The W of Walgreens

Walgreens is known for its "W" symbol... and they're so concerned with being recognized by that "W" that they recently sued Wegmans (the supermarket) because their "W" was a little too similar for their liking...
The full Walgreens logo features a mortar & pestle in addition to that famous red "W." Traditionally, red is a powerful color... for example, politicial candidates wear red ties when they have to make a powerful decision or speech. So for Walgreens to use red as their color, it's like they're making a powerful statement-- "We're here to make you better!" By adding the mortar & pestle (which is the old sign of apothecary), Walgreens wants to remind customers that they understand the basics of "staying well." In fact, Walgreens' newest campaign is "there's a way..." (followed by various phrases including) ..."to stay well."

In an interview with Walgreens' CMO, she explained the new PR campaign, called "Walgreens: There's a Way" as a way to position themselves as a community partner. CMO Kim Feil said, "There's a Way is intended to show consumers, customers and patients that Walgreens will help them make informed choices." The most recent TV spots encourage customers to get a flu shot placing the emphasis more on health & wellness at this time of year.

Feil also explained that Walgreens used to market each component of their brand separately, but in their new campaign (the first of its kind), they want consumers to see Walgreens as a one-stop shopping destination. This PR campaign spans TV, radio, internet, and social media, which is the first time Walgreens has spread their campaign across all of these media outlets.

By advocating themselves as a community partner (since, with 7,000 stores, they really are on every corner), Walgreens is branding themselves as more than a corporate giant-- but as a good neighbor who cares. Walgreens pharmacists are available to help when children have an ear infection, or when someone finds out they have diabetes and don't know how to adject their lifestyle accordingly, Feil explained.

Walgreens works to fulfil their campaign goal everyday, by helping neighbors find ways to stay well.

Cops & Robbers?

So for most people, theft and crime would be the mark of a crisis-- but not for Walgreens. News for Walgreens often comes up as another robbery, another shooting, another break-in... but with a store on every corner in America, Walgreens has proven they can weather any storm that comes tearing through.

There are no major crises Walgreens has had to handle recently-- essentially it's been pretty much smooth sailing for them. Knock on wood, there have been no insider trading scandals, no tylenol contaminations, no extra-marital affairs... so the the closest that Walgreens has come to a crisis is a product recall in April 2009.

On April 21, 2009, Walgreens announced the voluntary recall of trail mix-- Deerfield Farms Mediterranean Fruit & Nut Blend-- as the pistachios in the mix could be contaminated with Salmonella. While there was no proof that nuts were indeed contaminated, and there were no reports of illness from the product anywhere else, Walgreens voluntarily recalled the snackfood, showing their customers that they care for their health & wellness.

In the news release announcing this recall, Walgreens said all of the right things:

"Walgreens takes the safety of its customers seriously and is working with the FDA on this recall...Customers who purchased the recalled products should discontinue use immediately and return items to Walgreens for an exchange or refund."

In a way, this was a pre-crisis for Walgreens, and their actions to prevent customers from consuming possibly-tainted food helped them to avoid a full-blown crisis (for example, if people were dying or becoming very ill from a product they purchased at a Walgreens).

The bigger issue in this case is that Deerfield Farms is a brand specific to Walgreens (Walgreens' home base is Deerfield, IL), available exclusively on their web site and in stores.

In this case, Walgreens' PR staff didn't have to put in much effort beyond issuing a press release and pulling the trail mix off the shelves. This was certainly a minimally-invasive issue for them to handle. These two simple actions reached their stakeholders, because they communicated with customers in-store, and potential consumers via media (if tv and newspapers picked up the news release...which in this case, was less of a crisis for Walgreens, and more of an issue for the pistachio producer plagued with salmonella).

Walgreens did all they needed to do in this situation-- they handled it perfectly in my opinion. Although it seems minor, they avoided huge issues that could emerge by taking swift action to protect their customers. They recalled the product, announced exactly why they were doing so, and ensured everyone that they were working with the necessary authorities to prevent any harm to their customers. They also maintained their image by including their concern for the safety of their customers right in their initial media statement.

