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Case Details |
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Case Code: MKTG357
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| Case Length: 14 Pages |
| Period: 2009-2017 |
| Pub Date: 2017 |
| Teaching Note: Not Available |
| Price:Rs.500 |
| Organization : Johnson & Johnson |
Industry : Consumer Healthcare
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| Countries : US; Europe; Global |
| Themes: Crisis Management |
| /Brand Management |
| /Marketing Ethics |
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Johnson & Johnson and its Baby Powder Problem |
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Product recalls were not new to J&J. Over the years, J&J had developed a commendable track record in managing such crises which helped it to build consumer confidence and thus to become a leading brand.
In September 1982, seven people died in the Chicago area after reportedly ingesting J&J’s Tylenol pain relief capsules. After investigations, it was revealed that the medicine had been laced with potassium cyanide. |
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| Johnson & Johnson Consumer Companies was a subsidiary of J&J that researched, marketed, distributed, and sold consumer products aimed at mothers and babies. The products included Johnson’s Baby Powder and Shower-to-Shower body powder. In 1893, J&J had developed Baby Powder and promoted it as a means of absorbing unwanted moisture and odors from babies and women. Over the next century, use of the talc-based powder continued to grow, and Johnson’s Baby Powder became a top selling product for the company... |
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| Talcum powder had been widely used in cosmetic products, including adult body and facial powders. Talc, a mineral, consisted of magnesium, silicon, and oxygen. Talcum powder was used to keep skin dry and as protection against rashes. |
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| In 2009, J&J became the subject of the talcum powder lawsuit, one of the largest consumer advocacy litigations in history. The lawsuit was filed by Diane Berg (Berg), a woman from Sioux Falls, South Dakota. Berg, a physician’s assistant by profession, was diagnosed with ovarian cancer in 2006 when she was just 49 years old. According to her, she had no idea that the Johnson’s products that she had been using since childhood could be so dangerous. There was no warning on the labels about any possible cancer risk coming from long-term exposure. |
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| In February 2016, the jury in St. Louis, Missouri awarded US$72 million to the family of an Alabama woman named Jacqueline Fox, who died of ovarian cancer after having used baby powder for decades as a feminine hygiene product. Three months later, in May 2016, another jury in St. Louis, Missouri, awarded US$55 million to a woman from South Dakota, who was diagnosed with ovarian cancer after using Johnson’s Baby Powder for nearly 40 years. |
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| The successful lawsuits and the jury’s verdict added to the ongoing debate about the safety of talc-based cosmetic products. Despite losses, J&J maintained that its products were safe. According to Tara Glasgow, the research and development lead for the company’s baby products franchise worldwide... |
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| As of September 2016, J&J was facing thousands of lawsuits related to its talcum powder. Some 1,800 cases had been filed in St. Louis against the company for its talcum powder. In September 2016, another case was filed in St. Louis by Deborah Giannecchini from Modesto, California. She testified that she had been diagnosed with ovarian cancer in 2012 after using J&J talcum powder... |
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Exhibit I:J&J’s Credo
Exhibit II: J&J’s Products and Services
Exhibit III: J&J’s Financial Highlights (2011-2015)
Exhibit IV: Johnson’s Baby Powder ads in 1965 and 1980
Exhibit V:Talcum Powder and Ovarian Cancer
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