The Tylenol Case

In: Business and Management

Submitted By paulot
Words 1148
Pages 5
The Tylenol case represents perhaps the worst sort of dilemma a company can face. Through no fault of its own, Johnson & Johnson was faced with the destruction of one of its most important brand names. An unknown assailant used the product to murder a number of people at random, and the story was one of the most widely covered events in media history. Within the first week it is estimated that more than 90 percent of the American public were aware of what had happened. This situation left the product in a very bad position - no one wanted to use Tylenol in case there had been some tampering with the product. Johnson & Johnson had done nothing to betray the public's trust in the company, or its products; yet that trust, a great deal of revenue, and a large market share segment were gone. One horrible event and the excessive media coverage that followed, put Johnson & Johnson in a position where it needed to salvage its image and revenues even though the company had done nothing wrong.
Americans were bombarded with information about the Tylenol incident. The volume of information pertaining to the cyanide-induced deaths was incredible. The fact that the story received so much attention probably saved the lives of people who would have otherwise unwittingly taken cyanide-laced Tylenol and died. Consumer response immediately after the tragedies showed what the makers of Tylenol were up against as demand for all brands of pain relievers and sleeping aids dropped by 16.7 percent. Johnson & Johnson reported it had lost 87 percent of its market share, with the remaining share coming from Tylenol tablets, which had not been linked to the tragedy.
The company was placed in a very difficult position in terms of trying to revive its brand and also in terms of the damage that might be done to the company as a whole. It was not entirely outside the realm of…...

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