Managing the Talcum Powder

Accusations

Julian Gross and Katherine Knight

Corporate Communications - Dr. Shelva Clemons
Final Communications Plan
May 9, 2016
 Putting the needs
and well-being of
the people we serve
FIRST
Johnson & Johnson credo
 Background

• World’s most comprehensive and • October 2011, Forbes named J&J the
broadly based manufacturer of “top brand” in the U.S.
health care products • However, the company has had a
• Operates in 3 segments: medical series of missteps with recalls and
devices, pharmaceuticals, and lawsuits all questioning the reputation
consumer products of the brand
• Operates over 265 companies in 60
countries and carries 100 brands
• “Guided by its credo”
• CSR is at the heart of the company
for its commitment and responsibility
to the people
 The Problem

• J&J is under heavy scrutiny for

its sale of talcum powder and its
connection to ovarian cancer

• Forced to pay of $72M and

$55M from two lawsuits this year
• Facing 1,200 more from women
with ovarian cancer
J&J spokeswoman, Carol Goodwich:
“The verdict contradicted 30 years of
research supporting the safety of cosmetic
talc. The company intends to appeal and will
keep defending its products’ safety.”
The Problem…

Newsy: Feb. 24, 2016

 The Product
Baby Powder
• Johnson’s baby powder was first
developed in 1893
• As of 2015, nearly 19% of American
households use Johnson’s baby powder
and 6.73% use Shower to Shower
• Contains talc to help absorb moisture and
reduce friction
TALC
• Mineral that contains asbestos in its
natural form
• FDA does not allow talc-based products
to contain asbestos
• All talc used by J&J is asbestos free
through their own testing and FDA testing
Competitive Most significant competition in
new drug research
Analysis Main Competitors: Unilever,
Kimberly-Clark, Proctor &
Gamble, Eli Lilly, Colgate-
Pamolive, Pfizer

Organic competitors: Honest

Company, Burt’s Bees,
Crabtree & Evelyn
 POTENTIAL ISSUES:
Situation • Negative Media Coverage

Analysis • Brand and reputation damage

• Breach of Trust

OPPORTUNITIES:

• Show understanding of customers’

concerns

• Reiterate safety benefits of products

• Expand into new developments

• Rebuild brand image

Goal: To maintain and regain customer trust that has been
lost due to recent accusations and pending lawsuits

Objectives:
● Increase transparency through interviews and media
stories
● Realign J&J with its original credo of being responsible
to the customer
 Target Audiences
Who do we need to address?

Women Intervening
Mothers Investors Public:
Ages 25 - 44
The Media
Mothers with children in Women ages 25 - 44 that Johnson & Johnson
The media to reach the
diapers that might use use baby powder for investors worrying about
target audiences
baby powder hygienic purposes falling stock prices
Communications Strategies and Tactics

• Social Media • Internal Communications

• Traditional Media • Investor Relations

• Leadership Messaging • CSR Opportunities

“Our Safety Promise”
Social Media

• Engage with all concerned customers on social media

• Promote positive content showing J&J is taking the steps to ensure the
safety of its customers

• Use all of J&J’s outlets to push content and cross share content from third
party sources

• Use paid ads to target segmented audiences

Traditional Media
Be transparent with the media

• Host press conferences, town halls, and speak directly from C-level officials

Partner with trusted media outlets

• Participate in live interview with medical officials

• Invite media and bloggers to a call when there is a new development or product roll out

• Offer exclusive interviews to trusted media

Leadership Messaging

• One voice, one message

• Position the CEO to talk transparently about company operations

• Media train all CEO/C-level officials

• Partner with scientists and researchers

Internal Communications

Regularly communicate with employees

• Weekly memos to employees

• Video communication from CEO

• No communicating with the media or on social media without approval

• Develop crisis handbook detailing rules and roles

Investor Relations

Be transparent and positive with investors

• Highlight future growth opportunities

• Show how company will rebound

• Highlight positive opportunities over negative

attention

• Send special newsletter following big verdicts

or significant drop in stock prices
CSR Opportunities

Partner with key women’s and children’s cancer-fighting organizations

• Sponsor Susan G. Komen 3-Day and Relay for Life

• Turn lights teal in September to honor ovarian cancer awareness months

• Make cancer research donations with the sales of certain products

Timing & Budget

TIMING: BUDGET:

• Quick Response & Executive Action • Cost effective on all fronts

• One succinct message • Largest expenditures on

sponsorships
• Immediate response following a
verdict • Varies depending on verdict

• Continue measurement and tactics

for the year following
 Media Analysis
Measurement
Social Media
Management

SEO

Benchmarking
 SWOT Analysis
Strengths Weaknesses
● Well-known trusted family brand ● Little transparency from CEO regarding recent lawsuits or
● Highest amount of pediatric pharmaceutical sales company matters
● Highly effective response for previous crises, such as the ● Wide variety of products each with their own issues that also
Tylenol recall require attention
● Responsive social media ● Claims of company knowing about the harmful effects of its
● Consistent stock prices product and not being transparent about warnings or
● Variety of income sources and brand diversity implementing health safety label
● Self-regulated company that performs its own scientific
studies; may not be up to FDA standards

