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The document discusses Johnson & Johnson's response to the 1982 Tylenol murders, where several people died after taking Tylenol capsules laced with cyanide. It describes how J&J CEO James Burke took immediate action by forming a seven member team to investigate, issuing a nationwide product recall, and setting up hotlines for customers. It also discusses how the company countered negative publicity through press conferences, daily news updates, commercials to regain consumer trust, and introducing triple safety seals to prevent future terrorism incidents.
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Im final presentation
- 1. JJ Danis Mary Mackie Drew Kayle
- 2. CONCEPTS FROM THE BOOK Crisis Management Terrorism Packaging
- 4. BACKGROUND
- 5. TYLENOL Leader in market Profits
- 6. 1982 CHICAGO TYLENOL “MURDERS” Laced with cyanide J&J were unaware
- 7. 1982 CHICAGO TYLENOL “MURDERS” James Burke’s approach
- 8. SEVEN MEMBER TEAM Important questions asked
- 9. SEVEN MEMBER TEAM Nationwide recall Customer safety
- 10. BAD MEDIA Harsh news accusations
- 11. BAD MEDIA VS
- 12. COUNTERING BAD PUBLICITY Press conferences Hotlines for customers
- 13. COUNTERING BAD PUBLICITY Daily news updates James Burke on talk shows
- 14. COUNTERING BAD PUBLICITY Coupons Drug rep presentations
- 15. COUNTERING BAD PUBLICITY Commercials that regain trust http://www.youtube.com/watch?v=zdx8rqh59I0
- 16. TERRORISM PREVENTION Bioterrorism Amateur Terrorism Possible Suspects
- 17. TERRORISM PREVENTION Triple Safety Seal
- 18. IMPROVE PUBLIC IMAGE Counseling Financial Aid Ideal reaction to crisis
Editor's Notes
- Founded by Robert Wood Johnson and James Wood JohnsonMultinational pharmaceutical and consumer packaged goodsFortune 500
- 250 subsidiaries with operations in over 57 countries and sold in 175 countriesWorldwide sales of $65.3 billion for 2012Famous neosporin, rogaine, band-aid, benadryl, and Tylenol
- Leading pain killer on the market37% market share for painkillersRevenue of $1.2 million a yearAccounted for 33% of the companies profit growth
- September of 1982, consumers reported to media that deaths were occurring from Tylenol laced with cyanideJ&J first heard about it through a reporterThere had been seven deaths so far
- J&J’s chairman James Burke reaction to the news probably was the savior for the companyTheir quick reaction was in line with their mission statement to put the safety of their consumers first
- How do we protect the people?How do we save this productPerfect crisis management approach
- After discovering 2 more bottles with laced pills, the company decide to recall all Tylenol nationwideThey were willing to give up their best selling product for the protection of their customersLost $100 million
- Despite trying to save their product, they still received bad media pressStories published about dramatic deaths of childrenArticle titles that gave negative names to product
- Over 100,000 articles ran in newspaper about storySecond most covered news story since JFK’s death90% of America knew about it within the first week
- Before crisis, there was no functional Public Relations branch Press conferences via satellite allowing them to go nationwideHotline for customers
- A direct line with daily updates recorded for news reportersChairman James Burke went on 60 minutes and other talk shows to discuss the issue
- Gave coupons for $2.50 off2,250 sales people made presentations for the medical community to improve image
- Amateur TerrorismBio Terrorism
- New packagingTriple Safety Seal: Glued box, plastic sear over the neck of the bottle, foil over the mouthTamper proof: First ones to use this type of packaging
- Lessen negative feeling about J&JPaid for counseling and financial aid for families affected by the cyanide even though the company wasn’t at faultPerfect example of how companies should communicate with various publics during a crisis