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SUMMARIZATION:

In September 30, 1982, Johnson & Johnson’s Tylenol capsule (The

biggest-selling item in drug, food, and mass-merchandising outlets. )

encountered a crisis when three people died in Chicago as a result of

taking Tylenol capsules that had been laced with cyanide (A chemical

compound that is extremely toxic.). After two days, four additional deaths

from the same cause were reported. The poisoners had not been caught.

This crisis was groundbreaking in American business history and found

more than 125,000 stories.

With annual sales totaling $1.2B, the Tylenol product controlled 37

percent of the over-the-counter analgesics market. After the incident, that

share dropped to 7 percent.

Many business analysts concluded that no product could survive this and

that Tylenol dead as a product line but the company acted quickly. J&J

chairman James Burke super headed an effort to win public trust.


In addition to the media alert and press conferences, Johnson and

Johnson,

● Provided footages showing Tylenol’s manufacturing process.

● Established an 800 telephone number for consumers to call.

● Held a pep rally for the company’s 2,250 sales representatives.

● Reintroduced Tylenol with triple-sealed packages.

These measures illustrated a smart and ethical public relations

strategy. Tylenol rebounded within just six months to reclaim 30% of

the market and restored public confidence.

Unfortunately, in 1986, the company pulled Tylenol capsules off the

store shelves throughout the country when a woman in New York

City died of cyanide poisoning after taking two capsules resulting

into James Burke appearing on media to express sympathy among the

people or families affected of the incident.

His high visibility contributed to his becoming something of a folk

hero and his efforts in appearing on media were confirmed as


effective. By making himself a “media personality” he transformed

the corporation to a person in the public’s eye.

“In recent days, you have lived up the very highest idea

ls of corporate responsibility”, President Ronald Reagan told Burke

at a White House ceremony. J&J’s forthright response in the Tylenol

crisis showed good ethics is good business.

In summary, the very important thing I learned is to act quickly. In

incidents like this, it is vital not to prolong the silence and explain

immediately or else the public or media will conclude it for you, even

if rumors are made up with lies, it will be very hard to extinguish it.

Be prepared to accept consequences but also be ready to execute

solutions to lessen the damage that may come to the and public

confidence. Admitting mistakes and being visible or transparent to

the public will help public trust.

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