Subject category:
Marketing
Published by:
Thunderbird School of Global Management
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Abstract
In 1982, seven people died after taking cyanide-laced Tylenol capsules. It was a potential disaster for the brand as well as for its parent company, Johnson & Johnson. For 60 days, J&J worked through the thorny issues of how to overcome this tragedy and regain consumer confidence. J&J''s exemplary handling of the situation is often cited as having set the standard for crisis management. Over time, the lessons from J&J have been reduced to: ''put the public interest before profits, be candid, and be quick''. The actual details of J&J''s activities have been lost or ignored, as have the real lessons about what it takes to recapture the consumer''s trust and loyalty. This case provides an account of the day-to-day activities that made J&J''s response effective. This case is not meant to be used in isolation, but as a point of departure for thinking about what J&J did, why it worked, and most important, how this incident differs from other crisis situations. In addition to the case, students should be assigned to read selected articles about a current crisis. In the teaching note for this case, we use as a comparison Coca-Cola''s handling of crisis situations in Europe and India.
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Abstract
In 1982, seven people died after taking cyanide-laced Tylenol capsules. It was a potential disaster for the brand as well as for its parent company, Johnson & Johnson. For 60 days, J&J worked through the thorny issues of how to overcome this tragedy and regain consumer confidence. J&J''s exemplary handling of the situation is often cited as having set the standard for crisis management. Over time, the lessons from J&J have been reduced to: ''put the public interest before profits, be candid, and be quick''. The actual details of J&J''s activities have been lost or ignored, as have the real lessons about what it takes to recapture the consumer''s trust and loyalty. This case provides an account of the day-to-day activities that made J&J''s response effective. This case is not meant to be used in isolation, but as a point of departure for thinking about what J&J did, why it worked, and most important, how this incident differs from other crisis situations. In addition to the case, students should be assigned to read selected articles about a current crisis. In the teaching note for this case, we use as a comparison Coca-Cola''s handling of crisis situations in Europe and India.
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