Johnson and johnson and tylenol case study

ITS A CASE STUDY ANALYSIS ON TYLENOL CASE OF JOHNSON AND JOHNSON ..........

1. 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, J ames 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.

11. THANK YOU