CVS BRAND IMAGE

The brand image of a company is what the company wants its consumer to think about them.  Brand image does not just have to deal with the company’s name, or products name or packaging, but it also has to deal with the image of the entire company.  CVS wants to maintain a good brand image so that every time you walk into one of their stores or look at one of their products that you have a good feeling about the product because you have a good image of CVS corporation.  For the most part CVS products have simple packaging, because CVS believes that just by seeing the brand name the customer will be satisfied with their decision to shop with CVS.

I believe the simplicity of the literal image of CVS/pharmacy, says to its customers that CVS is simple and easy to use.  It says to its costumers, here we are, were trying to make things easier for the average American.  This image to the right is the image that is most commonly associated with CVS, and is used on all of their products.

Their mission statement says it all.

“We provide expert care and innovative solutions in pharmacy and health care that are effective and easy for our customers. "

This is the true brand image that CVS is trying to portray.  This quote is exactly hat CVS wants its customers to think about their corporation.  And I believe that they do a very good job of accomplishing this mission.  I believe this to be true because CVS Caremark is the largest provider of prescriptions in the entire nation.  They provide more than 1 billion prescriptions annually, and they do not look like they are going to be slowing down any time soon.  

CVS throughout the years has had a near perfect reputation.  They rarely find themselves in crises, and are doing great economically.  CVS takes part in many campaigns to help strengthen its relationships by enhancing the communities that they serve in.  CVS does various things in order to help out in the community.  These things include cash grants, in-kind contributions, sponsorships and fund raising events.  All of these things help them from a public relations stand point because there name gets out there and people get to see that they are giving back through kind programs and donations.

I believe that CVS has done a great job of using innovative technology, such as new media, to communicate with its publics and help to build stronger relationships and maintain their image.  They communicate with their publics such as customers, employees, and investors through new age websites such as face book, twitter, and there home website.  Also CVS releases a very intricate annual report that states the financial success of the company very well, which lets investors know that they have invested their savings in a reliable corporation.   

It is through their websites, annual report and various campaigns to enhance the community that public relations takes an effect on the companies image.  By being reliable, and showing that they are successful and care about the community, this enhances the outlook on CVS, and by doing so helps greaten their success as a world renowned pharmaceutical company.  It is important for CVS to keep the public informed about the company’s goals, and endeavors in order to strengthen relationships and continue to succeed financially.

CVS CRISIS!

In 2009 CVS/pharmacy was being sued for allegedly selling expired products to their consumers.  They were accused of having sold food, beverages, baby formula, dairy products, and over-the-counter medications that had past their expiration dates.

Connecticut State Attorney General Blumenthal filed suit against the company.  Investigators found expired CVS products being sold in stores in the summers of 2008 and 2009.  Investigators said that they found expired products in about 20 out of the 40 stores that they checked. 

When the company found out about the situation, and stated that it is CVS company policy to remove all items from their shelves before the expiration date passes.  They ended up having to pay settlement of around $875,000 to both the state of Connecticut and New York.

The company’s statement  was as follows,

“The health and safety of our customers is our top priority and CVS Pharmacy has a clear product removal policy in place at all of its stores to help ensure that items are removed from store shelves before they reach their expiration dates. Any unintentional deviations from this policy that are brought to the company’s attention are quickly rectified for customers.”

From what I have read I believe it says that it was just a spokeswoman who delivered this message, and not a higher up in the corporation.  If I were to have issued this statement to both the states of Connecticut and New York which are huge consumer states of CVS’ products, I think as a public relations professional of the company I would have tried to get a statement issued by a president or vice president. This is because I think this is a pretty severe situation.  I would address the CEO letting him know that the public would feel better and think that the company is actually doing something by seeing a recognizable face admitting to the fault. 

“CVS peddled potentially tainted food and ineffective medicine,” Blumenthal said. “Whether CVS was careless or heedless or overzealous for revenue, it betrayed its trust to consumers.”

