Cannabis Crossover Report Examines Cannabis Consumers Buying Trends

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Media and Headset today revealed the results of its Cannabis Crossover report, a study that examines the consumption habits of cannabis consumers, including their brand loyalty and product discovery through content.

Reposted from Newswire

The data is culled from $1.5 billion in transactions from the states where cannabis is legal including Washington, Arizona, California, Colorado, Washington D.C., Illinois, Nevada, Oregon and Michigan. The Cannabis Crossover report reveals that while consumers gravitate to cannabis lifestyle content to some degree, food content in which cannabis products are featured is far more likely to drive female viewers to dispensaries, while male viewers are driven by lifestyle culture content.

Drake Sutton-Shearer, Co-Founder of PRØHBTD Media said, “It’s clear that consumers are discovering cannabis brands through online. The most interesting point of validation is that across the spectrum, people who embrace these brands of today and tomorrow are not just like us, they are us.”

Cannabis Crossover Report other findings include:

– Over half (54.38%) of the cannabis products consumed are flowers (bud) with little variation across gender and age lines, followed by package pre-roll joints (15.67%) and concentrates (12.29%) and edibles (8.03%).

– The average category growth is 164% with the biggest advances seen with capsules (331%), and concentrates (oil, wax) and package pre-roll joints have more than 200% growth.

– More than 800 new cannabis brands have been introduced to the market in the last three years with almost 65,000 products.

– There are early signs of a consolidation of brands with new brand introductions slowing down due to retail space constraints.

– The average item price has decreased by slightly more than $18 since January 2015; with a steady decline in average item price due to lower priced items, such as pre-rolls, becoming more popular.

The report follows last Monday’s “Cannabis Crossover” seminar at Advertising Week in NYC where PRØHBTD Media, the leading cannabis-lifestyle media platform and content studio, was joined by the report’s co-authors Headset, the leading retail analytics firm for cannabis-related businesses and David Bell, Professor of Marketing at The Wharton School. Together, they discussed how marketers can reach the mainstream cannabis consumer by employing brand safe methods.

“As the cannabis industry continues to mature, so too does the purchasing patterns of the cannabis consumer,” said Cy Scott, Co-Founder and CEO of Headset, Inc. “Incorporating market trend analysis through the lens of transaction and related demographic data illustrates a complex, emerging market with enormous opportunity.”

Bell said, “The ‘post-normalization’ of cannabis and cannabis culture is in full swing. The demographic skews younger, yet covers all groups; ‘Cannabis Consumers’ exhibit a diversity of tastes and preferences, and an affinity for brands and authentic content, just as they do in other walks of life and commerce.”

The full report is available to download at www.prohbtd.com/CannabisMainstream

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Social Influencers

BEST PRACTICES 10 Cannabis Social Influencers To Watch

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If you’re into social media, you may know that sites like Instagram, Facebook and Twitter can at times police sites for what they deem to be promoting illegal activities. However, in the age of cannabis legalization, these 10 people have maintained a strong foothold in social media spaces and the cannabis community at large becoming social influencers.

Social marketing is a bit different than traditional marketing, where social influencers marketing uses people and personalities to represent a target market. It works by having brands identify individuals who are resonating with target markets, who have a social media presence, and it allows a brand to build their marketing strategies around that person.

Cannabis is full of social influencers, but for this cause, they aren’t only representing certain brands that align themselves to them, but they’re also representing the cannabis movement as a whole. Each influencer represents a different aspect of the marijuana business, and thus, are valuable for brands in their own ways.

This blog post was reposted from Marijuana Retail Report

Cheryl Shuman

Cheryl Shuman has been named “The Martha Stewart of Marijuana” for her high-class image and her alignment to her creation Marijuana Moms, a community-building initiative for mothers who are interested to use cannabis without the stigma. Shuman is an outspoken member of the cannabis community, offering insights into cannabis investing and more recently becoming an outspoken advocate against Roger Stone’s appearance at the Cannabis World Congress & Business Expo (which sources say he’s been recently dropped from).  Shuman is at the top of the social influencers list.

