Slaying some hazardous cannabis myths
Despite its challenges, the cannabis industry continues to attract a large number of new participants i.e. firms and executives. Call them plant lovers, naive or ambitious, whatever.
But they would be wise to avoid some wrong assumptions and not repeat the same strategic errors of their predecessors.
In June 2022, these five myths can be put to rest:
1. Quality, consistent cannabis is easy to grow – This never was the case and certainly won’t be for the foreseeable future given existing genetics, technologies and grow methods. Cultivation is part art and part science, with lots of trial-and-error mixed in. Decision makers will need a learning mindset and accept the fact that many successful cannabis firms will market product experiences that may not require them to be a cultivator.
2. 'We know the cannabis consumer' – Quite likely, you don’t know enough. If you are like most cannabis enterprises, your research is limited to a sample set of a few dozen colleagues, friends and family plus some sketchy research from a consultancy. You (and your peers) probably know little about different consumer functional and emotional need states by segment and category – which are also subject to change over time. Finally, latent personal and institutional bias will inevitably compromise your objectivity and foster research blind spots.
3. ‘If you build it they will come’ - No, they won’t. This wasn’t even true in Canada at legalization when there were a small number of companies, licenses and product choices. The tough reality is that any new cannabis business or product must compete against hundreds of other products and players (legal and illicit). The only winning formula is to market differentiated products built off of consumer insights and retailer needs.
4. The cannabis community provides a ready, experienced workforce – Perhaps, but quantity does not always equal quality and engagement. While a passion for the plant is helpful, it says nothing about an employee’s competency, work ethic or professionalism. Importantly, an engaged and productive workforce can still be corrupted by poor management practices, toxic cultures as well as difficult operating environments.
5. Its easy to build a brand – Never has and never will be. A brand is a promise to a consumer and retailer of unique value. The prerequisites of a strong brand are awareness, consistency, functional & emotional benefit, and personality. Optimizing all of this does not happen overnight, and requires strong consumer research capabilities, a high performance operating model and patience.
#strategy #brands #marketing #community #consumers