Corporate Disasters of the 1980s: Lessons for Brand Managers
In the 1980s, corporate disasters were rampant, and some of them still haunt brand managers today. One such disaster was New Coke's identity crisis in 1985, when Coca-Cola changed its most recognizable formula after losing ground to Pepsi. The new drink, dubbed New Coke, passed taste tests but was met with consumer fury. Eventually, the company restored the original formula as Coca-Cola Classic.
The lesson learned from this disaster is that consumers can develop an emotional attachment to a product beyond its ingredients. Johnson & Johnson also suffered a nightmarish crisis in 1982 when seven people died after taking cyanide-laced Tylenol capsules. The company recalled millions of bottles and introduced tamper-resistant packaging, prioritizing consumer safety over protecting the product's immediate sales.
Other notable corporate disasters from this decade include Ford's Pinto explosion problem, Atari's video game crash, Union Carbide's Bhopal catastrophe, Pepsi's Kendall Jenner misfire, IBM's PC miscalculation, NASA's Challenger disaster, and Perrier's benzene scare. These incidents demonstrate the importance of prioritizing consumer safety, being transparent in crisis management, and recognizing that corporate responsibility does not stop at the factory gate.