Krishna Sai Andavolu

If you’re a fan of VICE and Viceland, and enjoy learning about all things marijuana, Krishna Sai Andavolu is your guy. Host of the web series WEEDIQUETTE on Viceland, Andavolu couples extensive marijuana knowledge with opportunities to test out different marijuana strains, methods and smoke spots across the world.

Jodie Emery

Her name is synonymous with cannabis in Canada and Jodie Emery’s flame isn’t showing any signs of burning out anytime soon. Connected to Cannabis Culture, Jodie and her partner Marc have been persecuted over their dispensaries and have emerged as strong advocates against the criminalization of marijuana in Canada. If there is any legislative hearing to be had for marijuana in Canada, Jodie is sure to be there having her voice heard.

Troy Dayton

If you’re looking for marijuana statistics and data, Troy Dayton is your guy. Head of ArcView, one of the U.S. biggest investment and research firms, Dayton has emerged as a strong voice for cannabis and the investment potential within the business and can back up any cannabis growth claim with many statistics.

Dr. Michele Ross

Dr. Michele Ross is the influencer on this list who represents the medical community and the medical perspective on cannabis. She specializes in neuroscience and is dedicated to advancing the knowledge and research on cannabis within medical communities and within public health. She is the founder of IMPACT Network, which focuses on the advancement of research on cannabis  for women’s health.

Women of Cannabiz

This online community, founded by Rachel Garland, is a place that celebrates all the amazing contributions of women in cannabis across the world. All women who show up on Women in Cannabiz represent a different part of the cannabis industry and share their story with the greater cannabis audience. The site celebrates female entrepreneurship in the cannabis industry and serves as a source of empowerment for not only women, but all cannabis entrepreneurs.

Studio 420

Studio 420 is a Denver-based agency that identifies as a cannabis-friendly creative agency, providing web services for the cannabis industry worldwide and also acting as an authority for best practices in web development, marketing, and content creation for the cannabis industry

Aaron Justis

Aaron Justis is one cannabis influencer to thank for laying the groundwork for legalization through his work as a drug law reform activist. He currently resides in L.A. and is the president of the dispensary Bud & Roses. Justis is often a go-to as he’s been working within his dispensary since 2007, which represents some of the best practices in licensing and training of employees.

Charlo Greene

She is best known for her 2014 “Fuck it, I quit” stunt on Alaska news that went viral when it was revealed that she was the founder of the Alaska Cannabis Club (ACC). Since then, Charlo Greene has proven herself to be an important voice for cannabis in the northern state and across the nation. She hosts “The Weed Show” and has become a popular public figure.

Joel Hradecky

Known to be one of the most influential of “WeedTubers”, Joel Hradeck’s YouTube channel CustomGrow420 has become one of the most followed 420-related channels, with almost one-and-a-half million followers amassed since 2013. Hradecky is famous for on-screen smoking antics, such as ripping a 3-inch bong to providing product reviews of all things 420. Note that all his content is marked 21+ and is more of the taste for those who love “stoner culture”.

 

 

 

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“I raise up my voice—not so I can shout, but so that those without a voice can be heard…we cannot succeed when half of us are held back.” ―Malala Yousafzai

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Cannabis Entrepreneurs

What Cannabis Entrepreneurs Need To Know When it becomes Federally Legal

Posted Leave a commentPosted in Marijuana Marketing

On August 1, 2017, Senator Cory Booker (D-NJ) introduced The Marijuana Justice Act,  an unprecedented bill that, if passed, would legalize marijuana nationwide. Although most regard the bill as “unpassable”, current cannabis entrepreneurs should have at least been prompted to consider the possibility of operating a cannabusiness within a more mainstream ecosystem. Or, perhaps the recent surge of mainstream media buzz around the business of marijuana has piqued an interest in the industry.

The following blog post was reposted from Entrepreneur and written by 

Whatever the motivation, smart cannabis entrepreneurs should consider these three must-dos to prepare a cannabis business venture for federal legalization:

1. Think like a brand.

As the industry grows in credibility and legitimacy, a number of recent lawsuits by larger corporations over the issue of trademark infringement have surfaced. If you have already selected a business name that is a spin-off of a mainstream brand, rebrand with a new name as soon as possible to avoid the hassle and legal fees.

