Forecasting, Brand Strategy and Innovation

Cigarets out / Health in

CVS Health

In 2014, the american healthcare and retail company CVS made the strategic choice to change its corporate name from CVS Caremark to CVS Health ; a new name that reflects its broader health care commitment. Focusing on its consumers’ health, the company also stopped offering tobacco products for sale, despite the predicted 2 billion loss in its annual turnover. To emphasize this step forward, CVS kicked off a smocking cessation campaign, encouraging and helping people to quit smocking (more details in the video). The hashtag “onegoodreason” allowed them to share their story to the world, and explain their reason to quit.

An initiative of choice editing like this one can affect businesses very badly, but CVS shows us that being an engaged brand is definitely valuable for consumers. Following this change, CVS became the 25th most reputable company (according to the Most Reputable Companies report) and had a raise of 12.9% in profit over the first 3 months. In the mean time, the decision to stop tobacco sales at all of its drugstores caused people to buy 95 million fewer packs of cigarettes in 13 states in one year.

‽ Have you ever thought that maybe, in your case, the consumer’s interest, because of its durability, can be more valuable than the short-terme profit ? The consumer can tell if you are consistent to your mission, and can be very grateful for your engagement, especially if you keep him the center of your attention…