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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