Thursday, October 28, 2010

Tylenol 1982 Case Study

Yesterday at my Advertising class, We were discussing the Product Loyalty issue. And how consumers are loyal to their products. Loyalty is basically due to three reasons. First: Habit, most of consumers buy that brand as a result of habit, they got used to buying that brand and they are too lazy to change it.
Second: Performance, consumers are loyal to their brands because they perform well.
Third: Prestige, consumers stick to buy a $90 normal cotton tshirt due to it provides them with the required prestige they want. It makes them feel better.
A case study that shows consumers loyalty, Tylenol crisis.
In the fall of 1982, McNeil Consumer Products, a subsidiary of Johnson & Johnson, was confronted with a crisis when seven people on Chicago's West Side died mysteriously. They found out that The Extra-Strength Tylenol capsules were each found to contain 65 milligrams of cyanide.
 Surprisingly, The sales volume didn't fall down, The Public relations team was really successful. First thing they did, they announced through the media for people to stop using Tylenol if they already purchased it. And for those who didn't purchase it, they shouldn't buy it. Then they recalled all Tylenol capsules from the market.
By that move they gained consumers' trust and people didn't stop using Tylenol as they distributed new one through the shelves.
The question is... If that actually happened in Egypt, do you think that the sales volume won't drop? even if Johnson and Johnson removed all the products from the shelves and warned people not to use it?

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