Listen to this article now
Launching a new brand in the highly competitive and booming cannabis industry can be challenging. It requires a deep comprehension of the rules and laws for cannabis, as well as a clear vision for the brand you want to build. This industry is flourishing in different states post-legalization, and there is considerable potential to make significant earnings. Earlier people used cannabis for recreational purposes only, but now, post-legalization, manufacturers use marijuana in the medical, skincare, and food and beverage industries.
If you are committed to building and growing a cannabis brand, there are five variables that you need to assess.
Cannabis Consumer Base
One must do proper research before deciding to establish a cannabis business. Understand what is going on around the cannabis industry to know the particular needs and wants of consumers. Gather accurate information on the cannabis market, consumer behavior, brand development, and unique challenges faced in this industry before getting involved. It is most beneficial to sell a cannabis product that is legal in a majority of states. Researching the legal THC limit in your CBD products will help you in circumventing any law-enforcement mishaps.
Many cannabis businesses are burgeoning, which is why customer segmentation is very crucial. Customer segmentation will help in understanding your core audience and what they are looking for from their products. It is important to ensure that your customers are happy with your brand, which will help build a loyal consumer base. Once you create a loyal consumer base, you must start building an authentic relationship with the consumer community. As long as your brand satisfies every consumer demand and maintains your product standards, you are ready to build a successful cannabis brand.
The diversity of marijuana products that your company will be focusing on is another crucial variable in building a cannabis brand. It is vital to decide whether your business will launch a broad category of products or concentrate on a few niche products. The higher the variation in products, the lesser the quality of design and development for each product generally will be. Ensuring each product’s quality and standards requires a lot of time and energy, which can be challenging to handle. Therefore, instead of being a jack of all trades, concentrate entirely on a few primary CBD products.
Cannabis Raw Materials Quality
A reputable cannabis company will ensure that the plants from which it extracts CBD don’t absorb any harmful chemicals from the soil. Secondly, they also know how much tetrahydrocannabinol (THC) and cannabidiol (CBD) is in their source. People are curious to understand from which country the CBD is extracted because the laws for farming cannabis are different in different countries. Make sure that your products abide by the rules and mention the ingredients in the product description.
A trustworthy and genuine company will also test its products before releasing them to consumers. One can check the standard of their products with a third-party laboratory. It is a critical step in the CBD-manufacturing process. The symbol of the third-party laboratory test on the product builds trust between the consumer and the manufacturer. Customers will love to shop from a brand with all their products tested, backed by science, and approved for their quality. Thus, the quality of a CBD product is a significant variable in building a cannabis brand.
A brand’s claims, transparency, and third-party certifications are crucial for building an effective marketing strategy. They are compelling and help maximize product sales. There are specific rules that one must follow to protect brand reputation. The brand must avoid saying that their CBD-containing product will treat or cure any disease. The FDA forbids this, and you might face legal action, which affects brand reputation. No cannabis dispensary should sell your brand’s CBD products while making false claims. Additionally, the claims that have scientific proof are a high-impact marketing tool, setting your brand apart from the competitors.
The CBD products must mention the exact percentage of CBD and THC in them. Otherwise, the cannabis brand might be hit by misleading advertising allegations. You can also incentivize consumers to write positive reviews that will help improve brand reputation. Being active and transparent with the consumer community is the best way to protect brand reputation.
Cannabis Advertising Restrictions
Even though CBD remains legal in various countries, the legal rights of advertising are still limited. Facebook blocks any CBD ads due to the unauthorized status of cannabis plants. Similarly, promoting CBD products through Google Adwords has a chance of your ad being taken off. Twitter also doesn’t support CBD marketers to stream ads on them. However, Instagram does allow users to share their CBD experience on their stories and publish videos of them using these products. Users can also include direct web links in their stories. All in all, CBD entrepreneurs remain confined to marketing their products through online stores, content development, and affiliate marketing.
The budding cannabis industry might confer you with some hurdles. Nevertheless, the results can be advantageous if you keep your eyes and ears open to the laws and regulations regarding marketing and retailing cannabis products online. This will help in building a strong cannabis brand.
Do you have any experience with CBD products or favorite cannabis brands you’d like to share? Let us know in the comments!
This article originally published on GREY Journal.