What is the first thing Johnson & Johnson should do to save the brand's reputation? 2. Should the company continue to sell Tylenol? Why or why not? 3. If Johnson and Johnson decide on selling the product to the market again, what should it do to successfully reintroduce it? 4. How would Tylenol survive in the market after what happened? What strategy should the company adopt? 5. Of the four elements of the marketing mix-price, product, promotion, and place which one do you think should Johnson & Johnson focus on? Why?
JOHNSON & JOHNSON'S DILEMMA
In 1982, seven people in Chicago died after taking Tylenol due to unknown suspect lacing the capsules with cyanide after the products reached the shelves. Tylenol is a drug used to treat mild to moderate pain (from headaches, menstrual periods, toothaches, backaches, osteoarthritis, or cold/flu aches and pain) and to reduce fever.
In the immediate aftermath, Tylenol's commanding 37% market share dropped to just 7% nationwide, despite the problem being contained to the Chicago area. Tylenol was not responsible for the tampering of the product but its manufacturer, Johnson & Johnson, had to do something to maintain the product's reputation.
QUESTIONS:
1. What is the first thing Johnson & Johnson should do to save the brand's
reputation? 2. Should the company continue to sell Tylenol? Why or why not?
3. If Johnson and Johnson decide on selling the product to the market again, what should it do to successfully reintroduce it?
4. How would Tylenol survive in the market after what happened? What strategy
should the company adopt?
5. Of the four elements of the marketing mix-price, product, promotion, and place which one do you think should Johnson & Johnson focus on? Why?
Step by step
Solved in 3 steps
