

Glo will enter the market at a cheaper price than iQOS – a starter kit will sell for 8,000 yen ($77), about 20% cheaper than the rival iQOS device. BAT will use the traditional competitive tactics to eat into iQOS’s share. BAT will play catch-up to Japan Tobacco’s Ploom TECH device, and besides Marlboro’s iQOS. Japanese consumers can be considered as gadget-loving, and it will be the only country to have three heat-not-burn devices present in the market. The latter has reached an almost 5% market share, which is even more impressive when the limited sale, given the supply constraints by the company, are taken into consideration. The main reason for the choice of Japan by BAT can be considered to be the success garnered by Philip Morris in the region. Japan will be the first launch market for the device, and it will be available in retail outlets in December. The product will initially launch with three distinct flavors called Intensely Fresh, Fresh Mix, and Bright Tobacco. Similar to the Marlboro Heatsticks used in the iQOS platform, BAT’s glo device heats Kent Neostiks, to approximately 240 degrees Celsius. The company has invested over $1 billion in the past five years on its development, involving more than 100 experts across five continents. According to the company, the product delivers a “cleaner experience,” with around 90% less toxicants than a standard cigarette. In the beginning of November 2016, British American Tobacco announced the launch of glo, a tobacco heating product, with a reduced risk potential.
