The Johnson & Johnson's Tylenol Controversies

            




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MAKING THE PUBLIC AWARE OF RISKS

Exhibit III

J&J’s Product Segments

Segment

Products

Consumer

Products that are marketed to the general public and distributed both through wholesalers and independent and chain retail outlets. It includes toiletries and hygienic products, baby care items, first aid products and non prescriptive drugs.

Professional

Ligatures and sutures, mechanical wound closure products, dental products, medical equipment and devices, surgical dressings, surgical instruments and related items used by hospitals, physicians, dentists, diagnostic laboratories, and clinics.

Pharmaceutical

Prescription drugs, including contraceptives and therapeutics, and veterinary products.

Industrial

Textile products, collagen sausage casings, and fine chemicals.

Source: Strategic Management by John A Pearce II and Richard B Robinson Jr.

Exhibit IV

J&J’s Tylenol Comeback Campaign (1982)

STEP 1

Their first order of business was designing a tamper-resistant container.

STEP 2

J&J strongly favoured federal legislation making tampering a felony. They also urged legislators to require tamper-proof packaging for a wide range of over-the-counter drugs.

STEP 3

The company held a 30-city video teleconference from New York just six weeks after the cyanide deaths. J&J’s CEO, at that time, and other company officials spoke during the 90-minute teleconference. They showed their new packaging and gave every reporter a sample of the new product.

STEP 4

To overcome the public’s fear of its product, the company made an offer. Former users were invited to call a toll-free number to request a free bottle in the new packaging. There was no need to prove that one had purchased a bottle previously. J&J was more keen on getting back its old customers and gaining new ones. Cost didn’t matter.

STEP 5

The company placed ads in Sunday newspapers with a circulation of 40 million people. The ad read, "Thank You, America." One could clip the ad to receive a $2.50 discount on the purchase of any Tylenol product.

STEP 6

J&J sent about 50 million capsules to physicians for free distribution. Patients who received the samples from doctors felt assured that Tylenol was safe. This also reinstated the medical confidence in the product.

STEP 7

The company thanked the media. Very often, companies treat the media as the enemy which leads to more probing by reporters and editors. They try to uncover the true story as they suspect a cover-up. Thus, when a company acts suspicious more questions arise in a journalist’s mind.

Source: www.advertising.about.com

 

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