The only additional suggestion I have for further outreach would be for Walgreens to launch some sort of investigation into all Deerfield Farms brands, just to ensure customers that no other products from this line are contaminated. If they were sure that this case of salmonella was isolated to one particular facility, they should additionally assure customers that this is the case. However, it makes sense why Walgreens wouldn't dwell on the entire line, because they don't want to draw extra attention to a seemingly-small, and fixable problem.

show me the money! (investor relations)

Annual Report:

Walgreens' annual report is attractive. It's in full color, full of pictures, and I would definitely pick it up and take a look... at least at the beginning. The first 18 pages are prose and pictures, more of a narrative explanation and collection of everything Walgreens did in 2009.

Then come the numbers... from page 19 to page 42. While investors are (okay, maybe) interested in these details, let's just say I skimmed over them... but I did notice that after each section filled with charts and spreadsheets, there is a narrative passage summarizing what the numbers represent.

The goal of the annual report is to appeal to each audience that may be reading it. There are numbers for those who think in Excel spreadsheets, explanations for those who need some help drawing conclusions, and pictures for people who prefer to see success visually and in color! They definitely see this as an opportunity to showcase their achievements and highlight their goals. Walgreens mentions the new markets they entered in the past year, how they're caring for the community, including employees with disabilities at work, and serving their customers above and beyond the year before. The annual report resembles a newsletter because it's visually pleasing and (at least the beginning part) features easy-to-read feature-like stories.

Letter to Shareholders:

The letter to shareholders is found at the beginning of the annual report and it's signed by two company officials-- the President/CEO, and the Chairman of the Board.

The main message of this letter is to let shareholders know that even through tough economic times, Walgreens will emerge as strong and successful as ever. 2009 was a good year for the company, opening its 7,000th store, focusing energy into "Affordable Essentials" in their stores (rather than focusing on new discretionary items), and introducing "Customer Centric Retailing" which features merchandise displayed in groups of complimentary items (to provide a more convenient and efficient shopping experience).

As an investor, I'd feel confident in Walgreens surviving another year, and being successful doing that. The letter also says how the company wants to return any surplus ca$h to the shareholders, so I'd be excited about that, but also because it means the company realizes the value of my share and wants to repay me for helping them out too. They also thank their employees in the letter, which seems a little out of place in the shareholder letter, but employees could be shareholders too so this is important.

The letter is certainly credible and features numbers, charts, graphs, and photographs. Using several methods of proof and giving various examples makes me believe what they're writing. The tone of the letter is confident. Walgreens truly believes they're doing a great job, and will continue to grow by implementing new strategies and ideas. The company wants shareholders to know that they're not going anywhere.

Latest News Release:

"Walgreens September Sales Increase 5.3 Percent"

This news release, from the first week in October, is reader-friendly, in that it doesn't include jargon. However, as it's a sales report, it's full of numerals, which makes it hard to read nonetheless.

The CEO is not quoted here, but rather, the president of pharmacy services. (Sidenote, his name is Kermit.)

His quote is factual, but a little lengthy, all about flu shots and how Walgreens has given out some but still has plenty of vaccinations available for the rest of the season. They handled their increase in earnings well, because they're careful not to brag, just in case misfortune strikes in the future. They're confident without being cocky. The news release was well-written and contained enough background information to help a first-time reader/ potential investor understand how the company is doing.

Community Health Partners

Walgreens is an active neighbor in the community-- heavily in its Chicago hometown, but certainly not limited to Chi-town.

Their community outreach is targeted toward health & wellness, which fits their company image well. Walgreens started as a pharmacy and has since expanded its services, but first and foremost, they are a healthcare partner in the communities they serve.

The company's mission statement is succinct, yet broad, and their community outreach is clearly targeted to meet this mission.

The following excerpt (two pieces) drives their community relations program:

1- "We will provide the most convenient access to...pharmacy, health, and wellness services"

2- "We will earn the trust of our customers"

...and to do this, Walgreens has a multi-pronged approach.

