In a reading for Comm 101, I came across a Warren Buffett quote: “It takes 20 years to build a reputation and five minutes to ruin it.” How important is a reputation to a company? Johnson & Johnson’s company gave me some insight.

Johnson & Johnson has built a reputation of product quality. The company produces thousands of different kinds of products including Tylenol and Motrin. However, in January 2011, J&J products at a CVS drugstore in Boston were in short supply. In 2010, the McNeil Consumer Healthcare unit of J&J recalled about 136 million bottles of liquid Tylenol due to quality-control problems in factories.

A mother said, “I don’t even consider buying them any more.” A company never wants to hear that its customers are no longer going to buy after having built a strong brand image. It would not be just one customer who is dissatisfied; word of mouth travels quickly. With the internet, word travels even fasters. In fact, the mother blogged about the situation also. Although some consumers remain loyal, Warren Buffett’s words remain true. The company reputation instills trust in its customers and if customers do not have that trust then it is useless.

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