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  • Tylenol Scandal and Crisis Management

    Загружено:

    Moumita Dutta
    95 просмотров2 страницы
    In 1982, seven people in Chicago died from taking extra-strength Tylenol capsules laced with cyanide. Johnson & Johnson immediately recalled over 31 million bottles of Tylenol at a cost of over $100 million. They also halted all advertising and permanently removed capsules from shelves after another cyanide poisoning. To regain consumer trust, Tylenol introduced tamper-resistant packaging and offered coupons for purchases. Over 2,250 salespeople presented to medical professionals to restore confidence in the product. Tylenol's swift and responsible crisis response stemmed from the company's credo to prioritize consumer safety.

    Исходное описание:

    tylenol scandal

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    In 1982, seven people in Chicago died from taking extra-strength Tylenol capsules laced with cyanide. Johnson & Johnson immediately recalled over 31 million bottles of Tylenol at a cost of over $100 million. They also halted all advertising and permanently removed capsules from shelves after another cyanide poisoning. To regain consumer trust, Tylenol introduced tamper-resistant packaging and offered coupons for purchases. Over 2,250 salespeople presented to medical professionals to restore confidence in the product. Tylenol's swift and responsible crisis response stemmed from the company's credo to prioritize consumer safety.

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    © All Rights Reserved
    Скачайте в формате PDF, TXT или читайте онлайн в Scribd
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    95 просмотров2 страницы

    Tylenol Scandal and Crisis Management

    Загружено:

    Moumita Dutta
    In 1982, seven people in Chicago died from taking extra-strength Tylenol capsules laced with cyanide. Johnson & Johnson immediately recalled over 31 million bottles of Tylenol at a cost of over $100 million. They also halted all advertising and permanently removed capsules from shelves after another cyanide poisoning. To regain consumer trust, Tylenol introduced tamper-resistant packaging and offered coupons for purchases. Over 2,250 salespeople presented to medical professionals to restore confidence in the product. Tylenol's swift and responsible crisis response stemmed from the company's credo to prioritize consumer safety.

    Авторское право:

    © All Rights Reserved
    Скачайте в формате PDF, TXT или читайте онлайн в Scribd
    Отметить как неприемлемый контент
    из 2

    28/07/2015

    TylenolScandalandCrisisManagement

    "ThePRindustryhasanimportantroletoplayinhelpingcompaniesidentify
    andmanagerisksthatcoulddamagetheirreputation."NickPurdomofPRWeek

    THETYLENOLCRISIS,1982

    Whathappened?
    InOctoberof1982,Tylenol,theleadingpainkillermedicineinthe
    UnitedStatesatthetime,facedatremendouscrisiswhenseven
    peopleinChicagowerereporteddeadaftertakingextrastrength
    Tylenolcapsules.Itwasreportedthatanunknownsuspect/sput65
    milligramsofdeadlycyanideintoTylenolcapsules,10,000morethan
    whatisnecessarytokillahuman.
    Thetamperingoccurredoncetheproductreachedtheshelves.They
    wereremovedfromtheshelves,infectedwithcyanideandreturned
    totheshelves(Mitchell,1989).In1982,Tylenolcontrolled37percent
    ofitsmarketwithrevenueofabout$1.2million.Immediatelyafter
    thecyanidepoisonings,itsmarketsharewasreducedtoseven
    percent(Mitchell1989).

    WhatdidJohnson&Johnsondo?
    OncetheconnectionwasmadebetweentheTylenolcapsulesandthereporteddeaths,public
    announcementsweremadewarningpeopleabouttheconsumptionoftheproduct.Johnson&
    Johnsonwasfacedwiththedilemmaofthebestwaytodealwiththeproblemwithout
    destroyingthereputationofthecompanyanditsmostprofitableproduct.
    Followingoneofourguidelinesofprotectingpeoplefirstandpropertysecond,McNeil
    ConsumerProducts,asubsidiaryofJohnson&Johnson,conductedanimmediateproductrecall
    fromtheentirecountrywhichamountedtoabout31millionbottlesandalossofmorethan
    $100milliondollars.(Lazare,ChicagoSunTimes2002)Additionally,theyhaltedall
    advertisementfortheproduct.
    AlthoughJohnson&Johnsonknewtheywerenotresponsibleforthetamperingoftheproduct,
    theyassumedresponsibilitybyensuringpublicsafetyfirstandrecalledalloftheircapsules
    fromthemarket.Infact,inFebruaryof1986,whenawomanwasreporteddeadfromcyanide
    poisoninginTylenolcapsules,Johnson&Johnsonpermanentlyremovedallofthecapsules
    fromthemarket.

    HowdidJohnson&Johnsonreintroducetheproducttothemarket?
    Oncetheproductwasremovedfromthemarket,Johnson&Johnsonhadtocomeupwitha
    campaigntoreintroduceitsproductandrestoreconfidencebacktotheconsumer.
    1.Tylenolproductswerereintroducedcontainingatriplesealtamperresistantpackaging.It
    becamethefirstcompanytocomplywiththeFoodandDrugAdministrationmandateof
    tamperresistantpackaging.(Mitchell1989)Furthermore,theypromotedcaplets,whichare
    moreresistanttotampering.
    2.Inordertomotivateconsumerstobuytheproduct,theyoffereda$2.50offcoupononthe
    purchaseoftheirproduct.Theywereavailableinthenewspapersaswellasbycallingatoll
    freenumber.(Mitchell1989)
    3.Torecoverlossstockfromthecrisis,Johnson&Johnsonmadeanewpricingprogramthat
    http://iml.jou.ufl.edu/projects/fall02/susi/tylenol.htm

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    28/07/2015

    TylenolScandalandCrisisManagement

    gaveconsumersupto25%offthepurchaseoftheproduct.(Mitchell1989)
    4.Over2250salespeoplemadepresentationsforthemedicalcommunitytorestore
    confidenceontheproduct.(Mitchell1989)

    WhatwasTylenol'sbasisforitscrisismanagementprogram?
    ThereasonTylenolreactedsoquicklyandinsuchapositivemannertothecrisisstemsfrom
    thecompanysmissionstatement.(LazareChicagoSunTimes2002).Onthecompanyscredo
    writteninthemid1940sbyRobertWoodJohnson,hestatedthatthecompanys
    responsibilitiesweretotheconsumersandmedicalprofessionalsusingitsproducts,
    employees,thecommunitieswhereitspeopleworkandlive,anditsstockholders.Therefore,
    itwasessentialtomaintainthesafetyofitspublicstomaintainthecompanyalive.Johnson&
    Johnsonsresponsibilitytoitspublicsfirstprovedtobeitsmostefficientpublicrelationstool.
    Itwasthekeytothebrandssurvival.
    Tylenolisoneofthousandsofcompanieswhohavefacedacrisisthatcanbedestructivetoits
    companyifnothandledproperly.In1999,17yearslater,whenCocaColawasfacedwitha
    crisisofitsown,NickPurdomofPRWeekwrotethat"thePRindustryhasanimportantroleto
    playinhelpingcompaniesidentifyandmanagerisksthatcoulddamagetheirreputation."
    WhileTylenolsucceededinmanagingitscrisis,theExxoncasewasnotassuccessful.

    BacktoTop
    Introduction|Research|HandlingaCrisis|TylenolScandal|ExxonScandal|Sources

    http://iml.jou.ufl.edu/projects/fall02/susi/tylenol.htm

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