Abstract

In 2016, Johnson & Johnson (J&J), a leading multinational medical devices, pharmaceutical, and consumer packaged goods manufacturer, was faced with about 1,200 lawsuits related to its talcum powder products – Johnson’s Baby Powder and Shower-to-Shower body powder. Johnson’s Baby powder was an iconic brand, which J&J had been promoting to adults, particularly women. For a long time, talcum powder when used for feminine hygiene, had been linked to ovarian cancer. The lawsuits alleged that J&J had known about this association but had failed to inform its customers about it. Alex Gorsky (Gorsky), Chairman & CEO of J&J, had also been toeing the management’s line that the criticism of its talcum powder was inconsistent with a hundred years of experience with the product. Analysts were concerned whether J&J, which had faced a number of product-related crises, would be able to maintain its reputation as a trusted family company in a climate of mounting lawsuits. Can J&J afford to jeopardize the whole J&J brand while trying to protect its talcum powder?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand safety-related issues and challenges in product labeling.
• Understand the issues and challenges in crisis management.
• Analyze the issues and challenges arising out of J&J’s marketing of its baby powder brand in light of the product’s association with ovarian cancer.
• Explore ways in which J&J could maintain its brand image and reputation as a trusted family company.

Keywords

Crisis Management, Brand Management, Packaging and labelling, Brand image, Reputation, Marketing Ethics, Business ethics, Baby powder, Johnson and Johnson, Talcum powder