What Cannabis Businesses Need To Learn From Consumer Brands – Fast

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The stats are in: cannabis is the next “big” economy. Cannabis sales topped $6.7B in 2016 and by 2020, California’s cannabis market alone will top that number.

Not too long ago, “marketing” to cannabis users was an easy proposition, there were a handful of publications and communities around which dedicated cannabis users gathered, they all had one thing in common: cannabis use. Despite access to cannabis, in some ways, this was the easy days because everyone who was willing to subscribe, opt-in and discuss cannabis was passionate. It was like a small, intimate club where everyone had the same password to get in.

But today’s cannabis user isn’t so easy to categorize. Because of increased availability and acceptance, today’s cannabis user is likely to view cannabis as an adjunct to their life, not a defining characteristic of their self-story. That means the vast majority of the cannabis users of today and tomorrow are only mildly interested in “cannabis culture,” instead, they want to know how cannabis is going to fit into their lives and their cultures. In short, marketing or press targeted towards “cannabis users” is like marketing to a demographic as broad as “women.”

What this means for cannabis business community is in order to execute successful cannabis marketing and PR campaigns, you need to be extremely clear on where and why and for whom your product works. If your product is a product that’s proudly stoner, that’s cool – just realize that Moms aren’t likely to relate to those marketing or public relations stories. Today’s cannabis brands need to put a stake in the ground, define their customer and be proud of how the brand fits into the customer’s life.

Get to know your target market, are they using cannabis publicly or just with close friends? Do they use cannabis to inspire creativity or to get some sleep? How old are your customers are they trendy millennials or are they nostalgic boomers?  As importantly, what are they doing when they aren’t using cannabis?

Understanding what your customer is doing when they aren’t using cannabis is critical, especially now, with advertising and media restrictions still in place.

While the new, huge cannabis market is good for business, it’s time for cannabis brands to double down on branding by being exceptionally clear about the motivations of their customers and that’s harder than it sounds.

 

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3 Cannabis Branding Tips for Businesses Preparing for Adult-Use

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Cannabis Branding Is About To Become Extremely Important To Cannabis CMOs and Founders

Adult-use marijuana is on the ballot and in the minds of thousands of people in the United States this fall. Adult-use, especially in California, because of its market size will change everything for cannabis companies. What should cannabis brands be thinking about in preparation for market expansion? As a cannabis entrepreneur, you might be so busy keeping up that you haven’t given much thought to branding.

Before we jump into our 3 tips for cannabis branding, let’s talk for a minute about what branding is (and isn’t) so we’re all on the same page.

Branding: the emotional response the consumer has to your company and products. 
Branding: the humanity of your company.
Branding:  the often difficult to define, but easy to spot feeling people get when they know whether they want to “hang around” your brand.

 

Maybe the most important question is why should you CARE? Strong brands develop customer loyalty and they sell products for premium prices. Interested?

I thought so.

You know what companies are branding masters? Alcohol and tobacco. Technology. Beverages like soda, water, and sports drinks.

Truly great brands incorporate values, voice, design, and especially the customer into their presence, whether it’s in-person, online, or in-store. Notice I did NOT say that branding is the packing and logo. Those two are important aspects of branding. Logos and packaging should not be the last thing you ever do with branding. Branding should be a cornerstone of culture, communication, and position that your customers continue to relate to.

Strong cannabis branding will be a steady platform from which you make decisions on everything from products to partnerships, hiring and marketing campaigns. Cannabis brands need to nurture and develop their brands to be ready for the expansion of adult use. This is particularly important in California where consumers expect sophisticated brands and branding.

So, regardless of where you are in your branding process, it’s never too late to consider these 3 tips for cannabis brands in the adult-use market:

 

BE REALLY CLEAR: WHO is your customer?

Many people hear this question and they immediately think of demographics. That’s fine, be clear on demographics, it will save you time and money. But dig deeper. Think about your customer’s lifestyle, their other passions, and what motivations you’ll be tapping into when they see your brand.

Are your customers proud proclaimed pot users or have they been an “in-the-closet” user for most of their adult lives? If they aren’t open cannabis users, why is that? Is it because of kids, jobs, cultural fear? The potential of adult-use is tapping into the existing cannabis user or the adult whose perception of cannabis is changing and they’re beginning to see marijuana like a craft beer. This is future of cannabis branding-it’s wide open. You can do some really powerful branding when you understand these deeper aspects of your customers.  Do 2-3 customer profiles as you would if you were writing a bio on someone, this simple exercise can give you extraordinary clarity on your customer.

