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T HE T Y L E NOL
       CRI SI S
      Presented by:-
    Sudhir Singh Rajput
                  Hitesh Mishra
       Sumit Kumar
                  Manish Kumar
I n t r o d u c t i
        o n
•J ohns on & J ohns on
 f o r m e d b y R o b e r t Wo o d
 J o h n s o n , J a m e s Wo o d &
 E d w a r d Me a d J o h n s o n i n
 1985, i s a n A m e r i c a n
 mu l t i n a t i o n a l
 p h a r ma c e u t i c a l ,
 me d i c a l d e v i c e s a n d
 c o n s u me r p a c k a g e d
 g o o d s ma n u f a c t u r i n g
 c or por a t i on.
T HE T Y L E NOL
   CRI SI S
      • On
        S e p t e m b e r 29,
        1982,"T y l e n o l
        Cr i s i s "
        b e g a n wh e n
        t he f i r s t of
        s e v e n
        i ndi v i dua l s
        di e d i n
        me t r o p o l i t a
        n Ch i c a g o ,
T Y L E NOL CAP S UL E
         E x t r a
         s t r e ngt h
         a na l ge s i c a nd
         s e da t i v e dr ug
         wh i c h r e l i e v e
         pa i n a nd
         r e duc e of
         i r r i t a bi l i t y .
         H o l d s 35% o f
         t h e $1.36
         mi l l i o n
         a na l ge s i c
         ma r k e t .
Ty l e n o l
• I
       C ar n iu n k n oi w ns
   n 1982
                   s
  c r   i   mi n a l   r e pl a c e d
  Ty    l   e nol Ex t r a -
  St    r   e ngt h c a ps ul e s
  wi    t   h c y a n i d e -l a c e d
  c a   p   s ul e s , r e s e a l e d t he
  pa    c   k a ge s , a nd
  de    p   os i t e d t he m on t he
  s t   o   r e s i n t h e Ch i c a g o
  a r   e   a .
• Ty    l   e n o l c a p s u l e s we r e
V i c t i ms -
S e p t e m b e r 29, 1982




• At     7 a m 12 y e a r -o l d M a r   y
  Ke    l l e r ma n w a s f o u n d     on
  t h   e ba t hr oom f l oor a          nd
  r u   s he d t o t he hos pi t         a l
  wh    e r e s h e wa s
  pr    onounc e d de a d.
Cr i s i s
c o mmu n i c a t i o n
   St r a t e gi e s
•F o r m e d s e v e n
me mb e r t e a m a n d
t wo q u e s t i o n
a ddr e s s e d
•C o n v i n c e d f o r
l i t t l e c ha nc e s
of di s c ov e r i ng
a n y mo r e c y a n i d e
c oa t e d t a bl e t
Cont…
•S e   v   e r a l ma j o r
 pr    e   s s c onf e r e nc e s
 we    r   e he l d a t
 c o   r   por a t e
 he    a   dqua r t e r s
•s e   t    up a l i v e
 t e   l   e v i s i on f e e d
 v i   a    s a t e l l i t e t o
 t h   e    N e w Y o r k me t r o
I mp a c t o f t h e
  s t r a t e gi e s
• E mp l o y e d f o r g i v e n e s s
  a n d s y mp a t h y
  s t r a t e gi e s f or t he
  c r i s i s .
• R e me d i a t i o n a n d
  Re c t i f i c a t i o n
  s t r a t e gi e s .
• I mme d i a t e l y p u t u p
  r e w a r d o f $100000
J o h n s o n 's
             s t r a t e g y
• C o n tt i o u w n gn n e w s c k
              n i i       b a
  c o n f u b e n ic e s t r u s t
      p er l         c
• Ha    n d l e 2,500 m e d i a
  qu    e r i e s
• Re    i n t r o d u c t i o n : Ne ws
  c o   n f e r e n c e w / C E O J a me s
  Bu    r k e
• An    n o u n c e c o me b a c k p l a n
  a t    na t i ona l s a l e s
  c o   nf e r e nc e
Cont…
•TV a ds
• 2,250 s a l e s p e o p l e
  t r a i n e d &d i s p a t c h e d
  f o r l o c a l me d i c a l
  pr e s e nt a t i ons
•Es t a bl i s he d
  r e l a t i o n wi t h t h e
  c hi c a go pol i c e , t he
  f e de r a l bur e a u
  i nv e s t i ga t i on , Food
COMPANY’s CREDO
• J &J p u t c u s t o m e r
  s a f e t y f i r s t .

