The Complete Smoking Solution
A Standardized Behavioral Support System using Scientifically Verified Techniques
PROBLEM #1PEOPLE ARE NOT SUCCESSFUL AT QUITTING
A lot of people smoke….and most try to quit…and most fail
• 6 Million Deaths/year
• 19% US ~ 1.3B Smokers World Wide
• 70% Want to quit
• 93% Failure Rate
• 41% Fear of weight gain
• People aren’t quitting
PROBLEM #2$3B INDUSTRY IS IN TROUBLE
Fewer quit attempts due to failure rateCarbon Copy Products ~ Dilute Market Share
E-cigs capitalize on this fear: current sales = $2 Billion Estimated to grow to $10 Billion in 10 years
New Product is Shrinking Market Size
Down 8% in 5 years
Leading Brands are losing sales
THE SOLUTION FOR THE INDUSTRY
B. Gain Consumer ConfidenceIncrease customer base~ Expand Market Size
A. Enhance: Product Differentiator Gain a competitive advantage ~ Increase Market Share
THE SOLUTION FOR THE PRODUCT
Both the NIH and ACS have stated
Behavioral Support is what has been proven effective
HOW?
BEHAVIORAL SUPPORT WORKS
The only method available is by individual therapists
So why isn’t it being used?
$$$ Efficacy vs EfficiencyNo Standardized MethodologyNo Efficient Delivery SystemLeaving NRT products without a way to enhance their product.
REACH FOR THE APP INSTEAD OF THE PACK
Scientifically tested and documented techniques that enhance the prefrontal cortex
The program is the content, the app gives you actual tools to use Breathing techniques to stimulate the para sympathetic nervous system Visualization techniques used by athletes to strengthen neural connections Affirmations that enhance cognitive awareness Group support via FB or private social network To Do list integrated into NRT program with Push Notifications, keeping smokers
on track
Trigger Tracker TM, first tool to track moods, behaviors, usage Data collection process with vast amounts of market research data that pharma
currently pays millions for
Audio Program for hand and eye free content delivery
CEO: 20+ years in industry
Devlyn Steele
CPO: CBT Specialist 6+ years
Domenic Weber
CTO: Ruby, Python, SQL
Vyacheslav Kim(Kane)
WE HAVE SOLVED THE PROBLEM
Enhanced Product(Grows Market Share)
+ Consumer Confidence(Grows Market Size)
INDEPENDENT STUDY
ENHANCED SOLUTION EXIT (B2B)
Competitive Advantage: Increase Market Share
Consumer Confidence: Expands Market Size
We are the only product to address weight gain
Eg. GSK increases sales by 5%= $35M
Objective: $21M-$100M1-1.5 Years
NRT = Instant fix but not permanent
CBT= Permanent fix but not instant
The First Complete Solution
Data Acquisition Platform
MARKET DEVELOPMENT EXIT (B2C)
Raise between $2-$5 million
CAA Spokesperson and/or Guthy-Renker
Talk Show & Radio Circuit
Grow to 1M subscribers @ $10/mo
Then Exit 4-7 years
7x-10x EBITA
THE PLAN: WHAT WE NEED
Task / Roll $Admin / Operations (Core Team Salaries) $90kPh. D. Adviser 1-3%Program Production $80kApp Development $50kStudy $100kLegal + Patent $42.5kSUB TOTAL $362.5kContingency $137.5kTOTAL $500k
• 33% equity stakeor
• 6-8% convertible debt• 20% discount shares
Pre Revenue Valuation $1.5M
B2B Exit: 1-1.5 Year ROIB2C Exit: 4-7 Year ROI
MARKET ANALYSIS:“INTENSIVE BEHAVIORAL SUPPORT IS USED IN MOST STUDIES” ~ BO ZHANG, PHD
Enhance a Product Number Value
Smokers 1.3 B n/a
Trying to quit 970.9 M ~$3 B
GSK (Nicorette/Nicoderm) 55.9 M ~703M
Pfizer (Chantix) 2.75M $648 MRJ Reynolds (Zonnic) n/a $44 MNew Products
eCigs 2.5 M $2.1
Stats Percent
Believe “Support System” Necessary 25
Interested in Therapy 37
Interested in APP 30
Can quit anytime 48Interested in Sprays 41Interested in Prescription Inhaler 41Interested in Lozenge 40Willing to Try Nicotine Free Smokes 38Failure Rate with current products 93Don’t want cravings AFTER treatment 61Weight Gain a major issue 41Concerned on Cost 59Easy to Understand 54
These numbers point to one sure thing, the smoker is uneducated on what works.
