When a headache could have killed them: Tylenol crisis management

In the fall of 1982, seven people in Chicago died mysteriously. After the autopsies the authorities determined that all the people that died has ingested capsules of Tylenol that were laced with cyanide. Someone had tampered with the Tylenol bottle once they were on store shelves. As the news spread, Johnson & Johnson’s nightmare began. Tylenol’s market share dropped from 32% to 7% and resulted in a loss of more than $ 100 million. The company had to immediately launch a Public Relations Program in order to limit the damage done to the product and to the company.

How did J&J manage the crisis?

Phase 1: Handling of the crisis

Costumers first: the company alerted via the media consumers across the US not to consume any type of Tylenol product until the extent of the tampering could be determined.

Recall of the product: the company also stopped the production of Tylenol as well as its advertising and recalled all Tylenol capsules from the market

Exchange: after recalling all Tylenol capsules, Johnson & Johnson also offered to exchange all the already purchased bottles of Tylenol capsules for Tylenol tablets.

Phase 2: Tylenol’s comeback

Less than 2 months after the incidents Tylenol capsules were re- introduced in the market baring a triple-seal tamper resistant packaging, making J&J the first company to comply with the Food and Drug Administration mandate of tamper-resistant packaging.

The company offered coupons and created a new discounted pricing program to make consumers buy Tylenol again. They also made presentations for the medical community.

Tylenol is now one of the classic examples of a well-handled crisis.

Although there is no template for crisis management, there are some dos and don’ts:

Here are some don’ts:

- Play ostrich: say nothing and hoping that no one will know about the problem

- Start working on a potential crisis situation after it is gone public

- Let your reputation speak for you

- Treat the media like the enemy

- Use language your audience does not understand

- Address only the issues without thinking about people’s feelings

- Make only written statements

Sources:

Making a crisis worse: The Biggest Mistakes in Crisis Communications

The Tylenol Crisis: How effective Public Relations Saved Johnson and Johnson