A Matter of Trust: Johnson & Johnson Product Recalls

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Case Details:

Case Code : BSTR393
Case Length : 18 Pages
Period : 2010-2011
Pub Date : 2011
Teaching Note :Available
Organization : Johnson & Johnson
Industry : Healthcare
Countries : US

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

J&J Crisis (1982): The Gold Standard in Brand Crisis Management

This was not the first time that J&J had faced a major product quality related crisis. A major Tylenol tragedy had occurred in 1982 as well. In September 1982 , seven people died in the Chicago area after reportedly ingesting Tylenol pain relief capsules. Investigations found that the medicine had been laced with potassium cyanide. In an immediate response, J&J recalled all of the estimated 31 million bottles of Tylenol products that were in circulation, on October 5, 1982...

J&J Crisis (2010): Crisis in Brand Crisis Management

The troubled waters at J&J had started to become evident much in 2008 when J&J the company found that some batches of its painkiller Motrin were not dissolving in water as they were supposed to. The company halted distribution of Motrin and told the FDA that it would conduct random checks of retailers’ shelves to confirm if the problem required a product recall...

A Matter of Trust

Pharmaceutical companies' superior quality which brings the life critical customer confidence to products has been their major success factor. It was on this major count that J&J was alleged to have failed. For the many customers who had been paying premium prices for J&J products throughout their lives and had depended on this long trusted brand to deliver health products and medicines they could use with complete confidence, it meant a loss of confidence in the company...

Exhibits

Exhibit I: Important Events in the History of J&J
Exhibit II: Leading Rewards and Recognition
Exhibit III: Principal Competitors, Subsidiaries and Operating Groups of J&J
Exhibit IV: Major Consumer Brands under J&J Group
Exhibit V: List of Significant Developments at J&J Since Phantom Product Recall
Exhibit VI: Abstracts from J&J's Quarterly Financial Reports

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