Choosing a company name with overt ties to marijuana can lead to both positive and negative outcomes. The industry is still in its nascent stages but the sheer number of companies incorporating “canna” or “marijuana” in their brand names is already overwhelming. This has led to significant battles over name recognition in SEO and social media channels. As most businesses are operating regionally or state-to-state, companies with similar names can coexist, but will likely create confusion for those seeking to build global brands.

Cannabis entrepreneurs can avoid this confusion by choosing a name with little connection to the plant. Furthermore, many industry thought leaders believe more oblique monikers will give brands the opportunity to extend the reach of the plant beyond the stereotypical references.

Cannabis entrepreneurs who include quintessential cannabis references in company names can protect themselves by creating effective “digital box-out” game plans. Savvy founders can protect their digital real estate by writing out and then securing all the chosen names and possible iterations for a business. This ensures that no competitors can build traffic streams within their organic digital spaces. Consumers searching your company’s name in either Google or social media will find your brand, and only your brand. This significantly lowers the risk of search competition, allowing newcomers to build global cannabis brands without any digital interference.

2. Plan the future of your business.

I often work with cannabis entrepreneurs, both new and those who have been in business for years, who do not have a business plan. As an entrepreneur, it is often difficult to allocate the time, resources and discipline required to finalize a business plan, particularly if the business has picked up revenue and day-to-day operations quickly. However, in order for small businesses to survive the mainstream transition of cannabis, it is imperative to think bigger.

Scaling your business strategically will require a legitimate business plan. Fortunately, there are many resources to help in the early stages, including searchable how-to articles with references and digital tool recommendations that make the process bearable and shareable. While these resources serve as a guide for the foundation of the plan, owners must use their best judgment to tweak the details supporting the nuances of their respective cannabis businesses. From all-cash accounting to cadences for harvest, cannapreneurs should account for as many of the unique market pressures as they can in their business plans.

This advanced consideration allows executives to mitigate against potential risks while navigating a larger, mainstream market. If operations prevent you from slowing down enough to tackle the business plan, hire a consultant or consulting company to assist with the strategic planning and business writing.  Whatever you do, don’t skip this crucial step.

Owner who have a business plan in place should conduct a thorough review, and make adjustments with a new lens. Federal legalization offers current cannabis businesses the opportunity for national expansion and growth. However, it will also mean giant mainstream corporations with deep pockets will enter and invest in the industry as well. Astute entrepreneurs will immediately reassess the market, their strategic alliances and perhaps even financing to remain competitive.

3. Reassess the market, your alliances and your financing.

Though it is expanding rapidly, the marijuana market is still relatively small. Most credible projections forecast the potential of the entire industry to be nearly $20 billion by 2021. By comparison, Target Corporation had over $70 billion in revenue in 2016.

With the possibility of federal legalization, wanna-be marijuana moguls will need to re-evaluate the market to include much larger mainstream brands as competitive benchmarks. So, the owner of a personal care brand developing infused cannabis products will want to analyze brands under mainstream, personal care purchase consideration like Burt’s Bees or Dove. From packaging to pricing, it’s important to review full brand offerings to determine if any adjustments to your strategy are necessary to achieve expected points of parity from the target consumer’s perspective.

Once you understand the landscape of players, now is also an ideal time to formally establish strategic alliances. Within the cannabis industry, today’s perceived competitors can in fact be future business partners, as strong cooperatives and collaborations will increase long-term viability and stability to better compete against mammoth-sized mainstream competitors. Further, there is more bargaining power if you establish partnerships before a crisis or failure to launch requires you to seek out support.

Finally, if you are bootstrapping your business, you should also reconsider your financing options even if your P&L is strong. Consider how a regional business could scale with an additional $1 million to $5 million in financing. As legal marijuana emerges as the new wealth generating industry, take advantage of increasing investor interest and always have a pitch on deck!

Whether federal legalization happens in twelve months or a few years, it is clear that early entrants to the cannabis market have a rare window of opportunity to establish themselves as global leaders in the market. Cannabis entrepreneurs should use this head start to strengthen digital brand awareness, create an informed plan of action and establish industry benchmarks that align with mainstream branded experiences.

Hillary Clinton
‘I suppose I could have stayed home and baked cookies and had teas, but what I decided to do was to fulfil my profession, which I entered before my husband was in public life.’

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