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230 -- Introduction to Advertising

Regulatory Aspects of Advertising


Due: Monday, Feb. 17, 10:58 a.m. -- In Canvas, TurnItIn Enabled

Read the articles posted in Canvas for this assignment. Read Chapter 9 in your textbook. Use all 4 articles and
your textbook for this paper, properly citing your sources.

Follow this outline for your paper:

A Look at Juul’s E-Cigarette Advertising -- This is your headline

Introduction to Juul e-cigarettes


Summarize Juul as a product, comparing it to traditional cigarettes.

Summary of Juul’s Early Advertising


Describe Juul’s initial launch party advertising and it’s first ad campaign, “Vaporized”. (Use the Stanford report,
starting on p. 27.)
Which media types and vehicles were used? (Stanford report, “Juul Advertising Channels” section, pp. 16+.)
Which audience do you believe was most targeted, and why?

Summary of Juul’s “Make the Switch” Campaign


Describe the “Make the Switch” campaign. (Use NYT “Smoke Screen” and CNBC articles.)
Which media types were used? (Use NYT “Smoke Screen” and CNBC articles.)
Which audience do you believe is most targeted, and why?

Deception and Unfairness -- Juul’s Early Advertising


Run Juul’s early ads through the FTC’s three-step process for determining whether an ad is deceptive or
unfair. What is your conclusion? Organize this section with these sub-heads:
Step 1: Explain this step, then analyze for Juul. Be sure to explain what is omitted from the ads.
Step 2: Explain this step, then explain how you think different target groups would react to the ads.
Step 3: Explain this step, then explain what you consider “material” consumer outcomes.
Conclusion: What conclusion do you reach?

Deception and Unfairness -- Juul’s “Make the Switch” Campaign


Run Juul’s “Make the Switch” ads through the FTC’s three-step process for determining whether an ad is
deceptive or unfair. What is your conclusion? Organize this section with these sub-heads:
Step 1: Explain this step, then analyze for Juul. Be sure to explain what is omitted from the ads.
Step 2: Explain this step, then explain how you think different target groups would react to the ads.
Step 3: Explain this step, then explain what you consider “material” consumer outcomes.
Conclusion: What conclusion do you reach?
Juul combats criticism with new TV ad
campaign featuring adult smokers who quit
after switching to e-cigarettes
CNBC · by Angelica LaVito
Health and Science
Published Tue, Jan 8 2019 12:00 PM EST
Updated Tue, Jan 8 2019 2:02 PM EST
@angelicalavito

Key Points
● Juul is launching a radio and television advertising
campaign.
● Parents, teachers and regulators have criticized Juul
because its e-cigarettes are popular among teenagers.
● Altria bought a 35 percent stake in Juul. As part of
the deal, Altria will help promote Juul to its cigarette customers.

Juul, the e-cigarette company that has become ubiquitous among teens, is launching its first television ad
campaign targeting adult smokers as it faces criticism that its fruity flavors are designed for underaged users.

The San Francisco-based e-cigarette company plans to launch over the summer its new TV campaign, featuring
testimonials from adults who have used Juul to stop smoking cigarettes, executives said. The ads are likely to
draw some controversy. Tobacco companies have long been restricted from most TV or print advertising, with
marketing regulations stretching back to the 1970s. Federal and state regulators haven’t yet applied the same
standards to e-cigarettes, which are a relatively new product.

Juul will initially spend almost $10 million for TV slots airing on national cable channels after 10 p.m. local
time. The ads, a series of three different commercials, are aimed at adults 35 years and older, executives said.

The 60-second spots feature three former smokers between the ages of 37 and 54 who talk about their
experience with cigarettes, including how smoking strained relationships or isolated them from families and
friends, and how Juul helped them quit smoking.

The campaign marks the start of a year Juul will need to spend proving to regulators its product is ending up
where its supposed to — in the hands of adult smokers, not teenagers. And fresh with nearly $13 billion in cash
from Marlboro-maker Altria, Juul has money to spend to try to change minds that it’s not the second coming of
Big Tobacco.t

“It’s clear tha we’re focused on the mission of the company to convert people off combustible cigarettes,” said
Ann Hoey, Juul’s vice president of marketing. “This is campaign that is a sort of an honest, straight down the
middle of the fairway, very clear communication about what we’re trying to do as a company.”