The potential of adult-use is tapping into the existing cannabis user who is in the closet or the adult whose perception of cannabis is changing even though they aren’t regular marijuana users. These new to marijuana customers will gravitate towards brands that are as well-rounded and credible as the other brands they’re used to buying. This is the future of cannabis branding-it’s wide open. You can do some really powerful branding when you understand these deeper aspects of your customers.

To prepare for these different customers, do 2-3 customer profiles as you would if you were writing a bio on someone, this simple exercise can give you extraordinary clarity on your customer.

 

ASK YOURSELF: Do I really SPEAK to my customer?

Now it’s time to look at the way you speak to your customer? Depending on how you view your brand, your voice might be “friendly-let’s-hang-out” or it might be “knowledgeable advisor” “edgy-hipster” or “couch-locked stoner”. There is room for each of these voices, but not within the same brand.

Whatever your voice is, be sure it’s one that your ideal potential customer can relate to. The cannabis market is expanding beyond the traditional young person’s product and while there’s still room for that branding, the market is expanding.  Today’s marijuana user isn’t necessarily hiding from their parents, they might be hiding it from their kids. I hear a lot of cannabis entrepreneurs say that they absolutely understand their market because they are marketing to their friends. Well, that’s a great start, but the average person only has 338 Facebook friends – you’re going to need your business to be a lot bigger than that, so you may have to dig deep and really think about whether your brand is relatable to a larger audience.

 

REMEMBER: Be consistent!

Now that you’ve identified your customer and the voice, take a hard look around at the rest of your branding. Is your branding consistent from the four senses perspective – does it look, feel, smell, taste like your brand? Would your ideal target customer buy and more importantly recommend to their friends? Sophisticated branding will take all this into account.  Commanding a higher price for your product requires that you consider these elements. Set some branding goals for your company and prioritize based on budgets. But do set them because as the market opens up, the strong brands who have developed loyalty will be the ones truly capitalizing on the future of cannabis branding.

 

The A-Team specializes in converging great brands with marvellous stories the media wants to write about.

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Cannabis Marketing Stats Answer: How Much Should You Spend on Cannabis Marketing?

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Cannabis Marketing Stats that Help You With Your Cannabis Marketing Budget

You can see the Turning Cannabis Event Marketing into Public Relations Opportunities changing daily and yet we haven’t even reached anywhere close to a zenith in cannabis purchases. It’s easy to be lulled into thinking that a growing market allows you to limit your marketing budget. Unfortunately, no. Despite the growing businesses, success in the cannabis industry is no sure thing.  So how can you take advantage of this growing market by really developing a foothold?

Establishing your brand and investing in marketing is going to be the difference between success and failure in the cannabis industry.

The cannabis industry is growing, but you need to establish your brand and foothold now to ensure you’re able to withstand the inevitable maturation and consolidation of the industry as regulations ease.

Fundamentally, the wine market is a great comparison to the Why Cannabis Brand Trust Matters More Than Ever because it’s an industry built around an agricultural product that’s highly regulated. There’s one glaring difference between the two: wine is a mature product, the market is educated about it and those who drink wine, know they like drinking wine. Drinking wine carries with it a certain life-style sophistication that some people aspire to, in other words, it’s a lifestyle product. Wine companies know investing in branding can make all the difference because the market is highly competitive and they generally budget 15%-20% of sales for marketing, this is a mature product with an established brands.  You’ll notice in the below infographic that recreational cannabis is larger than wine sales, but cannabis sales haven’t even remotely become mainstream or moved past the “stoner” lifestyle image. If you’re marketing to a “stoner” culture audience,  then perhaps you can develop a budget that’s on the low side, but if you see only 10% sales growth, you’ll know what to expect.

But if you’re hoping to capture some of the market that lives beyond the “stoner” audience, then you’re going to need a bigger budget and you’ll need to think like a lifestyle marketer. You can bet that the cannabis industry is going to get incredibly competitive as time goes on. Establishing your brand and investing in marketing is going to be the difference between success and failure in the cannabis industry.

What should my cannabis marketing budget be?

Setting cannabis marketing budgets is no easier (in fact, it may be harder) than doing so for other industries and this is because of the multiple variables impacting this decision-making. We present these stats to you as a guideline to determining your marketing spend vs. sales growth.

Basically, ask yourself how much you want to grow and allocate an according percentage of your budget to the growth. You can’t expect sales to grow 100% with a 10% marketing budget. It may happen, but the more likely scenario is that by the time you realize it isn’t going to happen, you’ll be boxed into a budget that doesn’t support the other expenditures you made in anticipation of growth.

