Download - Tylenol Crisis and Comeback -- Case Analysis
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COMSATS INSTITUTE OF INFORMATION TECHNOLOGY
Case Study Analysis
Crisis and Comeback of TYLENOL
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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
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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
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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
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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.
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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
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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
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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
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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
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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”
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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.
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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.
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Strategy to Win Back Public Trust
Triple-seal Temper resistant Packaging.
Price off Coupons.
New Pricing Program.
Restoration of confidence
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The Success of the Comeback Trail
Public Interest is at heart
Experts Opinion on the Tylenol Crisis
Realistic Approach
Setting an example
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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
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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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Thank you