1. CRISIS MANAGEMENT
Johnson &
Johnson- Tylenol
By:
ARUSHI KAUSHIK
PALVI JASWAL
SUNAINA ANAND
DIVYANGANA AGARWAL
SHREYA AHUJA
DEVAM RANJAN

2. WHAT IS A CRISIS?
 A crisis is any event that is, or expected to lead to,
an unstable and dangerous situation affecting an
individual, group, community, or whole society.
Crises are deemed to be negative changes in
the security, economic, political, societal,
or environmental affairs, especially when they occur
abruptly, with little or no warning. More loosely, it is
a term meaning 'a testing time' or an 'emergency
event'.

3.  Johnson & Johnson was found by three
brothers, Robert Wood Johnson,
JamesWood Johnson and Edward Mead
Johnson, found Johnson & Johnson in New
Brunswick, New Jersey, U.S. in 1886.
 It is a large, diverse health care firm.
 Company introduced first commercial First
Aid Box, baby powder, no more tears
shampoo and modern form of medicine
packaging along with many useful
medicines.

4. PRODUCTS

5.  Before
TYLENOL
the crisis, Tylenol was the most
successful product in the United States
with over one hundred million users.
 Tylenol was responsible for 19 percent of
Johnson & Johnson's corporate profits
during the first 3 quarters of 1982.

6.  Tylenol accounted for 13 percent of
Johnson & Johnson's year-to-year
sales growth and 33 percent of the
company's year-to-year profit growth.
 Tylenol was the absolute leader in the
painkiller field accounting for a 37
percent market share.

7. WHAT HAPPENED?
 In October of 1982, Tylenol, faced a
tremendous crisis when seven people in
Chicago were reported dead after taking
extra-strength Tylenol capsules.
 It was reported that an unknown
suspects put 65 milligrams of deadly
cyanide into Tylenol capsules.

8.  The tampering occurred once the product
reached the shelves. They were removed
from the shelves, infected with cyanide and
returned to the shelves.
 In 1982, Tylenol controlled 37 percent of its
market with revenue of about $1.2 million.
 Immediately after the cyanide poisonings, its
market share was reduced to seven
percent.

9. PREPARATION FOR
POTENTIAL CRISIS
 Assess the risk.
 Plan for crisis
 Effect on constituencies.
 Plan a communication strategy-
what/when/how/how much/to?
 Assign Teams
 Planning for centralisation.
 Formal plan

10. STEPS TAKEN
 The team's strategy guidance from
Burke was first, "How do we protect
the people?" and second "How do
we save this product?”
 The company's first actions were to
immediately alerted consumers
across the nation, via the
media, not to consume any type of
Tylenol product.

12.  So, Public announcements were
made, warning people about the
consumption of the product.
 Johnson & Johnson was faced with the
dilemma of the best way to deal with the
problem without destroying the reputation of
the company and its most profitable product.
 It followed the guideline of protecting people
first and property second.

13.  McNeil Consumer Products, a
subsidiary of Johnson & Johnson,
conducted an immediate product
recall from the entire country which
amounted to about 31 million bottles
 A loss of more than $100 million
dollars incured.
 Additionally, they halted all
advertisement for the product.

14.  Although Johnson & Johnson knew
they were not responsible for the
tampering of the product, they assumed
responsibility by ensuring public safety
first and took the required steps.
 The company used the 1-800 number
to respond to inquires from customers
concerning safety of Tylenol. They also
establish a toll-free line for news
organizations to call and receive pre-
taped daily messages with updated
statements about the crisis

15. RE-INTRODUCTION OF
TYLENOL
 Tylenol products were re-
introduced containing a triple-seal
tamper resistant packaging.
 Furthermore, they promoted
caplets, which are more resistant
to tampering.

16.  To motivate consumers to buy the product, they
offered a $2.50 off coupon on the purchase of
their product. They were available in the
newspapers as well as by calling a toll-free
number.
 To recover loss stock from the crisis, Johnson &
Johnson made a new pricing program that gave
consumers up to 25% off the purchase of the
product.
 Over 2250 sales people made presentations for
the medical community to restore confidence
on the product.

17. CONCLUSION
The features that made Johnson & Johnson's handling of
the crisis a success included the following:
 They acted quickly, with complete openness about what
had happened, and immediately sought to remove any
source of danger based on the worst case scenario - not
waiting for evidence to see whether the contamination
might be more widespread
 Having acted quickly, they then sought to ensure that
measures were taken which would prevent as far as
possible a recurrence of the problem
 They showed themselves to be prepared to bear the
short term cost in the name of consumer safety. That
more than anything else established a basis for trust
with their customers

18. THANK YOU!!