• J&J used both public relations and
  advertising to communicate their strategy,
  keeping customers informed .

• T h e y o f f e r e d a n s we r s .

• F u l l y c o o p e r a t e d wi t h
Re a s o n s f o r Su c c e s s o f
      Ef f or t s Ta k e n by
J ohns on & J ohns on i n t he
       T y l e n o l Cr i s i s
  T h e y a c t e d q u i c k l y ,
   w i t h c o mp l e t e
   ope nne s s

  P r o p e r u t i l i z a t i o n
   o f me d i a

  P   r   o   v   i   de    d t he
   v   i   c   t   i   ms     f a mi l i e s
   c   o   u   n   s   e l   i ng a nd
   f   i   n   a   n   c i   a l
   a   s   s   i   s   t a   nc e
Cont…

P u l l i n g t h e T y l e n o l
 pr oduc t a c r os s t he
 c ount r y

L e a d e r s h i p o f   t he
 c o mp a n y

R e a d y f o r   l os s e s
Co n c l u s i o n
C o   mi    ng of c r i s i s
 c a   nn    ot be
 c o   nt    r o l l e d , i t ma y
 c o   me     a t a n y t i me .

H o   we    v   e   r    i t c a n be
 c o   nt    r   o   l   l e d by pr ope r
 pl    a n   n   i   n   g a nd
 de    c i   s   i   o   n ma k i n g .

 A g o o d e x a mp l e o f
 h o w t o d e a l wi t h
 c r i s i s a n d ma k e g o o d
Cont…
H o   we v e r wi t h p r o p e r
 s t   e ps a nd
 de    c i s i ons , t he y
 di    d n ’t o n l y r e c o v e r
 f r   om c r i s i s but
 c a   me o u t w i t h
 s t   r o n g e r c u s t o me r
 r e   l a t i ons .

Other companies m a y a l s o
 l e a r n f r om t hi s
Johnson & Johnson's Tylenol Crisis

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Johnson & Johnson's Tylenol Crisis

