The last element we will over in this series on ERM involves brand risk. An enterprise’s brand(s) is one of its most valuable assets. Many brands have become so iconic that they have become a verb rather than a noun. For instance, Xerox Corporation has had a long history of producing photocopier machines. Think about how many times you have heard some say, “I'm just going to Xerox this document.” There are numerous companies producing a product made with an adhesive strip and gauze square that is designed to cover a small cut or scrape. The typical response you hear when someone needs one of these health care products is…“Would someone please get me a Band-Aid?” Johnson & Johnson, which owns this iconic brand, is probably pretty delighted that their product receives such broad recognition.
Johnson & Johnson has had some great brand successes and some disasters as well. The company was widely hailed for its effective handling of the crisis involving tainted Tylenol a number of years ago. The company and the Tylenol brand recovered extremely well from what could have been a public relations nightmare. A year or so ago, Johnson & Johnson recalled Tylenol once again due to some potential contamination issues that occurred during the shipping and warehousing of the product. The lengthy time the product was off the shelf gave competitors a much stronger foothold in an already crowded market for pain-relieving products.