Case Study - 1982 Tylenol Crisis


1982 Johnson & Johnson’s Tylenol Crisis
Brief Synopsis
            In 1982, seven Tylenol consumers in Chicago were killed after consuming a product that was laced with cyanide. The company recalled the product to ensure safety, changed the pill form and the packaging, and later redistributed the safer, FDA approved, product. Throughout the crisis, the company made sure it was reaching out to customers and maintaining their presence in the media.
PR Strategy
            When the crisis occurred, Johnson & Johnson quickly recalled 31 million capsules from shelves across the United States, made public announcements warning customers about the consumption of the product, and stopped advertisements for the product. CEO James Burke held a press conference a month and a half after the tragedy to fully explain the situation and to keep customers informed. J&J’s quick reaction to the crisis allowed for the company to make sure that similar problems were prevented in the future; the company reintroduced the product with a triple-seal tamper resistant packaging that complied with the FDA; the company switched the product from capsules (which were more prone to tampering) to caplets; and offered customers coupons in order to get the product selling again. The company continued to maintain a public presence in the media to ensure the public that they were on top of the situation and were doing all they can to avoid future incidents. Throughout the crisis, J&J knew they were doing what was in the best interest of their customers and knew it was the appropriate way to react.
Strategic Evaluation
              I think J&J handled the situation very well; it’s very difficult to be the center of a negative situation and bounce back. CEO James Burke did the right thing by holding a press conference to keep the public up to date. J&J took full responsibility and proved that customers’ safety came first, which earned customer trust back and helped rebuild their reputation.
            Although it is an excellent example of crisis management, there are two things that I would have improved upon and would have done in addition to everything else. The first would have been to hold the press conference closer to the incident, there’s always a time element when dealing with a crisis or breaking news and the public should be informed consistently until things have been resolved. The second would have been to reach out to the families of the victims to offer support and/or monetary compensation to help with the damage. By offering compensation, it would have shown that J&J goes above and beyond for their customers, and has compassion for what they’ve gone through because of the tampered product.
            If the crisis had happened today, I think J&J would be well prepared to deal with the media scrutiny, the company has proved that it can respond and act quickly. With the technology of today and growing use of social media, J&J could maintain a public presence by getting press releases out through Twitter, Facebook, LinkedIn, and their Web Site; by making the release accessible it allows them to be time sensitive and allows for more publicity. The public presence doesn’t have to be limited to press releases, they could have social media coordinators that man the sites responding to questions and inquiries, and giving the public a chance to have one on one interactions with someone who has information, it would help rebuild and maintain trust between the company and the public.

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