The Tylenol Cyanide Crisis.

(Image taken from http://abcnews.go.com/sections/business/DailyNews/productrecalls_000831.html.)

In 1982, Johnson and Johnson experienced a major crisis when it discovered that numerous bottles of its Extra-Strength Tylenol capsules had been laced with cyanide. By the end of this major crisis, seven people had passed away from the use of the laced Extra-Strength Tylenol. The manner in which Johnson and Johnson dealt with this situation set a new precedent for crisis management. The company was applauded for its quick decisions and sincere concern for Tylenol consumers. Following this crisis, Johnson and Johnson did suffer losses, but regained and exceeded its previous market share within months of the incident. Framed on a wall in Burke's J&J office was a corporate credo, the original principles of which were set down by the son of one of the founders of the pharmaceutical giant, Robert Wood Johnson. Initially when this crisis occurred, the CEO, James Burke, turned to the Johnson and Johnson creed, defining the focus of the company being their customers. With this credo as an inspiration, Tylenol promptly used the media to inform consumers of the potential dangers of the product and dispatched scientists to determine the source of the contamination.

(Image taken from www.johnsonandjohnson.com.)

Milton Gossett has often been linked to Tylenol�s crisis management team and to the repositioning of the product in the minds of the consumers. Gossett gives all credit to the client-agency team for bringing the Tylenol product back. �Jim Burke made all the right decisions, including new packaging, close cooperation with the Food and Drug Administration and the right timing of the reintroduction on store shelves and the advertising� (Gossett, 2000). Gossett and the client-agency team turned to consumers, listening to and addressing their fears and concerns in a concentrated advertising and public relations campaign. The company aired commercials within days in order to regain the public�s trust, and a month after the situation Johnson and Johnson rolled out an aggressive campaign to rebuild the image of the Tylenol brand. In November, Johnson & Johnson promised to have the product back on the shelves by the end of the year in a new triple-temper-resistant package, the first of its kind. 

(Image taken from The Chicago Tribune above the article titled "J&J gains admiration, strength", November 21, 1982.)

Johnson and Johnson�s attempts were successful, and by the following spring, they had regained its previous market share (Lewin, 1986). Gossett said, �I remember a rather outspoken agency head was asked if Tylenol could make a come back. He said, �The day Tylenol comes back, I will turn water into wine�.� When the day came that Tylenol was back on top, Gossett sent this agency head a water cooler full of wine, delivered to his office with a note reminding him of his prophecy. �My part in this great comeback was to put the right people on the business and to hold the client�s hand, when necessary� (Gossett, 2000).

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