OVERVIEW

• Juul was established in 2017 as a spin-off from Pax Labs. The company first developed a satisfying alternative to cigarettes.
• The Juul vaping device is a non-refillable pod-style e-cigarette that features two components; a battery and a pod filled with e-liquid. The device heats e-liquid inside the pod to generate smoke vapors.
• The company has experienced rapid growth since inception and is currently valued at around $38 billion.
• In 2018, the Food and Drug Administration (FDA) instructed Juul to halt sales on eBay following concerns about the use of vaping devices by youth.
• The US FDA directed the company to raise the minimum age to purchase a vaping pod to 21 years.
• To further curb the use among younger buyers, the company suspended the sales of popular flavors in stores across the United States. Additionally, the flavors can only be purchased online after age verification.
• Recently, Juul Lab has been noted to curb it's social media marketing campaigns and the use of influencer marketing campaigns. Additionally, Juul pledged $30 million over three years to independent research, youth education, and community engagement efforts.

STRENGTHS

• Juul has a variety of fairly accurate flavors; for instance, the mango flavored pod tastes like mango and is not overly sweet.
• The Juul pod is simple and easy to use; the technology works well compared to competing products. Additionally, the device is lightweight, small, and durable.
• The pods provide a mouth-to-lung draw that is similar to that of a cigarette and closely mimics the feeling of smoking.
• The Juul pod comes with a one-year warranty backed with excellent customer support.

WEAKNESSES

• Juul offers limited nicotine options, as only the lower strength (1.7%) nicotine version is available for the Mint and Classic Tobacco flavors.
• Juul offers limited options of flavors and colors. In response to this criticism, Juul released some limited edition colors and a few new flavors in 2019.

FEATURES

• In size, the device consisting of the two components (a battery and e-liquid filled pod) is 9.48 cm long and 1.51 cm wide.
• The pod capacity is 0.7 ml and generates about 200 puffs.
• The e-liquid is composed of ingredients like glycerol, natural oils, extracts, propylene glycol, flavor, nicotine, and benzoic acid.
• The nicotine strength of the Juul pod available in the United States is 5% nicotine by weight or 59mg/ml per pod.
• The 1.7% nicotine version is available for sale in the United States and the United Kingdom; while the Virginia tobacco and mint flavored pods come in a 3% nicotine option.

UNIQUE SELLING PROPOSITIONS

• The Juul pod is easy to use with no buttons or switches. The pod has regulated temperature control to prevent burnt hits while vaping.
• The Juul pod is filled with the company's proprietary e-liquid formulation. Additionally, the pod delivers more nicotine compared to its competitors in the US.

MARKET SHARE

• According to Nielsen, Juul had a market share of 72.1% in the United States in 2018. Further, Juul's dominance of the e-cigarette market grew to the point where it's closest rival; Vuse no longer had double-digit market share dropping to 9.6% in 2018.
• In 2017, Juul's market share was 55.7%, while Vuse's market share was 17.5%. Alternatively, by April 2019, Juul controlled 73.9% share of the United States market.
• In 2018, the company expanded into the United Kingdom and adopted a two-pronged expansion strategy for growing market share. The company focused on adding new flavors and redefining their vaping pods.

UWELL CALIBURN'S POD-BASED VAPING DEVICES

STRENGTHS

• The Uwell Caliburn pod system contains the longest-lasting pods or coils.
• The flavor increases with more often refilling of the vaping device.
• The dual-firing mechanism feature offered by Uwell Caliburn in its pod system set them ahead of their competitors as this feature is very rare in the vaping industry.
• The micro USB charging port offers a pretty good amount of flexibility when it comes to device charging. This feature provides Uwell Caliburn pods a notable advantage over its competitors like Juul.
• Uwell Caliburn pods are very less prone to leaking because of its top-filling system feature that sets them apart from most of the vaping devices.
• The 110mm by 21.2mm by 11.6mm dimensions make them one of the most compact vaping devices in the market.

WEAKNESSES

• The Uwell Caliburn pod system has a limited vape juice capacity of just 2 ml as compared to other pod-based vaping devices.
• The Uwell Caliburn's vaping devices are very much similar to other devices in this category when it comes to manufacturing quality.
• The Uwell Caliburn pods support only one type of coil in their vaping devices, which is less in comparison to other vaping devices.

FEATURES

• The Uwell Caliburn features the latest technology called Pro-FOCS, which maximizes the vaporizing process of vape juice and hence produces the most flavorful vape.
• The Uwell Caliburn features an easy top-fill system along with secure pods snapping.
• The vaping devices offer a holding capacity of 2 ml of e-liquid and house 1.4-ohm coils to provide a solid flavor along with comfortable drawing.
• Easily detachable mouthpiece installed in the vaping devices helps in insulating the heat away from the lips.
• Other features of the pod system include fault diagnosis function, short-circuit protection, low power indicator, and over vape indicator.

