Brand Crisis

Nikita khanduja 221077

Nitish Girotra
221082
Pankaj Bansal221084
Priyanka Charaya-

DELETE THIS SLIDE

AFTERWARDS

Select a brand that experienced a crisis and

compare its brand strategy with that of
Tylenol.
Read Case of Tylenol from book :Chapter
11 :P:P

Brand Crisis
AA negative
negative event
event which
which causes
causes aa loss
loss of
of faith,
faith, brands
brands
reputation,
reputation, cause
cause to
to lower
lower sales
sales and
and loss
loss of
of customers
customers
Brand
Brand crisis
crisis management
management -- is
is the
the process
process by
by which
which an
an
organization
organization deals
deals with
with aa major
major event
event that
that threatens
threatens to
to harm
harm
the
the organizations
organizations brand
brand equity.
equity.

J&J - Tylenol Crisis

Extra
Extra strength
strength Tylenol
Tylenol best
best selling
selling painkiller
painkiller in
in U.S.
U.S. at
at that
that time
time
October
October 1982,
1982, Seven
Seven people
people died
died in
in Chicago
Chicago after
after consuming
consuming extraextrastrength
strength Tylenol
Tylenol laced
laced with
with cyanide.
cyanide.
Tampering
Tampering occurred
occurred once
once the
the product
product reached
reached the
the shelves.
shelves.
Accounted
Accounted for
for 17
17 %% of
of Johnson
Johnson and
and Johnsons
Johnsons net
net income,
income, making
making it
it
the
the companys
companys bestselling
bestselling product
product
37%
37% Market
Market Share
Share reduced
reduced to
to 7%
7%

Immediate Action
People First and Product Second: Immediate
product recall - 31 million bottles worth over $100
million dollars.
Partnered with the FBI, the Chicago Police, and
the FDA - Put out a $100,000 reward
Offered to exchange purchased capsules by the
public with solid tablets
Distributed warnings - hospitals and distributors halt of Tylenol production and advertising
Dedicated TV spots to alert public
Toll free lines to respond to customer queries, for
news organizations to receive pre-taped updated
statements
Major press conferences were held at corporate
headquarters.

J&J Re-Introduction
$300 million Advertising and PR campaign to reintroduce product :
Triple-seal tamper resistant packaging - a
glued box, a plastic sear over the neck of the
bottle and a foil seal over the top
Re launched with a press conference at the
manufacturer's headquarters
First company to comply with the FDA
mandate of tamper-resistant packaging
To motivate consumers to buy - a new pricing
program that gave consumers up to 25% off
Over 2250 sales people deployed - restore
confidence of medical community
A year later, its market share climbed back to
30 %

Cadbury Dairy Milk Crisis

In
In October
October 2003,
2003, Infestation
Infestation found
found in
in few
few bars
bars of
of
Cadbury
Cadbury Dairy
Dairy Milk
Milk (fungus
(fungus layers
layers on
on chocolate)
chocolate)
FDA
FDA Commissioner
Commissioner ordered
ordered inspection
inspection of
of stock
stock at
at
companys
companys Mumbai
Mumbai Plant
Plant
Over
Over the
the following
following 3-week
3-week period,
period, resultant
resultant adverse
adverse
media
media coverage
coverage touched
touched close
close to
to 1000
1000 clips
clips in
in print
print
and
and 120
120 on
on TV
TV news
news channels.
channels.

Effects
Sales
Sales volumes
volumes came
came down
down drastically
drastically in
in the
the first
first 10
10
weeks,
weeks, which
which was
was the
the festival
festival season
season

Retailer
Retailer stock
stock Levels
Levels and
and employee
employee morale
morale dropped
dropped
The
The challenge
challenge was
was torestore
torestore confidence
confidence in
in the
the key
key
stakeholdersandbuild
stakeholdersandbuild back
back credibilityfor
credibilityfor the
the
corporate
corporate brandthrough
brandthrough the
the same
same channels
channels that
that had
had
questioned
questioned it.
it.

Strategy Adopted
Phase
Phase 1:
1: Presenting
Presenting Cadburys
Cadburys view
view (Oct-Dec
(Oct-Dec 2003)
2003)

Set up Media Desk

At first Media Briefing arranged by the agency, Cadburys Managing Director

addressed consumer concerns

At second Media Briefing- Project Vishwas was launched

Bulk Packaging was reduced from 60 to 22 bars

Questionable stocks were replaced immediately

Quality control managers, along with over 300 sales people, completed a
thorough check of over 50,000 retail outlets

Strategy Contd.
Phase
Phase 2:
2: Packaging
Packaging change
change (Jan(Jan- Mar
Mar 2004)
2004)

Launched purity sealed packagingpoly-coated aluminum foil

Spent about Rs 12-15 crore on

machinery for the new packaging

Signed up filmstar Amitabh Bachchan

as its brand ambassador- helped restore
consumers' faith in the quality of the
product

Campaign - aimed for both rational and

emotional appeal.

Key Learning

Thank You