Market Research:
Turning Bankruptcy into Opportunity for a Drugstore Chain
Industry: Drugstore
Channels: Social, Search
August 2024
The Challenge: Since opening in the 1960s, a Drugstore chain established a strong presence on both the East and West Coasts, becoming one of the nation's leading pharmacy chains. However, the chain recently faced a significant financial setback, filing for Chapter 11 bankruptcy. As the company navigated this challenging period, its leadership sought to understand public sentiment and customer perceptions to reshape its messaging and business strategy.
Winning Approach: To provide actionable insights, a social listening analysis was conducted across platforms such as Google, X (formerly Twitter), Reddit, TikTok, and Facebook. The research focused on key metrics such as search volume, sentiment analysis, and comparison to competitors.
Step 1: Measuring Public Awareness & Sentiment
Our first objective was to gauge the public’s awareness of the bankruptcy. The analysis revealed significant search volumes for keywords related to the drugstore chain’s financial troubles, such as "drugstore chain bankruptcy" and "drugstore chain closing." This data indicated that a majority of the public was well aware of the situation, with a clear negative emotional response.
Step 2: Understanding Social Media Conversations
Across social media, mentions of the Drugstore chain’s bankruptcy were dominated by negative sentiment. Conversations on X and Reddit were filled with frustration over store closures, particularly concerning the impact on employees. Additionally, nostalgic feelings for products surfaced, showing an emotional attachment to the brand despite its struggles.
Step 3: Competitor Benchmarking
When compared to competitors, the drugstore chain was perceived as lagging behind. Public sentiment frequently portrayed competitors as more successful, with better financial management. The contrast emphasized a need for the Drugstore chain to address its operational shortcomings and reposition itself in the market.
Step 4: Search Insights Analysis
Google search trends provided further insights, with queries about store closures and the bankruptcy spiking over recent months. Searches like "Drugstore chain stores closing near me" reflected concern about the chain’s presence in local communities. Though searches for "Drugstore chain bankruptcy" had started to decline, interest remained high, signaling ongoing public concern.
Key Insights:
Widespread Awareness of Bankruptcy: The public is highly aware of the Drugstore chain’s bankruptcy, with strong emotional reactions tied to the closures and job losses. Negative sentiment dominated both social media and news sources, though some neutral and even slightly positive discussions focused on potential restructuring opportunities.
Emotional Attachment and Nostalgia: Despite the negative financial news, many customers expressed nostalgia for the Drugstore chain, particularly around its popular products. This demonstrates that the brand still has emotional resonance with its customers, which could be leveraged in future communications.
Competitor Comparison Highlights Weaknesses: The public sees the Drugstore chain as struggling compared to its main competitors. Comments about poor financial management and operational inefficiencies suggest that the company needs to rebuild trust and demonstrate its capability to compete in the long term.
Local Impact Drives Concern: Search terms related to local store closures saw significant spikes, particularly in major markets like California and New York. Customers are highly concerned about the potential loss of access to local pharmacies and its effect on communities.
The analysis provided invaluable insights, affirming that transparency and consistent communication are key to turning around public perception. It was recommended that the Drugstore chain's leadership, including the CEO, take an active role in addressing customer concerns through social media updates. By showing a commitment to restructuring and engaging with customers personally, the company has the opportunity to rebuild trust and eventually emerge stronger from bankruptcy.