Success Case Study: IQOS - Tobacco innovation captivates Japanese smokers
- February 2017
- Tobacco Products
- 18 pages
"Success Case Study: IQOS - Tobacco innovation captivates Japanese smokers", is part of GlobalData'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 GlobalDatas 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.
Have query on this report?Make an Enquiry
The team was the biggest help to us. Not only were we provided with customized solutions but also we were guided through the most complicated situations. The information was on-point yet comprehensive. The experience was absolutely satisfying and helped us turn many challenges into opportunities.
Ours is a startup with a unique set of challenges and we were therefore hesitant but the team totally put us at ease with their knowledge and expertise. Our business and its challenges were understood perfectly and help was extended accordingly. The tailor made approach really helped us gain the most informative insights.
The report repository is absolutely impressive –updated and exhaustive in terms of markets covered and information provides. Besides, with the support extended to us by the team, we could reduce costs as well as move to sustainable growth. This really helped us tap into new opportunities. Happy to have gone ahead with ResearchMos.us.
We have had a long term engagement with ResearchMoz.us and never have we felt that the work done and help extended were below flawless. The report repository is one of the best one can hope to tap into. Recently, our partner businesses opted for consultancy services and they are all thrilled with the outcome.
Insights from reports helped us improve our profit margins significantly. Most of the knowledge we needed on the market were provided to us on a granular basis. From trends, and drivers to competitive analysis, the information was not just crisp but also insightful. That helped us chart a robust growth strategy and as of now we are happy to state that we are reaping big benefits.
More from Tobacco Products
Tobacco ProductsCigarettes in Thailand
Tobacco ProductsCigarettes in Bulgaria, 2017
Tobacco ProductsCigarettes in Cambodia, 2016