Opportunities
● Better inform customers of scientific facts behind talc
● Rebuild trust among parents and women for safety of J&J
products
● Build positive media coverage
● Partner with cancer research organizations to raise
awareness and inform consumers
Threats
● Recent lawsuits with unpredictable outcomes
● Potentially more lawsuits depending on the outcome
● Falling stock prices
● Lack of complete scientific evidence behind products
containing talc
● Negative media coverage surrounding product and J&J
brand
● SEO shows negative search results
 Sources
24/7 Wall Street. “The 10 Worst Companies Burned by the Media.” The Atlantic. June 14, 2011.
http://www.theatlantic.com/business/archive/2011/06/the-10-companies-burned-worst-by-bad-press/240448/#slide9

Adobe Social. May 4, 2016. http://www.adobe.com/solutions/social-marketing/social-listening.html

American Cancer Society. “Talcum Powder and Cancer.” November 17, 2014. Accessed April 22, 2016.
http://www.cancer.org/cancer/cancercauses/othercarcinogens/athome/talcum-powder-and-cancer

Benson, Mike. “Johnson & Johnson: A Leading Pharmaceuticals Company.” Market Realist. March 11, 2015.
http://marketrealist.com/2015/03/johnson-johnson-leading-pharmaceuticals-company/

Berfield, Susan, Jef Feeley, and Margaret Fisk. “More than 1,000 women accuse Johnson & Johnson of covering up the risks of baby powder.”
Bloomberg Businessweek. Issue 4470. Pg 54-59. April 4, 2016.

Bonetto, Lauren. “Marketing to Moms.” Mintel. September 2014. http://academic.mintel.com.proxy.library.georgetown.edu/display/679772/

Crow, David and Lindsay Whipp. “J&J to relaunch baby brand as millennials go organic.” Financial Times. April 19, 2016.
http://www.ft.com/intl/cms/s/0/035c1068-0630-11e6-96e5-f85cb08b0730.html#axzz47iRUAzSc

Dye, Jessica. “Johnson & Johnson ordered to pay $55 mln in talc-powder trial.” Reuters. May 3, 2016. http://www.reuters.com/article/us-
johnson-johnson-talc-verdict-idUSKCN0XT20L

Gilbert, Marissa. “Feminine Hygiene and Sanitary Protection Products.” Mintel. March 2016. Accessed May 1, 2016.
http://academic.mintel.com.proxy.library.georgetown.edu/display/747679/?highlight
Hopping, Richard. “Johnson’s lawsuit challenges perceptions of trust.” Mintel. http://academic.mintel.com.proxy.library.georgetown.edu/display/767756/?highlight March 31,
2016. Accessed April 10, 2016.

Investor Relations. “2014 Investor Fact Sheet.” Johnson & Johnson. 2014. http://files.shareholder.com/downloads/JNJ/1997120036x0x856393/1267DC95-99FA-47D8-81AA-
A0A855C129E8/JNJ_2014_Investor_Fact_Sheet_v5.pdf

Johnson & Johnson. “Our Company.” Accessed April 2, 2016. http://www.jnj.com/about-jnj

Margaret. “The Birth of Our Baby Products.” Johnson & Johnson’s Kilmer House. April 30, 2007. http://www.kilmerhouse.com/2007/04/the-birth-of-our-baby-products/

Money Morning Research Team. “Johnson and Johnson Stock Price Update Today.” Money Morning. April 29, 2016. http://moneymorning.com/market-news/johnson-
johnson-stock-update-april-30-2016/

Munro, Dan. “New Study Ranks Johnson & Johnson #1 in Pharma for Social Media Engagement.” Forbes. January 21, 2014.
http://www.forbes.com/sites/danmunro/2014/01/21/new-study-ranks-johnson-johnson-1-in-pharma-for-social-media-engagement/#fa23c571dc18

Nanninga, Margie. “Soap, Bath, and Shower Products.” Mintel. February 2016. http://academic.mintel.com.proxy.library.georgetown.edu/display/747662/

Neff, Jack. “Johnson’s Baby Turns to Social Media Transparency to Woo Millennial Moms.” Ad Age. July 30, 2014. http://adage.com/article/cmo-strategy/j-j-social-media-
transparency-woo-milliennials/294376/

“OTC Pediatrics: Key Players What You Need to Know.” Mintel. February 2016. Accessed April 10,2016.
http://academic.mintel.com.proxy.library.georgetown.edu/display/763157/#atom1

Rooney, Jennifer. “Brand Power to the People.” Forbes. October 5, 2011.

http://www.forbes.com/sites/jenniferrooney/2011/10/05/brand-power-to-the-people-jj-takes-lead-in-forbes-ranking/#49353ca15aed

Statista. “U.S. households: Which brands of body and baby powder do you use most often?” March 11, 2015. http://www.statista.com/statistics/275421/us-households-brands-
of-body-and-baby-powder-used/