JUUL assignment

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Centennial College *

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756

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Marketing

Date

Jan 9, 2024

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pptx

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19

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NAME : RISHABH GULATI STUDENT NUMBER : 172231219 EMAIL : rgulati10@myseneca.ca COURSE : MKM706ZFF MARKETING FUNDAMENTALS PROFESSOR : STEPEHN BODI DATE OF SUBMISSION : 09/06/2022
INTRODUCTION Juul labs is an American E-cigarette company that makes the e-cigarette device called Juul. Which provides nicotine salts to its customers in a use and throw pod system. The Juul got tremendously popular among young adults and it’s sales skyrocketed, In 2018 Juul had 75% of the e-cigarette market share. Not only did it get popular among young adults but also the adults or old age people with smoking habits switched to the Juul as it’s tag line was ‘An alternative for adult smokers’. Page:1 Date : 08/06/202 2
ISSUES FACED BY THE COMPANY 2019 led to a dismissal of the e-cigarette industry as 1300 lung injuries and multiple deaths were reported due to the use of e-cigarettes. Along with that instances of the e-cigarette device exploding have also been reported. Juul suspended the sale of fruity flavours like mango, cucumber etc in response to former president of the U.S.A Donald Trump calling the FDA to ban the sale of flavoured e-cigarettes due to the increase in lung injuries and other vaping related illness (Lawrence, 2020, sagepub.com). Vitamin E acetate has been found in the lung fluids of the consumers who have EVALI A total of 2807 hospitalized EVALI cases or deaths have been reported to the CDC as of 18 th Feb, 2020 (2020, cdc.gov.com). Page: 2 Date : 08/06/202 2
IMPACT In 2019, Kevin Burns, CEO of Juul Labs, was replaced by K.C Crosthwaite who was a former executive at Altria (Lawrence, 2020, sagepub.com). Altria faced a loss on the 12.8 billion $ investment that it made in Juul Labs acquiring 35% stake. Due to the rising pending cases against Juul Labs because of vaping illness Altria reported a 4.1 billion $ loss in its fourth quarter report (Feuer, 2020, cnbc.com). Vitamin E acetate is commonly used in skin care products and it is also legally sold, but health officials have confirmed that when this is inhaled it could be hazardous as some consumers have reported symptoms of shortness of breath and chest pain (2020, cdc.gov.com). Page: 3 Date : 08/06/2022
SITUATIONAL ANALYSIS Juul Labs current market situation will be depicted by Porter’s 5 forces which are : Rivalry amongst existing players Threat of substitute products Bargaining power of buyers Bargaining power of suppliers Threat of new entrants. Page: 4 Date : 08/06/2022
RIVALRY AMONGST EXISTING PLAYERS Juul has many rival competitors in the market as with a boom in the e-cigarette industry the tobacco industry took a fall which led those companies to invest in E-cigarettes. Vuse is an E-cigarette manufactured by Reynolds American Tobacco which is the second largest tobacco company. It entered this market after the downfall of the tobacco market. NJOY another rival competitor which is gaining most of the market by providing 99 cent e-cigarettes. It also provides fruity flavours like watermelon and citrus fruit that the juul doesn’t offer. Another rival in the market called Blu is using the same technique and is selling its myblu device for 1$ (LaVito, 2019, cnbc.com). Page: 5 Date : 08/06/202 2
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