign shows, ceasing the sale of tobacco products enables them to tie together marketing campaigns under the CVS Health brand. In a sense, it’s the simplicity of the message that is the most powerful, aligning the brand to something that their customers care about.
3. Multichannel Integration
CVS’ often release reports on the state of U.S. healthcare, and this move enables much greater integration of their work across inter-departmental channels. One of the most powerful elements of the #OneGoodReason campaign, is the fact that it can be supported by press releases, surveys, and reports from CVS which show the potential benefits of ceasing the sale of tobacco products in town and communities within the US.
4. Setting A Precedent For Pharmacies
The move has put considerable pressure on competitor pharmaceutical retailers to commit to health issues and also withdraw tobacco products from their stores. Health issues are a concern to us all, and CVS has shown they share that empathy with their consumers as a brand. It’s a very powerful message with which to associate one’s brand.
Conclusion
Overall, there are many reasons why CVS’ anti-tobacco, and commitment to consumer health can serve as a great example in integrated and empathetic modern marketing. The fact that the #OneGoodReason campaign has achieved such widespread coverage in both the news and media, as well as on social media is a testament to what can be achieved when a brand’s operations are united under a single vision, which champions shared, empathetic values that can win over customers and encourage them to engage.
CVS’ work stands out as an example of bold and integrated marketing. Could this be a new precedence for health-centric pharmaceutical brands with retail stores?