Because Walgreens is on every corner in America, (and Puerto Rico!), it's important for their image and business success to support these communities. There are four staples in their outreach program, along with opportunities for additional group funding.

First:

Walgreens teamed up with AARP to bring "wellness on wheels" around the country as part of a "Wellness Tour." This mobile health unit travels the country providing FREE services including screenings for glucose, cholesterol, blood pressure, BMI, and bone density. Normally, these services could cost up to $140, but Walgreens realizes the value of being a positive presence in the community. They also realize that a lot of customers, including people in low-income areas and older people too may not have the resources at their fingertips to access these services, so Walgreens is coming to them. It doesn't hurt their business either, because hopefully, customers will bring their business to Walgreens after seeing this extension of goodwill and caring to the community.



They also provide a phone number for interested participants to call and find out when the vehicle will be near them! (If you want to be a Walgreens groupie and follow the bus around the country, you can find it by calling 1-866-484-TOUR).


Second:

Walgreens realizes that people are in need, and therefore, there's no need to waste items that are perfectly useful, just cosmetically damaged. Walgreens has partnered with Feeding America to provide not only food, but other household items to those in need (essentially, another type of "food" that people need to live). Walgreens donates any slightly damaged or discontinued products (like shampoo) to Feeding America, which is especially useful because these are the types of items that people canNOT buy using food stamps. In 2009, Walgreens donated 5.6 million pounds of goods-- definitely contributing to the community's wellness, health, and personal hygene too!

Third:
Walgreens works with the Midtown Educational Foundation in Chicago to help students in grades 4-12 prepare for the future.

Walgreens employees volunteer their time to mentor and tutor these students, in an at-risk area, to encourage them to stay active in school and make goals for their futures. When it comes to community giving, working with children is one of the best ways to get involved and Walgreens understands this.



Fourth:

Walgreens realizes that their employees are also part of the communities they serve, and chances are, their employees shop there too. The Walgreens Benefit Fund for Community Relief was founded in 1939 by company founder Charles Walgreen, with a $50K donation from his will. Part of the company's mission says "We will treat each other with respect and dignity" which often is a challenge after a tragedy. This fund is for employees suffering a loss, such as funeral expenses, losing their home to a fire, or natural disasters hitting hard. By rebuilding where people have lost, they're also re-building the communities they serve.

Walgreens' outreach shows a commitment to health and wellness, along with building customer loyalty, trust and support. Employees also know they can count on their employer in times of need.



Less substantial but also available: Walgreens pharmacies offer free glucose testing to people who may not even realize they are Diabetic yet, but Walgreens helps people be proactive and is caring for its community members in this way.
Finally, any organization can apply to Walgreens for funding, as long as they meet the criteria:

-access/

outreach/

education geared toward health

-non-profit organizations focused on a disease

-civic/community outreach groups

-faith-based groups, as long as the funding isn't JUST used for religious purposes, but rather, for some greater good in the community

The company knows that community involvement is a must and it will make them more popular, likeable, and respectable.

Community Outreach efforts are definitely a positive PR outreach program for Walgreens. Funding community projects, supporting community health, mentoring students (because they are the future, after all!), and giving to the needy in our own backyards shows the company in a favorable light. They're covering all the bases, while staying focused on their company mission.

However, working with kids seems like an afterthought. While a mentoring program is definitely a great idea and they should continue doing it (as long as it's mutually beneficial), it would make more sense for the in-school volunteers to focus on health. Maybe that already is the focus of their mentoring program, but if so, they're not publicizing it as such. Topics like personal hygene, preventive screenings, and other health issues should definitely be a priority. If this is in a low-income area, chances are, these kids may not have full access to all their healthcare needs (like the dentist, even). Maybe some sort of scholarship program for kids who have been through the program would be a wonderful addition to the company's community outreach.

An Oasis in the Food Desert

On August 11, 2010, Walgreens announced an addition to the merchandise they carry in several Chicago-area stores-- fresh food! Walgreens, not typically a fresh grocer, teamed up with Northwestern Medicine and Near North Health Service Corp. to pilot a program in neighborhoods deemed "deserts" in Chicago, meaning they have no immediate access to fresh foods needed to live a healthy lifestyle. In these "food deserts," Walgreens is now the oasis they need.