Juul says its target audience is adults who want to stop smoking cigarettes, but its product has become wildly
popular among teens and young adults. Critics have pointed to Juul’s first ad campaign, which featured bright
colors and youthful looking models, as evidence the company was intentionally marketing to young people.
Juul has said it regrets the ads but denies it intentionally targeted teenagers.

The company started overhauling its social media accounts last year to highlight testimonials from adults who
had switched. It shut down its accounts in the fall facing a threat from the Food and Drug Administration to fix
the “epidemic” of youth e-cigarette use or else have products pulled from the market.

Juul has already captured about 75 percent of the e-cigarette market, according to Nielsen data. However, it’s
unclear what percent of Juul’s sales comes from former adult smokers and what percent comes teens, though
critics would say too much comes from the latter group.

In running advertisements highlighting stories of adults who have used Juul to stop smoking, it suggests the
company sees an opportunity to reach more adult smokers.

Over the past year, Juul captured 68 percent of the total $3.25 billion e-cigarette market, according to Nielsen
data ended Dec. 29 compiled by Wells Fargo’s Bonnie Herzog. However, it represented just 3 percent of the
$72.81 billion in overall tobacco sales, which includes cigarettes, e-cigarettes, chewing tobacco and cigars,
according to Nielsen.

Altria, maker of best-selling cigarette brand Marlboro, announced Dec. 20 that it bought a 35 percent stake in
Juul for nearly $13 billion in cash. As part of the deal, Altria will give Juul some of its prime shelf space and add
information about Juul to cigarette packs.

CNBC · by Angelica LaVito


Juul’s Convenient Smoke Screen
The New York Times · by Kevin Roose · January 11, 2019

Juul is trying to rehabilitate its image as one of Silicon


Valley’s most problematic start-ups.
CreditCaroline Tompkins for The New York Times

Juul Labs, the company behind the insanely popular vaping device, has
a message for the nation’s estimated 37.8 million adult smokers:

It really, really, really cares about them. And it wants them (and only them — got that, teens?) to try vaping
instead.

“For smokers. By design,” blares the company’s website. A new $10 million TV ad campaign, called “Make the
Switch,” echoes that theme, featuring testimonials from ex-smokers, all comfortably above the legal smoking
age, who have swapped their cigarettes for a Juul.

This benevolent-sounding mission — helping nicotine-addicted adult smokers switch to something far less
likely to kill them — is Juul’s new pitch, and the way it hopes to rehabilitate its image as one of Silicon Valley’s
most problematic start-ups.

You can’t fault Juul for trying. The company, which is valued at $38 billion, has been through the wringer
lately, with regulators, public health advocates and concerned parents accusing it of fueling an epidemic of
teenage nicotine addiction by marketing to young people with fruit-flavored pods, colorful youth-filled ads and
social media campaigns. It has been sued by users and lambasted by lawmakers, and the Food and Drug
Administration, which is investigating whether Juul’s marketing practices deliberately targeted underage users,
conducted a surprise inspection of the company’s headquarters last year. (In November, Juul announced it
would shut down its Instagram and Facebook accounts, and stop selling most flavored pods in stores.)
Juul’s new commercials feature testimonials from former
smokers. The ads are part of a $10 million campaign.

Adding to the concern is that last month, Juul took a $12.8 billion investment from Altria, the tobacco giant
behind Marlboro and other popular brands, in exchange for 35 percent of the company.

Now, after making billions of dollars and joining forces with Big Tobacco, Juul is billing itself as a public-health
crusader.

Juul is far from the first company to attempt a humanitarian makeover. Facebook, an outgrowth of a Harvard
student’s juvenile attempt to quantify the attractiveness of his classmates, now claims to have been motivated
by a virtuous impulse to connect the world; Uber, created by two tech entrepreneurs who wanted to zoom
around San Francisco in luxury cars, later tried to convince people that it wanted to provide affordable mobility
to the masses.

But in Juul’s case, revisionist history is particularly important, because the way Juul markets itself is central to
the question of how it should be treated. Many consumers, investors and ethical technologists would rightly
shun a company that knowingly targeted minors with harmful products, and cleaned up its act only after public
pressure. But if you believe that Juul had a noble anti-cigarette mission all along, it’s easier to excuse its
missteps as the product of innocent naïveté.

