In September 1982, seven people aged between 12 and 35 died suddenly in Chicago. The only common factor in the deaths was that they had all taken a popular over-the-counter pain relief capsule, Tylenol, beforehand.
The management of Johnson & Johnson faced a crisis on September 30 regarding their incredibly profitable premier product. Extra-Strength Tylenol accounted for 17 percent of the manufacturer's profit and „owned” 35 percent of the pain reliever market.
The management learned about the poisonings when reporters, pharmacies, doctors, hospitals, and panicked customers called them to comment on the events.
Laboratory analysis of the leftover medications from the households of the deceased revealed that the contents of the capsules were contaminated with potassium cyanide. The lengthy investigation also revealed that the cyanide contamination was not the manufacturer's fault. However, the question remained as to where the poison came from. The police eventually determined that an independent individual purchased several boxes of Tylenol, added cyanide to the capsules, and then returned the bottles containing the poisoned medications to drugstores and stores along Chicago's Route 53.
How did the poison get into the capsules?
Meanwhile, Johnson & Johnson ordered a nationwide recall of the product, sent warnings to all distributors, hospitals, and pharmacies in the country, and suspended all Extra-Strength Tylenol advertisements. The 10 million Tylenol in warehouses were destroyed, and consumers were advised not to take any of the capsules until the „mystery” was solved. The president of the pharmaceutical company, James E. Burke – who had been with the company for nearly 30 years, had never appeared on television before, and rarely gave interviews – immediately recognized the need for media appearances to get their „messages” out to the public. Among these was a promise of a $100,000 reward for information leading to the killer.
The Tylenol murders case severely damaged the pharmaceutical company's reputation, despite the fact that it was not Johnson & Johnson's fault, as the poison did not enter the capsules during manufacturing. The results of a public opinion poll commissioned by the pharmaceutical company a month after the poisonings confirmed the „death” of the Tylenol brand name. Although 87 percent of respondents recognized that the manufacturer was not responsible for the events, 61 percent stated that they would not purchase Tylenol in the future.
The only positive aspect was that regular users of the medication would still buy this pain reliever.
Despite the results and forecasts, the company confidently and boldly decided to reintroduce the product under the same brand name in a different form and in new, triple-sealed, tamper-proof packaging less than two months after the murders. There were two reasons for this: first, the acceptance of the product/brand name was the result of their years of advertising campaigns, and second, if they waited too long to introduce the new product/brand name, competitors could gain too much of a market advantage. The reacceptance of the product was initially based on regular users of the medication. To win their trust, they informed the public through advertisements (for example, they included coupons in Sunday newspapers that offered discounts on Tylenol when presented). They offered higher-than-usual discounts to resellers for orders. President Burke appeared on television shows and gave numerous interviews.
Johnson & Johnson's crisis management
Immediately after the crisis, Johnson & Johnson's market share fell from 35.3 percent to 7 percent. However, by early 1983 – thanks to marketing and PR activities – Tylenol regained 95 percent of its previous market share. The euphoria lasted until February 1986, when, incredibly, the tragedy repeated itself – despite safety packaging, a woman died due to a cyanide-laced Extra-Strength Tylenol capsule.
The company immediately removed all Tylenol capsules from the market and offered refunds to those who had purchased the product, as well as making the decision not to produce any more over-the-counter capsules because they could not guarantee consumer safety against misuse of the medication. Burke explained the decision as follows:
„People consider our company to be extremely reliable and responsible. That is why we do not want to do anything that would undermine that trust.”
Johnson & Johnson had to recall numerous products during its 135 years of operation, but Tylenol was special in that it essentially set a precedent for how companies should (or should) handle similar events. Today, 40 years after the Tylenol murders, Johnson & Johnson's management's immediate, sincere, open, and transparent communication, and effective crisis management is a „model example” in the PR profession and corporate responsibility.
Are you interested in the topic?
- Chicago Tylenol murders
- How the Tylenol murders of 1982 changed the way we consume medication
- How an Unsolved Mystery Changed the Way We Take Pills
