J&J modeled these steps to overcome adversity:
- Reestablish Trust by Acknowleding the Challenge Today (ACT), or as soon as possible.
- Recall the Problematic Product to mitigate further injuries, liabilities and damages
- Replace Defective (or Suspicious) Items at no expense to the consumer
- Reinvent the Product with New Features and safeguards that guarantee the problem is fixed and never happens again.
- Report andPublicize Your Good Corporate Citizenship
Remedy and ACT
Johnson and Johnson responded to Tylenol tampering localized to the Chicago area by undertaking a nationwide notification.
Recall the Product
It is estimated J&J recalled 31 million bottles of Tylenol with a retail value at that time of over $100 million.
Replace Defective Items
J&J offered to exchange solid tablets for any or all capsules consumers had purchased.
Reinvent the Product with New Features
About a month after the recall, J&J reintroduced new, triple-sealed capsules, a safety feature in which consumers had confidence.
Over the next several years, Tylenol was effectively priced and advertised to become the most popular over-the-counter pain medicine in the nation.
Johnson and Johnson’s conscientious, straightforward, values-driven action, coupled with its ability to negotiate the new context posed by the threat of product tampering, resulted in an amazing product rebound less than a year later.