UNIVERSITY OF THE SOUTH PACIFIC

Semester 2, 2023
MG206: MARKETING PRINCIPLES AND
STRATEGIES

ASSIGNMENT 1

Name: Avashnita Elakshi Prasad

Student ID: S11198441
Title: Impacts of Baby Powder Products on the Customers and the Company

The case study is about the recall of 33,000 bottles of Johnson & Johnson baby powder in the US
due to the discovery of trace amounts of asbestos in a bottle purchased online. “The company is
facing lawsuits from people who claim that its talc products caused cancer, which it has strongly
denied”. “The FDA is conducting tests to determine the integrity of the test and the validity of the
results finding asbestos, and has urged customers with products from lot #22318RB to contact
Johnson & Johnson for a refund (Whitmer, 2023)”. The Food and Drug Administration (FDA)
said there was no indication that the product was counterfeit or had been tainted during testing.
The company has strongly denied the accusations that its talc products caused cancer and
launched a voluntary recall of one lot of baby powder, produced and shipped in the US in 2018,
out of "an abundance of caution".

The recall of Johnson & Johnson baby powder in the US due to the discovery of asbestos has had
a negative effect on customers. The recall has caused customers to be concerned about the safety
of the product and has resulted in customers questioning the trustworthiness of the company.
Additionally, customers may experience financial losses due to the recall, as they may have
purchased the affected product and now need to seek a refund or replacement. For customers,
there is a risk of exposure to asbestos, a known carcinogen, if they continue to use the affected
products (Rabin, 2019). This is especially concerning for parents of young children, who may
have used the product on their baby’s skin. The impact of the baby powder products on the
customers is significant. Customers who purchased the affected product were urged to stop using
it immediately, and contact Johnson & Johnson for a refund (Krishant, 2019). The recall has
caused concern among the public due to the potential health risks associated with asbestos
exposure. It has also put the company in the spotlight, with thousands of lawsuits filed against
them claiming that their talc products caused cancer (Whitmer, 2023).

For the company, the recall has damaged its reputation and caused a significant financial loss.
The Johnson & Johnson baby powder recall due to the discovery of asbestos in some of its
products had a negative impact on the company. The company faced a backlash from consumers,
and its stock prices fell after the recall was announced. The company also faced numerous
lawsuits from consumers who claimed to have been exposed to asbestos in the recalled products.
The recall also damaged the company's reputation as a trusted manufacturer of baby products. It
is also facing thousands of lawsuits from people claiming that its talc products caused cancer,
which could result in further financial losses. The company has responded by initiating a review
and strongly denying the accusations, as well as working with the FDA to determine the integrity
of the test and the validity of the results finding asbestos.
In response to the recall, Johnson & Johnson has initiated a review and prior tests have not found
asbestos. “The firm has also strongly denied the accusations and has maintained that its products
are safe”. “It has also been working with the FDA to determine the integrity of the test and the
validity of the results finding asbestos, including whether the product was counterfeit and if the
bottle's seal had been broken”. Additionally, the Department of Justice has opened an inquiry into
the company's knowledge of asbestos risks in its talc products.

In conclusion, the recall of Johnson & Johnson's baby powder has had a significant impact on the
customers and the company. The customers have been put at risk from potential health risks
associated with asbestos exposure, and the company has been put in the spotlight with thousands
of lawsuits filed against them. This case study demonstrates the importance of conducting
thorough testing to ensure the safety of products. In this instance, asbestos, a known carcinogen,
was discovered in some batches of Johnson & Johnson baby powder, prompting a recall in the
US. The discovery of asbestos in the product highlights the need for companies to be diligent in
their testing and to take immediate action if any issues are identified. It also serves as a reminder
of the importance of product safety and the responsibility of companies to ensure the safety of
their products.
References
Krishant, N. (2019, October 19). Retrieved from Fiji Village: https://www.fijivillage.com/new/Asbestos-
discovery-triggers-Johnson--Johnson-baby-powder-recall-in-US-9s2rk5/

Rabin, T. H. (2019, October 18). Retrieved from THE NEW YORK TIMES:
https://www.nytimes.com/2019/10/18/business/johnson-johnson-baby-powder-recall.html

Whitmer, M. (2023, July 31). Retrieved from The Mesothelioma Center:

https://www.asbestos.com/companies/johnson-johnson/#:~:text=FDA%2C%20Talcum
%20Powder%20and%20Asbestos,18%2C%202019.