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Tylenol Crisis - Case Study Example

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This paper “Tylenol Crisis” will dig out a famous scandal that affected Tylenol, a leading painkiller manufacturer in the United States of America. Johnson & Johnson is a very successful company. Its vision focuses on being of service to the community and committing itself to serve its clients…
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Tylenol Crisis
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Extract of sample "Tylenol Crisis"

Before the Tylenol Crisis, the product was the most successful over the counter drug in the US. It had over a hundred million users. Through the first 3 quarters of 1982, Tylenol was bringing in about 19 percent of Johnson and Johnson’s profits. The product accounted for 13 percent of the company’s growth in sales and over 33 percent in profits growth per year. In terms of the market share, Tylenol had over 37 percent making it indomitable. The drug outsold four of its closest competitors combined.

Later in 1982, for reasons not known to anyone, a presumably unknown person or persons put cyanide-laced capsules in place of Tylenol Extra-Strength capsules and then resealed the packages. The malevolent person(s) then deposited the drugs on shelves of at least six pharmacies or more and popular food stores in Chicago. Seven people died from using the capsules. The media can be damaging to the reputation of any company. In most cases, it may have some alteration, or have an interest on one side.

While a given piece of information can have different meanings depending on how it is covered, the media will always find the way that the piece attracts as much heat or attention as possible. Concerning the Tylenol crisis, the media focused on how a trusted consumer product had brought about deaths of the American citizens. While this is true, the fact is that the company was not to blame for the unfortunate events. The media made a very bad name of the brand that had already stroked the market as trustworthy.

During the crisis, the chairperson of the company, James Burke, was quick to reiterate and criticize the media for projecting a bad image of the product and the company. He then helped develop a strategy for the company that sought to protect the people and save the product in relation to the company’s mission and vision statement. To do this, the company used the same media to communicate to the people and inform them of the strategy. Johnson & Johnson then went ahead to establish a hotline that consumers would call if they had any queries on the products (Kaplan 14).

With such a move, the company was able to win back its clients. Furthermore, Johnson & Johnson withdrew all Tylenol thus confirming to the consumer that truly, the company was a victim of malicious crime. The company learned the value of communication as it was what helped in convincing the consumer of its innocence in the crisis that did occur. Looking at how Johnson & Johnson’s handled the Tylenol crisis, it is evident that constructing a good strategy and communicating it to the consumer can be very helpful.

It was a good strategy and one that other companies should learn from.There is immense information a person can learn from the company’s public relations. To win the consumers over, you need to have forgiveness, remediation, and rectification strategies. Remediation offers the victims of a crisis recompense while rectification involves putting measures in place to ensure such situations do not reoccur. The sympathy strategy was also very helpful to the company. It projected Johnson & Johnson as an unfortunate victim of malevolent actions.

One would learn these three strategies from the event.

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