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Managing the Talcum Powder
Accusations
Julian Gross and Katherine Knight
Corporate Communications - Dr. Shelva Clemons
Final Communications Plan
May 9, 2016
Putting the needs
and well-being of
the people we serve
FIRST Johnson & Johnson credo
Background
• World’s most comprehensive and
broadly based manufacturer of
health care products
• Operates in 3 segments: medical
devices, pharmaceuticals, and
consumer products
• Operates over 265 companies in 60
countries and carries 100 brands
• “Guided by its credo”
• CSR is at the heart of the company
for its commitment and responsibility
to the people
• October 2011, Forbes named J&J the
“top brand” in the U.S.
• However, the company has had a
series of missteps with recalls and
lawsuits all questioning the reputation
of the brand
The Problem
• J&J is under heavy scrutiny for
its sale of talcum powder and its
connection to ovarian cancer
• Forced to pay of $72M and
$55M from two lawsuits this year
• Facing 1,200 more from women
with ovarian cancer
J&J spokeswoman, Carol Goodwich:
“The verdict contradicted 30 years of
research supporting the safety of cosmetic
talc. The company intends to appeal and will
keep defending its products’ safety.”
The Product
Baby Powder
• Johnson’s baby powder was first
developed in 1893
• As of 2015, nearly 19% of American
households use Johnson’s baby powder
and 6.73% use Shower to Shower
• Contains talc to help absorb moisture and
reduce friction
TALC
• Mineral that contains asbestos in its
natural form
• FDA does not allow talc-based products
to contain asbestos
• All talc used by J&J is asbestos free
through their own testing and FDA testing
Competitive
Analysis
Most significant competition in
new drug research
Main Competitors: Unilever,
Kimberly-Clark, Proctor &
Gamble, Eli Lilly, Colgate-
Pamolive, Pfizer
Organic competitors: Honest
Company, Burt’s Bees,
Crabtree & Evelyn
Situation
Analysis
POTENTIAL ISSUES:
• Negative Media Coverage
• Brand and reputation damage
• Breach of Trust
OPPORTUNITIES:
• Show understanding of customers’
concerns
• Reiterate safety benefits of products
• Expand into new developments
• Rebuild brand image
Goal: To maintain and regain customer trust that has been
lost due to recent accusations and pending lawsuits
Objectives:
● Increase transparency through interviews and media
stories
● Realign J&J with its original credo of being responsible
to the customer
Target AudiencesWho do we need to address?
Mothers
Mothers with children in
diapers that might use
baby powder
Women
Ages 25 - 44Investors
Women ages 25 - 44 that
use baby powder for
hygienic purposes
Johnson & Johnson
investors worrying about
falling stock prices
Intervening
Public:
The Media
The media to reach the
target audiences
Communications Strategies and Tactics
• Social Media
• Traditional Media
• Leadership Messaging
• Internal Communications
• Investor Relations
• CSR Opportunities
“Our Safety Promise”
Social Media
• Engage with all concerned customers on social media
• Promote positive content showing J&J is taking the steps to ensure the
safety of its customers
• Use all of J&J’s outlets to push content and cross share content from third
party sources
• Use paid ads to target segmented audiences
Traditional Media
Be transparent with the media
• Host press conferences, town halls, and speak directly from C-level officials
Partner with trusted media outlets
• Participate in live interview with medical officials
• Invite media and bloggers to a call when there is a new development or product roll out
• Offer exclusive interviews to trusted media
Leadership Messaging
• One voice, one message
• Position the CEO to talk transparently about company operations
• Media train all CEO/C-level officials
• Partner with scientists and researchers
Internal Communications
Regularly communicate with employees
• Weekly memos to employees
• Video communication from CEO
• No communicating with the media or on social media without approval
• Develop crisis handbook detailing rules and roles
Investor Relations
Be transparent and positive with investors
• Highlight future growth opportunities
• Show how company will rebound
• Highlight positive opportunities over negative
attention
• Send special newsletter following big verdicts
or significant drop in stock prices
CSR Opportunities
Partner with key women’s and children’s cancer-fighting organizations
• Sponsor Susan G. Komen 3-Day and Relay for Life
• Turn lights teal in September to honor ovarian cancer awareness months
• Make cancer research donations with the sales of certain products
Timing & Budget
TIMING:
• Quick Response & Executive Action
• One succinct message
• Immediate response following a
verdict
• Continue measurement and tactics
for the year following
BUDGET:
• Cost effective on all fronts
• Largest expenditures on
sponsorships
• Varies depending on verdict
MeasurementMedia Analysis
Social Media
Management
SEO
Benchmarking
SWOT AnalysisStrengths
● Well-known trusted family brand
● Highest amount of pediatric pharmaceutical sales
● Highly effective response for previous crises, such as the
Tylenol recall
● Responsive social media
● Consistent stock prices
● Variety of income sources and brand diversity
Weaknesses
● Little transparency from CEO regarding recent lawsuits or
company matters
● Wide variety of products each with their own issues that also
require attention
● Claims of company knowing about the harmful effects of its
product and not being transparent about warnings or
implementing health safety label
● Self-regulated company that performs its own scientific
studies; may not be up to FDA standards
Opportunities
● Better inform customers of scientific facts behind talc
● Rebuild trust among parents and women for safety of J&J
products
● Build positive media coverage
● Partner with cancer research organizations to raise
awareness and inform consumers
Threats
● Recent lawsuits with unpredictable outcomes
● Potentially more lawsuits depending on the outcome
● Falling stock prices
● Lack of complete scientific evidence behind products
containing talc
● Negative media coverage surrounding product and J&J
brand
● SEO shows negative search results
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