Will Anti-Tobacco Stance Help Brand Image for CVS?

Early this month, CVS caused quite a stir in the major retailer world when they announced that they would no longer carry cigarettes in their store locations.   When it announced the move, the CEO said that the reasoning was based on the principle that tobacco products have no place in a health care environment.  While the move will cost significant money, company leadership is hoping that improved brand perception will result in higher sales.

What has the result been so far?

The most updated YouGov BrandIndex on CVS shows the US consumer perception and word of mouth metrics soaring to their highest levels in 13 months, surpassing those of incumbent leader Walgreen’s.  CVS’s two main competitors—Walgreen’s and Rite Aid—also saw upticks in both metrics, which YouGov states may be attributed to smokers changing drugstore allegiance.

Per the YouGov website:

CVS, Rite Aid and Walgreen’s were measured with two YouGov BrandIndex’s metrics: Buzz, which asks respondents “If you’ve heard anything about the brand in the last two weeks, through advertising, news or word of mouth, was it positive or negative?”; and Word Of Mouth, which asks respondents, “”Which of the following brands have you talked about with friends and family in the past two weeks (whether in person, online or through social media)?”

Buzz scores are calculated by subtracting negative responses from positive responses.  Word of mouth scores can range anywhere from 0% to 100%.

Before the cigarette announcement, CVS’s Buzz score was 19.  Two days later, after the news broke, CVS witnesses that number rocket up to its current measure of 28.

The real question is whether CVS can hold its current brand perception levels or if the announcement’s effect will be temporary.

To view the full YouGov report, click here.