Skip to main content

This is the Stanford thesis presentation that launched Juul

Against a backdrop of public backlash and looming federal regulations, the world’s biggest e-cigarette manufacturer has released video of the original thesis presentation that launched Juul, with the hopes of making the case that its purpose is to do no harm — or at least less harm.

The founders of Juul have told their story before — the two met and became friends over smoke breaks at Stanford University, and eventually decided to design an alternative product to cigarettes. Juul today released a video of that thesis, presented by James Monsees (MFA in Product Design) and Adam Bowen (MSME in Product Design).

Bowen and Monsees say they started with the principle of harm reduction, aiming to keep the “good” and eliminate the “bad” from cigarettes. The people they spoke to said they were attracted to the ritual of smoking, and the satisfaction of basic human cravings like an oral fixation. However, smokers were tired of smelling like a cigarette and complained that, even if they weren’t being judged, they felt judged. Of course, hanging over all of this like a storm cloud is the fact that smoking is inherently bad for your health.

Monsees says in his presentation:

“Is it even possible to make a safe cigarette? What if smoking were safe? And even better, what if smoking wasn’t offensive to others?”

Back in 2004, when the presentation was given, Monsees and Bowen identified one of the strongest pillars of Juul’s value proposition as a cigarette replacement.

“It’s not the nicotine that’s really hurting you,” said Monsees. “It’s burning tobacco, the combustion and burning plant material.”

Professor at NYU’s College of Global Public Health David Abrams, who has advised Juul but not been compensated by them, told the New Yorker that the stigma of cigarettes has followed e-cigarettes.

“Cigarettes were a wolf in sheep’s clothing,” he said. “Now, with vaping, we have a sheep in wolf’s clothing, and we cannot get the wolf out of our minds.”

Part of the reason we can’t get the wolf out of our minds is the fact that minors have taken up e-cigarettes, and Juul in particular, in staggering numbers. For young people, nicotine and nicotine addiction have a far more egregious affect on health than they would for an adult former smoker. To teenagers, nicotine is indeed a wolf.

And it’s this issue that poses the greatest existential threat to Juul Labs. The FDA has asked for Juul and other e-cig companies to create and enforce new policies that will stymie use of these products by minors, but thus far Commissioner Gottlieb doesn’t seem too impressed.

In the presentation from 2004, Bowen presents a slide that shows the future company’s predicted demographic. On a scale from social smokers to pack-a-day smokers, Monsees and Bowen estimated that it would pick up users across the spectrum, with the majority of adoption coming from social/light smokers.

Ten years later, however, when the thesis project had evolved into the Ploom which then evolved into the Juul we know today, the company made a marketing decision that surely still haunts them. The early marketing campaign for the device showed young, hip models using the device. To this day, the campaign is cited by critics of the company for starting the youth craze over the device, which the FDA calls an epidemic.

Juul Labs has taken action to reverse this trend, including a $30 million investment in youth prevention, removal of non-tobacco-flavored nicotine pods from retail stores, deleting its social media, enforcing stricter age verification for online sales, an offensive legal push against counterfeiters and copycats, and a new $10 million ad campaign focused on attracting smokers to ‘make the switch’ to Juul.

“It [underage use] is an issue we desperately want to resolve,” Chief Product Officer and co-founder James Monsees said in August. “It doesn’t do us any favors. Any underage consumers using this product are absolutely a negative for our business. We don’t want them. We will never market to them. We never have. And they are stealing life years from adult cigarette consumers at this moment, and that’s a shame.”

Whether Juul’s efforts will be enough to prevent further regulation remains to be seen.

But from an entrepreneurial perspective, it’s interesting to see the earliest seed of a company that has now become a behemoth in its respective industry. In fact, Juul has grown to the point where Altria, makers of Marlboro cigarettes, have invested $12.8 billion in the company.

Alongside the thesis video, Juul also released a video of present-day Monsees and Bowen recalling the product design process for Juul.

“We started this project with the firm belief that innovation could address all the problems associated with smoking,” said Bowen in the video. “I would tell people, anyone who would listen, ’50 years from now no one will smoke cigarettes, they’re going to look back and think ‘Oh my God, I can’t believe people used to do that.” And now I think that’s actually going to happen much faster. In large part because of the progress that we’ve made.”



from Startups – TechCrunch https://ift.tt/2BXhk2v

Comments

Popular posts from this blog

Axeleo Capital raises $51 million fund

Axeleo Capital has raised a $51 million fund (€45 million). Axeleo first started with an accelerator focused on enterprise startups. The firm is now all grown up with an acceleration program and a full-fledged VC fund. The accelerator is now called Axeleo Scale , while the fund is called Axeleo Capital . And it’s important to mention both parts of the business as they work hand in hand. Axeleo picks up around 10 startups per year and help them reach the Series A stage. If they’re doing well over the 12 to 18 months of the program, Axeleo funds those startups using its VC fund. Limited partners behind the company’s first fund include Bpifrance through the French Tech Accélération program, the Auvergne-Rhône-Alpes region, Vinci Energies, Crédit Agricole, BNP Paribas, Caisse d’Épargne Rhône-Alpes as well as various business angels and family offices. The firm is also partnering with Hi Inov, the holding company of the Dentressangle family. Axeleo will take care of the early stage in...

Puls raises $50 million for in-home technical support

A fund affiliated with the Singaporean government has a great interest in making sure that American consumers are getting the tech support they need. Temasek, the multi-billion-dollar investment fund associated with the government in Singapore, has led a $50 million round for  Puls Technologies, Inc. , a San Francisco-based company aiming to be the tech support for American homes and offices. Current investors Sequoia Capital, Red Dot Capital Partners, Samsung NEXT and Viola Ventures all participated in the new financing, alongside additional new investors Hanaco Ventures and Hamilton Lane. Founded only three years ago, Puls pitches a service that can match consumers with the appropriate technician in a little over an hour, any day of the week. The company has built a network of 2,500 technicians in the top 50 cities in the United States, and will provide same-day installation and repair of over 200 products. Some things the company’s technicians can service include smartphon...