September 29, 1982: Seven murders caused by cyanide-laced Tylenol capsules occur in the greater Chicagoland area… the crimes have never been solved. The ramifications of this crisis continue to impact manufacturers and marketers of consumer products around the world to this day.

The business repercussions for Tylenol-maker McNeil Consumer Products and its parent company Johnson and Johnson (J&J) compelled the U.S. pharmaceutical industry to ramp up the safety of their over-the-counter medicine packaging. From a branding perspective, J&J’s rapid response to the crisis, show of concern, reforms and restitution are credited with saving the Tylenol brand and inspiring public relations experts for years to come. Upon learning of the tainted medicine, J&J pulled over 30 million bottles from retail shelves nationwide as a precaution. This single move reportedly cost the company more than $100 million. The company responded quickly with press conferences to keep the public informed throughout the crisis. When it became apparent that tampering had occurred on the shelf, J&J overhauled their product packaging with the now industry-standard tamper-resistant seals and capsules.

As a result of these actions, Tylenol recovered more than 70 percent its market share within 5 months – a startling turnaround. And today, many business leaders point to J&J’s actions as the defining best practice for brand equity protection and crisis management.
Looking back, J&J management simply pointed to the company “Credo” as helping to inform their decisions and serve as their moral compass during the crisis. A key part of the credo reads: “We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services.” James Burke, then CEO of J&J, was quoted at the time as saying that “By following our credo the path forward for us was obvious…”

The Tylenol story is still very relevant for today’s leaders. As Bill George, former CEO of Medtronic says, “Unless people go through the proper development at their company like Burke, they won’t be prepared to handle a crisis. Think about the plausible-deniability concept put forth by many of today’s executives. It’s nonsense. Burke didn’t know someone was putting cyanide into the bottles, but he acted on it.”

So what’s your credo? Let us know.

A couple weeks after my former business school professor, Chip Heath, co-wrote The Inevitability of $300 Socks, Rawlings introduced its $400 baseball glove . This has me asking what is next to “luxify”?

New upscale categories seem to be popping up everywhere just as the stalwart status brands seem to be pointed downstream. Vera Wang , for example, is now selling inexpensive handbags and dresses at Kohl’s. Oscar de la Renta’s perfume can be found at Wal-Mart.

The Heath brothers note that luxury goods are no longer about status; “they’re the mark of connoisseurship”. This statement reflects upon my own buying habits—for the things that are important to me I look for the best story, functionality, and “ideas”. There is a great opportunity for companies, brands, and designers who can turn mere products into ideas and then allow customers to relish in those ideas.

So I ask you- what is the next?

…at the cash register. That sound you hear is the buzz created by tomorrow’s launch of Halo 3 – perhaps the most talked about video game since, well, Halo 2. I have to admit that I haven’t purchased anything video game related after I turned 16. BUT – check out the game’s website and I dare you not to tour the John-117 Monument. Pretty darn cool, huh? (or rad, or hot, or whatever the kids are saying these days). And that spooky piano music? Makes me almost think about seeing if one of my friends buys it. From what I hear the makers of Halo 3 are incorporating all the right things from some of today’s hottest websites. You know, all that Social Networking stuff. From a marketing perspective this has to be considered a successful launch since people like me are even paying attention. And the best indicator of all? I’m already wondering what Halo 4 is going to look like!

After you play the game shoot me a note and let me know if it lives up to the hype.

 It’s back to school season across the nation and that means it’s time for some football.  The competition on the field though may be rivaled by the competition in the parking lot.  Tailgating has become its own sport and art form.  Passionate fans arrive early to set up their mobile party for the day and get the best spots to show off their latest toys.  The days of the simple foam cooler with drinks are long gone with spreads now looking like a fan’s home patio or dining room. 

More fans are participating and are spending more and more each year.  According to a recent NPD Group/National Eating Trends Survey, the number of tailgaters has doubled in the last 8 years.  Growing numbers of participants and an increasing amount spent on food, drink, and tailgating accessories makes this group especially attractive for marketers.  The American Tailgating Association estimates tailgater’s current spending between $7  and $15 billion.  Companies are lining up to create a presence at stadiums and arenas with everything from sampling to interactive experiences to branded merchandise giveaways. 

For marketers, it’s a target rich environment.   Passionate people with the income to spend doing something they really enjoy with a little competitive spirit thrown in the mix.  Identifying people’s passions or the potential to create passion and connecting it to your product or service is all about having the right positioning as part of a broader brand building strategy.  Think about your own passions and you can usually follow the money trail along with a willingness to pay a premium for the right brand experience.  Keeping up with the Joneses has moved out of the suburbs and into the stadium parking lot which is great news for the companies that create a real connection through the right brand experience.