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June 9, 2025 14 mins

Summary

In this episode of the Koyoti Small Business Podcast, Thomas discusses the Tylenol crisis of 1982, where seven people died after consuming cyanide-laced Tylenol. He highlights how Johnson & Johnson's response to the crisis serves as a masterclass in brand trust and crisis management. The company opted for a global recall of 31 million bottles, issued public warnings, collaborated with law enforcement, and introduced new safety measures. Thomas emphasizes the importance of values and brand promises in navigating crises, especially for small businesses.

Takeaways

  • The Tylenol crisis of 1982 serves as a powerful lesson in brand trust.
  • Johnson & Johnson opted for a global recall of 31 million bottles.
  • They issued public warnings and collaborated with law enforcement.
  • The introduction of tamper-resistant packaging was a key safety measure.
  • James Burke emphasized the company's brand promise during the crisis.
  • The response cost Johnson & Johnson around $100 million in 1982.
  • Transparency and communication were crucial in rebuilding trust.
  • The CEO became the public face of the response, taking responsibility.
  • Small businesses can learn from Johnson & Johnson's values and crisis management.
  • Having a clear brand promise helps in responding to crises.

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