Following another incident of misla
beling imported meat products, the besieged company had to slash jobs andshut many factories, leading to its decline.If the above clearly illustrates consequences of a lacklustre response to a ‘recall’ crisis, the manner in which Johnson & Johnson managed the Tylenol (a leading pain killer medicine in the US) cyanide scare in October of 1982 is a study in contrast. Unknown suspects tampered with the product after it reached retail shelves, by infecting the medication with cyanide. J&J’s swift public announcements and prompt recall of 31 million bottles of Tylenol from across the country, at a loss of more than $100 million to itself, endeared the company to consumers. J&J subsequently re-introduced the product in a triple-seal tamper resistant packaging and regained its brand appeal. Last year, when Dell issued a massive battery recall of around 4.1 million lithium ion batteries (posing a fi re hazard due to overheating), little surprise that they too followed the J&J way, ensuring that they put consumer safety above everything else. So those who think Nokia’s prompt response to this crisis was engendered out of mere concern for consumers, can think again. Handling recalls effi ciently is simply a mechanism to minimise negative infl uences on the brand in the long run. Handled effi - ciently and transparently, with a hint of social responsibility thrown in, product recall storms can be tided over! But careful, after all, even risk management is an imperfect science!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
beling imported meat products, the besieged company had to slash jobs andshut many factories, leading to its decline.If the above clearly illustrates consequences of a lacklustre response to a ‘recall’ crisis, the manner in which Johnson & Johnson managed the Tylenol (a leading pain killer medicine in the US) cyanide scare in October of 1982 is a study in contrast. Unknown suspects tampered with the product after it reached retail shelves, by infecting the medication with cyanide. J&J’s swift public announcements and prompt recall of 31 million bottles of Tylenol from across the country, at a loss of more than $100 million to itself, endeared the company to consumers. J&J subsequently re-introduced the product in a triple-seal tamper resistant packaging and regained its brand appeal. Last year, when Dell issued a massive battery recall of around 4.1 million lithium ion batteries (posing a fi re hazard due to overheating), little surprise that they too followed the J&J way, ensuring that they put consumer safety above everything else. So those who think Nokia’s prompt response to this crisis was engendered out of mere concern for consumers, can think again. Handling recalls effi ciently is simply a mechanism to minimise negative infl uences on the brand in the long run. Handled effi - ciently and transparently, with a hint of social responsibility thrown in, product recall storms can be tided over! But careful, after all, even risk management is an imperfect science!For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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