2021 is an important year for the cannabis industry as its rapid growth is set to continue and flourish even more. With more states joining the legalization bandwagon, now’s an exciting time to become a cannabis retailer. However, before you jump into starting your own cannabis dispensary, you need to be creative with your marketing strategy since there are still some strict regulations and scrutiny about advertising this particular product. Here are some marketing strategies you should consider for your cannabis retail business.
Define Your Target Customers
The first step in creating an effective marijuana marketing strategy is knowing your market and your customers. You can’t sell cannabis products if there’s no market for them in your area or your target demographic. There’s a vast marijuana market out there, with recreational consumers steadily growing every year. The thing is, you need to define your target market as it’s the only way to know whom to reach, where to find them, and how to get their attention.
An excellent approach to first create buyer personas or profiles as a guide for you. You need to make a profile of each target consumer segment you plan to serve with your cannabis retail business. Marketing your product to a 25-year-old is different from marketing to a 43-year-old consumer. So it’s best to segment your target market and design a customized experience based on their age, values, buying habits, and other preferences. Don’t make it a cookie-cutter strategy, or you risk alienating some of your potential customers. Depending on your location’s demographics, you must provide services tailored for each segment of the market.
Learn About Local and National Compliance
One of the many challenges of marijuana dispensaries is dealing with local and national compliance when it comes to marketing and advertising these products. State regulations differ from one market to the next. So, depending on where your business is based and your target market, you need to know what regulations are in place.
For example, in Maryland, cannabis ads of any kind are banned, and that includes billboards, leaflets, and posters. In other legal states, billboards are a staple marketing channel for cannabis retailers.
Additionally, the Federal Communications Commission (FCC) has outlawed the airing of cannabis-related commercials and advertisements. That means that radio and TV stations are a big no-no for cannabis companies. You’re better off going online and advertising to social media platforms like YouTube or Facebook. Better yet, you can start your own website to advertise your products.
Identify Your Competition
Now that you know your audience and the local and federal regulations on advertising cannabis products, it’s time to focus on your possible competition. Ask yourself the following questions:
- How does my cannabis retail business stack up against others in my area?
- Are my prices lower or higher than my competitor’s?
- What’s unique about my products and services that other retailers don’t have?
Answering these questions can help you differentiate yourself from all the other cannabis dispensaries popping up here and there. It’s important to highlight your competitive advantage against your competitors at all times. Some businesses opt to invest in creating new and exclusive products only they have, while others focus on a particular process in making their products. Whatever edge you have over the others, highlight it and use it for your branding.
These three strategies are designed to help you get a better footing in launching your cannabis retail business. It’s still a growing industry, but at the rate it’s going, you’ll soon find a lot of competition, so you better use these tips to stay ahead of them all.
CannaBud Marketing recognizes the value and the growth of the cannabis industry. That’s why we’re offering social media, web design, and SEO marketing specifically designed for those who have a passion for cannabis. We’re a dispensary-only cannabis digital marketing agency whose main goal is to deliver you the best results. Contact us today to get started!