Abstract

The case gives an overview of the problems faced by J&J because of Tylenol. Tylenol was the first acetaminophen-based analgesic to be sold as an OTC drug. The product was promoted aggressively and had become a leader within a few years. In 1982, it was found that Tylenol capsules were laced with Cyanide. This resulted in the death of many people. However, with the company’s proactive and effective public relations program, Tylenol regained its market share within six months. J&J again faced problems when people died due to overdoses of Tylenol. This was mainly because the public as well as the medical practitioners were not well informed about the product’s side-effects. Though the company received bad publicity and had to spend millions of dollars in legal settlements, J&J was reluctant to have more explicit warnings on Tylenol’s labels. This was in contrast to the company’s response in the previous product tampering crises. However, in 1997, following the the FDA labeling rules, J&J made many changes in Tylenol’s labels.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Business ethics
• Crisis management.

Keywords

J&J, Tylenol, acetaminophen-based analgesic, OTC drug,leader,1982, Cyanide, six months, Tylenol, medical practitioners, side-effects, bad publicity, millions, dollars, legal settlements,1997, FDA labeling rules