Crisis Communication & PR Strategy - Tylenol Crisis
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Transcript of Crisis Communication & PR Strategy - Tylenol Crisis
September 30, 1982
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James BurkeFormer chief executive officer, Johnson & Johnson
During Tylenol cyanide scare in the early 1980s saved Johnson & Johnson’s reputation and preserved customer faith in the Tylenol brand
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TYLENOL
1. TYLENOL is a great product
2. TYLENOL and its parent company Johnson & Johnson have successfully managed two separate public relations crises
The spectacular drug still exists today ….for two reasons
ABOUT TYLENOL
• TYLENOL is a painkiller and product of McNeil (a Johnson & Johnson Company).
• TYLENOL becomes market leader having 37% share in US market. *
• 17-18 per cent net earning of Johnson & Johnson is generated by TYLENOL .*
* as per 1980’s market data
Crisis knocks the door of
On 30-Sep-1982CEO of McNeil receives a shocking news of
seven people death after taking cyanide laced TYLENOL capsules
THE TYLENOL CRISIS
• Publicity of Cyanide laced TYLENOL Capsules created nationwide panic.
• Media bombarded people with more and more news on the subject.
• Johnson & Johnson received 1411 telephone calls within 10 days of crisis.
PR & COMMUNICATION SRATEGY
• James Burke made 7 members strategy team.• PR Strategy was in two phases– Phase 1: How to save customers? – Phase 2: And how to save company & product ?
PR & COMMUNICATION SRATEGY
Phase 1: How to save customers?
• Communicated with Consumer & health professionals through Media with no hesitation to discontinue TYLENOL.
• Stopped production & advertising of TYLENOL.• Recalled all TYLENOL Capsules from the market.
Nationwide recall included approx. 31 million bottles of TYLENOL with retail value of 100 million dollars.
• Established a 1800 hotlines for consumers and for news organizations to call to receive daily messages with updated statements about the crisis.
PR & COMMUNICATION SRATEGY
Phase 2: And how to save company & product ?
• Reintroduced the capsules with triple-seal tamper-resistant packaging.
• Company offered to exchange all TYLENOL capsules that had already been purchased for TYLENOL tablets
• Establishing relationship with Police, FBI and the food and drug administration.
• Price off coupons. ($2.5 off)• New Pricing Program. (discount as high as 25%)• Restoration of confidence.
Impact of Strategy
Market share of TYLENOL fall down from 37% to 7% after crisis which got restored back to 33% in span of six months.
Reason for Success
• Triple sealed packaging, temper free sealing and the random inspection.
• Nationwide TYLENOL product recall.• Communicating with public during crisis.• Making public safety company’s number one
priority and concern.• Leadership acted commendably during crisis.• Johnson & Johnson Credo.
BOTTOM LINE
Essential crisis communication principles:• Always assume the worst-case scenario
(Nationwide product recall)
• Ensure that you have a plan (Johnson & Johnson Credo)
• Don't lose any time(Quick Respond)
• People always come first(PR Communication by J&J)
• Learn lessons from what has happened(Introduced tamperproof packaging )
THANK YOU !!!