CVS, the retail pharmacy-healthcare chain that also owns Aetna insurance, created a platform for progress with the goal of taking a prominent position providing continuing health care to communities. This plan was devised and in place in advance of the current corona virus crisis. That platform is helping to forge a brand business poised for enduring profitable growth.
In an interview for Barron’s, the financial weekly published by Dow Jones & Co., the CVS CEO, Larry Merlo discussed the chain’s approach to providing health services especially during this outsized pandemic crisis. Mr. Merlo described a strategic approach and actions that fall neatly into what I call a “Plan to Win” operational framework paradigm. Especially now, with extraordinary uncertainty, organizational alignment behind an agreed Plan to Win is a big advantage.
A Plan to Win is an aligning strategic document that is structured around 8 P’s: Purpose, Promise, the critical five action P’s – People, Product, Place, Price, Promotion – and Performance. A coherent Plan to Win is the single most important guiding document for a business. It is the document that outlines the direction for actions that will drive enduring profitable growth. CVS is a good example of a brand-business strategy built on the principles of the 8P’s of a Plan to Win.
Purpose and Promise
A brand’s purpose defines its North Star. Employees need a sense of purpose: they want to know that their work matters. According to Mr. Merlo, the CVS purpose is to help “… change the trajectory of health care” helping “…people achieve their best health.” Mr. Merlo describes his CVS colleagues as “… feeling tremendous purpose in wanting to help others.” The CVS brand promise is to “… make health care local, simple and helpful.”
People
One of the keys to success for any business is its employee base. In order to deliver its products and services to local communities during this pandemic, CVS is offering employees cash bonuses across the board and continued salary if an employee becomes ill. For its part-time employees, CVS is providing daycare and sick leave because it is critical for these colleagues to know they can take care of themselves and their families even if ill. CVS is working to keep its employees safe while catering to local communities. Delivering local, personal, personalized services requires a motivated, caring and engaged staff. Employee pride is a powerful force. The business frontline is its goldmine.
Product/Service
Products and services are the ultimate evidence of the truth of the brand promise. CVS is expanding its services beyond just selling products and filling prescriptions. It is focused on telemedicine, delivery, scaling up parking lot virus testing including among first responders from 100/110 per day to 500 test per day (beta testing currently in Shrewsbury, MA), filling prescriptions earlier for those with chronic health issues so these customers do not experience disruptions and offering a wider variety of medical services. For areas of the country where there is serious impact, CVS is prioritizing products for local stores.
Place
The place is the face of the brand. Every place where customers interact with the brand is a brand contact. When people enter a store, they enter the brand. When people enter a website, they enter the brand. In order to make progress towards it vision of changing the trajectory of health care, CVS is remodeling its stores into HealthHubs. The HealthHub provides local access to convenient, personalized and integrated health care support and services. As described in its PR, the HealthHub represents “… a major transformational initiative resulting from the combination of CVS Health and Aetna. HealthHub is a first-of-its-kind community-based store concept focused on helping customers get well – and stay well – by offering a broader range of healthcare services, wellness products and services, trusted advice and personalized care, all with the ease of walking right into a local CVS Pharmacy.”
Price
Price is more than how much you charge of the offer. Marketers define the cost. Customers ultimately define the price. Price is not what it costs. Price is what it is worth. Value is what you get for what you pay. Be the best value for the promised brand experience. In the current crisis environment, Mr. Merlo said that Aetna will waive co-pays and deductibles for COVID-19 hospitalizations. CVS has also waived some payments including those associated with COVID-19 testing. Mr. Merlo indicated that CVS will incur costs for taking this path, but it is the right thing to do.
Promotion
To “promote” means to “elevate.” To promote a brand means implementing a focused, integrated, relevant, differentiating, trustworthy brand message designed to build brand preference. Promotion does not mean excessive emphasis on discounts and deals. Price promotion alone builds deal loyalty not brand loyalty.
The best promotion comes from proud employees. Employees play a powerful role in promoting the brand through positive communications. Proud employees’ advocacy of a brand enhances perception among external and internal stakeholder audiences. Employee satisfaction and pride contribute to customer satisfaction. Based on the steps CVS is taking, and the commitment of its employees, the image of CVS among customers is certainly on track to be strengthened.
Performance
Build a results culture. Build a balanced brand-business scorecard. Is the business getting bigger, better, stronger? Building a results culture requires evaluating doing the right things in the right way to produce the right results. Mr. Merlo is focused on driving retail visits, usage of health services including its established pharmacies and its new telemedicine. CVS already has seen measurable results from its virus testing and its HealthHub expansions.
Following the 8 P’s of the Plan to Win creates a common clarity encouraging all employees and executives to aim in the same direction to achieve common goals. Plan to Win is the platform for building and nurturing a strong, healthy business.
Contributed to Branding Strategy Insider by: Larry Light, CEO of Arcature
At The Blake Project we are helping clients from around the world, in all stages of development, redefine and articulate what makes them competitive at critical moments of change through online strategy workshops. Please email us for more.
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