Tylenol

Johnson & Johnson-Tylenol Case In 1982, Johnson & Johnson’s Tylenol faced a major crisis when their leading pain-killer medicine was found to have caused the fatalities of seven people in Chicago, Illinois. This was a very successful over-the-counter product in the United States with a lot of customers. They made over 19 percent of corporate profits in the first three quarters of 1982. Only Tylenol accounted for 13 percent of Johnson & Johnson’s year-to-year sales growth and 33 percent of the company’s year-to-year profit growth. According to the market share, Tylenol was the leader in the painkiller field with 37 percent. Because of this episode that happened, the company's market value fell by $1 billion as a result. In 1986 another situation happened, but the company acted quickly and recalled all Tylenol products from every outlet all over the country. Lesson was learned and the company decided the product would not be re-established on the shelves until something had been done to provide better product protection. As a result, Johnson & Johnson developed the tamperproof packaging that would make it much more difficult for a similar incident to occur in future. Johnson & Johnson took the initiative to protect and improve their product packaging which allowed them to regain the public's confidence and improved tamper-resistant packaging now used by myriad of manufacturing companies. The incidents happened between September 29th to October 1st of the year 1982 and by November, Tylenol had already reintroduced the product with improved tamper-resistant packaging. To regain the public's attention and confidence, Johnson's & Johnson's launched a dynamic marketing campaign to put the product's name before the public. Because of this, Tylenol was able to regain the confidence of their consumers and helped quickly rebuild the company's reputation. Public relations professionals are required to have excellent organizational, interpersonal and communication