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Company
LOGO
Johnson and Johnson and
Tylenol case study
( AN IMPORTANT LESSON FOR
OTHER INDUSTRIES)
By
Rhit srivastava
Introduction of Johnson and
Johnson
• Founded by three brothers Robert wood
Johnson, James wood Johnson and Edward
mead Johnson .
• Company introduced first commercial first aid
box, baby powder, no more tear shampoo and
modern form of medicine packaging along with
many medicines.
Problem
• 1982 , Tylenol leading painkiller sold by
Johnson and Johnson was tempered with
cyanide and 7 people died in US.
• Reported that a unknown suspect put 65
milligram cyanide into Tylenol capsule and
tampering occurred when product reached
to the shelves.
• Company immediately call back the
product from the shelves and faces loss of
about 100 million .
Effect of this crisis
• In 1982 Tylenol was covering the 37% of market
share with revenue of 1.2 million.
• After this incidents market share reduced to 7 %.
CHALLENGE FOR COMPANY:
• To find a best way to deal with this problem
without destroying the company’s image and its
most profitable products.
• They have to provide a better product protection
before reestablishment of product.
COMPANY’S MOVE
• Reintroduced the product with triple seal temper
resistant packaging.
• Offered a $ 2.50 off coupon n the purchase of
their products. They were available on news
papers and toll free numbers.
• 25% off on the purchase of product to recover
the loss in stock crisis.
• 2250 sales people made presentations for the
medical community to restore trust on the
product.
Cost and the benefit
• Company won praise on its quick and
appropriate action.
• Within five months company had
recovered 70% of market share for the
drug.
• So there is a evidence that consumer
rewarded the company by switching from
other painkillers to the Tylenol.
Causes of success
• Acted quickly , remove any source of
danger and does not wait for the other
evidences.
• Showed that measured has taken which
would prevent such type of problem.
• Showed them self as to be prepare to bear
the short term cost in the name of the
consumer safety
SMARTEST WAY TO HANDLE CRISIS
• Avoid crisis in the first place.
• Quickly address and resolve crisis before
they escalate
• Seek possible ways to turn your crisis into
an opportunity
Lessons for other companies
from this case
 Prepare a system that will allow you to
respond to the emergency.
Develop policies to deal with emergencies.
Create a crisis management team.
Assemble an organize resources.
Distribute an emergency procedures
guide.
conclusion
• Crisis can come at any time you should be
prepare for it.
• A proper planning and decision making.
• Johnson and Johnson’s has set a
impressive example in Tylenol case.
• Other companies can learn a lesson from
it.
Johnson and johnson and tylenol case study

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Johnson and johnson and tylenol case study

  • 1. Company LOGO Johnson and Johnson and Tylenol case study ( AN IMPORTANT LESSON FOR OTHER INDUSTRIES) By Rhit srivastava
  • 2. Introduction of Johnson and Johnson • Founded by three brothers Robert wood Johnson, James wood Johnson and Edward mead Johnson . • Company introduced first commercial first aid box, baby powder, no more tear shampoo and modern form of medicine packaging along with many medicines.
  • 3. Problem • 1982 , Tylenol leading painkiller sold by Johnson and Johnson was tempered with cyanide and 7 people died in US. • Reported that a unknown suspect put 65 milligram cyanide into Tylenol capsule and tampering occurred when product reached to the shelves. • Company immediately call back the product from the shelves and faces loss of about 100 million .
  • 4. Effect of this crisis • In 1982 Tylenol was covering the 37% of market share with revenue of 1.2 million. • After this incidents market share reduced to 7 %. CHALLENGE FOR COMPANY: • To find a best way to deal with this problem without destroying the company’s image and its most profitable products. • They have to provide a better product protection before reestablishment of product.
  • 5. COMPANY’S MOVE • Reintroduced the product with triple seal temper resistant packaging. • Offered a $ 2.50 off coupon n the purchase of their products. They were available on news papers and toll free numbers. • 25% off on the purchase of product to recover the loss in stock crisis. • 2250 sales people made presentations for the medical community to restore trust on the product.
  • 6. Cost and the benefit • Company won praise on its quick and appropriate action. • Within five months company had recovered 70% of market share for the drug. • So there is a evidence that consumer rewarded the company by switching from other painkillers to the Tylenol.
  • 7. Causes of success • Acted quickly , remove any source of danger and does not wait for the other evidences. • Showed that measured has taken which would prevent such type of problem. • Showed them self as to be prepare to bear the short term cost in the name of the consumer safety
  • 8. SMARTEST WAY TO HANDLE CRISIS • Avoid crisis in the first place. • Quickly address and resolve crisis before they escalate • Seek possible ways to turn your crisis into an opportunity
  • 9. Lessons for other companies from this case  Prepare a system that will allow you to respond to the emergency. Develop policies to deal with emergencies. Create a crisis management team. Assemble an organize resources. Distribute an emergency procedures guide.
  • 10. conclusion • Crisis can come at any time you should be prepare for it. • A proper planning and decision making. • Johnson and Johnson’s has set a impressive example in Tylenol case. • Other companies can learn a lesson from it.