Did you know that 21 states, Washington DC, and Guam have officially legalized the recreational use of cannabis? And more are on their way! As more states legalize the practice, the cannabis market grows; according to Markets and Markets, the cannabis industry had an estimated value of 22.5 billion in 2021 and is forecasted to reach 82.3 billion by 2027 (at a CAGR of 24.3% between 2022 and 2026).
What does this mean for your cannabis brand? If you're thinking 'more consumers to reach,' you'd be right. However, it also means more competition you'll need to overshadow to reach your audience in this growing market. That is where your marketing strategies come into play—but they must be developed carefully due to ongoing legal issues.
Keep reading for an overview of the do's and don't of cannabis marketing and our best tips on how to make a cannabis marketing strategy that works.
Developing a plan ahead of time — preferably with all relevant laws and platform rules to you laid out — prevents you from making avoidable mistakes while preparing you for an ever-evolving legal landscape.
That all begins with a thorough understanding of your ideal consumers. Begin your research by evaluating your current customers, your competition's customers, and those that match your buyer personas.
For instance, studies show that 83% of Millennials (currently the largest proportion in the buyer market) want brands they purchase from to align with their values. Another one found that an astounding 63% of global consumers cite their preferences for brands that stand for a purpose. Examples of some of the most successfully purpose-driven brands include:
Did you know more than 50% of marketers allocate more than 50% of their budgets to lead generation? More than 85% of marketers feel it's one of 'the most important goals of marketing.' After all, how can you acquire new customers or elicit more conversions if you're not constantly generating more leads (preferably quality leads!)?
Now that you know what to do, here are some critical things to avoid with your cannabis marketing.
Instead, offer a partnership with sponsoring influencers as a workaround to get someone else to share information about your product. You can promote your brand and share valuable information without risking platform or legal consequences.
Instead, focus your marketing on reputable data. It's one thing to say that 'this study found that...., so cannabis may help...' It's another issue to see one study (or none, even) and claim that cannabis 'will treat, cure, reduce, etc.'
Your brand is the face of everything your business will do, has done, and is currently. Differentiating it from others in the industry makes you more memorable than and preferable to others because the right consumers will resonate with who you are and what you stand for in the industry. Without differentiation, every cannabis brand merges in a blur, and consumers will blindly pick one to purchase.
Moreover, the industry is still very new. While this can bring more opportunities to your doorstep, the competition is ramping up, so investing in brand awareness to stand out will help you grow sales.
The rules, limitations, and hesitancies surrounding cannabis products are still very prominent barriers between you and your target audience. Perfecting your cannabis marketing is crucial in pushing through those barriers and establishing credibility and trust with your consumers. Contact McClatchy for specialized guidance, insight, and resources on the cannabis market and how your brand can expand its reach.