Crisis Management at Bausch & Lomb (B): The 'ReNu with Moistureloc' Debacle

            
 
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Case Details:

Case Code : MKTG171
Case Length : 19 Pages
Period : 2005-2007
Pub Date : 2007
Teaching Note :Not Available
Organization : Bausch & Lomb
Industry : Eye Care
Countries : Europe, USA, Asia

To download Crisis Management at Bausch & Lomb (B): The 'ReNu with Moistureloc' Debacle case study (Case Code: MKTG171) click on the button below, and select the case from the list of available cases:

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts Contd...

Failure in Managing the Crisis?

To some experts, the MoistureLoc debacle didn't come as a surprise. It renewed the decade-old debate regarding the efficacy of multipurpose lens care solutions. As early as 1997, investigations by doctors and researchers had suggested that multipurpose solutions could be associated with certain health risks. B&L was the biggest critic of such suggestions at that time. In 1999, Kathleen Dannelly, an Indiana State University microbiologist, added Pseudomonas aeruginosa to five leading contact-lens solutions. She used amounts of bacteria that were higher than industry testing standards but common in real-life situations...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Another ReNu Scare?

On March 6, 2007, B&L announced that it had started a voluntary recall of 12 lots of MultiPlus lens care solution. The lots had been produced at B&L's Greenville plant. This was due to discoloration of the solution which B&L attributed to an elevated level of trace iron. This would also reduce the shelf life to "less than its two-year expiration date, due to a potential loss of effectiveness over time." The company arrived at this conclusion after an investigation of three customer reports of discolored solution. Accordingly, a total of 1.5 million bottles were recalled in countries like the US, Canada, Korea, and Taiwan and some Latin American countries...

Outlook

Analysts felt that the MoistureLoc debacle was a major jolt for B&L. The company had lost a new growth driver and had gained a lot of negative publicity. This was likely to have a major impact on the future success of the company. They expected consumers to prefer competitors' brands to B&L's other ReNu brands such as MultiPlus. The effect of the debacle was expected to be felt more in the US and the Asia Pacific. Analysts felt that rather than the product recall, what would hurt B&L more was losing its market leadership in the US market...

Exhibits

Exhibit I: ReNu with MoistureLoc - A Timeline
Exhibit II: The B&L Press Release Announcing the Withdrawal of ReNu MoistureLoc
Exhibit III: A pack-shot of ReNu MultiPlus Multipurpose Solution
Exhibit IV: The B&L Wear & Care Logo
Exhibit V: B&L's Share Price Movement over a One Year Period
Exhibit VI: B&L's Net Sales: By Geographic Region (Unaudited)
Exhibit VII: B&L's Net Sales: By Product Categories (Unaudited)


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