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Johnson & Johnson is a U.S multinational medical devices, ph
Transcript of Johnson & Johnson is a U.S multinational medical devices, ph
Johnson & Johnson is a U.S multinational medical devices, pharmaceutical and consumer packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500.
The corporation includes some 250 subsidiary companies with operations in over 57 countries and products sold in over 175 countries. Johnson & Johnson had worldwide sales of $65 billion for the calendar year of 2011.
Since the 1900s, the company has pursued steady diversification. It added consumer products in the 1920s and created a separate division for surgical products in 1941 which became Ethicon. It expanded into pharmaceuticals with the purchase of McNeil Laboratories.
On September 29, 1982, a "Tylenol scare“ which was manufactured by McNeil began when the first of seven individuals died in Chicago, after ingesting Extra Strength Tylenol that had been deliberately laced with cyanide.
Within a week, the company pulled 31 million bottles of capsules back from retailers, making it one of the first major recalls in American history and potentially a PR nightmare.
What did Johnson and Johnson do?
Johnson and Johnson had no plans set in place to deal with a crisis such as this one and so looked at their credo for help and came out of the crisis even more successful than before
How did Johnson and Johnson deal with the crisis:
“We believe our first responsibility is to the doctors, nurses and patients, to mothers and all others who use our products and services”
Company Chairman James Burke immediately formed a seven-member strategy team
Public announcements were made immediately by the parent company Johnson and Johnson
Faced with a dilemma: how to best deal with the crisis without destroying the reputation of the company and its most profitable product
Crisis Management Plan in action:
Conducted an immediate product recall from the entire country
Halted all advertisements for the product and stopped production of the product
Johnson and Johnson assumed responsibility by ensuring public safety first and recalled all of their capsules from the market.
How did Johnson & Johnson re-introduce the product to the market?
Soon after they reintroduced the product with a triple seal tamper resistant packaging
$2.50 off coupons, available in newspapers
they introduced a new costing program
Over 2250 sales people made presentations for the medical community
How was Johnson and Johnson successful after the crisis...
They acted quickly, with complete openness about what had happened, and immediately sought to remove any source of danger based on the worst case scenario
Having acted quickly, they then sought to ensure that measures were taken which would prevent as far as possible a recurrence of the problem.
They showed themselves to be prepared to bear the short term cost in the name of consumer safety. That more than anything else established a basis for trust with their customers.
Take responsibility and protect public health
Put consumers first and money second
Follow the company’s credo
Their immediate action (irrespective of short term cost) and their smart, long term, actions not only saved the brand but resulted in Tylenol being the standard-setter for tamper proof packaging and a brand even more trusted than before the crisis.
How Effective Public Relations saved Johnson and Johnson:
NO CRISIS MANAGEMENT PLAN
JUST A PROMISE TO DO THE RIGHT THING
Go raibh maith agat
By giving special attention to the public, they improved their profitability, credibilty and public trust and esteem.
less than a year after the Tylenol crisis, they regained 30 % of market share. They went on to become best selling pain reliever
According to CEO, James Burke, "Putting the customer first can reap greater rewards than a short sighted drive to deflect blame and protect share price"