Johnson & Johnson faced a crisis in 1982 when their top-selling pain reliever Tylenol was found to be contaminated with cyanide, killing 7 people. They immediately recalled all Tylenol products and introduced tamper-resistant packaging when rereleasing the drug. Through quick action, coupon incentives, and educating medical professionals, they recovered 70% of Tylenol's market share within 5 months. The document argues that properly planning for crises, making swift decisions, and turning challenges into opportunities helped Johnson & Johnson successfully overcome this crisis.

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.