JUUL - Pod Based Vaping Devices
The Juul vaping device is a non-refillable e-cigarette consisting of two components; an e-liquid filled pod and a battery. The Juul pod delivers more nicotine compared to other vaping devices in the US. In Q1-2019, the company controlled a market share of 73.9% in the United States.
- 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.
- 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.
- 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.
- 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.
- 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.