Initial Target demographic:35-60, Female$50,000College Education
Marketing education can alleviate the concerns in red
RISKS
No one wants to buy it or not willing to give us what we project Aim for Distributors not Manufacturers
OR With study in hand we can go to market Once we prove out we are taking market share, they will acquire us
Product/Market Fit CAA Celebrity Spokesperson Interview Testers and Create Infomercial VC Funding Full Marketing Campaign
The Product doesn’t work Customer re-development program with VC funding
COMPETITION
No Originality
All the same things based upon old FDA suggestions
Telling people how to do things is easy, giving them tools to do it is our differentiator
DIFFERENTIATORS
First Scheduled Program with a set lesson plan so it doesn’t read like a book
Only Online CBT program ever created
Text Msg support based on CBT lesson plans not generic motivations
TO DO lists that build, allowing users to set their own pace
App tools that allow you to complete your To Do list, not just tell you about it
Scientific Database explaining where all research comes from
Specific Content to work in conjunctions with NRTs
Data Acquisition system for further customer development
Private Database
Push Reminders for keeping your patch/gum schedule
Audio content as well as text and video
TM names Trigger Tracker Thought Detective “Reach for the app instead of the pack”
STUDY: EFFECTIVENESS OF A STANDARDIZED CBT BEHAVIORAL SUPPORT SYSTEM FOR THE USE OF SMOKING CESSATION
QS 24/7
Patch only
QS 24/7 + Patch
1. We prove NRT rates
2. We prove CBT alone is better
3. We prove CBT + NRT works better than NRT
4. We monitor and track weight, mood, triggers, number of cigarettes and gum
5. Randomizing 28 in each group using “urn randomization”
6. This data gives us multiple options
A. We take this product to market because we proved we are not only more effective, we have developed the only solution that shows no signs of weight gain and we shrink your market share (Pitch to VCs)
B. You buy QS 24/7 and not only not lose market share but increase market share
C. You market this product as effective and a pain free way to quit and expand the user base by attacking eCigs
D. We are in talks with your competitors and a competitive offer is needed
STRATEGIC PARTNERS
Robin Apple Ph. D
Stanford: School of Medicine
CBT based practices for eating disorders and behavioral change
Howard Rachlin Ph. D.
SUNY: Emeritus Distinguished Professor
Decision-Making the psychological and economic basis for self control, addiction and social cooperation
Hal E. Hershfield Ph. D.
UCLA: School of Mgmt
Judgment and Decision Making in Social Psychology as well as future consequences
John Monterosso Ph. D
USC: Director of Self-Control Neuroscience Research Lab
Addiction focused research specializing in neuro-economics
Sarah Adler Psy. D
Stanford: Dept of Psych and Behavioral Science
Focus on CBT in eating disorders and addiction as well as published papers on the efficacy of App technology for CBT
Jeff Beeler Ph. D
CUNY: Behavioral Neurologist
Focused on proving the detrimental effects of NRTs
WHY CBT + NRT WILL WORK BEST
Nicotine Dopamine Desire
Nicotine Desire
Synapseaka thought
DesireThoughts Dopamine Desir
eCBT Thoughts Instant fix but not permanent
Permanent fix but not instant
• EURO MONITOR• 2003 Journal of Tobacco
http://whyquit.com/studies/2003_Hughes_TC_Meta_Analysis_OTC_NRT.pdf• 2011 Hilliel Alpert
http://tobaccocontrol.bmj.com/content/early/2012/01/10/tobaccocontrol-2011-050129.abstract• Pfizer: 2013 Annual Financial Report• GSK 43% and Zonnic
http://myfox8.com/2014/09/05/reynolds-to-go-national-with-sales-of-nicotine-therapy-gum/
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