Your brand is your company's most important asset. It's the driver of customer acquisition and retention, and it's the foundation of your marketing efforts. Branding is also one of the most valuable things you can offer investors.
A strong brand can be the difference between a successful cannabis company and one that languishes in the crowded marketplace. Branding can make your company more valuable and help you attract the best talent.
Cannabis companies need to understand the power of branding and make it a priority. This blog post will explain why your brand is your company's most important asset and how you can make it even more valuable.
What Is A Brand?
A brand is much more than a logo or a name. It is the sum of all the experiences and interactions that a customer has with a company. A strong brand will create loyalty and excitement among customers, while a weak brand will fail to connect with them.
A brand is built over time through every customer interaction, from the first time they see your advertising to the quality of your customer service. It is important to take a holistic view of your brand and ensure that every touchpoint is reinforcing the message you want to send.
While a brand is difficult to measure, it is one of the most important assets a company can have. A strong brand can help a company succeed in good times and bad, and it is an essential part of any business. This is especially true in the cannabis industry, which is still extremely young and flooded with competitors vying for the same customers you are.
How To Establish Your Cannabis Brand Early
We highly recommend that cannabis businesses establish a strong brand identity prior to launch, so they have a head start when they actually go to market. The cannabis industry is ever-changing, and that means that the process of creating and establishing a cannabis brand is always evolving as well. However, there are still some key things that you need to do to set your brand up for success from the very beginning.
First, you need to choose a great name for your brand. This is something that will represent your company and everything that it stands for, so it's important to take your time and choose something that you're really happy with. We recommend avoiding names based on weed puns or stoner stereotypes, as these will likely restrict your appeal to die-hard consumers and won't be very impressive to potential investors.
Once you have your name, you need to create a strong visual identity for your brand. This includes things like your logo, website, packaging, and any other marketing materials. This is your chance to really make your brand stand out, so make sure to put some thought into it.
Finally, you need to start getting your brand out to your potential customers. This means you'll want to come up with a clear marketing strategy. Decide which channels you'll use to reach your target audience. Will you advertise online? In print? On billboards? You'll also need to create interesting and informative content that speaks to your target audience.
Of course, if you have invested in a strong brand identity, this will make connecting with customers much easier.
A Strong Brand Can Help You Attract And Retain Customers
Cannabis is a booming industry, and as the market becomes more saturated, it becomes increasingly important for brands to establish themselves as leaders in the space. A strong cannabis brand can help you attract and retain customers. You want a brand that will catch the eyes of your customers when they see your products on the shelves or come across your content on social media. A strong brand will be memorable as well, so that it will be top of mind next time they visit a dispensary or go shopping online.
This kind of memorability will not only attract customers to your products but help build up loyalty moving forward. After all, the only thing better than a first-time customer is a returning one.
A Strong Brand Means Lower Price Sensitivity Among Your Customers Or Clients
How much your target market cares about the cost of your product is called price sensitivity. The less they care, the better; it means they're more likely to buy from you because they like your brand or have a positive emotional connection to it. Customers with lower price sensitivity have probably been satisfied with a product they've bought from you or have a positive emotional connection to your brand.
The power of a strong brand gives you the ability to raise prices. Why? Because you’ve become great at what you do. It’s not something that you can change overnight, but over time you can build a loyal following to your brand and lower price sensitivity.
Your Brand Should Communicate Your Company's Values And Mission.
Just like any individual, your company has values and a mission. Your brand should communicate these to the world. By aligning your brand with your company's values and mission, you can create a strong and cohesive identity that will attract customers and clients who share your values.
If you're not sure how to start, take a look at your company's website and consider what your customers are looking for. Is it clear what your company's values and mission are? Once you have a solid idea of your brand identity, you can start creating content and marketing materials that communicate those values, as well as training your employees to convey those values at every interaction point.
This goes a long way to attracting new customers, retaining old ones, and impressing investors with the strength of your company.
What Is Your Cannabis Exit Strategy
As a cannabis business owner, it's important to have an idea of what your company's exit strategy is when developing your brand. This is because your exit strategy will have a big impact on how you position your brand in the market.
If you're looking to sell your company in the future, you'll need to focus on building a strong brand that will appeal to potential buyers. This means creating a brand that is recognizable and has a strong reputation.
On the other hand, if you're planning to keep your company in the family, you can take a more relaxed approach to branding. In this case, you can focus on creating a brand that reflects your company's values and mission.
No matter what your exit strategy is, it's important to have a clear vision for your brand from the start. This will help you make decisions down the road and position your cannabis company for sustainable success.
Why Your Brand Matters To Your Potential Investors
As the legal cannabis industry continues to grow and mature, investors are becoming more and more interested in putting their money into cannabis-related businesses. However, they are also becoming more selective in the brands they invest in. One of the main things they are looking for is a strong and recognizable brand.
A strong cannabis brand can give a business a competitive edge, help it attract and retain customers, and build loyalty among its customer base. It can also help a business attract and secure funding from investors.
So if you're looking to attract investment for your cannabis business, make sure you have a strong and recognizable brand. It could make all the difference in whether or not you're able to secure the funding you need.
When It's Time To Sell Your Cannabis Company, A Strong Brand Equals More Money
When it's time to sell your company, a strong brand will almost always lead to a higher sales price. And this is especially true in the cannabis industry, which is experiencing a high level of M&A activity in the last couple years, as more and more money enters the market (As pointed out in this recent report by Mergermarket).
A strong brand allows your company to do all of the critical things mentioned above. You will attract more customers and strengthen brand loyalty. Customers and clients that identify with your brand values will be willing to spend more on your products and services. These are critical factors when attracting investment or a buyer for your company.
Too many cannabis companies focus exclusively on their product, thinking that if they grow the best cannabis then the customers will find them. But without a strong brand, it really doesn’t matter how good your product is. I know from experience that there’s plenty of amazing cannabis for sale all around the country, produced by top notch growers that care.
The bottom line is that the only real differentiator in this type of environment is your brand. Ignore your branding at your own risk.
Trust Your Cannabis Branding To The Hood Collective
When it comes to cannabis branding, you can trust the Hood Collective to get the job done right. We have years of experience in the industry and know what it takes to create a successful brand. Whether you need a stand out logo, eye catching packaging design, a kick ass website, or general advice on how to go about creating an amazing brand, our team of branding and graphic design professionals understand the industry and have the track record to prove it. We’ll work with you to understand your vision and goals, and then we'll put our expertise to work to create a branding strategy that will help you achieve them.
Contact us today to schedule a free consultation.