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JUUL

EJ

Elya John

Transcript

JUUL

By: Zachary Amos, Alex Eha, Grace Hansen, Elya John, Xinyi Liu, Aqeel Muhammad, Halee Skandalis, Tessa Ulman

JUUL's Mission

What is JUUL?

"Improve the lives of the world's one billion adult smokers by eliminating cigarettes"

Cigarette Use Decrease

Annual cigarette purchases fell by almost 7% in 2018

Cigarette purchases continue to decline in the United States

Marketing

"JUUL was made for adult smokers, but their marketing model targets teens" -Business Insider

initial Marketing

Marketing Specifically toward Teens

How did they market to teens?

1. Social Media

2. Advertisements

3. Impact

Social Media

Social media

  • 2015 product launch party
  • for adult smokers, but targeted nonsmokers and teens

JUUL Launch Party Announcement

Advertisements

"Our marketing efforts exclusively feature adult smokers who share their personal experiences about switching to Juul products from combustible cigarettes — all conveyed in a style, tone and message tailored to current adult smokers.”

Social Impact

Impact

  • 135% increase among high school students from 2017-2019
  • 7 in 9 teens are exposed to JUUL ads

"As of November 2019, 42 deaths and more than 2,000 cases of serious lung illness related to e-cigarettes have been reported in the media" -National Center for Health Research

Health Impact

Map as of Sept. 27, 2019

Lawsuits Against Juul

"By glamorizing vaping, while at the same time downplaying the nicotine found in vaping products, JUUL is putting countless New Yorkers at risk." -Attorney General Letitia James

Lawsuits

  • New York
  • California
  • 2 Washington State Counties

Changes In Marketing

  • Social media
  • Shopping restrictions
  • Age verification

marketing changes

Pod Flavors

Restricting Flavors

Menthol

Virginia Tobacco

Classic Tobacco

Mint

Menthol

Virginia Tobacco

Classic Tobacco

Mint

Mango

Fruit Medley

Menthol

Virginia Tobacco

Classic Tobacco

Cool Cucumber

Creme Brulee

Advertisement

Advertisements

  • 2019: "Make The Switch"
  • Age requirement for models

Taking Action...

business changes

"Juul...has responded by changing CEOs, limiting its marketing and lobbying, and stopping sales of flavors like mint and mango that are most popular with youth."

Now on home page of Juul.com

TIMELINE of important events

Sept. 25, 2019- Juul names KC Crosthwaite as its new CEO. Burns resigns. Juul also suspends all advertising in the U.S. and says it will refrain from lobbying the Trump administration.

September 2018 – Then-FDA Commissioner Scott Gottlieb calls teenage vaping an “epidemic,” tells Juul and other e-cigarette makers they have 60 days to submit plans detailing ways to combat youth use.

September 9, 2019 - FDA sends warning letter to Juul Labs CEO over its unproven claims that its products pose less harm than traditional cigarettes. Agency chastises Juul’s insistence that it has had little, if any, role in youth e-cigarette use that skyrocketed by 78 percent among high school students and 48 percent among middle school students nationwide in 2018.

TIMELINE

Sep 2018 - Nov 2019

November 2018 – Juul announces plans to pull all flavors from retail stores except tobacco, mint and menthol; the FDA follows with an announcement that it will craft similar regulations around those flavors.

Sept 11, 2019- Trump administration says it will ban the sale of most flavored e-cigarettes.

Nov 2019 - Juul to cut 650 jobs in attempt to slash marketing

Consumers

primary consumers: people under the age of 21

Affected Stakeholders

Altria

Initial investment: 12.8 billion with a 35% stake in JuUL

Investors

life after the lawsuit

Employees

Juuls slowest growth rate yet

Apology from (Former) ceo of juul: kevin burns

Apology

https://www.youtube.com/watch?v=WuNDr6VaUrg&t=2s

Alacrity

Alacrity

It took the CEO of JUUL 4 years to apologize for the controversial ads they launched in 2015

Acknowledgment

Acknowledgment

Kevin Burns stated that he was sorry about children using the product

Amends

Amends

There was absolutely no amends made to the families of these teenagers facing the addiction of nicotine

Ethical Stance

Ethical Stance

While Juul's initial intention for the products use was a helpful aid in getting smokers off cigarettes, their development and execution was unethical and is the reason why they have failed. While they still have much to overcome, they are beginning to return their original mission.

