"Success Case Study: IQOS - Tobacco innovation captivates Japanese smokers", is part of the author's Successes and Failures research. It examines the details of and reasons behind Phillip Morris's IQOS "heat-not-burn" tobacco innovation, which have been significant success in Japan. It delivers the critical "what?", "why?", and "so what?" analysis to teach you crucial lessons that increase your chances of launching successful products.
Japan is the fifth-largest tobacco market in the world, with a cigarette market volume of 174.4 billion cigarettes in 2015. However, sales volume has been continually declining for nearly two decades. 20% of the adult population smoke on a regular basis: 31% of adult males and 10% of adults females (as of 2015). Nevertheless, the percentage of people who smoke has also been gradually falling for the last decade.
- IQOS is an innovative heat-not-burn tobacco product that offers a smoke-free experience. Philip Morris Japan launched IQOS in 2014, with Nagoya being its pilot market. It then made it available across the country. IQOS had over 1 million users as of 2016.
- Smokers see IQOS's attributes, including no fire or ash, reduced smell, and use of real tobacco leaves, as being highly beneficial in Japan, where smokers are still allowed to smoke in public places. IQOS also helps to reduce the risk of chemical intake associated with traditional tobacco products, which appeal to Japanese smokers.
- IQOS's success demonstrates that there is high demand for cigarette alternatives. Investing in tobacco innovations that take heed of the issues and negative perceptions surrounding conventional smoking offers growing opportunities.
Reasons to buy
- Use the author's selection of successful and failed product launches and marketing campaigns from across the globe to inspire innovation.
- Reduce the risk of failure by learning from brands/products that have under-performed: failed innovation can severely impact profit and reputation.
- Understand the relevant consumer trends and attitudes that drive and support innovation success so you can tap into what is really impacting the industry.
- Gain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.
- Access valuable strategic take-outs to help direct future decision-making and inform new product development.
IQOS is an innovative heat-not-burn tobacco