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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 Problem…
Newsy: Feb. 24, 2016
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 Audiences
Who do we need to address?
Mothers
Mothers with children in
diapers that might use
baby powder
Women
Ages 25 - 44 Investors
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
Measurement
Media Analysis
Social Media
Management
SEO
Benchmarking
SWOT Analysis
Strengths
● 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
Sources
24/7 Wall Street. “The 10 Worst Companies Burned by the Media.” The Atlantic. June 14, 2011.
http://www.theatlantic.com/business/archive/2011/06/the-10-companies-burned-worst-by-bad-press/240448/#slide9
Adobe Social. May 4, 2016. http://www.adobe.com/solutions/social-marketing/social-listening.html
American Cancer Society. “Talcum Powder and Cancer.” November 17, 2014. Accessed April 22, 2016.
http://www.cancer.org/cancer/cancercauses/othercarcinogens/athome/talcum-powder-and-cancer
Benson, Mike. “Johnson & Johnson: A Leading Pharmaceuticals Company.” Market Realist. March 11, 2015.
http://marketrealist.com/2015/03/johnson-johnson-leading-pharmaceuticals-company/
Berfield, Susan, Jef Feeley, and Margaret Fisk. “More than 1,000 women accuse Johnson & Johnson of covering up the risks of baby powder.”
Bloomberg Businessweek. Issue 4470. Pg 54-59. April 4, 2016.
Bonetto, Lauren. “Marketing to Moms.” Mintel. September 2014. http://academic.mintel.com.proxy.library.georgetown.edu/display/679772/
Crow, David and Lindsay Whipp. “J&J to relaunch baby brand as millennials go organic.” Financial Times. April 19, 2016.
http://www.ft.com/intl/cms/s/0/035c1068-0630-11e6-96e5-f85cb08b0730.html#axzz47iRUAzSc
Dye, Jessica. “Johnson & Johnson ordered to pay $55 mln in talc-powder trial.” Reuters. May 3, 2016. http://www.reuters.com/article/us-
johnson-johnson-talc-verdict-idUSKCN0XT20L
Gilbert, Marissa. “Feminine Hygiene and Sanitary Protection Products.” Mintel. March 2016. Accessed May 1, 2016.
http://academic.mintel.com.proxy.library.georgetown.edu/display/747679/?highlight
Hopping, Richard. “Johnson’s lawsuit challenges perceptions of trust.” Mintel. http://academic.mintel.com.proxy.library.georgetown.edu/display/767756/?highlight March 31,
2016. Accessed April 10, 2016.
Investor Relations. “2014 Investor Fact Sheet.” Johnson & Johnson. 2014. http://files.shareholder.com/downloads/JNJ/1997120036x0x856393/1267DC95-99FA-47D8-81AA-
A0A855C129E8/JNJ_2014_Investor_Fact_Sheet_v5.pdf
Johnson & Johnson. “Our Company.” Accessed April 2, 2016. http://www.jnj.com/about-jnj
Margaret. “The Birth of Our Baby Products.” Johnson & Johnson’s Kilmer House. April 30, 2007. http://www.kilmerhouse.com/2007/04/the-birth-of-our-baby-products/
Money Morning Research Team. “Johnson and Johnson Stock Price Update Today.” Money Morning. April 29, 2016. http://moneymorning.com/market-news/johnson-
johnson-stock-update-april-30-2016/
Munro, Dan. “New Study Ranks Johnson & Johnson #1 in Pharma for Social Media Engagement.” Forbes. January 21, 2014.
http://www.forbes.com/sites/danmunro/2014/01/21/new-study-ranks-johnson-johnson-1-in-pharma-for-social-media-engagement/#fa23c571dc18
Nanninga, Margie. “Soap, Bath, and Shower Products.” Mintel. February 2016. http://academic.mintel.com.proxy.library.georgetown.edu/display/747662/
Neff, Jack. “Johnson’s Baby Turns to Social Media Transparency to Woo Millennial Moms.” Ad Age. July 30, 2014. http://adage.com/article/cmo-strategy/j-j-social-media-
transparency-woo-milliennials/294376/
“OTC Pediatrics: Key Players What You Need to Know.” Mintel. February 2016. Accessed April 10,2016.
http://academic.mintel.com.proxy.library.georgetown.edu/display/763157/#atom1
Rooney, Jennifer. “Brand Power to the People.” Forbes. October 5, 2011.
http://www.forbes.com/sites/jenniferrooney/2011/10/05/brand-power-to-the-people-jj-takes-lead-in-forbes-ranking/#49353ca15aed
Statista. “U.S. households: Which brands of body and baby powder do you use most often?” March 11, 2015. http://www.statista.com/statistics/275421/us-households-brands-
of-body-and-baby-powder-used/

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Johnson & Johnson Crisis Communication Presentation

