Electronic Cigarettes – A Product Development Perspective
This is a report on the vaporizer industry, all written by a leading researcher. Dr. Patrick J. Jones is a practicing medical doctor of internal medicine at the University of North Carolina at Chapel Hill. He is currently doing research as an assistant professor at Harvard Medical School’s Department of Internal Medicine. His research interests focus on medical issues such as drug toxicity, cardiovascular health, and electronic health care delivery.
The report considers the current situation of the vaporizer market and its key market dynamics for the coming year and beyond. It focuses on major market enabler companies, restrictions, and important industry trends. It profiles and studies some of the leading vendors and other prominent firms operating in this segment of the market.
This research report provides a plethora of important insights into the global marketplace. The authors identify key enabler companies that are poised to dominate the future of electronic cigarettes in North America. They then detail the geography of vapor products in North America. Finally, they conclude by describing the enormous geographic potential of the US labor market, with over 80% of all cigarette smokers living in states that would constitute a tremendous rate of growth for this industry.
Modular devices and the e-liquid that go along with them have captured the attention of customers and the marketplace. The researchers note that these two forces have created new opportunities for vendors to capitalize on the burgeoning North American e-arette market. They describe two competing markets – the replacement market and the extended product life market – that can be segmented into two primary types. The researchers believe that the success of e- cigarettes will be driven by factors such as product design, convenience, performance, and battery longevity. They then detail the attributes of the two modalities – modular devices and e-liquid – that provide the greatest opportunity to capitalize on the emerging consumer base.
The researchers observe that two decades ago there were only three companies in the United States that developed electronic cigarettes and that all of them had a very limited distribution footprint. They conclude that these limited players now face fierce competition from new product development companies that have entered the market and which are heavily relying on price as their primary marketing strategy. In light of this new development, the researchers recommend that consumers rely on established tobacco companies and brands that have a demonstrated record of success in creating new products and meeting customers’ needs and desires.
The researchers recognize two major categories of potential distributors in the US market. One is the direct seller. This individual typically sells directly to customers and has a very small retail presence. The second category is the middleman or multi-level distributor who controls multiple outlets and offers smoking cessation products to customers. Both of these types of distributors are experiencing strong market growth, but the researchers caution that they will experience slower growth if new companies continue to focus on providing multiple nicotine products that appeal to different customer segments.
The researchers also note that two different types of electronic cigarette manufacturers remain profitable even though they have expanded their product offering from traditional cigarettes and cigars. One manufacturer is focused on providing a variety of different flavors in a number of different formats and markets. The other manufacturer is focused on developing different flavors of e-liquids. The researchers believe that as the demand for vapor products increases, these companies will be able to increase their profit margins by focusing on developing different flavors of e-liquids.
The researchers believe that the key to successfully competing against other tobacco cigarettes and e-liquids is to develop a product that is focused on individual needs. For example, they note that cigarettes are typically offered in a number of different flavors, all of which are targeted at different consumer segments. E-liquids are offered in only a few different flavors and many users do not even realize what they are consuming. However, if an individual is looking for a menthol flavor or a cherry blossom flavor, they will be able to easily discover them if they are interested in an alternative type of product. This means that companies will need to focus on developing a series of different products that target a number of different groups. This research report provides the researchers with a good base from which to begin the process of identifying the right target markets for these electronic cigarettes and e-liquids.