Your mileage may vary and we’re happy to talk to you about your specific niche in the industry to help you develop a plan if you don’t have one at all. Keep in mind if you’re in launch mode, your PR and marketing budgets should be on the higher side, which pretty much applies to almost every cannabis brand today.

Something else to consider are the advertising limitations facing the cannabis industry. Depending on your actual product, you may not be able to buy ads on Facebook and Google. Does that mean you shouldn’t have an advertising budget? No, it actually means you’ll need to reallocate what would be an ad budget to something else, perhaps social media marketing and community building or content marketing or public relations.

Understand this: if you don’t feel comfortable allocating this kind of percentage to marketing, it doesn’t mean you should pack up your bags and quit-it just means your progress will go slower and you should have realistic expectations.

How Long Will It Take for Marketing Efforts to Deliver Results?

There are numerous variables in the answer to this question. Including your customer, your product and your previous efforts. Let me assure you, with the right budget, all things are possible.

Marketing, PR and branding efforts all work together and they tend to compound, especially in the early days. The more marketing you do, the earlier the ball will start rolling.  You can do yourself some favors by tracking metrics along the way so you know you’re hitting the right mix of marketing and that your marketing dollars are being optimized. Consistency is key in marketing and PR, so plan for consistency with bursts of activity around your strategic sales times.

All that to say this, the bigger your budget as a percentage of sales, the faster you’ll see sales grow, so if you’re in a hurry, budget accordingly.

 

Cannabis Marketing Stats That Matter

cannabis marketing budgets stats

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5 Money Saving Marketing and Branding Tips for Startups

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OK.  I’ll admit it. I watch Silicon Valley on HBO.

I hate admitting it because of course, it’s both a characterization and just a little too close for comfort to the startup experience.

Last night’s episode had me laughing AND crying.

Let me set the scene: The founder and the coders are desperately trying to hire new developers in a competitive market, time is short and so is money.  Meanwhile, in the board room, the newly minted but completely wacko investor insists the startup spend $30K on “shwag.” It’s a classically stressful startup moment.

I cringe.

No one asks any questions – the founders are too caught off guard by the mere suggestion. And yet, it’s patently obvious no one except the wildly erratic investor, who also spend a load of cash on billboards, has started to even think about marketing and branding.

Everyone’s thinking “splash” and no one is thinking “strategy.”

Here’s a pro-tip: “Splashes” without “Strategy” are usually huge wastes of money.

I don’t care how awesome your product is – you HAVE to think about branding and marketing for your startup. But the worst way to do it is in a scattershot “yah, let’s spend money on that,” way. Every startup has a “Shwag” moment.

I remember one startup I worked on wanted to spend $100K on hiring a talent for a “viral video.” Another spent over five-hundred thousand dollars on print ads.

Both happened for one reason only: everyone was in splash mode and no one was in strategy mode.

Here are 5 Ways To Know Whether It’s YOUR Time for “Schwag”

1. Have you done a pre-launch marketing plan? 

Before you go to launch, you’re going to need a marketing plan. Sounds obvious, except, it’s one of the hardest things for startups to focus on.

Through the haze of late nights and Redbull, frantic pivots and resource challenges, marketing strategy for launch is often overlooked.

Consequently, decisions like “we need to spend $30K on “shwag” happen in the moment and they happen quickly and then happen when everyone is actually focused elsewhere.

If there’s one place you need a plan for launch it’s in marketing. If you’re doing your pre-launch homework, you might just be well positioned for your splash.

2.  Who’s Suggesting? 

I know you wouldn’t take code advice from me. You shouldn’t. If I ever give it you, send me packing.

Get your experts and resources in order and more importantly, listen to them.

There’s going to come a point when someone or many people will start telling you what you should do, most of whom have no idea what you’re TRYING to do.  The better your relationship with your marketing expert, the more you’ll know whether you’re getting good advice from everyone else.

3. Who’s Implementing? 

What’s the point of your “shwag?” Whose getting it, when and where. Oh, yah, whose distributing it?

How many times have I seen impetuous spending happen without thought as to implementation?

Chances are – no matter what kind of “shwag” you’re investing in, you, the founder do NOT have time to implement said “shwag.” Better figure that out before you spend that $30K.

Even if you’re a master of marketing strategy, get your implementors together and THEN you’ll be ready for your splash.

4.  What Questions Aren’t You Asking?

Hey, I like a new idea probably even more than the next person, but somethings work consistently and somethings consistently don’t work. Some risks in marketing are worth taking, some are worth testing and some are just bad.

There should be at least one person on your team, whether in house or outsourced whose saying “that’s a bad idea,” once in awhile.