  • 1. Managing the Talcum Powder Accusations Julian Gross and Katherine Knight Corporate Communications - Dr. Shelva Clemons Final Communications Plan May 9, 2016
  • 2. Putting the needs and well-being of the people we serve FIRST Johnson & Johnson credo
  • 3. 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
  • 4. 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.”
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. Target Audiences Who do we need to address? Mothers Mothers with children in diapers that might use baby powder Women Ages 25 - 44 Investors 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
  • 11. Communications Strategies and Tactics • Social Media • Traditional Media • Leadership Messaging • Internal Communications • Investor Relations • CSR Opportunities
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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
  • 19. 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
  • 21. SWOT Analysis Strengths ● 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
  • 22. Sources 24/7 Wall Street. “The 10 Worst Companies Burned by the Media.” The Atlantic. June 14, 2011. http://www.theatlantic.com/business/archive/2011/06/the-10-companies-burned-worst-by-bad-press/240448/#slide9 Adobe Social. May 4, 2016. http://www.adobe.com/solutions/social-marketing/social-listening.html American Cancer Society. “Talcum Powder and Cancer.” November 17, 2014. Accessed April 22, 2016. http://www.cancer.org/cancer/cancercauses/othercarcinogens/athome/talcum-powder-and-cancer Benson, Mike. “Johnson & Johnson: A Leading Pharmaceuticals Company.” Market Realist. March 11, 2015. http://marketrealist.com/2015/03/johnson-johnson-leading-pharmaceuticals-company/ Berfield, Susan, Jef Feeley, and Margaret Fisk. “More than 1,000 women accuse Johnson & Johnson of covering up the risks of baby powder.” Bloomberg Businessweek. Issue 4470. Pg 54-59. April 4, 2016. Bonetto, Lauren. “Marketing to Moms.” Mintel. September 2014. http://academic.mintel.com.proxy.library.georgetown.edu/display/679772/ Crow, David and Lindsay Whipp. “J&J to relaunch baby brand as millennials go organic.” Financial Times. April 19, 2016. http://www.ft.com/intl/cms/s/0/035c1068-0630-11e6-96e5-f85cb08b0730.html#axzz47iRUAzSc Dye, Jessica. “Johnson & Johnson ordered to pay $55 mln in talc-powder trial.” Reuters. May 3, 2016. http://www.reuters.com/article/us- johnson-johnson-talc-verdict-idUSKCN0XT20L Gilbert, Marissa. “Feminine Hygiene and Sanitary Protection Products.” Mintel. March 2016. Accessed May 1, 2016. http://academic.mintel.com.proxy.library.georgetown.edu/display/747679/?highlight
  • 23. Hopping, Richard. “Johnson’s lawsuit challenges perceptions of trust.” Mintel. http://academic.mintel.com.proxy.library.georgetown.edu/display/767756/?highlight March 31, 2016. Accessed April 10, 2016. Investor Relations. “2014 Investor Fact Sheet.” Johnson & Johnson. 2014. http://files.shareholder.com/downloads/JNJ/1997120036x0x856393/1267DC95-99FA-47D8-81AA- A0A855C129E8/JNJ_2014_Investor_Fact_Sheet_v5.pdf Johnson & Johnson. “Our Company.” Accessed April 2, 2016. http://www.jnj.com/about-jnj Margaret. “The Birth of Our Baby Products.” Johnson & Johnson’s Kilmer House. April 30, 2007. http://www.kilmerhouse.com/2007/04/the-birth-of-our-baby-products/ Money Morning Research Team. “Johnson and Johnson Stock Price Update Today.” Money Morning. April 29, 2016. http://moneymorning.com/market-news/johnson- johnson-stock-update-april-30-2016/ Munro, Dan. “New Study Ranks Johnson & Johnson #1 in Pharma for Social Media Engagement.” Forbes. January 21, 2014. http://www.forbes.com/sites/danmunro/2014/01/21/new-study-ranks-johnson-johnson-1-in-pharma-for-social-media-engagement/#fa23c571dc18 Nanninga, Margie. “Soap, Bath, and Shower Products.” Mintel. February 2016. http://academic.mintel.com.proxy.library.georgetown.edu/display/747662/ Neff, Jack. “Johnson’s Baby Turns to Social Media Transparency to Woo Millennial Moms.” Ad Age. July 30, 2014. http://adage.com/article/cmo-strategy/j-j-social-media- transparency-woo-milliennials/294376/ “OTC Pediatrics: Key Players What You Need to Know.” Mintel. February 2016. Accessed April 10,2016. http://academic.mintel.com.proxy.library.georgetown.edu/display/763157/#atom1 Rooney, Jennifer. “Brand Power to the People.” Forbes. October 5, 2011. http://www.forbes.com/sites/jenniferrooney/2011/10/05/brand-power-to-the-people-jj-takes-lead-in-forbes-ranking/#49353ca15aed Statista. “U.S. households: Which brands of body and baby powder do you use most often?” March 11, 2015. http://www.statista.com/statistics/275421/us-households-brands- of-body-and-baby-powder-used/

Notas do Editor

  1. http://www.latimes.com/business/hiltzik/la-fi-hiltzik-talc-cancer-johnson-20160506-snap-story.html The Ovarian Cancer National Alliance doesn't list talc at all as a risk factor. Among the main causes of the disease, the organization says, are heredity--mutations in breast cancer gene 1 (BRCA1) or breast cancer gene 2 (BRCA2) are "responsible for about 10 to 15 percent of all ovarian cancers"; obesity; and age -- rates are highest in women aged 55-64. Reproductive history is another factor, with rates elevated among women who have not given birth or taken oral contraceptives. The American Cancer Society does list talc among these risk factors, but only gingerly, stating that "some studies suggest a very slight increase in risk of ovarian cancer in women who used talc on the genital area" and suggesting that the blame may rest with contamination of talcum powder with asbestos, which is no longer the case. So the link between talcum powder use and ovarian cancer hasn't been proved, but hasn't been conclusively debunked, either. That places it right in the danger zone of product liability litigation, especially when scientists on either side of the debate affiliate themselves with lawyers on either side.
  2. http://www.mintel.com/blog/personal-care-market-news/personal-care-product-safety-trends Removed dangerous ingredients from products and launched this video to regain trust 54% of parents take ingredients into consideration when purchasing a product. This campaign was inspired by the story of Sadako Sasaki. A young japanese girl who developed leukemia from the hiroshima bomb aftermath. In chemo she would make cranes, it was believed that when 1,000 cranes are created a wish/promise is granted. Johnson & Johnson brought its team and their families together to write messages of things they plan to do going forward and assemble them into cranes.