I do not believe that CVS handled this situation to the best of its ability.  They did not seem very caring about the topic or sincere, I also do not think they did enough to ensure investors that they will not let this get in the way of the company and they will change for the better.  The only things to make investors feel better is the information provided to them on the companies website about on the companies website.

I do however believe that CVS does a lot for the community, and that this was a mistake that they did not know was taking place.  Seeing as how CVS has had a near pretty good track record before this, I think that its consumers will forgive CVS for such a mistake.  I do think that this CVS should enforce a new policy in place at all of its pharmacy stores that will make sure that these mistakes do not happen.  I would have an employee at each store in charge of daily checking the items.  By showing the public that it will not make this mistake again I believe that they can quickly regain its clients trust.

Investor Relations

CVS is a publicly held corporation, which means that it allows anyone from the public to purchase shares of its stock.  By purchasing a share of the CVS stock you become a part owner of the corporation.  CVS makes it very easy for their shareholders to keep informed and in touch with what is going on with the company and its earnings through there investor sections on the company website.  The largest way in which the company reaches out to its investors and the public to inform them about the company earnings is through the annual report.  This report also shows the company’s activities throughout the past year, and discusses its upcoming plans.  It can be used to make sure investors understand the value of the companies stocks and bonds, and provide accurate information about the company’s performance.  This annual report is a good opportunity for the public relations team of the company to report the activities of the company in a credible, informative, and well-mannered way.  Also this is a good time to show the investors that you appreciate their involvement.  CVS used to send out its annual report in the mail, but because of new technology and wanting to help the environment, the CVS annual reports are now offered online and sent via email. 

The CVS annual report is broken up into several different sections.  The annual report begins with the introduction of the company telling you its mission, values, and purpose.  It then continues to go on to the financial highlights, a letter to the shareholders from the CEO, pharmacy benefits management, retail pharmacy, intergraded pharmacy care, Q&A with Per Lofberg and Larry Merlo the presidents of CVS Caremark pharmacy services and CVS/pharmacy, a section on the positive impact CVS has made on its community, and then finally more shareholder information and financial information.  This annual report is not just a means to present the financial reports, but is also a means to reach out to the investors and to other publics and to show what CVS is all about in a positive way.  The information provided in this report is very informative and makes you feel good about the company and what it is all about. 

        

One of the most interesting parts of the annual report is the letter to the shareholders from the CEO.  The CEO during CVS 2009 annual report was Thomas M. Ryan.  The first thing that we see when looking at this letter is a picture of Thomas Ryan.  I believe it is a good idea by CVS to place a picture of him at the top of the letter to let the investors know and get a feel for whom it is that is speaking out to them.  I believe that investors will feel good after reading this letter.  The letter from the CEO is very informative, sincere, and optimistic about the future.  In this letter the earnings are summarized and future endeavors are discussed.  Ryan discusses the anticipation for higher retention levels and more business opportunities for 2011.  He discusses the rise in profit and the expansion of minute clinic offerings in their stores.  This message leaves you thinking that CVS is a successful company and it plans on coming more successful as the years continue.  Hearing this from the CEO directly helps to insure the costumers that they are investing in a powerful and growing corporation. 
 

The last news release that was written about CVS’ earnings was titled CVS Caremark Reports Third Quarter Financial Results.  This letter although written in technical language rather then reader-friendly, is still very informative and sense can be made out of it from the average investor.  I believe this news release does instill confidence in its investors because it shows a decrease in spending and increase in profit in certain areas during the last three months.  The quote from the CEO Tom Ryan is the main reason I feel good about this news release.  He states, “I am pleased with our third quarter results, which were at the higher end of our expectations.”  Hearing this from the CEO himself makes me feel confident that my investment with CVS would be save if I were an investor. The news release is well written, factual, and credible.  The only thing that I believe could have been done better, is to make this release more reader-friendly instead of packed with percentages and numbers.  Adding more conversation peaces in between the statistics could help make it easier for certain investors to understand and that way they are not confused or boggled by the information in front of them.