Wednesday, August 14, 2013

Week 6 BOC: Tylenol Scare 1982


In the space of a few days starting Sept. 29, 1982, seven people died in the Chicago area after taking cyanide-laced capsules of Extra-Strength Tylenol, the painkiller that was the drugmaker's best-selling product.



Marketers predicted that the Tylenol brand, which accounted for 17 percent of the company's net income in 1981, would never recover from the sabotage. 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. A year later, its share of the $1.2 billion analgesic market, which had plunged to 7 percent from 37 percent following the poisoning, had climbed back to 30 percent. 


It placed consumers first by recalling 31 million bottles of Tylenol capsules from store shelves and offering replacement product in the safer tablet from free of charge.


"Before 1982, nobody ever recalled anything," said Albert Tortorella, a managing director at Burson-Marsteller Inc., the New York public relations firm that advised Johnson & Johnson. "Companies often fiddle while Rome burns." 



They recalled every single Tylenol painkiller around nation wide and trash them.

They told their customers throw old Tylenol away or switch them for new one without a charge.

They started use new package with metal seal under cap.

They worked with media really close to save their brand name.


Painkiller brands are all about names, you can buy other house brand for way cheaper at drug store
 and does the same function. People paying more for you brand name beacuse they trust your brand.
So Tylenol worked so hard to save their brand name and they did really good job on it.






Credit:


http://www.nytimes.com/2002/03/23/your-money/23iht-mjj_ed3_.html


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