Most cannabis businesses these days are operating in an oversaturated market, leading many to focus their marketing efforts on branding as a way to stand out in a crowded market. Marketing experts often tout strong branding as a surefire way to build loyalty, referrals, and recognition. But in the unique cannabis space, is branding as effective as it is in other industries? And how can companies justify the costs?
RELATED: How cannabis marketing can learn from old mistakes
Consumer data indicates that most weed shoppers care most about THC potency and product price. However, there’s an old rule in advertising suggesting that what a customer says they want isn’t the end-all be-all. After all, a sea of similarly priced products will still overwhelm a shopper.
According to fractional chief marketing officer Angela Pih, a genuine connection with the consumer remains critical to standing out.
“The brands that stand out are the ones that make people feel something beyond the deal,” Pih told GreenState. “Think about how Cookies built culture through lifestyle and design, or how Miss Grass created a voice around intentional consumption and community, or how Kiva turned edibles into a trusted, approachable category with consistent quality. Even in a value-driven market, those brand cues help people choose you.”
Annie Starr Davis, senior vice president of marketing at Jetty Extracts, insists that in a market where cannabis is increasingly becoming a race to the bottom on price (and a race to the top on potency), branding is more important than ever.
“A brand is a promise to the consumer of what they can expect from a product—in terms of how it makes them feel, both physically and emotionally,” she told GreenState.
RELATED: How weed brands can keep their cannabis clean
Davis noted that internal data show that cost and cannabinoid content are indeed significant drivers of sales, but the depth of products is just as crucial.
“Creating a brand that stands for more than price and potency is how companies can substantiate any price point above the commodity, and convince consumers that there is value to paying for something other than the THC percentage,” she said.
Davis added that consumers care that their cannabis products deliver a robust experience. Once they see that a brand delivers and offers value beyond a cheap high, they’re more likely to return.
“In my conversations with budtenders and Jetty repeat customers, they routinely cite the quality and consistency of Jetty’s products as their top reasons for brand loyalty,” Davis said.
The industry’s power influencers’
Pih added that dispensary staff are often the gatekeepers between consumers and cannabis companies. This was seemingly confirmed by a Reddit thread asking the community what influences their pot purchasing decisions. Many commenters aligned with available data, saying price and potency/quality were most important. However, another important figure was mentioned over and over: the budtender.
“Never ever forget about the budtender who will influence purchase,” Pih said. “Educate and take care of the budtenders, they are your power influencers.”
RELATED: Lawsuit pits cannabis against hemp yet again
There are several ways to connect with budtenders. This may include holding in-store training sessions or sending over promotional materials. The better equipped they are to recommend your brand, the better.
At the end of the day, Pih says that outcomes are the true measure of success: how often people come back, how much they spend over time, and whether you can sell without leaning on constant discounts.
“If your customer lifetime value is going up and your promo spend is going down, your brand investment is paying for itself,” she surmised.
Overall, price, potency, and budtender loyalty certainly matter. But good branding is an investment that, if done well, consistently, over time, will eventually pay for itself, so it should not be thrown out.
