Cannabis Brands & Consumer Behavior - Branding Bud Live Episode 34
THE SUMMARY
Do cannabis brands play a role in shaping consumer preferences? Does cannabis sell itself? Get ready for an eye-opening exploration into the world of "Cannabis Brands & Consumer Behavior". Gain valuable insights as Branding Bud Live co-hosts, David Paleschuck and Adriana Hemans, along with their guest, Michael Rosenfeld, Sr. Client Partner at Weedmaps discuss the power of branding, the impact of packaging, and the ability to leverage data to influence consumer choices.
THE CO-HOSTS
David Paleschuck, Adriana Hemans
THE SPECIAL GUEST
Michael Rosenfeld, Sr. Client Partner at Weedmaps
THE TRANSCRIPT
DAVID PALESCHUCK
Welcome to Branding Bud Live, the live stream that’s 100% THC and 0% WTF. Every week we speak with business people about the business of cannabis. I’m David Paleschuck, founder of Branding Bud Consulting Group and author of the first book on cannabis branding. I’m joined by my co-host Adriana Hemans, a Marketing executive with over 8 years in the cannabis space. Hi Adriana!
ADRIANA HEMANS
Hi David. Thank you for that intro. I’m so excited to co-host the show with you. We’re bringing amazing guests from across the cannabis ecosystem to share their perspectives. My favorite thing about Branding Bud Live is that we focus on building community - and we encourage audience participation. It’s not just about us talking, it’s about all of us building something together. So feel free to drop your questions and/or opinions in the chat, and we’ll share them too.
DAVID PALESCHUCK
We’re here to build community, educate and entertain … so let’s jump into today’s show, "Cannabis Brands & Consumer Behavior". Today, we’ll be chatting with Michael Rosenfeld, Sr. Client Partner at Weedmaps discuss the power of branding, the impact of packaging, and the ability to leverage data to influence consumer choices. Some of the topics we’ll cover are:
What role does brand play in shaping consumer perceptions and preferences?
How important is storytelling in connecting with cannabis consumers?
What cannabis brands have influenced consumer behavior?
I’m super excited to chat with Michael today.
ADRIANA HEMANS
Me too!
(Acknowledges the audience.)
DAVID PALESCHUCK
Let’s welcome, Michael Rosenfeld.
ADRIANA HEMANS
Tell us about yourself, Michael. What are you passionate about?
MICHAEL ROSENFELD
Yeah, sure, as I just quickly look at the feed. Hi, everybody. I'm Michael Rosenfeld. I've been in the cannabis space since 2019, which definitely feels like dog years, when we think about all the stuff that's happened in the last couple years. And just a little backstory, I've been in branding and marketing communication strategy for over 20 years, very few sectors that I haven't worked in. And I am passionate about when I lived in California, I just moved out here a couple years ago, you know, outdoor activities, surfing, skating, being with my family, raising my daughters, and, and I love culture, I love watching and kind of the evolution of different cultures in marketing and advertising. And which leads me to what we're doing now in cannabis. As we're running, as we're just like sitting front row to this amazing time in this industry. For sure.
DAVID PALESCHUCK
Before we jump into specifics, are cannabis consumers different from other types of consumers?
MICHAEL ROSENFELD
Well, you know, if you're thirsty, you need water, right? So I think that the cannabis consumer is the cannabis consumer, I think is different than a consumer of other brands and products, other products and other categories. Only because we're defining the products that are in this category, as we're going a cannabis consumer can have a historical background and the legacy space, or on the other end of the pendulum, they could be a brand new customer who has, you know, an interest in the plant, and, and wants to experience the benefits of it, whether it's anti anxiety or sleep relief, or whatever. So I think that the inherent diversity of what the product can do makes for such a broad type of consumer base for sure.
ADRIANA HEMANS
What role does branding play in shaping consumer perceptions and preferences in the cannabis industry?