Unknown long-term health effects

Unknown long-term affects of juuling

Juul's former CEO Kevin Burns confirmed that the long-term health effects of vaping are unknown.

How could they sell vaping products when they are unsure of the effects?

Youth Addiction

  • Juuls design makes it easy to hide

  • Assortment of fruity flavors

  • Very high nicotine content delivered fast and effectively

Big tobacco influence

Big Tobacco Influence

  • New York Attorney General Letitia James claims "Juul took a page from Big Tobaccos playbook"

  • Access to a number of important resources with Altria deal

Key Lessons Learned

Juul co-founder Adam Bowen has admitted that initial advertising used by the company was “inappropriate.”

Conclusion

Health Effects

Kevin Burns acknowledged that there’s still much to learn about the health effects of vaping. “We have not done the long-term, longitudinal clinical testing that we need to do,” he said.

Health Effects

The company acknowledged it needed to “earn back the trust of regulators, policymakers, key stakeholders and society at large”.

Trust Crisis

Q & A

Q & A

Citations

  • https://truthinitiative.org/research-resources/emerging-tobacco-products/juul-fails-remove-all-youths-favorite-flavors-stores
  • https://www.npr.org/2019/09/25/764390058/juuls-ceo-steps-down-avmid-controversy-over-vaping
  • https://sfist.com/2019/11/12/juul-lays-off-650-people-in-attempt-to-cut-costs-by-1-billion/
  • https://sfist.com/2019/10/30/juul-sold-more-than-a-million-contaminated-vape-pods-former-exec-claims-in-lawsuit/
  • https://www.juul.com/our-responsibility#marketing-code
  • https://www.latimes.com/business/story/2019-09-24/hiltzik-juul-target-teens
  • https://www.businessinsider.com/juul-e-cig-startup-marketing-appealed-to-teens-2018-7
  • http://www.center4research.org/the-dangers-of-juuling/
  • https://www.thesun.co.uk/news/10016434/vaping-death-toll-rises-13-cases-e-cigarette-lung-disease-soar/
  • https://www.cnn.com/2019/11/07/health/juul-mint-pods-bn/index.html
  • https://nypost.com/2019/09/11/juuls-mint-flavored-e-cig-sales-soared-after-other-flavors-pulled/
  • https://techcrunch.com/2019/01/08/juul-launches-make-the-switch-tv-campaign-aimed-at-adult-smokers/
  • https://markets.businessinsider.com/news/stocks/juul-investor-altrias-stock-price-has-fallen-amid-vaping-crackdown-2019-9-1028541639
  • https://techcrunch.com/2019/10/31/altria-writes-down-4-5-billion-from-its-investment-in-juul/
  • https://www.forbes.com/sites/kathleenchaykowski/2018/11/16/the-disturbing-focus-of-juuls-early-marketing-campaigns/#77d3f37114f9
  • https://www.youtube.com/watch?v=WuNDr6VaUrg&t=2s
  • https://www.cnn.com/2019/11/19/health/juul-washington-california-lawsuits/index.html
  • https://www.npr.org/2019/09/25/764390058/juuls-ceo-steps-down-amid-controversy-over-vaping
  • https://www.juul.com/
  • https://www.bloomberg.com/news/articles/2019-11-12/juul-to-cut-650-jobs-slash-expenses-as-it-scales-back-marketing
  • https://sfist.com/2019/11/12/juul-lays-off-650-people-in-attempt-to-cut-costs-by-1-billion/
  • https://sfist.com/2019/10/30/juul-sold-more-than-a-million-contaminated-vape-pods-former-exec-claims-in-lawsuit/
  • https://www.reuters.com/article/us-juul-history-timeline/timeline-significant-events-in-the-history-of-juul-idUSKBN1WA2LI
  • https://www.cnbc.com/2019/10/29/juul-ousts-executives-names-new-cfo-amid-shakeup-at-the-embattled-e-cigarette-company.html

Citations