JOHNSON AND JOHNSON ‘TYLENOL’ PAINKILLER MEDICATION CRISIS MANAGEMENT CASE STUDY

one of my case study assignment. Basically, it is about CSR activities by Johson and Johnson. i really love doing case study... =)

JOHNSON AND JOHNSON ‘TYLENOL’ PAINKILLER MEDICATION CRISIS MANAGEMENT CASE STUDY

1.0 Company Background

In 1806, Robert Wood Johson, James Wood Johson and Edward Mead Johson has become the founder of Johson and Johson company. Until now, this 120 years company had involved in products and services to enhance the health and well being of people. It is the world’s premier consumer health company and also has been declare as the largest most varied medical devices and diagnostics company in the world. Basically, this company concerned about all people in the world health care as this product had established its corporate image through out the globe. This is due to more than 250 of its chains been established in 57 countries and also as the employer of 115,500 employees for the whole chains. The main headquarters for Johnson & Johnson is at New Brunswick, New Jersey, USA.

Among of the example of this company products are Listerine Whitening, Neutrogena and Acuvue. These entire products are categorized as health care products for consumer. As the most professional company in product health care, all of its products had gone through the pharmaceutical segment of Johnson & Johnson that had been spend over RM 5 billion investment in 2008 on research and development. The research and development of this company are categorized in five therapeutic of medical need, which include: neuroscience (including pain); cardiovascular disease and metabolism; immunology; infectious disease; and oncology.

2.0 Johnson & Johnson ‘Tylenol’ Painkiller Pills Crisis Management

In 1982, one of Johnson & Johnson ‘painkiller’ pills named Tylenol’ had faced a serious crisis when the number one painkiller brand in America during that time, had caused seven people in Chicago died after taking extra-strong of ‘Tylenol’ pills. The Tylenol capsules had contained 65 milligrams of deadly cyanide that its effects can kill human in a time. It was reported that the suspect for the cause of putting such amounts of cyanide still remain unknown until now.

At that time, the disaster starts when the’ Tylenol’ had been marketed and put at the shelves for customers. Due to the death report, Johnson and Johnson had ordered all ‘Tylenol’ capsules been removed quickly from shelves to avoid more death from happen. Instead of causing death to people, the capsules had reduced seven percent of its $ 1.2 million profit.

A quick action by removes all the capsules from market and also good strategic crisis communication program by Johnson & Johnson had safe the company reputation and increased back its revenue by recovered 70% of its market share for the drug. Through the successful recovered by the company, the situation clears about this company is preserving its long term value of its brand.

3.0 Crisis Management through Communication Changes

1. Recovery Campaign: One of the way Johnson & Johnson crisis management strategies was come up with a campaign to re-introduce its product and restore confidence back to the consumer. The campaign was a good communication tools as it had successfully gain back customer trust on Johnson & Johnson product brand and profit.

2. Branding Improvement: Tylenol products were re-introduced containing a triple-seal tamper resistant packaging. It became the first company to comply with the Food and Drug Administration mandate of tamper-resistant packaging. (Mitchell 1989) Furthermore, they promoted caplets, which are more resistant to tampering. Branding improvement shows that, the company had take actions in cured the crisis by fixing the capsules content.

3. CSR Program Implementation: In order 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. They try to have good relationships with customers (Mitchell 1989).

4. Building good relationship between company and customer: T o 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. (Mitchell 1989)

5. Two way symmetrical approaches in communication: Over 2250 sales people made presentations for the medical community to restore confidence on the product. (Mitchell 1989). This type of communication more touched on building good relationship by knowing their customer needs and want.

4.0 Conclusion

According to Robert Wood Johnson (1940), he stated that the company‘s responsibilities were to the consumers and medical professionals using its products, employees, the communities where its people work and live, and its stockholders. Therefore, it was essential to maintain the safety of its publics to maintain the company alive. Johnson & Johnson’s responsibility to its publics first proved to be its most efficient public relations tool. It was the key to the brand’s survival.

Johnson & Johnson had successfully handled their company crisis management regarding on ‘Tylenol’ capsules which are one of their product brand. They handle the crisis very well by using a good crisis management plan that suitable to be established for their crisis. Apart from that, the crisis was not able to give long term effect towards the company as within 5 month, the company able to recover their lost and had gain customer trust on their product. This also may due to the quick actions that had been performed by the company.