This paper is in reference to the ethical issues related to the corporate and personal decision-makings surrounding the Tylenol product recalls, and the reputation of the brand name. This paper will focus on the rebound tactics Johnson & Johnson along with their advertising company, Compton Advertising, took in efforts to recover from such devastation.
In 1982, Tylenol discovered that their Tylenol Extra Strength capsules been tampered with subjected to a Cyanide-lace poison, which took the lives of seven people in the Chicago area. This distress sent the company, manufactured by international health-products Johnson & Johnson in a panic causing them to pull millions of bottles off the market. This crisis sent the company from a 35.4% margin via the over-the-counter analgesics market to a shaky 18.3% by the end of the year. However, within one year from the crisis, Tylenol recouped a market of 28.6% of the $1.2-billion market of the non-prescription pain relievers, or in another retrospect, 80% of its total prior to the crisis (Gini & Marcoux 2009, p36). The Recovery Plan
Though the product recall was quite extensive (media, messages and tests of the capsules) costing the company tens of millions of dollars and a tarnished reputation, Johnson & Johnson along with their advertising company, Compton Advertising, backing out and letting the name brand since the late 1950’s and quite was not an option for them. Though the set back was huge, this affected several non-prescription drugs pertaining to how they being packaged. Within the first few hours after the poisonings were traced to Tylenol’s capsules, Johnson & Johnson set up their task force with their top executives. Their main concerns for the company were to first, assist the damage sustained to the company, and determine how to overcome this ordeal. The Compton Advertising team contemplated on resurfacing the product under a new name, but Johnson & Johnson worried that...