Johnson & Johnson's Tylenol Crisis
Johnson & Johnson is an American multinational company headquartered in New Jersey and produces pharmaceutical, medical devices, and consumer packaged goods. In early 2016, the company experienced a crisis relating to the safety of its products i.e. Tylenol. Tylenol has traditionally been one of the most effective over-the-counter products for many customers, especially in the United States. In the recent product safety crisis, Johnson & Johnson was ordered by a jury to pay $72 million following the death of a consumer because of the use of its talcum powder (Picchi par, 2). In addition, the company faced an extra 1,200 cases relating to the safety of its Tylenol products, particularly talcum powder. The obvious early warning signs of the crisis was the relatively poor measures for handling of the Tylenol poisonings. While the firm responded quickly to the death of seven people who utilized its Tylenol products, it failed to institute suitable measures on how this over-the-counter medicine is sold. The subtle early warning signs of the crisis were the increasing complains by the firm's customers regarding the damaging impacts of this medicine. As the number of complaints increased, Johnson & Johnson failed to undertake effective corrective measures to address the root cause of the problem.
2. The business situation in this crisis is the handling of Tylenol poisonings and how the firm communicates to consumers regarding the safety of its products. Johnson & Johnson would effectively address the problem by changing or enhancing the handling of Tylenol poisonings and how this over-the-counter medicine is sold. This is a major issue because the use of talcum powder on the genitals has been linked with increased risks of ovarian cancer though conclusive evidence does not exist (Gallagher par, 9). Additionally, effective communication strategies are required to inform customers on the safety of this product rather than simply responding to complaints or issues raised by customers.
3. An important aspect of dealing with this crisis is the development of a communication strategy that provides customers with insights on the safety of this product. The first process in this communication strategy is for Johnson & Johnson to establish a strategy team comprising seven members. The team will be mandated with the task of examining talcum powder's safety issues and how to salvage the product from its bad reputation. Secondly, the public relations department should alert consumers to avoid purchasing talcum powder until further notice. This will involve using conventional advertising and social media platforms to communicate to customers. The strategy team should then review the safety of this product while working with experts in the field given the absence of conclusive evidence on the health impacts of this product. Upon conclusion of the review, the strategy team will prepare a report with their recommendations on how to enhance the product's safety and save the product from the bad reputation. The report will be handed to the company's top management for further deliberations and implementation.
4. Summary of Communication Strategy
Creation of a Crisis Response Team
Determine how to save the product
Top Management
Crisis Response Team
Public Relations Department
Crisis Communication Plan
Review Product Safety
Final Report
CUSTOMERS
Communicate Awareness of Problem
Information on Company Response
Provide Reassurance
Adopted Measures
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