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Tylenol Case Study

The document discusses crisis management through the case study of Johnson & Johnson's response to the Tylenol tampering incident in 1982, where seven people died after consuming cyanide-laced capsules. J&J's swift actions included recalling 31 million capsules, prioritizing consumer safety, and innovating with tamper-resistant packaging, which helped restore consumer confidence and recover market share. The company's proactive and responsible approach during the crisis is highlighted as key to its success in maintaining its brand reputation.

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22 views7 pages

Tylenol Case Study

The document discusses crisis management through the case study of Johnson & Johnson's response to the Tylenol tampering incident in 1982, where seven people died after consuming cyanide-laced capsules. J&J's swift actions included recalling 31 million capsules, prioritizing consumer safety, and innovating with tamper-resistant packaging, which helped restore consumer confidence and recover market share. The company's proactive and responsible approach during the crisis is highlighted as key to its success in maintaining its brand reputation.

Uploaded by

serenityrises488
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Crisis Management: TYLENOL CASE STUDY

- JHONSON & JHONSON


Crisis management

Crisis
 Meaning:
A crisis, in relation to a business, is when an unexpected event occurs that could
potentially have a negative effect on the business.
In general, it is any event or period that will lead to a sensitive and dangerous situation
affecting an individual, group or all of society.

Crisis management
 Meaning:
Crisis management is the process by which organization deals with a disruptive and
unexpected event that threatens to harm the organization or its stake holders. It is the art
of dealing with sudden and unexpected events that disturb the employees, organization
and external clients. It refers to the identification of threat to an organization and its stake
holders in order to mount an effective response to it.
 TYLENOL CASE STUDY -JHONSON & JHONSON
 About Johnson & Johnson:
 Johnson & Johnson (J&J) is an American multinational corporation
founded in 1886 by Robert wood Johnson, James wood Johnson and
Edward Mead wood.
 Headquartered in New Jersey, USA.
 It develops medical devices, pharmaceuticals, and consumer packaged
goods.
 The company introduced first commercial first aid box, baby powder, no
more tear shampoo and many medicines along with modern form of
medicine packaging .
 Incident:
On 29th September 1982, Seven people died in Chicago after taking the leading
pain killer Tylenol tampered with cyanide.
McNeil consumer products- subsidiary of health care giant manufactured Tylenol.
Tampered with 65 milligrams of cyanide .
Even though the problem was limited to Chicago area, domestic market share
dropped immediately from 37% to 7%.
At this point, Tylenol contributed 33% of the company’s total sales.
J&J immediately called back product off the shelves and faced loss of about 100
million.
Announced rewards $100,000 anyone who gave information about the suspects.
The perpetrators were never found.
Company’s Approach:
Protect people first-Replacement of capsules to those who turned
in the pills purchased.
Recalled and destroyed 31 million capsules.
Available on news papers and toll-free numbers.
Sent alerts to health care.
Halted all advertisements for the product.
Company decided the product wouldn’t be re-established until a
way to better protection had found.
Re-introduced Tylenol with triple-seal tamper resistant packaging.
Offered $2.50 coupon on purchase and offers on purchase of
product.
 Results:
 As a result of which company won praise.
 Restored the confidence in consumers and the consumers rewarded them by switching back.
 Within five months company had recovered 70% of market share for the drug.

causes for success:


Acted quickly.
Prioritized customers.
Took responsibility.
Leadership was in lead.
Sought to ensure safety measures.
Innovation.
 Key highlights:
In hindsight, a brand is not just about advertising but its actions also define it. Despite suffering
huge to the crisis J&J still managed to act quickly, honestly and decisively. They prioritized the
customers safety first and took all the measures to prevent recurrence of such problem.
 Moreover, they took responsibility and showed themselves to be prepared to bear short term
cost in the name of consumer safety and they solved the crisis with innovation. Their actions not
only bought them appreciation but also established a basis for winning back the trust of their
customers.

Thankyou

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