Tylenol Crisis And Comeback -- Case Analysis

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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