Crisis Management at Bausch & Lomb - The 'ReNu Moistureloc' Controversy |
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B&L in Damage Control Mode
B&L announced that consumers who wished to return their ReNu MoistureLoc could visit its website www.bausch.com or call a toll free number to receive a coupon for another B&L eye care product or to receive their money back. It offered a coupon for up to US$8 toward the purchase of its other contact lens solutions. Did B&L Give Itself A Poke In The Eye?Many analysts believed that B&L had adopted a "self-destructively passive role" in dealing with customers and investors and had thus broken the basic rule in crisis management. Analysts criticized B&L for remaining silent even after it had learnt about the health problems associated with the product after they surfaced in Asia as early as November 2005. Glenn MacDonald, Professor at John M. Olin School of Business, Washington University, said: “When you have a problem like this, you should deal with it immediately. Future OutlookAnalysts expected that ReNu MoistureLoc was unlikely to return to the US market in 2006. Maris expected B&L's remaining lens care business to witness at least a 10% market share contraction in 2006. Analysts also felt that even if the product were to be cleared soon, it would be difficult to regain the lost market share quickly. The fallout could also erode the company's brand equity not only in lens care, but also in the contact lens business itself. ExhibitExhibit I: Some Key Sub-brands of B&L
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