UNIQUE SELLING PROPOSITIONS

• Uwell Caliburn's pod-based vaping devices are light in weight and are constructed of aluminum alloy.
• The battery can be either draw-activated or can be activated by the provided button.
• The Uwell Caliburn pod system comes with easy-to-use top-fill cartridges.
• The vaping devices come with a mechanism that enables users to directly vape through air pressure sensors without the need of a button.
• Uwell Caliburn's pod-based vaping devices are available in six different colors including black, red, blue, gray, pink, and purple.
• Uwell Caliburn pod-based vaping devices come with children safety features as they can be locked by five clicks on the given button.
• The parallel coils inside the pod system atomize the juice to full extent, thus providing bigger clouds, better flavor, and a smoother throat hit.

RESEARCH STRATEGY

MYBLU POD-BASED VAPING DEVICE

STRENGTHS

• According to Vaping360, the super-lightweight, compactness, and ease of use provided by myBlu make up some of its most significant strengths.
• Vaping360 also observed myBlu's well-built design, which had a great throat hit in its regular line to be among the pros of the myBlu vaping device.
•  myBlu's good battery life, which charges in under half an hour is one of its strengths.
• According to a report by Wired, one of the pros of the myBlu vaping device is that it comes with 12 different liquidpod flavors along with three nicotine strengths such as 0%, 0.8%, and 1.6% for users to choose from.
• Furthermore, Wired's report indicated that one of the myBlu device strengths was its ability to allow users to change and mix different flavors to match what they desired.
• According to VapeBeat, myBlu is cheaper to run in the long and short term compared to JUUL, which the observed to among the pros of the device and can charge via micro-USB while the device by JUUL requires a charging dock.

WEAKNESSES

• Reviewers on TrustPilot gave myBlu a poor rating of 3.8/10. As per our observation, most of the negative reviews were from customers who demanded better services such as faster shipments and quicker response to product failures.
• As per Wired's report, myBlu has witnessed complains of leakages when users inhale from the device. The report observed that the company is taking measures to address this issue, which indicates that the company acknowledged this to be a weakness of its device.
• According to Vaping360, one of the cons of myBlu's vaping device is its inconsistent flavors in the US and UK.
• Vaping360's report observed some cons of myBlu to include pods that do not click in place and users having to remove the pod to check the level of juice left when it was running low.

UNIQUE SELLING PROPOSITION

• According to Wired's report, myBlu features pods instead of the usual e-liquids, which the report observed to be a good starting point for those wanting to move away inhaling tobacco from standard cigarettes.
• As per information on its website, a unique selling proposition of myBlu's vaping device is its "INTENSE liquidpods" formulated with a breakthrough nicotine salt liquid to give users the different vaping experience they desired.
• Some unique selling proposition of myBlu includes the satisfying cigarette-like draw it offers users and the provision of options for nicotine salts and regular nicotine, according to a report by Vaping360.

FINDINGS RELEVANT TO THE MARKET SHARE OF MYBLU

• According to Reuters, myBlu's parent company, Imperial Brands, invested £100 million into its e-cigarette business in 2018 which includes. The company did this projecting revenues of $2 billion from the e-cigarette sector expected to reach $30 billion by 2020.
• myBlu's parent company, Imperial Brands, said the product was performing well in 2019 with significant year-over-year growth, as per a report by Tobacco Reporter. However, the report did not provide an estimated amount from the sales of myBlu.
• The specialty product segment, including products such as Blu, Style, Golden Virginia, and others contributed 17.8% to Imperial Brands' 2018 revenues, as per a report by Statista. This information showed that there is no revenue estimate specific to myBlu available in the public domain.

OTHER FINDINGS

• Blu, the company directly behind the myBlu brand uses its bluPRINT initiative to promote customer-engaging concerts, events, stories, and other activities. These efforts to engage current and potential customers could help the brand to increase the awareness of its products including myBlu.
• Also, Blu has a membership program called bluNation that offer loyal customers rewards and other perks, which may an attempt by the company to retain loyalty to its products, including myBlu.
• myBlu got listed among the best e-cigarettes and vape pens, according to a report by Wired, indicating that the product was growing in prominence in the US and the UK, respectively.

RESEARCH STRATEGY:

VYPE — POD BASED VAPING DEVICES

STRENGTHS

• Vype's epod device comes with five fruitful flavors of e-liquid in handy cartridges and are sold in various nicotine strengths up to 18mg/m with quality ingredient.
• The epen 3 comes with a 650 mAh/6W battery and is fully charged within 2 hours while offering about 200+ puffs.  
• The user can monitor their puff count, device performance and battery level using MyVype App and is available to android users.
• Customers on 180smoke.ca rates the epod device 4.6 out of 5.0 while the users of epen 3 gave an overall rating of 4.7 out of 5.
• Both products have a high ease of use and portability rating.
• The device offers about 13 different flavors with each flavor having a varying range of nicotine strengths.
• The pod devices use blade technology for heating instead of the conventional coil and wick technology.

