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
Thank you