Case Code: BECG015
Case Length: 13 Pages
Period: 1975 - 2001
Pub Date: 2002
Teaching Note: Available
Organization : Johnson & Johnson
Industry : Drugs and Pharmaceuticals
Countries : USA
Themes:
Ethics in Business
Price
Electronic format: Rs. 300; Courier (within India): Rs. 25 Extra
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.