6 Things You Must-Do To Compete With Big Money Cannabis Brands
The pendulum is beginning to swing regarding the end of federal prohibition for cannabis products in the US, and with it you will begin seeing major players coming into the market. Heck, even PepsiCo released their own hemp energy drink. Coca Cola and other major brands are lobbying to move new CBD regulations and opening up the space to big money competition.
It emphasizes the need for current brands to focus on packaging and branding to build a loyal customer base. In the coming years, you will begin to see professional and money backed offerings, and if smaller cannabis brands don’t begin focusing on it now they will lose market share.
That’s easier said than done though. The industry is much more complicated than others. There are many different demographics when it comes to consumption. Add to the fact that there are heavy regulations varying from state to state to country. Additionally, marketing is very restrictive, with some terms being blacklisted from search engines and CRMs denying service for just having words like “cannabis” on your website.
So how can you compete and take all that on? Although there isn’t a magic bullet or a one size fits all solution there are couple things you can begin considering to build brand awareness and attract more customers with your packaging. After all over 1/3 of purchasing decisions are based on packaging alone.
1. Know your target audience
One thing that we always tell our clients is that building empathy with your target audience is the key to success. How can you hope to communicate with someone if you don’t understand them? We mentioned before that the demographics vary in cannabis consumption. Not everyone is an avid cannabis consumer. Demographics fill every end of the spectrum, from seniors to young adults, from high to low income, from active to sedentary users, from activists to lawyers, from experts to novices.
Cannabis does not discriminate.
It is much easier for your messaging and brand to become memorable to those individuals once you identify who you need to appeal to. And that becomes a repeat customer.
2. Be seen
Building brand awareness is the key to success and the only way to do that is to be seen. We mentioned before that marketing is limited but that doesn’t mean it’s impossible. The more people you have interacting with your brand the better.
Attend trade shows, conferences, and webinars every change you get. You need to network with the ones that are in the industry now, it’s the best chance you have to compete.
Build your social media channels. We suggest focusing only on two platforms. that decision can vary depending on your demographics, whether you’re B2B or B2C, and your content strategy. Just make sure that your content speaks to the target audience you’ve selected.
Hire influencers, thought leaders, PR firms to try and push your product the same way that Snoop Dogg pushes his own brand. Just do everything to get as many eyes on your brand as possible.
3. Packaging
It’s debatable whether this belongs even higher on the list because packaging is the piece that puts it all together. This is how consumers experience your brand, and how you decide to package it will make or break your product, and may be the single most important decision you have to make. 73% of purchasing decisions are now made in-store.
- Choose the right color. 62% to 90% of purchasing decision is based on color alone. | [Read our article about business and color for more insight into color]
- Choose the right material to match your product goals
- Focus on effect and avoid jargon. Unless you’re solely targeting cannabis experts, leave the jargon at home. Humans are wired to seek pleasure and avoid pain and your product is a solution to one of those two things. Let them know how they stand to benefit by using your product. Dosist does a great job at addressing this.
- Be sustainable. Environmental impact will become an ever bigger topic in the coming years, it’s important to figure out how your product can be sustainable early on. Some solutions are things like sugar cane, hemp plastic, recyclable metals, and so on. Whatever solution you find, make sure you always let your customers know it!
- Be compliant [More below]
4. Compliance, Compliance, Compliance
Nothing on this list matters if you are not compliant. Every state and country have their own packaging laws, and a small mistake could be difference between having a license or not. Whichever way you choose to design your packaging you must be compliant with local and in some markets federal law.
We recommend using experts to help you navigate these waters. Laws can change at the drop of a dime (pun intended). We have plenty of resources available with our newsletters to prepare you for where you want to operate.
5. Have an amazing website
Communication is the name of the game. The more you educate, inform, and are involved in your customer’s experience the more fondly they will remember your brand. A good website user experience goes a long way.
81% of customers search online before they make a purchase or visit a physical store.
94% of customers leave or mistrust a website due to bad design.
75% of your website’s credibility is based on its overall design and aesthetics.
Provide test results instead of wasting packaging space. Just make your website a source of information and a safe haven for consumers and your bottom line will thank you.
6. Make the investment
Your brand needs to be memorable, it can’t be generic or fall flat in communicating with your audience. It needs to tell a story in order for it to connect with consumers and requires plenty of investment to do so. You must walk a fine line to appeal to your target audience and not come off degrading at the same time.
You should heavily invest in user research, customer awareness, and design. Cannabis Companies have spent 10s of thousands to 100s of thousands on branding, packaging, research, design, and testing to come up with a product and brand voice that succeeds.
With all the regulations and compliance issues to be wary of while running a business that also requires a lot it’s usually best to hire experts in the field so that you can focus on more value work.
We know it can sound daunting, but nothing ever worth it is easy. And this industry feels “highly” worth it.
