The CVS Tobacco Ban
Tom Dougherty, CEO – Stealing Share
29 November 2016
CVS Tobacco. Drop the cigs. Why it’s happening now
CVS Tobacco part ways
CVS made the announcement today, claiming it will lose $2 billion in sales by eliminating the cigs but hoping to reclaim those losses by positioning itself with a greater focus on good health.
What does banning CVS Tobacco sales mean?
I already thought that’s what a pharmacy was?
“From a brand standpoint, what the CVS tobacco ban is doing makes sense.”
That was the point we at Stealing Share tried to make years ago when pitching new business to a large pharmacy chain. (Not CVS.) As a brand, how can a position of health be believable if you’re selling the cancer sticks?
The answer was that the pharmacy makes too much money on cigarettes – and it (like others) soon added alcohol to its offerings.
Soon enough, the chains lost whatever brand equity they had by trying to be all things to all people. It wasn’t just cigarettes and alcohol they were selling.
You could also find as disparate of items as gift cards to Applebee’s and cheap MP3 players. Nobody knew what the brands actually stood for.
From a brand standpoint, what the CVS tobacco ban is doing makes sense. I also suspect the real reason CVS is doing this is because cigarette sales are dropping (falling 31.3% over the last decade) and it’s only going to get worse. They are not quite the cash cow they once were.
So, good job, CVS. Bravo! But let’s not get on our high horse about it.
The Zoom brand Tom Dougherty, CEO - Stealing Share 7 July 2020 The Zoom brand shouldn’t play it safe moving forward The Zoom brand is one consumer service that’s becoming synonymous with success during the global pandemic. Which is why it needs to be as...
Washington Redskins Tom Dougherty, CEO - Stealing Share 6 July 2020 Money drives Washington Redskins name change In the 1976 classic All the President’s Men, Deep Throat becomes agitated with Bob Woodward (played by Robert Redford) over his lack of...
MLB return? Tom Dougherty, CEO - Stealing Share 16 June 2020 MLB return in jeopardy, so is the sport itself An MLB return to play would be more important to that sport than any other, yet major league baseball finds itself on the brink of disaster over...