Marijuana Branding Is Getting More Important Than Ever: Why Do You Need It for Your Business?

The difference between a small local brand and a massive worldwide company lies in their branding strategy. Marijuana branding is playing a critical role as businesses begin to notice its impacts. But have you truly understand its importance?

Marijuana branding is now showing its full potential since the industry is expected to reach up to $40 billion in spending's in 2024. As a business owner, understanding the need for having a trusty marijuana branding and marketing strategy is vital. At the moment, customers are facing multiple choices whether they’re shopping online or in-store. Therefore, basic human psychology will tell them to choose the brand they recognize first due to familiar feelings. Buying those products makes them feel confident and relaxing, rather than trying to make a new decision. So if you want to get into people’s carts, you must get into their minds first. And the only way for you to do so is through marijuana branding. Normal brands compete on prices and convenience. But only strong brand knows that they must compete with intangible value or create a positive perception of tangible value

But in what way branding can create impacts on the cannabis business? Moreover, how can brands take advantage and emphasize greater revenues?

Why marijuana branding is so crucial?

Determine factors that contribute to the cannabis business is difficult. However, here are our attempts to help you understand what you must do in the marketplace.

1.     Build loyalty

When customers are loyal to a brand, asking them to switch brands is like suggesting that a Coca-Cola fan use Pepsi for the rest of their life. It’s just impossible and a big “No way”.

Brand loyalty is an emotional connection that turns customers into massive fans. This intimate connection doesn’t happen by chance or within a short time. Cannabis businesses must go through a deep understanding of their customers’ priorities and behavior first.

Then by finding the matching point between what they stand for with what their customers care about, they build loyalty. Effective brands always have a strong creative brand identity that their customers relate to.

So with marijuana branding, having loyalty means having a consistent stream of revenue. By then, you’ll be much less worried about what promotion your competitors are hosting, but more about customers’ experiences.

2.     Increase brand value

Brand value is simple how much you worth, in case one day you decide to sell it. And if you really want to sell your brand, the part that people care about is your equity. This consists of your name, logo, identity, packaging, products, and services. In other words, brand value is how much you are worth when putting on the market. And if you look closely, there are many elements of branding related to its value.

Only until recently that the brand name & all of its elements are recognized as a valuable asset. If you stepped back a bit in the past, business success and consumer choice were defined solely on product quality and value, not its name. The advertising invasion in the 60s then turned company identities into names and bring out public consciousness through marketing. Brand names became important more than ever before, and you now know what to do with them, right?

3.     Selling at a high price

Pricing is an important part of any cannabis business, and it must be involved in your branding strategy. Like we’ve said previously if you only compete on the price level, one day it’ll harm your own business. But if you invest in a good marijuana branding strategy, you’ll make much more money, and stay on top of the game for much longer.

The price of your products or services has a massive impact beyond your profits. Customers will instantly relate higher price products, with incredible brand images to a premium sector. And if you opt for that goal, then it’s just like the cherry on top of your sundaes. But if you opt for a lower sector, having great branding will attract you more customers as you’re appearing to be bang for their bucks. In both situations, you’re benefiting greatly from good marijuana branding.

4.     Increase market share

This is the one thing that most start-ups forget about doing business, if you’re not increasing your sales every year, you’re shrinking. Indirectly, if you’re doing good with your branding, you’ll attract more customers every single month. Months lead to years, and before you could realize it, your branding is helping you creating profits.

To increase market share, you should do one of those things, or best, all of it together, with careful planning:

- Upselling to your existing customers: Ensure people using more products from your brand is a way to keep the stream goes on.

- Improve customer services: Happy customers mean a higher chance they come back to purchase from you.

- Reaching for new customers: If you’re not trying to find new customers every day, you won’t ever reach your business goal. Put more effort into marketing & advertising to reach new audiences will help you increase your opportunity.

- Trying new channels: New channel like e-commerce is always worth a try, since you lose typically nothing, but have more chance to reach new consumers.

- Develop new products & services: Having a variety of products in hand is a way to diversify your income. You’ll never know which product will be a massive hit to the market, so having more than just 1 or 2 shall be your move.

5. Easy to launch new products

A strong brand differentiates your brand from competitors. And only the strongest brands own a place in customers’ minds. Launching new products is a key factor for your cannabis business to grow and become successful. By building solid marijuana branding, then putting out new products, customers will be more likely to give it a try. And they try due to only one fact, they’ve purchased from your brand before, and they trust you enough to do so.

Your next steps to level up marijuana branding

Now you’ve fully got the fundamentals of marijuana branding, it’s time to boost your brand in the right direction.

Your first step is, of course, longing for a good branding strategy. Take some more time, or getting an agency to consult your planning process. Remember that this first step will be the guidance for your entire business. So keep research, read as much as you can, and get the right advice. The industry still has plenty of room to play, but there are some strong competitors already. So to elevate your marijuana branding, you’ll have to put in a lot of effort.