American Spirit Product Development Strategy

Index Opportunity  Compe..on  What Natural American Spirit is doing  Cultural Conﬂict  Product  Human Need  Prospec.ve Audience  Why does this make sense?  1 

Opportunity Show people that Natural American Spirit is a guardian of nature,  seeking to create a cleaner world.  2 

Competitive Overview GOOD DEALS,   COOL PACKS,   TASTY FLAVORS.  Tobacco industry is full of huge corpora.ons, i.e. Phillip Morris, RJ Reynolds,  China Na.onal, Imperial. These en..es lack a human factor.  Tobacco corpora.ons have moved sales world wide, due to na.onal decline.  The industry has extended product lines and oﬀerings, outside of tobacco.  The industry faces lots of cluOer due to the many choices of brands and  strong consumer loyal.es.  3 

Competitive Overview Surprisingly, no other cigareOe company has posi.oned itself as 100% natural.  4 

What Natural American Spirit is Doing NATURAL, NO ADDITIVES, NATURAL, ORGANIC, NATURAL.  American Spirit uses the words ‘natural, organic, no  addi.ves’ to emphasize its essence.  Gives back to the American Indian culture through the  Santa Fe New Mexico Tobacco Company founda.on.  5 

What Natural American Spirit is Doing Growing programs work with small organic  tobacco farmers.  Eco‐conscious .ps on their website & American  Spirit recyclable shopping bags.  6 

What Natural American Spirit is Doing Heavy presence in popular events such as SXSW,  Coachella, and Mile High Music Fes.val.  Website is branded, but lacks engagement and is  extremely hard/lengthy to sign up for.   (otherwise no access is allowed)  7 

Conflict There are 1.1 billion smokers in the world today, that’s a lot of trash.  CigareOe buOs remain the most liOered item – across the globe.  ‐ The American Legacy Founda3on, November 19, 2008.   Smokers liOer more than 4.5 trillion of CigareOe buOs each year.   ‐ Journal of Tobacco Control  8 

Conflict Residents and businesses pay for cigareOe buO liOer.  Looks bad and defaces natural beauty – cluOers in guOers.  Detrimental to wildlife and the environment – waterways.  9 

Litterin is American 1970 ‐ “Crying Indian” PSA campaign, iconic symbol of environmental  responsibility and one of the most successful PSA campaigns in history.  10 

WTF 15 

Cultural Conflict What happened to li-er awareness?  Smokers have become social pariah’s, much of it due to liOer.  There is a growing concern that our world is threatened by ‘global warming’,  people have developed new ‘green’ behaviors.   There is a really big patch of trash in the Paciﬁc & Atlan.c.   (twice the size of the con3nental US and masses to about 100 million tons of waste)  We are becoming more aware about our environment –   yet s.ll remain hypocri.cal with our ac.ons.  16 

Cultural Conflict Green be gone.  Green, Organic, and Natural are over used and de‐valued buzz terms.   Environmental buzzwords are gelng the axe.  "Green" and "going green" received the most nomina.ons.  ‐ LSSU issues 34th annual List of Words to be Banished   Words such as ‘Organic’ are also receiving less recogni.on in the market.  American Spirit needs to stand for something more –   take their mission to the next level.  17 

Cultural Conflict Tobacco was once ‘natural’.  Tobacco is not what it used to be, when the colonist’s  were ﬁrst introduced to it.   Today there are around 4,000 chemicals in a generic  cigareOe ‐ much of it to quicken the drying process.  This mainstay of the American economy must stay  conscious about the footprint they leave behind.  The tobacco industry has strayed far from tradi.onal –  and it’s .me that the territory is reclaimed.  18 

Natural American Spirit Defined Natural Farming 100% organic tobacco and elimina.ng the chemicals  used in the drying process is a ﬁrst in the industry.  Although to uphold the commitment to the earth in which  their product comes from, American Spirit must address the  trash that’s created by cigareOes.  19 

Natural American Spirit Needs to go Traditional 20 

Because This never happened back in the day 21 

American Spirit Vision The 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 

Natural American Spirit Adjectives that match the vision (other than Natural and Organic)  “…our uncompromising commitment to our natural tobacco products, the earth from which they come…”  23 