The initial rollout of expanded merchandise includes fresh produce, frozen meat and fish, pasta, rice, beans, eggs, whole grain cereals, and prepared foods to be cooked at home. All 10 stores in the first wave are in Chicago, but Walgreens mentioned the potential to expand to other markets as well.

While the grand opening was localized, rather than a nationwide celebration, Walgreens did host an official kickoff community celebration at one of the participating stores. The event featured guest speakers including the city mayor, radio celebrities and local officials. All speakers focused on educating attendees about healthcare management plans, with a particular focus on diabetes care and prevention.

The celebration also featured other health-conscious activities, such as blood pressure screenings, a fitness demonstration, free healthy-food samples, and giveaways. Walgreens may carry a variety of general merchandise in their stores nationwide, but their overall focus is on community health.

Walgreens' strategic public relations move here was to shift the focus from re-vamping their stores (and simply having ribbon-cuttings to announce new products) to their larger corporate goal of encouraging and supporting community health. They partnered with other influential organizations to show their investment in the communities where they have stores, rather than focusing solely on a marketing campaign to sell products. Walgreens makes a conscious effort to appear as community partners in neighborhoods nationwide, rather than another corporate giant taking up space on every street corner.

Taking action to improve local health portrays Walgreens as a caring company, interested in the greater good of its customers. This message is less to do with marketing specific products, and more to do with helpful services offered, which is PR that they don't have to buy. This is where Media Relation(ships) (or M.RELA as I called it all summer on my timesheet at my internship!) are crucial to spreading the word that Walgreens is a good neighbor.

Walgreens prepared a press release for these store openings which is posted on their web site. They did not offer contact information for a spokesperson, which leads me to believe (or hope, for the sake of their relationship-building efforts!) that they posted a slightly different version to their external web site, compared to the version they would have sent out to media professionals in the Chigago area, because not only is that where the new stores were being opened, but it's also where the company is headquartered. While it's impossible to know how exactly they disseminated the news release, phrases from the release did show up in various online sources, including industry blogs and a news site focusing on Manhattan, so the story branched out as Walgreens discussed bringing their "oasis" to other food deserts.

In this case, it was less about publicizing the opening of these stores and more about generating buzz to entice customers to come in and try the food eventually-- it didn't necessarily need to be on the first day, because that first day festival I described before only happened in Chicago, where now stores are open in New York too. Generating interest in this concept starts with the industry bloggers, but there wasn't much mention of this new concept to the masses.

My assumption is that because these stores already existed, customers didn't need to be sold on the idea of shopping at Walgreens-- they already do. That's why this concept was expected to work out so well. Bringing fresh food to places that consumers already frequent seems the most effortless way to encourage shoppers to eat fresh foods and consider their health. Walgreens tried to create one-stop shopping in markets that didn't already offer as many fresh-food options, which is why their idea seems to be a good one. This is where in-store PR/marketing/advertising is necessary. Once the shoppers are in there, whether it's to buy prescriptions or shampoo, Walgreens needs to ensure there are attractive displays in the front of the store to direct shoppers to the new department.

Using Google Alerts to follow Walgreens has shown several mentions of this pilot program (mentioned second-most to robberies and other criminal activity!), so the media was indeed picking up the story. However, this story would be of most interest to consumers in the specific areas that are effected by this change, so media in, say, Idaho or Washington state may not have carried anything about this, and their news hits for Walgreens may be more focused on money-saving coupons and in-store promotions.

One of the most creative PR tactics used in this campaign is naming the city neighborhoods "food deserts" because that's an unusual term to be applied in this situation. To think of Walgreens as an Oasis certainly gives off the "savior" feeling, since it's being compared to water in the desert, an elixir needed to live another day (or the palm tree over there -->) . Okay, maybe that's dramatic, but you get the point. Oasis is a tropical word and attracts readers' interest.

