Tylenol Crisis Essay - 1059 Words

In September of 1982 seven people from Chicago died after taking Tylenol capsules. Tylenol was the leading pain-killer medicine in the United States at the time. It was reported that an unknown suspect put 65 milligrams of deadly cyanide into Tylenol capsules. It was assumed that the tampering occurred once the product reached the shelves. They were removed from the shelves, infected with cyanide and returned to the shelves (Mitchell 1989). In 1982, Tylenol controlled 37 percent of its market with revenue of about $1.2 million. Immediately after the cyanide poisonings, its market share was reduced to seven percent (Mitchell 1989). However the crisis did hurt the company but their response was quickly active, they went†¦show more content†¦1-800 lines were set up so people could call with questions and concerns. In addition to holding press conferences at corporate headquarters .The chairman went on â€Å"60 Minutes† and the â€Å"Donahue† show to share the company’s strategy. I like the fact that the company put the people’s hea lth before the company’s profit and recalled all of the pills. In the St. Petersburg Times, James E. Burke the chairman of Johnson and Johnson at the time said that the company will replace all Tylenol capsules without requiring customers to show a proof of purchase. They also made new packages that were marked saying â€Å"new safety sealed.† On the box a warning was printed saying â€Å"Do not use if safety seals are broken.† The company did the right thing when handling the situation. The seals that were printed I think was a good idea because now any customer would be able to tell if the product was tampered with. Also I think that would make a customer feel more secure when purchasing the product. After such a horrible crisis Tylenol began to build its brand back up. After removing the product off the shelves they had to re-introduce the product. They put out promotions offering $2.50 off their next purchase. Johnson Johnson came up with a new pricing program which gave consumers up to 25% off. They also had over 2250 sales people make presentations for the medical community to restore confidence. They knew it wasShow MoreRelatedThe 1982 Tylenol Scandal Crisis1257 Words   |  5 PagesTylenol, an over the counter prescription product from Johnson Johnson, was one of the top brands in the analgesic market. Within the company, it was also a large income earner that commanded nearly 15% of the company’s total profits. That being the case, the 1982 crisis was not only a big blow to the brand, but also to the company as a whole. The crisis jeopardized the company’s existence; putting at risk a multi million investment which the investors had a lot of faith in. 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Burke removed all product from shelves nationwide during the second Tylenol incident What did you learn from this? The rapid action of Johnson Johnson was a wise move. The decision