1982 Tylenol Poisoning Scandal
With more than 100 million users, Tylenol has been the most popular over-the-counter product. It has been the leading product in the painkiller meadow evident by a 37% market portion. However, there was an occurrence that saw Johnson & Johnson to a backslide.
Seven people lost their lives in October 1982 following a consumption of extra-strength Tylenol Capsules in the United States. It was later reported that somebody was suspected to have put 65 milligrams of poisonous cyanide into the Tylenol capsules, an amount that is 10,000 more than necessary. On reaching the shelves, Tylenol was removed and then returned after being tampered with (Mitchell, 1989). It is said that they were resealed and then put back with an abnormal cyanide concentration. This occurrence reduced Tylenol’s market by seven percent in the subsequent year.
James Burke, the then chairman to Johnson & Johnson formed a seven member stratagem team. The team with James’ guidance embarked on the issue with two considerations. First was how to safeguard the consumers’ health and second was how to save the product.
There was public awareness about the product following the death of the people who had taken the capsules. This posed a big challenge to Johnson as he sought for the best response to give to the crisis so that it would not tint the company’s reputation and its most lucrative commodity. McNeil Consumer Products, an affiliate of Johnson & Johnson carried out an instant recall from the whole country which summed up to 31 million bottles and a loss exceeding $100 million dollars. The people were advised not to take the product via the media. The products’ advertisement was also paused.
Despite the fact that Johnson & Johnson were not to blame for the contamination, they took the responsibility of the consumers’ health hence recollected all the capsules that were in the market. They actually permanently removed all their capsules from the market when a woman was reported to have died in 1986.
Following the withdrawal of the product from the market, Johnson & Johnson re-introduced the product to the market and renovated the consumers’ assurance and trust. Johnson & Johnson were the first company to adhere to the Food and Drug Administration mandate of damage-resistant package by introducing a triple-seal resistant packaging. They also offered a &2.50 coupon on their product purchase which was also available in the newspaper and a also by calling a toll-free number. Buyers also got a 25% off discount on the product. More than 2250 sales persons created awareness among the citizens so as to restore their confidence.
There were more cases owing to the Tylenol scandal. For example, Winfield opted to take Tylenol to cure a mild headache only to die later a few hours at a local health centre. Another 27 year old student was found collapsed at his home with static increased pupils. This is to mention just a few.
The response taken by James and his team was a well though one. It was a good move to recall the product the market and creating awareness against its consumption so as to reduce the casualties. Unlike other entrepreneurs, their first concern was the country people’s health.
The re-introduction of the product also employed a wise approach by introducing capsules with a triple seal that was tamper resistant. This ensured that every consumer had a chance to ascertain the safety of the product. The act of using sales persons to restore the consumers’ trust also provide them with a chance to ask more questions on the product hence more sales since they were more informed about it. Organisations should copy from Johnson & Johnson so as to formulate ways to survive in this unpredictable business environment.
Works Cited
Babwin B. 2007. Tylenol Tampering Case Remains Unresolved, in 25 years. Retrieved on October from http://usatoday30.usatoday.com/news/health/2007-09-29-tylenol-poisonings_N.htm
Susi R. (2002). Effective Crisis management. The Tylenol Crisis, 1982. . Retrieved on October from http://iml.jou.ufl.edu/projects/fall02/susi/tylenol.htm
