NJOY Inc. Case solution
NJOY Inc.
The company was founded by Mark Weiss, who was a patent attorney. During his travel, he discovered the earliest versions of e-cigarette. The e-cigarettes available in the market were not of fine quality with respect to their taste and appearance as well. These products were not equivalent, but had significant smoking experience.
Weiss saw this as a potential opportunity and a game changer in public health. He quickly responded to the situation and established a much more clear vision of e-cigarettes as successful and fruitful business proposition. He initiated his business operations in providing e-cigarettes through and online channel. He selected a manufacturer base in China and targeted US for generating sales. The e-cigarettes were ordered online and delivered to the customers through a fulfillment centers located in the US.
The business operations of the company were running smoothly and undisturbed until a consignment of the company was denied to enter the boundaries of US by the custom authorities. These authorities believed that e-cigarettes are drug containing products and must apply for an approval before bringing the consignment in the boundary limitations of the country. In reaction to this the company registered a suit against these claims in the court and received a green signal from the authorities, which allowed them to continue with the imports of the e-cigarettes.
The company has set its main focus on developing the most refined business recipe in order to provide its consumers with the best flavor, the expected hit with a puff and a big cloud of smoke.
The company researched heavily on the expectations of the customers with respect to the customer insights. Moreover, it researched on what exactly were the traits related to smoking and how can they best match them with their less harmful substitute. These insights were then utilized by the company to effectively develop such products, which were required by the customers.
NJOY Inc. did not manufacture or produce the nicotine liquid in China; instead they produced the nicotine liquid in the United States. The organization continuously kept its focus on refining the recipe, and once the recipe was produced it was sent to the manufacturer in China, which had the capacity of producing 100,000 disposable e-cigarettes per day. The company has efficiently grown its operations in the US market. It supplies its goods to a number of retail locations and they are market leaders in the e-cigarette segment with a significant difference of 30 per cent market share.
E-cigarettes:
E-cigarettes were developed with an intention to replicate and substitute the combustible cigarettes, with an intention to reduce and lower the harm levels caused by the traditional cigarettes. The major difference between e-cigarettes and combustible cigarettes was that e-cigarettes did not contain tobacco or burnt tobacco, instead it was based on a technology, which vaporizes a liquid that contains nicotine and therefore left no smoke, and neither did these e-cigarettes produce ash or unbearable odor. These cigarettes only left a vapor that was exhaled by the consumer.
The product has the same traits and characteristics as the traditional cigarettes. E-cigarettes consist of three basic elements; a lithium battery placed for providing an electrical charge, a cartridge containing liquid nicotine in a choice of flavors and an atomizer which heats the cartridge to controlled level for creating a vapor.
The tactile element of the motion of users with respect to their hand and mouth, the sight of a glowing tip and a sense of a scratching throat;combined together all these traits were a success at mimicking the sensation of smoking a combustible cigarette.
The product comes in two forms; one being the disposable ones compromising of 30 to 40 cigarettes in a pack and the reusable, these are based upon the usage of the cigarettes on a more refutable nature, the batteries could be charged and cartridge could be replaced for the perpetual use...............................
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