Wednesday, August 14, 2013

Week 6 BOC: Tylenol Scare 1982



http://www.northcountrypublicradio.org/news/npr/161995443/
why-tylenol-bottles-are-hard-to-open
Tylenol is considered to be one of the most trusted medicine product across the US.  Before the crisis, Tylenol was the most successful over-the-counter product in the United States with over one hundred million users. Tylenol was responsible for 19 percent of Johnson & Johnson's corporate profits during the first 3 quarters of 1982.” (http://www.ou.edu) Unfortunately Tylenol had a scare crisis on September 29th, 1982. This company went through a scare crisis after seven people died in Chicago for taking cyanide-laced capsules of Extra-Strength Tylenol. “During the fall of 1982, for reasons not known, a malevolent person or persons, replaced Tylenol Extra-Strength capsules with cyanide-laced capsules, resealed the packages, and deposited them on the shelves of at least a half-dozen or so pharmacies, and food stores in the Chicago area.” (http://www.ou.edu)  This is what caused the seven deaths in the Chicago area. The Extra-Strength Tylenol product was considered to be one of the best- selling products in the country. After the seven deaths and the huge scare that happened for Tylenol “the company’s market value fell by $1bn as a result.”(http://www.mallenbaker.net) After the scare that happened many people as well as marketers thought that the company would never recover. “But only two months later, Tylenol was headed back to the market, this time in tamper-proof packaging and bolstered by an extensive media campaign.” (http://www.nytimes.com) The Tylenol, Johnson & Johnson Company took care of the crisis by showing the public that they do care about their consumers.  The company spent more than $100 million for the 1982 recall and also to relaunch the products of Tylenol. The company recalled about 31 million bottles of Tylenol capsules from all of the shelves in the stores and pharmacies. They replace the product and made sure it was a safer capsule.  Tylenol made a new safe way of packaging all of their products. They were the inventors of creating new well-protected packages security seals for all of their products. After this situation, many companies began to secure their products just like how Tylenol did with its products.
http://blog.threekingsconsulting.com/tag/tylenol-scare/
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