THE TYLENOL CRISIS, 1982

What happened?
In October of 1982, Tylenol, the leading pain-killer medicine in the
United States at the time, faced a tremendous crisis when seven
people in Chicago were reported dead after taking extra-strength
Tylenol capsules. It was reported that an unknown suspect/s put 65
milligrams of deadly cyanide into Tylenol capsules, 10,000 more
than what is necessary to kill a human.

The tampering occurred once the product reached the shelves. They
were removed from the shelves, infected with cyanide and returned
to the shelves (Mitchell, 1989). In 1982, Tylenol controlled 37
percent of its market with revenue of about $1.2 million.
Immediately after the cyanide poisonings, its market share was
reduced to seven percent (Mitchell 1989).

What did Johnson & Johnson do?

Once the connection was made between the Tylenol capsules and the reported deaths,
public announcements were made warning people about the consumption of the product.
Johnson & Johnson was faced with the dilemma of the best way to deal with the problem
without destroying the reputation of the company and its most profitable product.

Following one of our guidelines of protecting people first and property second, McNeil
Consumer Products, a subsidiary of Johnson & Johnson, conducted an immediate product
recall from the entire country which amounted to about 31 million bottles and a loss of more
than $100 million dollars. (Lazare, Chicago Sun-Times 2002) Additionally, they halted all
advertisement for the product.

Although Johnson & Johnson knew they were not responsible for the tampering of the
product, they assumed responsibility by ensuring public safety first and recalled all of their
capsules from the market. In fact, in February of 1986, when a woman was reported dead
from cyanide poisoning in Tylenol capsules, Johnson & Johnson permanently removed all of
the capsules from the market.

How did Johnson & Johnson re-introduce the product to the market?

Once the product was removed from the market, Johnson & Johnson had to come up with a
campaign to re-introduce its product and restore confidence back to the consumer.

1. Tylenol products were re-introduced containing a triple-seal tamper resistant packaging.

It became the first company to comply with the Food and Drug Administration mandate of
tamper-resistant packaging.(Mitchell 1989) Furthermore, they promoted caplets, which are
more resistant to tampering.
2. In order to motivate consumers to buy the product, they offered a $2.50 off coupon on
the purchase of their product. They were available in the newspapers as well as by calling a
toll-free number. (Mitchell 1989)

3. To recover loss stock from the crisis, Johnson & Johnson made a new pricing program
that gave consumers up to 25% off the purchase of the product. (Mitchell 1989)

4. Over 2250 sales people made presentations for the medical community to restore
confidence on the product. (Mitchell 1989)

What was Tylenol's basis for its crisis management program?

The reason Tylenol reacted so quickly and in such a positive manner to the crisis stems from
the companys mission statement. (Lazare Chicago Sun-Times 2002). On the companys
credo written in the mid-1940s by Robert Wood Johnson, he stated that the companys
responsibilities were to the consumers and medical professionals using its products,
employees, the communities where its people work and live, and its stockholders.
Therefore, it was essential to maintain the safety of its publics to maintain the company
alive. Johnson & Johnsons responsibility to its publics first proved to be its most efficient
public relations tool. It was the key to the brands survival.

Tylenol is one of thousands of companies who have faced a crisis that can be destructive to
its company if not handled properly. In 1999, 17 years later, when Coca-Cola was faced
with a crisis of its own, Nick Purdom of PR Week wrote that "the PR industry has an
important role to play in helping companies identify and manage risks that could damage
their reputation."
While Tylenol succeeded in managing its crisis, the Exxon case was not as successful.