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
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Moistureloc' Debacle case study
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Excerpts Contd...
Failure in Managing the Crisis?
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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...
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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...
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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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