solve case study

Johnson & Johnson and its Baby Powder Problem

CONTROVERSYS CHILD

Product recalls were not new to J&J. Over the years, J&J had developed a commendable track record in managing such crises which helped it to build consumer confidence and thus to become a leading brand.

In September 1982, seven people died in the Chicago area after reportedly ingesting J&Js Tylenol pain relief capsules. After investigations, it was revealed that the medicine had been laced with potassium cyanide.

MARKETING BABY POWDER

Johnson & Johnson Consumer Companies was a subsidiary of J&J that researched, marketed, distributed, and sold consumer products aimed at mothers and babies. The products included Johnsons Baby Powder and Shower-to-Shower body powder. In 1893, J&J had developed Baby Powder and promoted it as a means of absorbing unwanted moisture and odors from babies and women. Over the next century, use of the talc-based powder continued to grow, and Johnsons Baby Powder became a top selling product for the company...

TALCUM POWDER: A HUMAN CARCINOGEN?

Talcum powder had been widely used in cosmetic products, including adult body and facial powders. Talc, a mineral, consisted of magnesium, silicon, and oxygen. Talcum powder was used to keep skin dry and as protection against rashes.

TALCUM POWDER LAWSUITS

In 2009, J&J became the subject of the talcum powder lawsuit, one of the largest consumer advocacy litigations in history. The lawsuit was filed by Diane Berg (Berg), a woman from Sioux Falls, South Dakota. Berg, a physicians assistant by profession, was diagnosed with ovarian cancer in 2006 when she was just 49 years old. According to her, she had no idea that the Johnsons products that she had been using since childhood could be so dangerous. There was no warning on the labels about any possible cancer risk coming from long-term exposure.

THE CONSEQUENCES

In February 2016, the jury in St. Louis, Missouri awarded US$72 million to the family of an Alabama woman named Jacqueline Fox, who died of ovarian cancer after having used baby powder for decades as a feminine hygiene product. Three months later, in May 2016, another jury in St. Louis, Missouri, awarded US$55 million to a woman from South Dakota, who was diagnosed with ovarian cancer after using Johnsons Baby Powder for nearly 40 years.

J&JS RESPONSE

The successful lawsuits and the jurys verdict added to the ongoing debate about the safety of talc-based cosmetic products. Despite losses, J&J maintained that its products were safe. According to Tara Glasgow, the research and development lead for the companys baby products franchise worldwide...

BIG CHALLENGE FOR GORSKY

As of September 2016, J&J was facing thousands of lawsuits related to its talcum powder. Some 1,800 cases had been filed in St. Louis against the company for its talcum powder. In September 2016, another case was filed in St. Louis by Deborah Giannecchini from Modesto, California. She testified that she had been diagnosed with ovarian cancer in 2012 after using J&J talcum powder...

QUESTIONS:

1. Discuss any four causes of the major problem faced by J&J over the years and currently.

2. Discuss any four ways/solutions /strategies to be followed by J&J in order to overcome them in the current and longrun.

:41 201-MKT 322- CASE STUDY PRACT... > Johnson & Johnson and its Baby Powder Problem CONTROVERSYS CHILD Product recalls were not www to J. Over years, I had developed commendable track record in managing such crises which helped to build consumer confidence and thus to become a leading brand In September 1982. even people died in the Chicago reportedly ingenting J&J Tylenol pain relief capsules. Aller mest revealed that the medicine had been laced with potassium cyanide MARKETING BABY POWDER Johnson & Johnson Consumer Companies was widiary of researched, marketed distributed, and sold consumer products med at mothers and babies. The products included Johnson's Baby Powder and Showerto-Shower body powder. In 1853, JJ had developed Baby Powder and promoted it as a means of absorbing unwanted misure and odors from boties and women. Over the next century, use of the tale sed powder continued to grow, and Johnson's Baby Powder became a topiling product for the company TALCUM POWDERA HUMAN CARCINOGENT Talcum powder had been widely used in comic products, including wat body and facial powders. Tale, a mineral, consisted of magnesium, silicon, and oxygen. Talcum powder was used to be skin dy protection against rashes TALCUM POWDER LAWSUITS In 2000. Jo became the subject of alcun powder one of the largest consumer advocacy litigations in History. The listed by Die Burg Bergi, a woman from Sioux Falls, South Dakota Bergaans assistant by profession was diagnosed with ovarian cancer in 2008 when she was just years old. According to her, she had no idea that the Johnson's products that she had been using since childhood could be so dangerous There was ne warning on the labels about any possible cancer is coming exposure THE CONSEQUENCES In February 2016. jy in St. Louis, Missoularded 872 to the family of an Alabama woman named Jacline Fox teed of war cancer Wer having used baby powder for decades feminine yene gedact awarded 535 to a woman from South Dakota who was diagnosed with ovarian cancer after using Johnson's Baby Powder for many years JAS RESPONSE The successful lawsuits and the Mary's verdict added to the ongoing debate about the safety of tale-based cosmetic product Despre tres 5) maintained that its products were sate. According to Tara lange the worldwide research and development tead for the company's body products franchise BIG CHALLENGE FOR GORSKY As of September 2016. ) was facing thousands of time to talem powder. Some 1.800 cases had been ind in St. Louis the company for its talcum powder. In September 2016 other case was led test Louis by Deborah Glannecchini from Modesto Californie. She estified that she had been diagnosed with ovarian cancer in 2012 wing talum powder QUESTIONS 1. Discuss any four causes of the major problem faced by J&J over the years and currently. 2. Discuss any four waysisolutions strategies to be followed by J&J in order to overcome them in the current and longrun. DR.A.ROQSANA TAHER Page 2 of 2