Wednesday, August 14, 2013

Week 6 BOC: Tylenol Scare of 1982


Week 6 BOC:Tylenol scare of 1982

In the Fall of 1982 unknown persons replaced Tylenol Extra-Strength capsules with cyanide-laced capsules, and resealed and packaged them for distribution.  They were sold at over half a dozen pharmacies and food stores in the Chicago area.  Seven unsuspecting people died a horrible death due to this issue. 

“Johnson & Johnson chairman, James burke, reacted to the negative media coverage by forming a seven-member strategy team.  Their mission was ultimately “How do we protect the people?” and “How do we save the product?”  They used the media to inform the public not to use Tylenol products.  They established a 1-800-hotline for crisis.  They pulled the products off all shelves, until the source could be determined.  Johnson & Johnson created their new Triple safety seal packaging (a glued box, a plastic sear over the neck of the bottle, and a foil seal over the mouth of the bottle.) Since Tylenol brand accounted for 17% of the company’s net income, marketers predicted that they would never recover from the sabotage. Two month later, Tylenol was headed back to the marked, this time in tamper-proof packaging and bolstered by an extensive media campaign.  A year later, its shares of the $1.2 billion analgesic market, which plunged to 7% had climbed back to the 30%. 

They company achieved the status of consumer champion, because it acted with quick and complete openness about what had happened.  They immediately removed any source of danger based on the worst-case scenario.  “Not waiting for evidence to see whether the contamination might be more widespread.” “They showed themselves to be prepared to bear the short-term cost in the name of consumer safety.”

JOHNSON & JOHNSON established a basis for trust with their customers. 



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