1. Index OpportunityCompe..onWhatNaturalAmericanSpiritisdoingCulturalConictProductHumanNeedProspec.veAudienceWhydoesthismakesense? 1

2. Opportunity ShowpeoplethatNaturalAmericanSpiritisaguardianofnature, seekingtocreateacleanerworld.2 3. Competitive OverviewGOODDEALS,COOLPACKS, TASTYFLAVORS. Tobaccoindustryisfullofhugecorpora.ons,i.e.PhillipMorris,RJReynolds,ChinaNa.onal,Imperial.Theseen..eslackahumanfactor.Tobaccocorpora.onshavemovedsalesworldwide,duetona.onaldecline.Theindustryhasextendedproductlinesandoerings,outsideoftobacco.TheindustryfaceslotsofcluOerduetothemanychoicesofbrandsandstrongconsumerloyal.es.3 4. Competitive Overview Surprisingly,noothercigareOecompanyhasposi.oneditselfas100%natural.4 5. What Natural American Spirit is DoingNATURAL,NOADDITIVES,NATURAL,ORGANIC,NATURAL.AmericanSpiritusesthewordsnatural,organic,noaddi.vestoemphasizeitsessence. GivesbacktotheAmericanIndianculturethroughtheSantaFeNewMexicoTobaccoCompanyfounda.on.5 6. What Natural American Spirit is Doing Growingprogramsworkwithsmallorganic tobaccofarmers.Ecoconscious.psontheirwebsite&American Spiritrecyclableshoppingbags.6 7. What Natural American Spirit is DoingHeavypresenceinpopulareventssuchasSXSW,Coachella,andMileHighMusicFes.val. Websiteisbranded,butlacksengagementandisextremelyhard/lengthytosignupfor.(otherwisenoaccessisallowed) 7 8. Conflict Thereare1.1billionsmokersintheworldtoday,thatsalotoftrash. CigareOebuOsremainthemostliOereditemacrosstheglobe. TheAmericanLegacyFounda3on,November19,2008. SmokersliOermorethan4.5trillionofCigareOebuOseachyear. JournalofTobaccoControl8 9. Conflict ResidentsandbusinessespayforcigareOebuOliOer.LooksbadanddefacesnaturalbeautycluOersinguOers.Detrimentaltowildlifeandtheenvironmentwaterways.9 10. Litterin is American 1970CryingIndianPSAcampaign,iconicsymbolofenvironmental responsibilityandoneofthemostsuccessfulPSAcampaignsinhistory.10 11. 11 12. 12 13. 13 14. 14 15. WTF 15 16. Cultural Conflict Whathappenedtoli-erawareness?Smokershavebecomesocialpariahs,muchofitduetoliOer.Thereisagrowingconcernthatourworldisthreatenedbyglobalwarming, peoplehavedevelopednewgreenbehaviors.ThereisareallybigpatchoftrashinthePacic&Atlan.c. (twicethesizeofthecon3nentalUSandmassestoabout100milliontonsofwaste)Wearebecomingmoreawareaboutourenvironment yets.llremainhypocri.calwithourac.ons.16 17. Cultural Conflict Greenbegone.Green,Organic,andNaturalareoverusedanddevaluedbuzzterms.Environmentalbuzzwordsaregelngtheaxe. "Green"and"goinggreen"receivedthemostnomina.ons. LSSUissues34thannualListofWordstobeBanished WordssuchasOrganicarealsoreceivinglessrecogni.oninthemarket.AmericanSpiritneedstostandforsomethingmore taketheirmissiontothenextlevel.17 18. Cultural Conflict Tobaccowasoncenatural.Tobaccoisnotwhatitusedtobe,whenthecolonists wererstintroducedtoit.Todaytherearearound4,000chemicalsinageneric cigareOemuchofittoquickenthedryingprocess.ThismainstayoftheAmericaneconomymuststay consciousaboutthefootprinttheyleavebehind.Thetobaccoindustryhasstrayedfarfromtradi.onal andits.methattheterritoryisreclaimed. 18 19. Natural American Spirit Defined NaturalFarming100%organictobaccoandelimina.ngthechemicals usedinthedryingprocessisarstintheindustry.Althoughtoupholdthecommitmenttotheearthinwhich theirproductcomesfrom,AmericanSpiritmustaddressthe trashthatscreatedbycigareOes. 19 20. Natural American SpiritNeeds to goTraditional20 21. Because This never happenedback in the day21 22. American Spirit VisionThe people of Santa Fe Natural Tobacco Company share a values-driven vision:That our uncompromising commitment to our natural tobacco products, the earth from which they come, the communities on which we depend, and the people who bring our spirit to life, is essential to our success.22 23. Natural American Spirit Adjectives that match the vision (otherthanNaturalandOrganic)our uncompromising commitment to our natural tobacco products, the earth from which they come23 24. American Spirit AdjectivesTraditionalElementalWaterEarthWindFireWiseRespectSocial24 25. Natural American Spirit Putting a vision into the product 25 26. Introducing 26 27. New Product Name American Spirit Elements element[eluhmuhnt] noun substances,usuallyearth,water,air,andre,formerly regardedascons.tu.ngthematerialuniverse.Elementscompletesthecircleofnaturaltobacco,keepingthe prac.ceofsmokingonethatstradi.onalandofthepast. 