MICHAEL ROSENFELD
You know, this is the topic of the hour. What makes this so incredibly challenging, or why it's so poignant, is the fact that there is no roadmap in front of us, that's a national landscape. Every time you launch a brand in a new market, you're approaching each market as a new industry. And the narrative naturally evolves. So from a branding standpoint, gosh, you know, with so many friends in category, I have so many quotes, but the reality is, is that what makes it really challenging is scaling the message and having a level of consistency. And being able to pivot with a message of what your brand is about, into an audience base, or a new kind of customer set that either might have heard about you might be a new explore, you know, might be a new customer. And, and persuading them, that your brand or your product is something that they should consider. And you do it once in a state like California, then you go into Michigan and the audience is different. The landscape is different. You go into Missouri, same thing, you know, and now so, you know, it's the challenge is we're, you know, we talked about branding, but that's just the tip of the iceberg with the with kind of customer penetration, the stuff behind the branding, developing a message and having a strategy to take your product to market is something that is this isn't this isn't like selling athleisure in 2017, where the industry could could support drop shipment and there's textiles and there's delivery and overnight packaging. This is an industry that is being built as we're going you know, and as we met back in 2020, and one the first time we built that loom escape and 2019 You know, we're talking about 10 new online Don't use markets. And that's only in the last four years. So real, like the reality is, is people are taking products into market today. And with best intentions, but there's a real, it's hard to kind of identify who's doing it for the passion or the profit. And how does that really kind of how does that How do you address that to a consumer who's going into a dispensary for the first time and seeing brands that they've never experienced before? And how are they? And how are you communicating to them in a relevant way. So in a very kind of circular way, you know, branding is super important. If you don't captivate your audience with a good message with a good narrative with a cohesive read, like reason for being, then you're going to be a me too. And this industry will pass you by.
DAVID PALESCHUCK
Can you share some examples of successful cannabis brands that have effectively influenced consumer behavior?
MICHAEL ROSENFELD
It's, it's fair to say that in reverse order, a customer is going into a dispensary to purchase. And at that point of decision, if you don't have that buttoned down message that a bud tender can naturally help guide a customer to that's one that's one part of the equation that can be a drop off point for a brand, or a customer has to go into a dispensary wanting to identify a specific brand first. So to message them on the outside is a natural, whether it's word of mouth, or developing content, or having your micro influencer program or having a good e commerce play or having, you know, being on our marketplace, you know, the the sense of discovery has to happen outside of the dispensary, or or you're coming into a dispensary and you're purchasing without any background knowledge. And then you're left to a bud tender, who has the insight and knows your brand and knows your story, your narrative, what are the benefits to your product, and can guide the customer to the sell. So, you know, the in the cannabis industry when we left the legacy space, and we went into this has been a real experience. And it's natural that it's a retail experience. So that's kind of how it started. But after the pandemic, and everything going online in 2020, we really saw a disturbance in the Force, where all of a sudden, the brand message in the narrative had to go online. And now marketers within within brands had to step up their game and know that this is actually in very natural places where they're going to learn about cannabis. And whether it's through PR or again, just micro influencers, however, we're going to get to them to the media, you know, is all part of the strategy that really kind of needs to be threaded, and then state by state depending on how you're marketing the same.
ADRIANA HEMANS
How important is product packaging in capturing consumer attention and driving sales?
MICHAEL ROSENFELD
For sure. Sure. Like one of the things that we're seeing, we're seeing the evolution of the message being solidified online when we go from just in the last few years where it's like indica versus sativa and then it's like up there's terpenes There's the entourage effect. And now it's about output and, and then when you so, you know, as customers start to experience cannabis for whatever reason they're going for, they inherently look online first. And so then you have marketplaces like where I'm at at weed maps where we're trying to build the narrative and helping customers learn about products, and then find out what and find and find a good product at dispensaries close to them.
DAVID PALESCHUCK
What strategies do cannabis brands employ to create a sense of trust and credibility among consumers?
