Thursday, November 22, 2012

Company's Image

 Before this tampering scandal shook the city of Chicago and worried the people of America, Tylenol was considered one of the countries leading brands for instant pain relief. In 1982, Tylenol controlled 37 % of its market, racking in an outstanding 1.2 million dollars in revenue. Tylenol alone produced 19% of Johnson & Johnson corporate profits in 1982. Producing such a profitable product, one could not begin to fathom the type of scandal that could possibly damage this companies image permanently.

  The company Johnson & Johnson was faced with an extreme amount of legal charges and ridicule after discovering their product has been tampered with, put on the shelves and sold to the public of The United States. An un-known suspect (s)  reportedly put 65 milligrams of cyanide into the Tylenol capsule and placed the pills back on the shelves. Seven innocent people passed away from this senseless act and therefore Johnson & Johnson had to do some major recalling.

   The company had decided to recall the product all over the country and sent out public announcements warning the public of the tampering. Johnson & Johnson was not only being faced with legal charges but the company's torn image as well. Their total loss from removing all of the pills from the shelves were immense; 31 million bottles were tossed leaving them with a loss of more than 100 million dollars and most importantly, the trust of their customers.  People no longer felt safe knowing how easy it was to tamper with a pill, and therefore Johnson & Johnson had to revive their image and reputation. This company knew that they were not to blame but took responsibility and acted quickly in order to ensure to their customers this would never happen again. Johnson & Johnson  acted out in two phases : handling the crisis & re-gaining the trust of their loyal customers.

  Once all of the Tylenol was taken off of the shelves, they realized that in order to gain back their respective customers they would have to provide an immense amount of changes to ensure public safety. Johnson & Johnson implemented change for the sake of their customers, not so much for regulation. This company had loss a total of 1.24 billion dollars in wealth decline. Because of all the changes that were put so quickly into effect, the company gained back their trust in no time and actually was considered one of the best handling of a crisis  by public relation experts. Johnson & Johnson was praised by the people because of their willingness to find this suspect and their non-stop communication with the FBI, police, Health relations etc. Johnson & Johnson did everything in their power to find out all they could from the tampering and proved to be the company that everyone relied on so much. Over 2250 sale representatives from Johnson & Johnson made presentations to people in the medical field in order to promote the reintroduction of Tylenol.

   The company saw that this was not about business but rather about finding the suspect and providing closure for the families who suffered such terrible losses. Tylenol has re-surfaced greatly from their loss; proving to remain the top seller of over the counter drugs in the country and receiving praise of how professional they handled their socially responsible actions.

No comments:

Post a Comment