I’m not suggesting you have layers and layers of processes for a simple decision, but I don’t care how many millions you have, marketing is expensive, someone better be prioritizing and someone better be comfortable with “no.”

Find your “no” person. Not because they’ll throttle  you, but because they’ll let you splash at the right time.

5. How Expensive is “Cheap?” 

I get it, you don’t want to spend any of your money on “shwag” but you need to. So you call your nephew or niece because they’ll do it cheap.

Unraveling “cheap” is one of the most time and energy consuming processes you can not pay for. I bet you’ve been there in other forms of development. Marketing is no different. Not only that, but you’ll find unraveling cheap costs a whole lot more than “done right the first time.”

So, next time someone wants to drop big bucks on shwag, you’ll be ready for them. AND you’ll be on your way to being ready for your splash.

 

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How Much Should You Spend on Cannabis Marketing?

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How much should you use for cannabis marketing budgets?

You can see the cannabis market changing daily and yet we haven’t even reached anywhere close to a zenith in cannabis purchases. It’s easy to be lulled into thinking that a growing market allows you to limit your marketing budget. Unfortunately, no. Despite the growing businesses, success in the cannabis industry is no sure thing. So how can you take advantage of this growing market by really developing a foothold?

Establishing your brand and investing in marketing is going to be the difference between success and failure in the cannabis industry.

The cannabis industry is growing, but you need to establish your brand and foothold now to ensure you’re able to withstand the inevitable maturation and consolidation of the industry as regulations ease.

Fundamentally, the wine market is a great comparison to the cannabis industry because it’s an industry built around an agricultural product that’s highly regulated. There’s one glaring difference between the two: wine is a mature product, the market is educated about it and those who drink wine, know they like drinking wine. Drinking wine carries with it a certain lifestyle sophistication that some people aspire to, in other words, it’s a lifestyle product. Wine companies know investing in branding can make all the difference because the market is highly competitive and they generally budget 15%-20% of sales for marketing, this is a mature product with an established brands.  You’ll notice in the below infographic that recreational cannabis is larger than wine sales, but cannabis sales haven’t even remotely become mainstream or moved past the “stoner” lifestyle image. If you’re marketing to a “stoner” culture audience, then perhaps you can develop a budget that’s on the low side, but if you see only 10% sales growth, you’ll know what to expect.

But if you’re hoping to capture some of the market that lives beyond the “stoner” audience, then you’re going to need a bigger budget and you’ll need to think like a lifestyle marketer. You can bet that the cannabis industry is going to get incredibly competitive as time goes on. Establishing your brand and investing in marketing is going to be the difference between success and failure in the cannabis industry.

What should my cannabis marketing budget be?

Setting cannabis marketing budgets is no easier (in fact, it may be harder) than doing so for other industries and this is because of the multiple variables impacting this decision-making. We present these stats to you as a guideline to determining your marketing spend vs. sales growth.

Basically, ask yourself how much you want to grow and allocate an according percentage of your budget to the growth. You can’t expect sales to grow 100% with a 10% marketing budget. It may happen, but the more likely scenario is that by the time you realize it isn’t going to happen, you’ll be boxed into a budget that doesn’t support the other expenditures you made in anticipation of growth.

Your mileage may vary and we’re happy to talk to you about your specific niche in the industry to help you develop a plan if you don’t have one at all. Keep in mind if you’re in launch mode, your PR and marketing budgets should be on the higher side, which pretty much applies to almost every cannabis brand today.

Something else to consider are the advertising limitations facing the cannabis industry. Depending on your actual product, you may not be able to buy ads on Facebook and Google. Does that mean you shouldn’t have an advertising budget? No, it actually means you’ll need to reallocate what would be an ad budget to something else, perhaps social media marketing and community building or content marketing or public relations.

Understand this: if you don’t feel comfortable allocating this kind of percentage to marketing, it doesn’t mean you should pack up your bags and quit-it just means your progress will go slower and you should have realistic expectations.

How Long Will It Take for Marketing Efforts to Deliver Results?

There are numerous variables in the answer to this question. Including your customer, your product and your previous efforts. Let me assure you, with the right budget, all things are possible.

Marketing, PR and branding efforts all work together and they tend to compound, especially in the early days. The more marketing you do, the earlier the ball will start rolling.  You can do yourself some favors by tracking metrics along the way so you know you’re hitting the right mix of marketing and that your marketing dollars are being optimized. Consistency is key in marketing and PR, so plan for consistency with bursts of activity around your strategic sales times.

All that to say this, the bigger your budget as a percentage of sales, the faster you’ll see sales grow, so if you’re in a hurry, budget accordingly.

cannabis marketing budgets stats

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