MICHAEL ROSENFELD
Transparency, for sure, I think that's something that I love about the category are the small farm growers, and their passion for genetics, and partnering with right brands to create, let's say, unique drops and unique strains, and, and telling the story that creates trust and legitimacy within the category. And I think that's one of my favorite kind of driving points for how to create a brand within this market is one where you know, the supply chain, and when you get the product to the cut to the customer, you've shared that story. And when it gets to the customer, you're not trying to be something to everybody, you're trying to just hone in on who that audience that customer is that speaks to your brand that gravitates to your brand. And you provide a great product. When we because branding is such an important part of building an industry. The things that we that we we this doesn't fall on deaf ears for us who are in this live session right now. But people outside don't realize that, you know, this is you're not you're not supported by by taxation, you know, it's like we were overtaxed at the retail level. And so the good players are challenged to manage their margins and build a good story. But we're also dealing with an industry where marketing is not a write off. So the near like having that stretch, it's it's going to be it's it's a challenge to have a really strong story and know from seed to shelf. How are you going to play this game all the way through the challenges of distribution and managing a bud tenders expectations to be able to sell a good product to a customer that we're experiencing right now. And if you don't do it right, or if you're walking into the industry that and you think that this is going to be easy, again, like it's the seed to shelf narrative. This is a plant, it doesn't have a long term shelf life. And it's really important that that you that especially when it comes to branding and legitimacy and that transparency that you kind of Know what you're doing going into it. The days of just shoveling money into the category are so gone. I wish they were still here, but they're way behind us now. And so now it's going to be how do we get to the promised land? And it's going to be smart strategy and transparency and building a good narrative.
ADRIANA HEMANS
Yeah, I love what you just said about you if I can sort of paraphrase what you said, making a more customer centric brand by understanding like niche needs, and that's a perfect segue to our audience participation, which is about what what usage occasions are driving people to make purchases. And this stat comes from our friends over at brightfield they do amazing work, definitely check them out. The question is which cannabis usage occasion more than doubled from q1 2020 to q1 2023. So over the course of three years, and this is a cannabis usage, occasion, meaning something that people like to participate in or do while they're consuming cannabis, there's four options, option A is before bed. Option B is when playing video games. Option C is during outdoor activities, and D is all of the above. So go ahead and take a guess and drop it in the chat. And we'll reveal the answer in 35 seconds.
ADRIANA HEMANS
Segue into Audience Participation #1
ADRIANA HEMANS
Audience: It’s your turn to shine!
Comments on audience responses.
Asks Michael for his answer.
DAVID PALESCHUCK
It's your chance to shine. I love saying that every week. So we're curious, we're curious to get the audience's thoughts. And feel free to chime in on the side. And as you do, we'll discuss some of the outcomes. And then of course, we'll ask a guest. Yeah.
ADRIANA HEMANS
And while we're noodling it over also, I should mention that this comes from survey data, brightfield surveys, 5000 consumers every quarter across the US.
DAVID PALESCHUCK
Are there any specific demographics or target markets that cannabis brands tend to focus on?
MICHAEL ROSENFELD
I think that you know, when we compartmentalize that 21 to 35 I think that there's a little bit of kind of the war on drugs, post, you know, your youth and then now your weed smoker and whatever. And I'd like to think that Well, first off that the the age is far older than that, you know, we've got boomers who are, you know, still from the 60s, you know, who love flower, and Gen X, like myself who, you know, are out of that age demo. And clearly, you know, consumers, as you just said, you know, something that's really interesting is just, you know, now having cannabis be a part of your routine, you know, versus what historically was, you know, let's say, you know, that couch lock stoner culture, that, I guess, maybe through the media on the past, and that decent, you know, that kind of that narrative, that was what was, and now today as we look at just all the different form factors, through edibles, and through tinctures and through, you know, positive outputs through hybridization, that gives us you know, positive energy and anti anxiety and all these things, sleep aids, the customers are just now it's becoming, you know, obviously, a broader spectrum. And, and it's really interesting that even in that age group that you mentioned, I think that that's probably has the biggest cohort of like power consumers, consumers that are, like consuming the most volume, like, per session. And that's, I don't, I'm making, I'm just guessing, because outside of that, you know, I'm not in that age bracket anymore. And now I got kids, and I can't sit down and just like, pull loads, like I did when I was, you know, a young adult, you know, and how it's a little bit different, right. So I think that what's really important is that brands know that the audience that there's a variety of customers out there, that and to hone in on the message and the product that they're developing, and the message to the right customer that they're trying to get to purchase their product. So long answer to a short question. I think it's skewing up.