Walgreens definitely had a novel idea-- bringing fresh fruit and encouraging healthy behavior in communities that get little other encouragement to live this way. While their press release was well-written and explained all of the components of the project, I would've liked to see more examples of stories written about them, and I'm most curious to see how shoppers reacted to the new department in their favorite corner drugstore. While their reaction may not be attributed to the company's PR efforts, observing the reactions of one market (Chicago) will be helpful when rolling out the fresh-food sections in other markets (Manhattan). PR professionals must learn by experience, and it's a mistake to skip the evaluation step of any campaign. To ensure success in future endeavors, you HAVE to evaluate. (There-- one thing I remember from PR Research!)

I think they could've made the kickoff events even bigger. Free samples, more healthy ideas, Zumba classes, whatever it takes short of throwing a carnival. To get the word out about something like this, word of mouth between friends is often most effective. Now, friends with blogs are the newest (and most influential!) media source, so personal opinions matter more than ever. While industry blogs featured articles on Walgreens, few smaller publications showed up in Google search results on this topic. Maybe they didn't cover the story, or maybe they're too small to even show up in a search, but Walgreens could've used the media as allies even more. Often, print media is the focus, followed by on-camera too, but people forget the influence FM radio still has, especially in cities, or as people drive through/by in their cars. Local radio (because they had radio hosts at the event too) would've added another dimension to their public relations toolbox of tactics.

Walgreens also could've used these events to establish more of a presence in these communities by showcasing their corporate goals that would effect consumers. For example, their health initiative extends beyond healthy eating, to getting flu shots and staying healthy year-round. Walgreens had a captive audience at this event, so they could've used it more to get to know neighbors, consumers, shoppers, competitors, and the media for future outreach on other topics too. Being out in the community would've been a good time to publicize other efforts to be responsible in the community.

Maintaining Mainstream Social Media

Walgreens has developed an active presence on Facebook & Twitter-- the two largest, and seemingly most mainstream, social media outlets used online.

Walgreens' Facebook page is liked by 601,186 people, and they have 588 Twitter followers. CVS, a competitor, has two Facebook pages: one has just over 20,000 followers, and the other has just under 4,000. Rite Aid's pages have even less followers than CVS. In terms of social media presence then, Walgreens is ahead of their competitors.

Walgreens utilizes its Facebook page to engage customers on a variety of topics.








Their most recent post is fall-related, as you can see above. In this case, the topic of their post isn't what's of interest, but rather, that 396 people took the time to comment on it, and another 370 people took the extra click to "like" it.

They also use Facebook to publicize their sales, products, and upcoming events. They feature video interviews with medical experts about getting flu shots, promotions on new makeup products available in stores, and promote an active online community through general interest posts like the one above. While their page is buzzing, they're lacking input from one important audience: identified company representatives. A lot of Walgreens employees take the time to post on the site, responding to customers and airing their own grievances. However, their comments are no substitute for an official presence on the site. An employee post, shown below, tries to calm a customer-- but really, someone from corporate, rather than photo techs at stores across the country, should be responsive online.












Responses from random employees are better than no responses at all, but I doubt these people are authorized to speak on behalf of the company (not that they claim to be), nor are they media trained. In the time of a crisis, these are not the people you want solely responsible for your company's reputation. There really should be someone from the company monitoring comments and responding when necessary. This way, if something is brewing online, the right people will know and be able to take action.

Because of their lack of response, it can be said that Walgreens does know that customers will always have something negative to say/ something to complain about and an online forum is where they're often most comfortable doing so. Therefore, it's okay for them to let customers complain, but if there are specific issues, maybe a customer service rep. should be offering coupons or suggestions for "next time" to encourage people to return, even after a bad experience.

Most efforts to use social media are focused on Facebook. They have an updated "videos" section, including uploads of their most recent commercials, under which are numerous comments praising them. It's unlikely that Walgreens would pay so many people to comment, so it seems like Walgreens' loyal customer base has translated from the store to Facebook.

On their website, http://www.walgreens.com/, the store offers the "Facebook Fan Oath". Here, they encourage posters to be respectful, or their comments will be removed. However, this is not an attempt to cover up negative feelings toward the company because the Oath also encourages people to share all feelings, good and bad, with the company to ensure better service in the future. There is no way to ensure that people follow this Oath; however, it does provide some explanation as to why Walgreens may delete a post.