Unfortunately for Juul, plenty of evidence suggests that the company didn’t always take its public health
agenda so seriously.

In 2015, in an interview with The Verge, Ari Atkins, a research and development engineer who helped create
the original Juul, said that “we don’t think a lot about addiction here because we’re not trying to design a
cessation product at all.”

He added that “anything about health is not on our mind.”

In other early interviews, James Monsees, Juul’s co-founder and chief product officer, played down the idea of
a public health mission.

“We’re not an activist company,” he said in a 2014 interview. “If you don’t like what we’re making better than
cigarettes, then have a cigarette, that’s fine.”
In an interview the next year, Mr. Monsees called Juul’s predecessor, a tobacco vaporizer known as Pax, “the
dystopian future of tobacco,” and said the company’s vaporizing technology might someday find a market
beyond cigarette smokers.

In a statement this week, Mr. Monsees said the company had been forced to be careful about its marketing.
Under federal regulations, the company is allowed to bill its device as a “switching product” for smokers, but
not as a smoking cessation tool or a health device. He said that while Juul “initiated campaigns in the past that
we would not do today,” it was always focused on eliminating cigarettes.

James Monsees, a Juul co-founder, said that


although the company “initiated campaigns in
the past that we would not do today,” it was
always focused on eliminating
cigarettes.CreditSeth Wenig/Associated Press

“Since 2005, we have been focused on creating a


product to help people switch away from
smoking combustible cigarettes — the number
one cause of preventable death in the world,”
Mr. Monsees said. “That focus has been clear in
the key milestone moments in the creation of
the company — it is what we said in our 2005
Stanford graduation thesis and our first fund-
raising letter in 2007.”

Juul’s founders did, in fact, talk about improving health as a motivating factor early in the company’s existence.
In a 2007 email sent to potential investors, Adam Bowen, Juul’s other co-founder, mentioned wanting to “offer
a new alternative for health-conscious smokers.” The pair’s graduate thesis presentation, delivered while they
were studying at Stanford in 2005, pitches vaping as a healthier substitute for cigarettes.

But Juul’s public marketing told a different story. Few of the company’s early ads made any mention of
cigarettes’ risks, or advocated for smokers to switch; most were focused on playing up vaping’s cool factor. As
recently as 2017, the front page of the company’s website said nothing about switching from cigarettes at all,
only that the Juul offered an “intensely satisfying vapor experience.”

Recently, Juul — now equipped with an army of lobbyists and a slick communications team that includes a
former White House spokesman — has studiously revamped its image. Glossy profiles have been written about
the company’s “lifesaving mission” and Juul’s new chief executive, Kevin Burns, has gotten on message,
emphasizing the company’s focus on adult smokers.

This abrupt about-face has drawn skepticism from critics. Matthew L. Myers, the president of the antismoking
advocacy group Campaign for Tobacco-Free Kids, characterized Juul’s new ad campaign as little more than a
P.R. effort aimed at lawmakers and regulators.
“Juul has engaged in all the traditional tactics of a company that is trying to fend off meaningful regulation,
rather than actually change their behavior,” Mr. Myers said. “That is classic Big Tobacco.”

For all the hand-wringing, no one is suggesting that Juul’s nicotine pods are less healthy than cigarettes, or that
the company should stop marketing itself as a smoking alternative. There’s every reason to believe that vaping
is significantly less harmful than smoking, and many adult smokers have in fact used Juul’s products to help
them quit.

But motives matter. And Juul’s shifty self-presentation suggests that the company may not be acting entirely on
the level.

Juul wants you to believe that it became a teenage sensation entirely by accident, that its products were only
ever meant for adult smokers and that taking billions of dollars from Big Tobacco is consistent with the values
of a company that has always put a priority on health over profits.

The truth is much hazier than that.

Kevin Roose is a columnist for Business Day and a writer-at-large for The New York Times Magazine. His
column, “The Shift,” examines the intersection of technology, business, and culture. @kevinroose • Facebook

A version of this article appears in print on , Section B, Page 1 of the New York edition with the headline: Juul’s
Convenient Smoke Screen
The New York Times · by Kevin Roose · January 11, 2019

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