Abstract

This is a collection of three caselets discussing the product crises faced by Nokia, Baush & Lomb (B&L) and Mattel, and how these companies responded in the respective crisis situation. In 2007, some concerns regarding the safety of Nokia’s BL-5C batteries arose. Though the company was quick to issue a product advisory, the situation flared up in India due to what some critics said was a ‘communication gap’ on Nokia’s part. In the case of B&L the company did not seem to have recovered from a product crisis related to its brand ReNu with MoistureLoc. The brand was linked to a fungal infection of the eye and was later withdrawn from the market. While some analysts felt that B&L’s handling of the crisis situation left a lot to be desired others felt that the situation faced by B&L was trickier than what pharmaceutical company, Johnson & Johnson, faced during the infamous Tylenol crisis in 1982. In the case of Mattel, the company had to win back the trust of its customers after the massive recall of toys in 2007 due to safety-related issues. Here too, the industry watchers are divided over whether the leading toy maker was able to handle the crisis situation in an effective manner.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the issues and challenges faced by companies in managing a product crisis. Understand the importance of clear and effective communication with customers in the event of a controversy/crisis. Understand short term and long term implication for a

Keywords

Crisis management, Product crisis, Product advisory, Corporate citizenship, Communication strategy, Public relations, Publicity , Nokia, Mattel, Bausch & Lomb, ReNu with MoistureLoc, BL-5C batteries, Lens Care market, Product liability lawsuit, Tylenol, Johnson & Johnson, Consumer education