Johnson and Johnston Reputation Hit Following Recalls

Johnson & Johnson, the Fortune 500 company, which has a legacy of over 125 years in family health and baby products was caught in an embarrassing situation as more reports of children’s drugs recalls continue to appear. From being a monopoly product in child care, J & J has become just one of the many choices in child care product brands for the consumers, overnight! The media has started to analyze the reputation and the brand name and as a result consumers are taking that extra while to choose their next baby product instead of endorsing J & J blindly as they have been doing for all these years.

The recall included children formulations including Tylenol, Motrin, Benadryl, and Zyrtec sold in over 12 countries including the US. J&J has pulled about 1,500 lots of these bottled products and has warned that some of the medicines may contain a higher concentration of its active ingredient than they should, while others may contain inappropriate levels of foreign particles. FDA inspectors found that raw materials set aside to make and use several lots were contaminated with so-called gram-negative bacteria. The company came up with a prompt apology for the recall and halted production at the factory as more muck kept tumbling out!

“An analyst opined, “You’ve got a company that’s considered one of the premier companies, that’s spent something like 100 years building its reputation…This is the kind of thing that can hurt that.”

“NEW YORK (Dow Jones)–The chief financial officer of Johnson & Johnson (JNJ) said at a health-care conference Tuesday that they estimate a $200 million to $300 million sales hit from a recent recall of children’s and infant Tylenol and other products is “not unreasonable”.”

Johnson & Johnson has always been touted as a model in the consumer products industry, well known for its fool proof reputation management and PR policies. The proficient handling of the Tylenol scare in 1982 in which seven people in Chicago died after taking capsules that had been laced with cyanide, still remains fresh in the minds of many. However the fact that it was not the company’s fault and no one was charged in that case, came as a face saver for the reputation of J & J . However the latest incident involving its McNeil unit has landed J & J on a sticky wicket as the recall issue causes severe problems with the plant itself and its operation. Johnson & Johnson will have to roll up their sleeves in order to counter act the apprehensions of the consumer. We at feel that J & J has to set out on a damage control exercise before the social networks get a wind of the issue and take it far and wide. As customers depend more and more on search engines to finalise their brand choice the company needs to put in place an immediate reputation management strategy.

We believe that can assist J & J to bring back the lost confidence among its consumers to be the favorite family brand yet again!

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