Investor relations. Sounds anything but riveting, right? I must admit that I thought the same thing when presented with the task to research how well CVS Caremark Corporation handled communication with investors. 
But once I dove into their most recent annual report, I realized that investor relations is simply another area of public relations that uses clever and consumer-based tactics to spread messages.
Let's take a closer look into CVS' 2008 Annual Report! Instead of a gloomy B+W newspaper-type publication with numbers, graphs and stock talk scattered on the pages, the entire report is a glossy and catchy, with the perfect word-to-financial jargon ratio. The first few pages are geared towards the less financially-savvy (like myself!) And instead of sending out a simple economical piece, CVS Caremark has used colorful marketing techniques aligned with the financial information that makes the entire book much more impressive. The fourth page of the report outlines financial information in clear, concise, colorful manner. As a shareholder, I would be very comfortable reading this graph. If the annual report had thrown incomprehensible graphs at me in first few pages, I would be more apt to recycle it in a second. (Wouldn't want to ask them how much this 74-page glossy masterpiece cost!)
But once I dove into their most recent annual report, I realized that investor relations is simply another area of public relations that uses clever and consumer-based tactics to spread messages.Let's take a closer look into CVS' 2008 Annual Report! Instead of a gloomy B+W newspaper-type publication with numbers, graphs and stock talk scattered on the pages, the entire report is a glossy and catchy, with the perfect word-to-financial jargon ratio. The first few pages are geared towards the less financially-savvy (like myself!) And instead of sending out a simple economical piece, CVS Caremark has used colorful marketing techniques aligned with the financial information that makes the entire book much more impressive. The fourth page of the report outlines financial information in clear, concise, colorful manner. As a shareholder, I would be very comfortable reading this graph. If the annual report had thrown incomprehensible graphs at me in first few pages, I would be more apt to recycle it in a second. (Wouldn't want to ask them how much this 74-page glossy masterpiece cost!)
The first few pages of the report outlines CVS Caremark's values and how each of those values is applied on a daily basis within the corporation and in their relationship with shareholders. The pictures chosen are typical of a well-constructed annual report - People of all ages, all races, both genders... all smiling 
wide while using all that CVS Caremark has to offer. It's the perfect way for CVS to say, "Hey! Look at all these super-happy people getting all of their health-based needs taken care of in one place...you should be doing the same." In my opinion, the glossy colorful pages full of happy people is extremely convincing, and CVS has the numbers and financial evidence to support it.
wide while using all that CVS Caremark has to offer. It's the perfect way for CVS to say, "Hey! Look at all these super-happy people getting all of their health-based needs taken care of in one place...you should be doing the same." In my opinion, the glossy colorful pages full of happy people is extremely convincing, and CVS has the numbers and financial evidence to support it. Nine pages in, I realized that the happy-go-lucky family loving life (and everything CVS)on the cover is actually a real customer family! This PR tactic really connects shareholders with the annual report. Most average 2-children 2-parent families watching a budget can absolutely relate to the Reyes family. Each family members' savings by using CVS
Caremark is highlighted - a fabulous way to show shareholders, "This could be you!" and inspire the reader to do more if he isn't already taking full advantage of all that Caremark is offers its customers and shareholders. Caremark uses their annual report as a way to not only show shareholders where there money is and what it's doing, but every new section of the report is preceded by a clear explanation of what the next pages hold. I like the layout of the report because it not only covers the important finance information, but it was made reader-friendly and eye-catching.
Now let's take a glimpse at Caremark's most recent "Letter to Shareholders." This letter is a great way for the corporation's CEO to tell shareholders in a few concise paragraphs about all that the corporation faced in the past year, how the company dealt with crisis, and what the u
pcoming year holds. Although CVS Caremark has posted 2009 earnings in its annual Securities and Exchange Commission 10-K filing, the most recent letter to shareholders can be found in the 2008 annual report. Let's see what President & CEO Tom Ryan has to say about the health of CVS Caremark in 2008.
pcoming year holds. Although CVS Caremark has posted 2009 earnings in its annual Securities and Exchange Commission 10-K filing, the most recent letter to shareholders can be found in the 2008 annual report. Let's see what President & CEO Tom Ryan has to say about the health of CVS Caremark in 2008. Overall, this message has a tone of excitement and growth. After the merger of CVS and Caremark in 2007, the corporation has not only raised revenues and its number of stores, but also decreased its in-store prices. Using words throughout the letter like "outstanding," "optimistic" and "industry-leading," CVS Caremark shareholders can be comfortable knowing that not only is the corporation doing well during a tough economic time, but that the company has no signs of faltering in the coming years. For shareholders, a confident letter is fabulous news. With numbers evidence and specific information to support the CEO's claims, this letter is extremely credible. At first, it seemed impossible that a corporation could have been so successful in a year when the e
conomy was beginning to show irreparable damage. However, the information given to shareholders in this letter is well-presented and well-researched.
conomy was beginning to show irreparable damage. However, the information given to shareholders in this letter is well-presented and well-researched. The most recent news release about CVS Caremark's earnings also has good news for shareholders. Released on February 8, 2010, "CVS Caremark Reports Record Results in Fourth Quarter and Fiscal 2009" has great information about a record $98.7 billion total revenue, up 12.9% from 2008. Almost every area of the press release (Revenues,Income from Continuing Operations, and Real Estate Program) all showed increases. The company did post losses from Discontinued Operations but those values were expressed respectively and equalled about $14 million...still an improvement from last year's losses. The bad news was handled in a clear way with no excuses. I believe that CVS Caremark handled the losses perfectly because in the grand scheme of things, the amount of money lost in Discontinued Operations was pennies in comparison to the incredible growth and success of the company in 2009. If I was a CVS Caremark Shareholder, I'd be a very happy girl!
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