Cannabis Branding? Why Should I Bother?
No business is immune to pitfalls and downturns. Longevity can be a concern for many businesses, especially in the cannabis industry. New competitors are constantly entering the space, laws are frequently changing, and consumer needs are growing.
CASE STUDY: Sears & Roebuck, once one of the world’s largest retailers.
Did you know that during the 1970s, about 1 of every 200 working Americans was employed by the Sears company? They were outputting nearly 315 million catalogs a year, also making it America’s largest publisher at one point. Fast forward several decades later, and poor marketing and branding strategy has retired this former giant. The scary part is, if such a prominent business can tank, so can yours. How can hiring a cannabis branding company help your company thrive?
Build It…But Will they Come?
The saying, “build it, and they will come,” used to be true — back in the early days when cannabis was underground and your local shop was the single source of cannabis in a particular neighborhood. This has rapidly changed, as dispensaries have now become as pervasive as Starbucks in many areas. They often open across the street from each other, and many have several retail locations. In some places, people can easily walk to FIVE different dispensaries from their front doors. And this competition isn’t just cannabis dispensaries; the same competition challenges cannabis products, cartridges, oils, and other items. This is full retail war.
At one point in time, there was a Sears store in each and every town.
Times change, though. How people buy products, changes, and who people buy from changes. This makes it all the more important to focus on strong branding that generates customer loyalty and repeat purchases. Working with a dedicated, professional cannabis branding company can make all the difference in the world.
Do You Know Yourself? Your Ideal Customer?
You’d be surprised at how many cannabis, hemp, and CBD businesses don’t identify their target customers or profile their existing ones. Such buyer info is incredibly valuable to have before you load up the shelves with product inventory. Who is your ideal customer? What type of cannabis branding and messaging would appeal to them? What type of logo would delight them? How do you make your packaging more attractive, interesting, and relevant than your competition?
Sears didn’t keep up with the changing times.
They relied on an antiquated business model and outdated beliefs; they felt that they were too established to be uprooted by new retailers and new branding and marketing efforts. Don’t fall victim to similar branding and packaging mistakes that plagued Sears.
Need help developing your Custom Cannabis Packaging and Branding Strategy?
It Is Indeed a Beauty Contest…and Looks Do Matter
Cannabis dispensaries have evolved to create spa resort-like environments that make the customer feel like they’re at Neiman-Marcus. Do you know your market well? Older dusty, boring, dungeonesque, gangster brand design vibes may not attract or retain the juicy, well-heeled customers that now make up much of the cannabis consumer market.
Sears ignored how their customers were changing.
Don’t watch your profits burn up like Sears’; stay relevant and attractive to new customers!
You Can’t “SELL TO EVERYBODY!”
Are you trying to sell and market your brand to everyone? Nowadays, buyers, especially cannabis buyers, want specialists, brands who “get” and understand them and have the look and feel they identify with. What’s the aim and mission of your cannabis brand?, What’s your background story and community vision, who are you trying to appeal to? Younger generations aren’t just looking for products, but they’re also looking for unique experiences; what is your customer’s experience? Will they remember your brand and share it with a friend?
Figuring these things out is hard! We’ve specifically developed 4Blooms’ proprietary APEX Branding Workshop to help companies answer these fundamental questions.
Just ask Sears how well this “Selling to Everybody” strategy worked for them.
Back in the year 1931, Sears’ revenue totaled $180 million, around $2.8 billion today, adjusted for inflation. That’s a HUGE amount of sales for the time. But then they started losing market shares to Walmart, Amazon and other crafty retailers who targeted more niche buyers: more expensive buyers, online shoppers, people who were more self-educating about products. And while they sat in their old brand and marketing ways, everyone cherry-picked away the portions they wanted from the Sears company.
Branding for Cannabis Businesses: An Investment That Pays Off
In order to stay competitive in the market, a cannabis business should allocate around 20% of revenue to marketing. It’s an investment that yields handsome returns when done properly. Highly focused, targeted cannabis branding is fuel to support your growing business; in today’s marketplace, it’s your way to stake your claim to customers and shine above the rest of the crowd.
Stay “In the Now” with a Professional Cannabis Branding Company
The cannabis, hemp, and CBD markets are exploding at lightning speed. It’s time to join the innovation that’s currently thriving in this industry. Let’s learn some lessons from Sears and stay ahead of the trends and curves.
Get in touch with us today. We’re happy to give your brand an assessment and craft a branding strategy that will keep you relevant and competitive in this booming industry.