How to Build a Brand in A Booming Cannabis Industry
TABLE OF CONTENTS:
- INDUSTRY FACTS
- THE 7 STEPS TO BUILDING A HEMP OR CANNABIS BRAND
- – 5 BIGGEST TARGET MARKETS FOR CANNABIS & CBD
CBD INDUSTRY FACTS: A New $2B CBD Industry from Cannabis Is On The Rise
Not just Cannabis but all derivatives of cannabis including hemp and marijuana extracts are on the rise. According to Forbes, The cannabidiol (CBD) market is estimated to grow by 700% reaching $2.1 Billion in sales by 2020. Cannabis-derived CBD should account for at least $450 million in sales while the entire legal cannabis industry is expected to hit $57 billion by 2027. This news bodes well for Cannabis-focused companies and startups looking to get in ahead of the rising tide.
CBD is simply one of the cannabinoids in the cannabis plant that has been exposed to media attention. Cannabis derived CBD has been utilized to a fairly limited degree since the 1940s. Yet, the ongoing flood in the notoriety of this non-psychoactive substance compound found in cannabis owes to a few studies recommending that — in sufficiently high dosages — it might help with nausea, sleep, inflammation and pain. Currently, CBD is hitting the mainstream in epic proportions. Also, on the off chance that it feels like you’ve been hearing these three letters pretty much all over, prepare yourself: Experts say we are just seeing the tip of the iceberg.
The CBD business is on the cusp of a major boom, one that will rival other industry explosions like the internet boom of the nineties or the cryptocurrency phenomenon of the past half decade. Clearly now with the wave of demand coming, the race is on to become the Amazon, Costco or Sephora of CBD — and various organizations are competing to corner those markets.
THE STEPS TO BUILDING A CANNABIS OR CBD BRAND
Whether you want to set the world on fire and make millions, or just carve out a niche in your own segment of the wellness industry, the opportunities in Cannabis are as numerous as the obstacles to starting and growing a business. Here’s some help with the basics for getting started with your own private label or white label produced Cannabis brand.
STEP ONE: IDENTIFY YOUR AUDIENCE
Who is your product talking to? If you say everyone you are already off to a rough start. It would be difficult to create any product that appeals to everyone, let alone a Cannabis extract infused product. In today’s growing market, the young millennial shopping at the head shop or online has different tastes, behaviors and preferences to the aging wellness focused Generation X’er looking for a natural way to ease aches and pains.
THE 5 BIGGEST TARGET MARKETS FOR CANNABIS PRODUCTS
CANNABIS MARKETING:GENERAL WELLNESS & ENJOYMENT
While women remain the larger target market for natural wellness products including Cannabis extract, users can be broken down into several areas but can be grouped according to two main subsets. The first is people who use Cannabis infused products for general health and relaxation. These people are not using the products to treat any specific health issue but instead to give themselves a boost of good feeling, health or relaxation. This audience tends to skew younger as they have yet to start dealing with the aches and pains common of getting older.
This market covers the millennial Cannabis market and the Cannabis extract products that appeal to this market include some of the more fun, innovative and interesting forms. Products like Cannabis extract infused disposable vaping pens, Cannabis extract oil infused edible gummies and other creative Cannabis extract infused edible products. It is important for this market to feel that these products are taking effect, which is why vaping, whose effects onset immediately, is making so much impact in this market.
CANNABIS MARKETING: TREATMENTS OF CONDITIONS AND THERAPEUTIC USE
A large segment of the population at the center of the growth and movement of the Cannabis industry are those who are using Cannabis oil extracts to treat illnesses and health conditions. Cannabis extract products represent a natural alternative to the huge population of people treating chronic illness and everyday health issues with natural products. The movement towards natural products and away from opiates is strong as the opioid epidemic rages out of control. There is a reason the industry is growing at the pace we are seeing and it is driven by those in the natural wellness community that are seeking out new alternatives and spreading their information and knowledge through social media channels.
CANNABIS MARKETING: BEAUTY
Beauty products laced with CBD, a non-psychoactive compound found in Cannabis and marijuana, continue to find their way onto shelves in major retailers. Analysts are seeing further growth in this industry, which will boost the overall CBD market that could potentially be worth $50 billion to $100 billion.
CANNABIS MARKETING OTHERS: PET PARENTS, FITNESS
STEP TWO: CHOOSE YOUR NAME & DEFINE YOUR BRAND
Once you have determined who you plan to sell to, you can craft a name and a brand platform that appeals to this audience. At the Four20 Agency, we can help you craft your brand from real data and market analytics. The worst thing you can do is create a brand name that confuses people or misleads them. We can work with you to help guide you to a name and a brand platform that is built to sell. Once you have a name, you must register your business or get your DBA under the holding company. You will also want to file trademarks on all brand names, logos and images. We have the experience creating brand platforms for some of the largest brands in the nutrition and cannabis industries and can work with you to get your brand platform in shape and ready for the big show.
STEP THREE: OBTAIN YOUR RAW MATERIAL SOURCING
The biggest mistake people make when launching a Cannabis extract brand, is not focusing on the product from the beginning, meaning the raw material sourcing. Everyone wants to get caught up in the excitement of the branding and marketing of a full spectrum Cannabis product without first obtaining the pure raw material source for all your products. Luckily, at The Four20 Agency, we have relationships with suppliers and can help you build your brand from scratch.
STEP FOUR: CREATE YOUR PRODUCT LINE
Here’s where it really starts to get fun. Whether you just want to sell one cannabis product, or offer a huge line of hemp products with multiple concentrations, forms and flavors, you should build your brand from consumer data. We can help our clients to test the market without breaking the bank. We can help you buy the time you need to build your brand the right way. Cannabis oil extract infused products are becoming more and more popular as they are becoming more available. The competition is steep but the market is only getting bigger. We are an agency built to help the small cannabis and CBD brands succeed.
STEP FIVE: CREATE YOUR BRAND PRESENCE & GO-TO-MARKET STRATEGY
Website, social media, SEO, SEM and the whole rest of the marketing engine needs to be built according to your strategy. Your go-to-market strategy should include your wholesale and retail channels, and any distribution and media networks you choose to target. Now is the time to continue building the buzz and using outreach to secure bloggers, influencers and other media outlets to tease the launch of your revolutionary new Cannabis oil infused product. Be sure to include tactics for social media, marketing, SEM and online sales of your new private label Cannabis products. You will also want to build sales sheets with your products attributes, benefits and points of differentiation. If you are working with The Cannabis Plug, we can get you all the support you need to back up that you are producing your products using the industry’s best methods. This is where having a boutique specialized cannabis marketing agency like the Four20 Agency is can help you get an edge on your competition and succeed.
STEP SIX: PRODUCE YOUR CANNABIS PRODUCT(S)
There is nothing more satisfying then taking your product from the raw material on Cannabis farms to the finished product rolling off a production line.
STEP SEVEN: SELL. SELL. SELL.
The final step in the process is to get to work selling and carving out your niche in this emerging multi-billion dollar Cannabis industry. The Four20 Agency is ready to help you build your cannabis brand and take it to market and sell.