Marketing and marijuana — why getting it right now is crucial
Anticipation came to a burning crescendo last week. After months of discussion and speculation concerning complex regulation, Canada became the second country (after Uruguay) and the largest domestic market globally to legalize the recreational use of marijuana.
Cannabis, it seems, has all but monopolized media commentary in recent months, and yet, there is still an exceptional amount we don’t know, and certainly huge areas of the industry that we have not planned for.
As with any foray into the unknown, specifically one which is previously uncharted on a global stage, careful consideration should be given to all possible outcomes. Looking at how a product and associated laws can affect society, the environment, and the economy should be examined in the planning phase.
To a degree, these outcomes were considered in relation to cannabis legalization. The federal government appointed a task force, with experts from public policy, addiction, police and law sharing important recommendations on the implications of legalization. But we also need to look at the opportunities marijuana legalization presents to a multitude of stakeholders. Marketing, in particular, is one area where foresight can greatly inform regulation.
Despite Canadian advertising spending set to reach $11.52 billion by the end of the year, no marketing experts were employed to advise on legislation around marijuana. We have learned from other industries that it is only a matter of time before stakeholders challenge laws and find loopholes allowing them to promote products as they see fit. Advertising, however, is just one point to consider. Perhaps the most obvious aspect of marketing which we need to examine, in relation to marijuana, is the product.
For now, the only forms of legal marijuana available are dried-flower, raw oils and pre-rolls. Baby boomers may fondly reflect on a time when these were the only forms of cannabis available, period — but the market is evolving, whether legal or not. Though recreational edibles won’t be legalized until well into 2019, there are currently at least a dozen websites on the black market selling cannabis infused products — including jellies, brownies, honey, granola, and even health-food bars.
This is just the beginning. As edibles become legalized, producers will find innovative ways to grow their businesses, developing new forms and flavours to appeal to a huge cross-section of consumers.
Over time, as we have seen with food, drink, clothing, cars, entertainment and almost every other consumer industry, companies will hone in on their target market, building a brand that serves specific consumer needs. Looking at other industry approaches, it is likely that marijuana will be marketed very differently to men vs. women for example, people on the East coast vs. those on the West, or regular users vs. those who consume it more sporadically.
We may even see brands aligning with consumer values. Fitness fanatics, people who consider themselves to be ultrahealthy and those with dietary requirements may verge more toward a strain or type of branding that promotes healthy living. Purpose-driven producers may consider how packaging and sustainable production can help them build a customer base. Socio-economic factors could also come in to play, with ‘high-end’ products being created to serve those that look for luxury, while others look for value-based options.
We need to look ahead and try to predict the next wave of industry trends. Perhaps the most significant challenge we face is in balancing the dominant black-market, one which consumers to date have been comfortable engaging with. In order to achieve this balance, we need to talk to the people who know the industry best, combining their insights with the expertise of those from marketing.
It is only by opening up the conversation and widening the expertise we employ — from the outset — that we can regulate for a sustainable industry that contributes to both the economy and society at large.