27 28. New Product PositioningAmerican Spirit Elements Theworldsrst 100%biodegradablepackofcigareOes.Elementsdenesanuntouchedcategoryintheindustry onethatwillchangethewayapackofcigareOesisperceived. 28 29. New Product American Spirit ElementsTheworldsrst100%compostablecigareOebuO.ReplacingthecelluloseacetateinthelterwithPLA.PLAstandsforpolylac.cacid,orpolylac.de, aversa.lepolymermadefromplants.SunChipshasreplacedtheirbagswiththis renewable,nonpetroliumbasedpackaging.29 30. New Product American Spirit ElementsTheworldsrstplantablepack.PackagingforElementswillbemadeofpaperthat consistsofplantmaterials,andseeds.Oncethe packaginghasserveditspurpose;theelements packcanbeplanted.Regardlessitwillcompost.Thinkofitasathankyoutotheenvironment. 30 31. New Product American Spirit ElementsFoursquareandSocialelements connectedtogardens.Elementspacksturnintoowergardensbeau.fyingsurroundingareas.Gardensbecomeasocialplacetosmoke,andcreateconversa.on.31 32. New messaging Bring back litter awarenessAmericanSpiritneedstoreenforcegoodstewardshipofourearth,encouragingotherstoimprovethequalityoflifearoundthem. 32 33. New Name Natural American Spirit AmericanSpiritisnatural,butthisshouldnotbeforcedviabrandname. ThiswillpreventAmericanSpiritsinten.onfrombeingdiluted.33 34. American Spirit Meet the Audience 34 35. Human Need Self Actualization & Esteem TheneedthatAmericanSpirit Elementsaddressesistwofold.Selfactualiza.onstemsfromthe responsiblechoiceofanaturaland organicproduct.Esteembasedneedsaremetby smokingtheactualcigareOe;social acceptanceandindependence. 35 36. Product Appeal Self Actualization & Esteem Walkingthewalk.AmericanSpiritisacompanythatisdoing,ratherthansaying.Asmen.oned,thewordgreenhaslostitsglimmeryetpeoples.llseepurposeintheidea.Consumersarekarmic,doinggoodforthemselvesandtheenvironmentisapsychologicalactof balancingoutthebadtheydotothemselvesortheearth.It'sahumanbehaviortoescapetotheoutdoors,torelax,againanesteembasedneedthathasbeen conrmedtobealsodesiredbytheAmericanSpiritaudience. Linkingtheproductandnaturemakessense,asyouareenjoyingafruitoftheearthwhensmokinga cigareOe.Inordertoenjoyit,youmustnurturetheprovider,andgivethanksinasense.36 37. Consumer Insight IonlypurchaseorganicproductsatthegrocerystoreandobviouslyIwould onlysmokeacigareOemadewithorganictobacco.VeronicaB.(GreensburgPA) NaturalAmericanSpiritisaddi.vefree,thats400lesschemicalsincludedinthecuringprocess. Iamanenvironmentallyconsciousperson,andIprefertheproductsthatIpurchasehavethesameethosLyndonS.(TraverseCity,MI) NaturalAmericanSpiritstanenvironmentallyfriendlylifestyle. IwasthrilledtondNaturalAmericanSpiritandnallygetmymoneys worthoutofacigareOe!(Madison,WI) A.S.laststwiceaslongasastandardcigareOe,duetothenaturaltobaccocuringprocess.37 38. Consumer Insight Itoldhimtheygrowthetobaccoorganically.Helikedtheideaand startedsmokingAmericanSpirit. GaryH.(KingsvilleOH) AmericanSpiritsmessagecanmemisconceived,buthasaposi.veadop.onrate. Sooyen,atrestaurantsorbarswhenIstepoutsidetosmoke,Isocializewith theothersmokers.Wecommiserateuponourplightbanishedand ostracized.MaryG.(Philadelphia,PAOnegreattradi.onIhaveiswhenIgocampingIlovetolightupanAmerican SpiritwiththesamematchIlightthecamprewith.Itdoesntgetmuch beOerthanthat!ScoOS.