TYLENOL CRISIS

Group-6

JHANVI LAKRA                          21PGP097

JOSHI SUSHMA                         21PGP098
JOSHUA J.                                    21PGP099
K SIDDARTH                               21PGP100
K VIJAYKUMAR REDDY          21PGP101
Tylenol   1982, Tylenol leading painkiller sold by Johnson & Johnson was
tempered with cyanide and 7 people died in the US.
Poisoning   It was reported that an unknown suspect put 65 milligram
cyanide into Tylenol capsule and tampering occurred when
product reached to the shelves
 Johnson & Johnson immediately called back the product from
shelves and faced losses of about 100 million dollars
Crisis Effects
 Tylenol had a market share of 37 % in 1982, with a sales of
1.2 million dollars
 Following this incidents, the market share dropped to 7%
 Even the Stock price witnessed a strong drop of nearly 18
percent in a matter of 5 days
Challenges for the company:
 

Company's image

Profitable products

Focus- better product protection

Restore trust

Shareholders
Immediate
 Protect the People First
Objectives of  Save the Product Later
the Company
 Protect the people first:
 Recalled 31 million bottles of Tylenol
 Seven members strategy team was formed
Objectives  Partnered with external organisations 
 Reintroduced with
Save the product  tamper resistant
packaging

Objectives
Presentations for the
Attractive offers
medical company
    

  PHASE 1

Clarified to media Offered exchange

Recalled the
about company's for the previously
product
strict quality sold Tylenol
immediately.
control measures. capsules.

Ceased Established
Offered $100,000
advertisement of relationships with
reward to catch
the product on all Police, the FBI and
the killer.
platforms. the FDA.
   PHASE 2
     

Reintroduced product in
Started promoting
the market containing a
tablets, that are more
triple seal tamper
resistant to tampering.
resistant package.
Click to add text
Extended their customer
Followed new pricing
services from
program that offered
newspapers to calling a
discounts.
toll-free number.

Over 2250 salespeople

made presentations for
the medical community
to restore confidence on
the product.
 Strategy Followed:- 
People First Product Later
 They removed the product from all shelves.
 This gave  time to handle the crisis while making sure nothing
else happened.
Evaluation
Johnson and Johnson’s responsibility to the public 
  This proved to be its most efficient public relations tool.
  Key to the brand’s survival
Reintroducing the product with tamper resistant
containers and encouraging tablets.

Restored the confidence in the consumers.

After 1 year of reintroduction:-

Johnson & Johnson increased its original share of the 1.2

billion analgesic market to 30percent.

The crisis caused it to drop to only 7 percent.

Key Learnings

No delay

No denial

No dismissal

Proper Planning and decision making.

Results: Repaired image and structural change in the industry