Walgreens has two Twitter sites, one of which is verified official, the other is not.




Verified: www.twitter.com/Walgreens
Not: www.twitter.com/WalgreensNews





The two pages share similar information, but @WalgreensNews focuses more on industry trends and the corporate side of the company, where @Walgreens shares a variety of information, including sales and coupons for consumers.

They do update Twitter a few times a week, presumably, as relevant information surfaces.

Walgreens is also a player in the world of "Apps" for iPhones & Blackberrys. A tech blog, describes the company's free app, and explains that it can alert you immediately when prescriptions are ready. This is great for today's busy consumer, because this goes a step further in convenience than checking this information on their web site-- now the information comes right to you! Now, I don't have a smart phone, but I'm thinking that millions of apps like this would keep my phone constantly buzzing... not sure if I'd sign up, but for those who are attached to their crackberrys, here's an option!

The company has established online presence, but they need to develop it further. They have no YouTube page, which is an outlet for posting videos (besides just on their Facebook page). Also, their PR people really need to develop THEIR online presence, and let people know who they are so that questions and concerns can be directed there. While the communications staff has created a BRAND presence, there's no face or name to the brand- -and they need that. Walgreens' Facebook page is popular, with many people commenting and "like" ing their posts, but they might want to think about what their main goal is for social media: is it to sell products? build community? share health info? or do it all? My assumption is they want to do it all, and they are! But they need a little more presence in the customer service department.

Perhaps they should look to develop Twitter next, and see if anyone is "re-tweeting" their "tweets," which can help gauge interest in the topic and assign some value to the information they're sharing. This way, Walgreens can see what their customers are most interested in from the company.

Meeting and exceeding the consumer's wants and needs will assure Walgreens remains successful, and social media is the perfect way to reach a large chunk of customers.

Welcome to... Walgreens

Hello Bloggers (& Consumers alike!),

This blog is about Walgreens-- and is titled "Welcome to Walgreens" because I will begin to study their corporate practices from the outside, so in a way, I'm welcoming myself, too. As time progresses, I will look into the inner workings of the company and the strategic choices they make which build their reputation and keep them on the Forbes' Top 100 List (#32 this year). For a company that's visible on literally every street corner in the area, I look forward to finding out more about what they do, beyond prescriptions and red-cursive-letter signs.

Walgreens is most often compared to CVS-- originally it was a pharmacy, but its services reach beyond that of an apothecary. The company's stores also features general merchandise, beauty supplies, photo processing, seasonal items, greeting cards, and a small grocery section. The first piece of news to me as I investigate Walgreens is that select stores offer an in-house health clinic for patients older than 18 months, that takes some insurance plans too. Walgreens aims to be a one-stop shopping center with a special emphasis on community wellness.

This company's reputation is standard-- meaning there is nothing that stands out as exceptionally good or bad. This presents the company with an opportunity: to take steps to stand out and differentiate between themselves and the competition. While this can be an opportunity, Walgreens must also realize their "lack" of reputation is simultaneously a challenge to overcome. As I explore this company, I aim to highlight distinguishing characteristics that will set Walgreens apart from the other chain-drugstores.

If anything, Walgreens' accessibility is both a positive and a negative when it comes to their reputation. Because the stores are so prevalent in this area, the store's name is equitable with reliable-- meaning their brand is recognized by consumers, and if looking for a drugstore, Walgreens will pop into mind as a top contender for their business. This is positive for their reputation, and it's good for business. However, Walgreens is a chain, and could be considered by consumers as part of "evil" corporate America. They aren't a personal, neighborhood drugstore, which some consumers may seek in smaller towns. Because of their aggressive expansion, some consumers may resent them. Overall, though, Walgreens is a reputable name in healthcare/beauty supplies, and photo processing as well.

They have the potential to improve their reputation by promoting their outreach initiatives beyond the Sunday paper circulars.

For more information about the services they offer, check out their web site here.