American Spirit Adjectives Traditional Elemental Water Earth Wind Fire Wise Respect Social 24 

Natural American Spirit Putting a vision into the product 25 

Introducing 26 

New Product Name American Spirit Elements  el∙e∙ment     [el‐uh‐muh nt]   –noun  substances, usually earth, water, air, and ﬁre, formerly  regarded as cons.tu.ng the material universe.  Elements completes the circle of natural tobacco, keeping the  prac.ce of smoking one that’s tradi.onal and of the past.  27 

New Product Positioning American Spirit Elements The worlds ﬁrst   100% biodegradable pack of cigareOes.  ‘Elements’ deﬁnes an un‐touched category in the industry –  one that will change the way a pack of cigareOes is perceived.  28 

New Product American Spirit Elements The worlds ﬁrst 100% compostable cigareOe buO.  Replacing the cellulose acetate in the ﬁlter with PLA.   PLA stands for polylac.c acid, or polylac.de,   a versa.le polymer made from plants.   Sun Chips has replaced their bags with this  renewable, non‐petrolium based packaging.  29 

New Product American Spirit Elements The worlds ﬁrst plant‐able pack.  Packaging for Elements will be made of paper that  consists of plant materials, and seeds. Once the  packaging has served it’s purpose; the elements  pack can be planted. Regardless it will compost.  Think of it as a thank you to the environment.  30 

New Product American Spirit Elements Foursquare and Social elements   connected to gardens.  Elements packs turn into ﬂower gardens – beau.fying surrounding areas.  Gardens become a social place to smoke, and create conversa.on.  31 

New messaging Bring back litter awareness American Spirit needs to re‐enforce good stewardship of our earth,  encouraging others to improve the quality of life around them.  32 

New Name Natural American Spirit American Spirit is natural, but this should not be forced via brand name.  This will prevent American Spirits inten.on from being diluted.   33 

American Spirit Meet the Audience 34 

Human Need Self Actualization & Esteem The need that American Spirit  Elements addresses is two‐fold.  Self‐actualiza.on stems from the  responsible choice of a natural and  organic product.  Esteem based needs are met by  smoking the actual cigareOe; social  acceptance and independence.  35 

Product Appeal Self Actualization & Esteem Walking the walk. American Spirit is a company that is doing, rather than saying.  As men.oned , the word ‘green’ has lost it’s glimmer – yet people s.ll see purpose in the idea.  Consumers are karmic, doing good for themselves and the environment is a psychological act of  balancing out the bad they do to themselves or the earth.  It's a human behavior to escape to the outdoors, to relax, again an esteem based need that has been  conﬁrmed to be also desired by the American Spirit audience.   Linking the product and nature makes sense, as you are enjoying a fruit of the earth when smoking a  cigareOe. In order to enjoy it, you must nurture the provider, and give thanks in a sense.  36 

Consumer Insight “I only purchase organic products at the grocery store and obviously I would  only smoke a cigareOe made with organic tobacco.” ‐Veronica B. (Greensburg PA)   –  Natural American Spirit is addi.ve free, that’s 400 less chemicals included in the curing process.  I am an environmentally conscious person, and I prefer the products that I  purchase have the same ethos ‐ Lyndon S. (Traverse City, MI)   –  Natural American Spirits fit an environmentally friendly lifestyle.  “I was thrilled to find Natural American Spirit and finally get my “money’s  worth” out of a cigareOe!” ‐ (Madison, WI)  –  A.S. lasts twice as long as a standard cigareOe, due to the natural tobacco curing process.  37 

Consumer Insight “…I told him “they grow the  tobacco organically”.  He liked the idea and  started smoking American Spirit.   ‐ Gary H. (Kingsville OH)   ‐ American Spirits message can me misconceived, but has a posi.ve adop.on rate.  So oyen, at restaurants or bars when I step outside to smoke, I socialize with  the other smokers. We commiserate upon our plight – banished and  ostracized. ‐ Mary G. (Philadelphia, PA    One great tradi.on I have is when I go camping I love to light up an American  Spirit with the same match I light the camp ﬁre with. It doesn’t get much  beOer than that! ‐ ScoO S. (Tempe, AZ)   ‐Aligned with the iconic American Indian, consumers enjoy the idea of being with the earth  38 

