Crisis Communication & PR Strategy - Tylenol Crisis

September 30, 1982

.sdines

.sdinesh

.sdinesh

.sdinesh

.sdinesh

.sdinesh

.sdinesh

.

James BurkeFormer chief executive officer, Johnson & Johnson

During Tylenol cyanide scare in the early 1980s saved Johnson & Johnson’s reputation and preserved customer faith in the Tylenol brand

.sdinesh

TYLENOL

1. TYLENOL is a great product

2. TYLENOL and its parent company Johnson & Johnson have successfully managed two separate public relations crises

The spectacular drug still exists today ….for two reasons

ABOUT TYLENOL

• TYLENOL is a painkiller and product of McNeil (a Johnson & Johnson Company).

• TYLENOL becomes market leader having 37% share in US market. *

• 17-18 per cent net earning of Johnson & Johnson is generated by TYLENOL .*

* as per 1980’s market data

Crisis knocks the door of

On 30-Sep-1982CEO of McNeil receives a shocking news of

seven people death after taking cyanide laced TYLENOL capsules

THE TYLENOL CRISIS

• Publicity of Cyanide laced TYLENOL Capsules created nationwide panic.

• Media bombarded people with more and more news on the subject.

• Johnson & Johnson received 1411 telephone calls within 10 days of crisis.

PR & COMMUNICATION SRATEGY

• James Burke made 7 members strategy team.• PR Strategy was in two phases– Phase 1: How to save customers? – Phase 2: And how to save company & product ?

PR & COMMUNICATION SRATEGY

Phase 1: How to save customers?

• Communicated with Consumer & health professionals through Media with no hesitation to discontinue TYLENOL.

• Stopped production & advertising of TYLENOL.• Recalled all TYLENOL Capsules from the market.

Nationwide recall included approx. 31 million bottles of TYLENOL with retail value of 100 million dollars.

• Established a 1800 hotlines for consumers and for news organizations to call to receive daily messages with updated statements about the crisis.

PR & COMMUNICATION SRATEGY

Phase 2: And how to save company & product ?

• Reintroduced the capsules with triple-seal tamper-resistant packaging.

• Company offered to exchange all TYLENOL capsules that had already been purchased for TYLENOL tablets

• Establishing relationship with Police, FBI and the food and drug administration.

• Price off coupons. ($2.5 off)• New Pricing Program. (discount as high as 25%)• Restoration of confidence.

Impact of Strategy

Market share of TYLENOL fall down from 37% to 7% after crisis which got restored back to 33% in span of six months.

Reason for Success

• Triple sealed packaging, temper free sealing and the random inspection.

• Nationwide TYLENOL product recall.• Communicating with public during crisis.• Making public safety company’s number one

priority and concern.• Leadership acted commendably during crisis.• Johnson & Johnson Credo.

BOTTOM LINE

Essential crisis communication principles:• Always assume the worst-case scenario

(Nationwide product recall)

• Ensure that you have a plan (Johnson & Johnson Credo)

• Don't lose any time(Quick Respond)

• People always come first(PR Communication by J&J)

• Learn lessons from what has happened(Introduced tamperproof packaging )

THANK YOU !!!