A Classic: Tylenol Rides It out and Gains a Legacy

A Classic: Tylenol Rides It Out and Gains a Legacy

The biggest trial for any organization comes when it is hit by a crisis. A crisis is described by the Harvard Business Review as a situation that has reached a critical phase for which dramatic and remarkable intervention is necessary to avoid or repair major damage. The way an organization handles itself in the midst of a crisis may influence how it is perceived in the future (Seitel, Fraser, 2004). The Tylenol tragedy not only took Johnson & Johnson by surprise, but it also rocked the entire country’s world when the news hit.

In the fall of 1982, McNeil Consumer Products, a subsidiary of Johnson and Johnson, was faced with a nationwide crisis involving seven individuals who passed away inexplicably in the West side of Chicago. After careful investigation, authorities determined that each of the individuals that died had taken an Extra-Strength Tylenol capsule mixed with cyanide. This occurrence was immediately broadcasted through the media which created a shocking nationwide panic. Due to the impact received nationwide of these unfortunate poisonings, Johnson and Johnson found it necessary to immediately launch a public relations program in order to save the integrity of not only their product, but that of the overall corporation.

A spokesperson for Johnson and Johnson made the media aware of the company's rigorous quality control by letting them know that the tampering did not take place in their premises because the mixture of cyanide and Tylenol had been discovered during the product’s Chicago distribution and not in the manufacturing process.

The first step that Johnson and Johnson took to prevent this incident from continuing to spread was to pull $50 million worth of products from store shelves. This was the largest recall ever seen and was done to protect the public’s safety while protecting the company’s image and financial stability. Insisting on a complete recall was Johnson and Johnson’s way of effectively communicating to the external publics, investors and to the corporate world that public safety takes priority over profits. They concurrently alerted customers nationwide through every media channel not to consume any Tylenol product. These messages turned out to be a public relations treasure in the long run because they demonstrated sincere concern and a proactive way of handling a crisis.

During this crisis, Johnson and Johnson formed alliances with external public organizations such as the Federal Bureau of Investigation, the Chicago Police Department, and the Food and Drug Administration. These alliances helped Johnson and Johnson in a couple of ways. First, it helped the company by getting involved in the active pursuit of the criminal in order to prevent future tampering. Second, they also continued to gain positive publicity in the media. Both the media and the public admired the company for its compassionate, socially responsible behavior.

Johnson & Johnson also offered to exchange all Tylenol capsules for tablets. Even though this was a costly promotion which was taken to the extremes, getting rid of everyone's Tylenol capsules helped them safeguard their reputation.

Now that the crisis was under control, the company was ready to move on and find a way to quickly put Tylenol back on the shelves as a safe product to consume. Shortly after the incidents, a public relations plan was made known at a sales conference and was quickly underway thereafter.

After due time and careful investigation, Tylenol was reintroduced into the market in a much stronger tamper-resistant containers. The introduction of these containers made the company an expert in tamper-resistant product packaging. A sealed package of capsules