Human Behavior Tobacco & Nicotine entheogen ;creates God within   n. any substance, such as a plant or drug,  taken to bring on a spiritual experience   39 

Audience Demographic Middle‐aged moms and dads who are recent  empty nesters and are re‐vitalizing   their youthful and rebellious tendencies.  (Without doing any major harm.)  •  Income can sustain luxury goods such as tobacco.  •  Has extra .me on their hands to enjoy themselves.  •  Arriving at a new place in life, looking for social trac.on.  •  Conscious about their impact on the environment.  40 

Prospective Audience Julia With memories of being independent and full of free love,  everyone likes to escape and live the 'good .mes' again. Lets talk  about Julia. She got pregnant young, and raised a beau.ful  daughter named Jenny. She abstained from her wild tendencies  from the past as a parent, but 20 years has ﬂown by and Jenny is  in college. Now, Julia has no one at home.  She can’t remember the last .me she had her own group of  friends, but she does remember how she made friends before  Jenny. Memories of smoking a cigareOe, having a drink, and  spending .me outdoors with her friends.  Esteem based needs are the center of Julia's life. American Spirit  can help create social relevance between her and her peers, and  regain a sense of independence that she once enjoyed.  41 

Prospective Audience Emily She desires to live comfortably, and independently within her  budget, and to be smart about her carbon footprint.  Emily is in the process of ﬁnding her own sense of style; at the  same .me she is always looking for new crea.ve outlets and  opportuni.es for self‐expression  42 

Prospective Audience Emily Who is she?  • Women between the ages of 18‐24, college students, part‐.me employed—HHI: up to 60K  • They ac.vely consume, share, and create brand advocacy.  • They are heavy consumers of technology, and social connec.vity; they are not just interested in  consuming content, they want to create their own.  • They see digital as a means to stay connected with their peers, reinforcing friendships, and  finding new ways to express, and share interests.  • Social causes, and beliefs are at the forefront of their lives.  • They believe in taking personal responsibility for reducing their carbon footprint; even the smallest things  like reusing bags or a commuter mug for coffee make them feel that they are making a difference.  43 

Audience Engagement The tobacco Industry is held under extreme FDA marke.ng & sales  restric.ons.  A bill proposed in 1995 and signed by President Obama in 2010,  includes restric.ons like B&W only adver.sing – and highly strict  media placement.   (B&W actually works great with American Spirit’s new ‘tradi.onal’  posi.oning.)  With this is mind typical media placements are non existent. American  Spirit should con.nue to:   • Support of communi.es and cultural events.  • Engage people, smokers or non‐smokers with an.‐liOer advocacy  programs. Update the eﬀort and create cause.  • Create American Spirit gardens with the Elements packaging; incorporate  the loca.ons via social media.  • Use messaging that carries by word of mouth, in a posi.ve way through  unprecedented product development.  44 

Making lives Better Help others ‘do their part’ in improving the earth they inhabit together.  Enjoy the escape of a natural cigareOe, and create God within.   45 

Why Does this make sense Est. 1982, American Spirit s.ll lacks a strong hold in the market.  Releasing a new product that matches the needs and interests of  consumers will ensure that the American Spirit brand con.nues on.  American Spirit is in the process of re‐designing their packaging but the  change doesn’t match core values ‐ only styles ‘organic’ diﬀerently.  63% said consumers preferred the new packaging, and  18% said as long as the tobacco itself was unchanged,  they weren’t concerned with the packaging changes.  American Spirit Elements is the next step for packaging design.  46 

Solving Business objectives Sustainability, American Spirit will leave  no footprint on the earth.  Less taxa.on for low/no carbon footprint  products means more proﬁt.  Create a posi.ve brand image from the  public by doing good for the earth.  47 

Justification Be a game changer. Becoming the ﬁrst company to provide a  100% biodegradable product within the  tobacco industry is revolu.onary.   Crea.ng this product not only changes sales  for American Spirit, it will impact the earth’s  quality of life by reducing liOer.  It will inﬂuence and possible change the  way the en.re industry packages cigareOes.  48 

Thank You Paris Daniell 49 

American Spirit Product Development Strategy

by Paris Daniell on Apr 19, 2010

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American Spirit Product Development Strategy — Presentation Transcript

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