Cannabis, which is also known as marijuana, is a psychoactive drug that comes from the cannabis plant. People use it for two main purposes, among others. Medical and recreational the chemical that plays the main part in Marijuana is its THC (Tetrahydrocannabinol). THC is one of the 483 compounds in the Cannabis plant. Since its medical uses began to come to light and a few states in the United States even legalized the medical use of Marijuana, its branding has become a whole new industry.
Formation of the Legal Cannabis Industry
Businesses know that branding is a vital part when the businesses’ legitimacy or required popularity has not been reached in the specific culture. The cannabis industry is going through this very issue currently. The main hopes of the industry are set on the lucrative potential of cannabis because according to a research group known as ArcView Market, it is estimated that the legal cannabis industry produced approximately $6.9 Billion revenue in 2016 alone and its future revenue generation can go as high as $22 billion by 2021. This expected rise in the use of marijuana points out the fact that its marketing business is also bound to grow, and that is why newly emerging firms are integrating the way culture perceives marijuana.
Marketing and Branding of Cannabis
This shift in the culture about the perception of marijuana indicates that it is time to reintroduce and republish the product, and this task requires recognition among diverse markets spread over diverse cultures. A cannabis branding agency is aware of how to promote the product in the right way which is done through websites and social media promotional advertisements. But this rebranding and promotion can only be taken forward if the firms learn to create a positive ambiance and energy around this issue with which societies will become more accepting of their product. Professionals from the legal cannabis industry feel that they are on the threshold of what could possibly be a cannabis branding battle. There will definitely be a power struggle among retail, product and device brands, all through different perspectives but the same product. During this power struggle, dispensaries would also want to capture maximum margin and channel their energies towards selling the proprietary brands. Other firms will want to channel their brand to the customers through multiple retailers and swipe off the largest margins.
Cannabis and its Markets
Ultimately, two types of markets will be formed. Medical cannabis and adult use cannabis and the marketing and branding strategies of these two will differ a lot. Branding of cannabis has shifted from just being a mere afterthought to becoming the main focus of the competitive strategies of firms. The companies that have successfully identified a specific segment of different types of consumers and then have tailored their branding and marketing mixes have positioned themselves in the best possible way to compete in the market ventures ahead. The future of cannabis industry can be compared to that of the tobacco industry.
Power struggle in the Cannabis branding industry
Perhaps the toughest challenges for the firms that are building a client base for cannabis is actually understanding the plant, understanding the clients and then understanding the rules and regulation that they need to follow under the law. But many professionals of the industry feel that it is growing at such a pace that things are also shifting fairly quickly.