(Tempe,AZ) AlignedwiththeiconicAmericanIndian,consumersenjoytheideaofbeingwiththeearth38 39. Human Behavior Tobacco & Nicotine entheogen ;createsGodwithin n.anysubstance,suchasaplantordrug, takentobringonaspiritualexperience 39 40. Audience Demographic Middleagedmomsanddadswhoarerecent emptynestersandarerevitalizing theiryouthfulandrebellioustendencies. (Withoutdoinganymajorharm.) Incomecansustainluxurygoodssuchastobacco.Hasextra.meontheirhandstoenjoythemselves.Arrivingatanewplaceinlife,lookingforsocialtrac.on.Consciousabouttheirimpactontheenvironment.40 41. Prospective Audience Julia Withmemoriesofbeingindependentandfulloffreelove, everyonelikestoescapeandlivethe'good.mes'again.Letstalk aboutJulia.Shegotpregnantyoung,andraisedabeau.ful daughternamedJenny.Sheabstainedfromherwildtendencies fromthepastasaparent,but20yearshasownbyandJennyis incollege.Now,Juliahasnooneathome.Shecantrememberthelast.meshehadherowngroupof friends,butshedoesrememberhowshemadefriendsbefore Jenny.MemoriesofsmokingacigareOe,havingadrink,and spending.meoutdoorswithherfriends.EsteembasedneedsarethecenterofJulia'slife.AmericanSpirit canhelpcreatesocialrelevancebetweenherandherpeers,and regainasenseofindependencethatsheonceenjoyed. 41 42. Prospective Audience Emily Shedesirestolivecomfortably,andindependentlywithinher budget,andtobesmartabouthercarbonfootprint.Emilyisintheprocessofndingherownsenseofstyle;atthe same.mesheisalwayslookingfornewcrea.veoutletsand opportuni.esforselfexpression 42 43. Prospective Audience Emily Whoisshe?Womenbetweentheagesof1824,collegestudents,part.meemployedHHI:upto60KTheyac.velyconsume,share,andcreatebrandadvocacy.Theyareheavyconsumersoftechnology,andsocialconnec.vity;theyarenotjustinterestedinconsumingcontent,theywanttocreatetheirown.Theyseedigitalasameanstostayconnectedwiththeirpeers,reinforcingfriendships,andndingnewwaystoexpress,andshareinterests.Socialcauses,andbeliefsareattheforefrontoftheirlives. Theybelieveintakingpersonalresponsibilityforreducingtheircarbonfootprint;eventhesmallestthings likereusingbagsoracommutermugforcoeemakethemfeelthattheyaremakingadierence. 43 44. Audience Engagement ThetobaccoIndustryisheldunderextremeFDAmarke.ng&sales restric.ons.Abillproposedin1995andsignedbyPresidentObamain2010, includesrestric.onslikeB&Wonlyadver.singandhighlystrict mediaplacement.(B&WactuallyworksgreatwithAmericanSpiritsnewtradi.onal posi.oning.)Withthisismindtypicalmediaplacementsarenonexistent.American Spiritshouldcon.nueto:Supportofcommuni.esandculturalevents.Engagepeople,smokersornonsmokerswithan.liOeradvocacy programs.Updatetheeortandcreatecause.CreateAmericanSpiritgardenswiththeElementspackaging;incorporate theloca.onsviasocialmedia.Usemessagingthatcarriesbywordofmouth,inaposi.vewaythrough unprecedentedproductdevelopment. 44 45. Making lives Better Helpothersdotheirpartinimprovingtheearththeyinhabittogether. EnjoytheescapeofanaturalcigareOe,andcreateGodwithin. 45 46. Why Does this make sense Est.1982,AmericanSpirits.lllacksastrongholdinthemarket. Releasinganewproductthatmatchestheneedsandinterestsof consumerswillensurethattheAmericanSpiritbrandcon.nueson. AmericanSpiritisintheprocessofredesigningtheirpackagingbutthe changedoesntmatchcorevaluesonlystylesorganicdierently. 63%saidconsumerspreferredthenewpackaging,and 18%saidaslongasthetobaccoitselfwasunchanged, theywerentconcernedwiththepackagingchanges. AmericanSpiritElementsisthenextstepforpackagingdesign. 46 47. Solving Business objectivesSustainability,AmericanSpiritwillleave nofootprintontheearth.Lesstaxa.onforlow/nocarbonfootprint productsmeansmoreprot.Createaposi.vebrandimagefromthe publicbydoinggoodfortheearth. 47 48. Justification Be a game changer. Becomingtherstcompanytoprovidea 100%biodegradableproductwithinthe tobaccoindustryisrevolu.onary.Crea.ngthisproductnotonlychangessales forAmericanSpirit,itwillimpacttheearths qualityoflifebyreducingliOer.Itwillinuenceandpossiblechangethe waytheen.reindustrypackagescigareOes.48 49. Thank You Paris Daniell 49