WEAKNESSES

• The epen 3 and epod devices are closed pod systems and cannot be filled with e-juice compared to other pod devices from competitors.
• Reviews on 180 smoke show that the epod devices rated low on cloud size while the epen 3 had a low amount of air flow rating.
• Wayde Jackson a user, reported a harsh taste and oily aftertaste and developed a cough after about a week of usage.
• Another feature that requires improvement with Vype ePen 3 is pen size and flavor value. It has one of the biggest size compared to other devices in the market.
• The device needs five clicks to bring it to life or turn off.

FEATURES

• The device comes with 6 different colors ranging from gold, blue, black, red, white, and gray with a unique soft touch rubber feel.
• The ePen 3 is made with 50% VG/50% PG e-liquid with different nicotine salt levels.
• The different flavors offered for the ePen 3 include Crushed Mint, Infused Vanilla, Master Blend, Strawberry Smash and a host of other flavors.
• The battery of the Vype pod vaping is designed to last for an entire day.
• The battery is easy to charge using a magnetic dock & USB port.
• Based on laboratory tests by Vype, the device delivers about 275 puffs and the cartridges make use of nicotine salts.
• The ePen 3 features a firing button, which is also used to turn the device on and off with 5 clicks.
• The salts are thought to give a richer flavor than the conventional Vype e-liquids with less vapor produced.
• Users can order an extra cartridge from Vype website.
• The LED light on the fire button blinks red while turning of the device when the e-liquid runs out.

UNIQUE SELLING PROPOSITION

• One of the unique selling features is its ability to last all day.
• The ePod comes with a smooth design that offers a quiet and flavorful vaping experience.
• The pod system was built with simplicity in mind and is exclusive to transitioning smokers.
•  Review by users suggest that the epod device from Vype is a good fit to combat Juul with a combination of its strengths such as puff rate, flavor variety, amount of vapor produced, ease of use and longevity of battery.
• The Vype epod devices have a low cost as compared with other pod devices available in the market.
• The Vype iSwitch and Vype iSwitch Maxx launched in late 2018, are one of the world's first Puretech blade technology.

MARKET SHARE

• According to the British American Tobacco (BAT), Vype e-cigarette which was launched in 2013, is currently, one of the world’s leading vapor companies.
• BAT e-cigarette brands, Vype and Voke held approximately 35% of the UK mainstream market for e-cigarettes as at 2016.

Research Strategy:

CURRENT VAPING POD MARKET DEMANDS AND NEEDS

• The global market demand for vaping pods is 500 million units in 2019. North America serves as a major region that consumes pod vapes. The United States is projected to account for a large market share of pod vape market in North America.
• Europe also has a significant market share, with Germany, the UK, and France as the largest players in the European region.
• Market demand for Juul, one of the most popular vaping pod manufacturers, is increasing, with the sales soaring 728% in the US according to a Nielsen report. JUUL's share of the market increased to 72% from 70.5%.
• Total e-cigarette sales in the US have reached about $2.3 billion in 2018. In August 2017, sales were at $1.3 billion.

• Due to the high concentration of nicotine in vape pods, which can cause numerous respiratory diseases, there is a demand in the market for low-concentration vaping pods.
• The industry is trying to figure out how to produce flavors with adherence to the demand for pod options that have a low concentration of nicotine, in order to reduce the impact of vaping to their customer's health.

• There is an increasing demand for open pod vape systems because consumers value the convenience of trying a variety of flavors by refilling the cartridge with vape juice.
• The industry is currently trying to face the challenge of making an open pod system with simpler operations and delivery methods. Consumers always want pod vapes in flexible, high-quality, but easy to use formats.
• The industry is trying to figure out how to make better open pod vape systems because the sales of open pod vapes reached $250 million in 2018.

CONSUMER DESIRES

• Vapers need pod systems with simpler operations.
• Consumers desire compact pod vapes that offer effective nicotine delivery in a portable size. These systems should be easy to use and familiar, such as the pen model. They also want various flavors from the vaping pod system, such as orange, fruits, mint, coffee, cotton candy, Bavarian cream, and low nicotine intake, especially for consumers switching to vaping pods as an alternative to smoking cigarettes.
• According to Vape UK, consumers are also concerned with the quality of vaping pods.
• Customers don't really like low-end vape pods because of the lower quality, which makes them more likely to turn back to tobacco.
• Customers expect to see a rise in the quality, customizability (pod vapes that have various shapes), and the durability of products. Consumers are especially interested in vaping systems that can be charged faster and offer a longer battery life.
• In terms of how these pod vaping system brands communicate value to their customers, brands like UWELL Caliburn appeal to consumers' desires for easy-to-use systems and long-lasting pods. UWELL Caliburn is called the best-tasting pod vape with the longest-lasting pods/coils.

MARKET TRENDS DRIVING BRAND SUCCESS

• Market trends show that vape pods are experiencing a global CAGR of 18.5%.
•  Teenagers who don't want to smoke are one of the major drivers of this market.
• The increasing awareness and usage of CBD for its health benefits, in tandem with the growing demand for marijuana legalization, have also helped the vaping pod market due to demand for vaping pods that have CBD or marijuana in them. This presents an opportunity for vaping pod manufacturers because they can sell vape juices with CBD oil and THC in the US and Canada.

RESEARCH STRATEGY