COMSATS INSTITUTE OF INFORMATION TECHNOLOGY

Case Study Analysis

Crisis and Comeback of TYLENOL

Company Background

Johnson & Johnson firm was incorporated in 1887

Firm supplied germ-free ready to use, wrapped and sealed surgical dressing

“ Modern Methods of Antiseptic Wound Treatment”

Johnson & Johnson subsidiaries were created in more than 50 countries

Company Background

One of the landmarks in the extensive growth of Johnson & Johnson was the writing of credo that codifies the company’s ethical and socially responsible approach to conducting business

The Tylenol Crisis

McNeil, Johnson & Johnson subsidiaries has a painkiller called Tylenol

Tylenol becomes a market leader having 37% share in market

17-18 per cent net earnings of Johnson & Johnson is generated by Tylenol

On 30 Sept 1982 CEO of McNeil receive a shocking news of seven people death after taking cyanide laced capsules

The Tylenol Crisis

Poisoned capsules were from four manufacturing lots and they were taken from different pharmacies over a period of week or even month

The person responsible for the death of seven person spent few hours in tampering and resealing the bottles with five or les cyanide capsules and one with ten and then placing them back on the shelves of five different stores in the Chicago area.

The Tylenol Crisis

The publicity about the cyanide laced capsules created a nationwide panic

With the expansion of 24 hour electronic media people were bombarded with more and more news on the subject.

Johnson & Johnson received 1411 telephone calls within the 10 days of crisis

Johnson & Johnson’s Crisis Communication Strategy

James Burke made 7 member strategy team

How to save customers? And how to save the product?

Withdrawal from Chicago and surrounding areas

Withdrawal from USA

Johnson & Johnson’s Crisis Communication Strategy

Very dim chances of more contamination

Not to take any chance

Heavy media usage

1800 hotlines

1411 calls within 10 days

The Impact of Strategy

Many believed Not everyone was convinced Business might suffer Panic in the industry No future for the product

But in reality Public Relation experts Competitors

The Impact of Strategy

Model and lesson of Crisis Management

US Consumer Product Safety Commission, R David Pittle commented:

“They did the right thing and they did it promptly. Putting customer safety above all else can help develop a loyalty from the consumer”

The Impact of Strategy

Washington Post on 11 October, 1982 Company has shown how to handle a disaster. Applauded honest Stressed that company could have easily unlinked itself, but it did not $100,000 reward by the company for nabbing and nailing the killer.

Strategy to Win Back Public Trust

Tylenol Crisis arrived in two Phases.

Public Announcements were made.

Immediate product recall.

Establishing Relationship with Police, FBI and the food and drug administration.

Strategy to Win Back Public Trust

Triple-seal Temper resistant Packaging.

Price off Coupons.

New Pricing Program.

Restoration of confidence

The Success of the Comeback Trail

Public Interest is at heart

Experts Opinion on the Tylenol Crisis

Realistic Approach

Setting an example

Reasons for Success

Provided counseling and financial assistance

Triple sealed packaging, temper free sealing and the random inspection

Pull the Tylenol product across the country

Communicating with a public during crisis

Making public safety the company’s number one priority and concern

Reasons for Success

Leadership acted commendably during the crisis

Media Portrayed the company as an unfair victim of a hostile act of an outsider Showed Johnson and Johnson taking positive corrective action to help the

victims’ families

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