  • 1. T HE T Y L E NOL CRI SI S Presented by:- Sudhir Singh Rajput Hitesh Mishra Sumit Kumar Manish Kumar
  • 2. I n t r o d u c t i o n •J ohns on & J ohns on f o r m e d b y R o b e r t Wo o d J o h n s o n , J a m e s Wo o d & E d w a r d Me a d J o h n s o n i n 1985, i s a n A m e r i c a n mu l t i n a t i o n a l p h a r ma c e u t i c a l , me d i c a l d e v i c e s a n d c o n s u me r p a c k a g e d g o o d s ma n u f a c t u r i n g c or por a t i on.
  • 3. T HE T Y L E NOL CRI SI S • On S e p t e m b e r 29, 1982,"T y l e n o l Cr i s i s " b e g a n wh e n t he f i r s t of s e v e n i ndi v i dua l s di e d i n me t r o p o l i t a n Ch i c a g o ,
  • 4. T Y L E NOL CAP S UL E E x t r a s t r e ngt h a na l ge s i c a nd s e da t i v e dr ug wh i c h r e l i e v e pa i n a nd r e duc e of i r r i t a bi l i t y . H o l d s 35% o f t h e $1.36 mi l l i o n a na l ge s i c ma r k e t .
  • 5. Ty l e n o l • I C ar n iu n k n oi w ns n 1982 s c r i mi n a l r e pl a c e d Ty l e nol Ex t r a - St r e ngt h c a ps ul e s wi t h c y a n i d e -l a c e d c a p s ul e s , r e s e a l e d t he pa c k a ge s , a nd de p os i t e d t he m on t he s t o r e s i n t h e Ch i c a g o a r e a . • Ty l e n o l c a p s u l e s we r e
  • 6.
  • 7. V i c t i ms - S e p t e m b e r 29, 1982 • At 7 a m 12 y e a r -o l d M a r y Ke l l e r ma n w a s f o u n d on t h e ba t hr oom f l oor a nd r u s he d t o t he hos pi t a l wh e r e s h e wa s pr onounc e d de a d.
  • 8. Cr i s i s c o mmu n i c a t i o n St r a t e gi e s •F o r m e d s e v e n me mb e r t e a m a n d t wo q u e s t i o n a ddr e s s e d •C o n v i n c e d f o r l i t t l e c ha nc e s of di s c ov e r i ng a n y mo r e c y a n i d e c oa t e d t a bl e t
  • 9. Cont… •S e v e r a l ma j o r pr e s s c onf e r e nc e s we r e he l d a t c o r por a t e he a dqua r t e r s •s e t up a l i v e t e l e v i s i on f e e d v i a s a t e l l i t e t o t h e N e w Y o r k me t r o
  • 10. I mp a c t o f t h e s t r a t e gi e s • E mp l o y e d f o r g i v e n e s s a n d s y mp a t h y s t r a t e gi e s f or t he c r i s i s . • R e me d i a t i o n a n d Re c t i f i c a t i o n s t r a t e gi e s . • I mme d i a t e l y p u t u p r e w a r d o f $100000
  • 11. J o h n s o n 's s t r a t e g y • C o n tt i o u w n gn n e w s c k n i i b a c o n f u b e n ic e s t r u s t p er l c • Ha n d l e 2,500 m e d i a qu e r i e s • Re i n t r o d u c t i o n : Ne ws c o n f e r e n c e w / C E O J a me s Bu r k e • An n o u n c e c o me b a c k p l a n a t na t i ona l s a l e s c o nf e r e nc e
  • 12. Cont… •TV a ds • 2,250 s a l e s p e o p l e t r a i n e d &d i s p a t c h e d f o r l o c a l me d i c a l pr e s e nt a t i ons •Es t a bl i s he d r e l a t i o n wi t h t h e c hi c a go pol i c e , t he f e de r a l bur e a u i nv e s t i ga t i on , Food
  • 14. • J &J p u t c u s t o m e r s a f e t y f i r s t . • J&J used both public relations and advertising to communicate their strategy, keeping customers informed . • T h e y o f f e r e d a n s we r s . • F u l l y c o o p e r a t e d wi t h
  • 15. Re a s o n s f o r Su c c e s s o f Ef f or t s Ta k e n by J ohns on & J ohns on i n t he T y l e n o l Cr i s i s T h e y a c t e d q u i c k l y , w i t h c o mp l e t e ope nne s s P r o p e r u t i l i z a t i o n o f me d i a P r o v i de d t he v i c t i ms f a mi l i e s c o u n s e l i ng a nd f i n a n c i a l a s s i s t a nc e
  • 16. Cont… P u l l i n g t h e T y l e n o l pr oduc t a c r os s t he c ount r y L e a d e r s h i p o f t he c o mp a n y R e a d y f o r l os s e s
  • 17. Co n c l u s i o n C o mi ng of c r i s i s c a nn ot be c o nt r o l l e d , i t ma y c o me a t a n y t i me . H o we v e r i t c a n be c o nt r o l l e d by pr ope r pl a n n i n g a nd de c i s i o n ma k i n g .  A g o o d e x a mp l e o f h o w t o d e a l wi t h c r i s i s a n d ma k e g o o d
  • 18. Cont… H o we v e r wi t h p r o p e r s t e ps a nd de c i s i ons , t he y di d n ’t o n l y r e c o v e r f r om c r i s i s but c a me o u t w i t h s t r o n g e r c u s t o me r r e l a t i ons . Other companies m a y a l s o l e a r n f r om t hi s