The Importance of Marketing in the Cannabis Industry
As the cannabis market reaches a new level of maturity, the regulatory landscape is slowly changing to allow more people to legally consume cannabis. More than ever before, it is vital that cannabis companies stand out to consumers with a strong branding strategy.
“Branding will be the difference between success and failure in the emerging legal cannabis business,” said the Co-Founder and CEO of WeedClub.com, Evan Horowitz, during an interview with Forbes.
Cannabis brands that have been successful so far, are working to identify a target area of the consumer market and tweaking their branding efforts to grasp the attention in that realm. New Frontier Data, an analytics firm, notes that those who have been successful are the brands that are currently most suitable for winning market share when pitted against their competition.
A recent article published by Forbes demonstrates the importance of cannabis branding, as well as the direction it is headed in. “Products that are marketed for the effect or mood have stood out from the crowd. Also using marketing that is lifestyle-based has been successful,” says Olivia Mannix, who works at the Cannabrand Agency.
In terms of branding and marketing, what should a cannabis brand accomplish?
Trust, legitimacy, and transparency are three key facets of a victorious cannabis branding strategy. A customer must feel confident that the products they favor outshine the quality of other brands, not to mention those on the black market. This uniqueness is something that can be accomplished with brand storytelling.
Innovation is a key aspect of targeting the new generation of cannabis consumers, which comprises a rather broad spectrum of consumers. Millennials make up a staggering 80% of the cannabis consumer base. Meanwhile, 8 out of 10 Baby Boomers support legal medical cannabis and 63% of Gen X-ers support cannabis legalization.
By studying today’s top industry competitors, it’s noticeable each company is tackling innovation in their own way. From Nutritional High’s swelling brand portfolio, to FLÏ’s broad spectrum of controlled-dose edibles, these brands are dominating the legal weed industry by establishing their powerful image in the form of branding.
Moreover, a cannabis brand ought to educate their target market. This doesn’t mean just informing them about their particular product range but also, what innovations are emerging in the market, why science backs up the claims, and so on.
An Expansion Strategy is Key for Market Domination
An established brand’s reputation and credibility can be used to welcome fresh product ranges or sub-brands, thus accomplishing brand expansion. However, this isn’t possible without proper marketing. Learning how to conduct research and testing that is synergistic with your brand’s target audience will enable you to make a calculated decision regarding an expansion strategy.
“Cannapreneurs” can take inspiration from a noteworthy company like Nutritional High, which has perfectly executed a marketing and branding strategy that has enabled it to pursue co-investment and joint-venture partnerships with many brands in the industry. By focusing on the strategic acquisitions of brands and businesses, a legal company can maximize their existing brand portfolio’s visibility – something that is critical for brand-building.
Establishing a Product, Distribution, Branding and Promotion Strategy
Rule number one for cannabis entrepreneurs who want to get their products seen by a large market is to focus on the highest-margin segments of the industry. Once again, Nutritional High demonstrates their efficacy at accomplishing such a task.
Nutritional high is focused on producing only the highest quality oil; nothing beats their standard for extracted and infused products. The company is integrating the best manufacturing and extraction methods, which they believe will eventually emerge as the gold standard in the metamorphosing industry.
Cannabis companies that progressively innovate in their acquisition and development strategies can target a unique market, not to mention expand their products beyond the borders of their existing target market. Novel delivery systems are an integral cog in the inner-workings of the legal cannabis industry, since they can provide consumers with a broad spectrum of consumption options; ranging from the discreet (vapes and oils) to the delicious (edibles).
The pressure really is on for cannabis companies to stand out in North America’s largest legal markets, let alone other places on the map. Opportunity is still available in every segment of the legal cannabis industry and in order to stand out in the ever-evolving market, a well-executed branding and marketing strategy is crucial. By approaching the marketing aspect with a clear strategy in place, it’s possible to yield major exposure for your cannabis brand.