Brand management

Assignment # 4

Tylenol case

Submitted to:

Mr. Amir Adam

Submitted by:

Kh. Talha Tariq

Dated:

28 April 2009
History of the Case
Johnson & Johnson was founded more than 120 years ago on a revolutionary idea: Doctors and
nurses should use sterile sutures, dressings and bandages to treat peoples’ wounds. Since then,
we’ve brought the world new ideas and products that have transformed human health and
well-being. Every invention, every product, every breakthrough has been powered by
generations of employees who are inspired to make a difference.

Problem Area

The Chicago Tylenol murders occurred when seven people died after taking pain-relief capsules
which had been poisoned. The Tylenol poisonings, code-named TYMURS by the FBI, took place
in the autumn of 1982 in the Chicago area in the United States. These poisonings involved
Extra-Strength Tylenol medicine capsules which had been laced with potassium cyanide.[1] The
perpetrator has not been charged and thus the murders are unsolved, but the incident led to
reforms in the packaging of over-the-counter substances and to federal anti-tampering laws.

Problem Repercussions
The effects on the popularity of the brand due to this crisis was that the consumer confidence
was severely shaken and to such an extent that it seemed that the reputation of the Tylenol
brand was irreparable and that it would never fully recover which showed through the opinions
of the advertising gurus that every single human being in America believed that Tylenol might
kill them and a dramatic decrease in the sales of the product as evident by the fact that the
consumer confidence was shaken.
Company Response
Due to this tragic event, sales of Tylenol have been lowered down drastically. But in February
1983, sales had almost fully returned to the haughty pre-tampering sales levels the brand had
enjoyed six months earlier. J&J engaged in a number of activities to enlist the support of
retailers in the form of trade promotions, sales calls, and so forth. Coupons offering a free
Tylenol product were distributed in Sunday newspaper nationwide, and 30% of the coupons
had been used. Advertising played a very crucial role in boosting Tylenol sales. J&J’s ad agency
developed three ad executions to encourage the customers and rebuild the confidence in them
to use Tylenol brand.

Decision Taken
J&J issued a worldwide alert to the medical community, set up a 24-hour toll-free telephone
number, recalled and analyzed sample batches of the product, briefed the Food and Drug
Administration, and offered a $ 100,000 reward to apprehend the culprit of the tampering. The
first important decision, that put Johnson & Johnson's public relations program in the right
direction, was made immediately by the public relations department with complete support
from the management. This decision was for the company to cooperate fully with all types of
news media. It was crucially important because the press, radio, and television were imperative
to warning the public of the ensuing danger. Without the help of the media, Johnson and
Johnson's program would have been completely ineffective.

Outcome
By creating a public relations program that both protected the public interest and was given full
support by media institutions in the US, Johnson & Johnson was able to recover quickly and
painlessly from possibly the greatest crisis ever to hit the pharmaceutical industry.
Recommendations
If I would have been in place of Johnson and Johnson I would have followed the same strategy
which they had done in order to handle the crisis. But seeing that my sales are increasing
dramatically and that my brand is the leading painkiller medicine in the United States and is
widely trusted by the consumers I would had offered Tylenol Capsules in a new triple seal
package right from the start so that such a crisis situation wouldn’t have aroused.