From MinuteClinics to No More Smokes
With the creation of the MinuteClinic at CVS Pharmacy in the early 2000s, it’s clear that the company is trying to position itself as the place to go to care for your health. You think you may have the flu? Go to one of the affordable MinuteClinics. Turns out you do have the flu and need some medicine? Turn around and get your medication hassle-free. CVS clearly aims to be the company the consumer thinks of when they think affordable, hassle-free health care. Yet, if CVS cares so much about their customer’s health, why do they continue to sell cigarettes, which are proven to hurt your health? In 2014, CVS changed the game.
I remember reading about CVS’ decision to stop selling tobacco products a couple years ago and thinking “Why would a company voluntarily lose out on sales? If they stop selling, smokers will simply take their business elsewhere.” Now I realize that it was a differentiation tactic. It was a means to distinguish itself from the competition, Walgreens and RiteAid. While the company may have missed out on those sales, it was probably hoping that its smoker customers realize that they are destroying their health. CVS made medical practitioners available to help smokers quit. It also added nicotine gum behind the counter, where the cigarettes used to be, to help curb their addiction. The number of customers that took part in these programs will always remain a mystery and while I’m hopeful that the company made a change in the smokers’ lives, I doubt that they did, given that the switching costs are so low.
CVS’ Long-Term Positioning Strategy
What I think is more significant about this change is that by showing its customers that CVS cares for their health, they increased the customers’ brand loyalty and hopefully enticed a couple others to switch from the competition. Walgreens came out with a health app in 2012 to encourage their customers to exercise more by rewarding them with coupons. CVS’ end to tobacco sales may prompt users to consider Walgreens a hypocrite. How can a company promote health when they continue to sell cigarettes to customers?
If CVS is so committed to helping the health of its customers, though, how far should it go? One of my favorite isles at CVS is the chocolate and candy isle. Should CVS stop selling those items because it may rot my teeth or even lead to diabetes? Comment with your thoughts below!