ADRIANA HEMANS
What role does social media play in shaping consumer behavior and influencing cannabis brand choices?
MICHAEL ROSENFELD
Um, it's, I think a loyal customer, again, isn't in A isn't in a cookie cutter, you know, you have loyal Yeah, loyalty based on different intent, and different types of purchasers, for sure. And so what makes a loyal customer is a customer who can identify a brand and know with certainty or a high degree of certainty, this is what I'm getting. And in a market in a market place with new entrants coming in, and not having, you know, a lot of, let's say, exposure out to the mass market, or even so just their, you know, their cohorts, if you will, somebody might see a brand and not, you know, approach, approach the box. But instead find something that, you know, speaks to them or looks for something that they've tried in the past. Move into Pennsylvania, I go into a beer distributor, and I see a wall of Hayes's and I get decision paralysis, because I want to try them all. Well, no, but like, you know, I don't want to drop 20 bucks on something that's too citrusy. So I go back to old faithful, which I don't love, but then I become a loyal customer to that, because I know that it's consistent. And that is branding. You know, there is an inherent desire to associate yourself with something that, you know, works, that you can prophesize and tell your friends about and Oh, try this, I know what we're getting into. Unlike the days back when our guy would show up and, you know, give us two bags, and we were making decisions based on bag appeal. You know, it's a far different world that we're in today. And, and you know, the the narrative that branding is important. It should be, you know, Sung from the mountaintops. And it's not just branding, the elements of branding include, you've got to have an investment for media so that that message can get distributed, not just once but repeated so that customers notified brands. And there's challenges to that. But I see Amy Dennison and team on here. So definitely shout out to the cannabis media Council and the session you guys are gonna have next week.
ADRIANA HEMANS
I love this stat so much. This is also from Brightfield. This is from Q1 2023. And the sample size is 5000 nationwide.
DAVID PALESCHUCK
5000 nationwide cannabis consumers and it's hot off the presses, too. I love it. You know, I have to say this audience, it's your chance to shine.
DAVID PALESCHUCK
Segue to Audience Participation #2
DAVID PALESCHUCK
Audience: It’s your turn to shine!
Comments on audience responses.
DAVID PALESCHUCK
What opportunities exist for cannabis brands to collaborate and cross-promote with other industries?
MICHAEL ROSENFELD
I, the opportunities are wide open. And that's super exciting for me personally. And that's really one of the flags that I'm waving right now is the mainstreaming of cannabis, where we're now in a place where, gosh, over 55 million adults have claimed to have smoked cannabis and are consumed. And, you know, we're getting to almost that critical mass, but it's still under the right, it's still still not there yet. And brands that identify and know their audience and know that their audience consume will be rewarded when they're openly participating and communicating to that audience. And I say rewarded, because there's loyalty there. There's loyalty and there's trust when a if a consumer like myself isn't looked at like a stone or when I walk into a dispensary. And if there's an opportunity where another where a mainstream brand is speaking to me, then there's a level of trust that says, Wow, that brand I love that brand to begin with. And now they're speaking to me outside of the typical forum. And it's relevant and it's relevant. And so I think that the the opportunities within like, got the crossover for cannabis, you can you consume and go on date night, you play video games, you go out doors. So the crossover appeal is so high, that I think it's it's it is going to be endless, but it makes sense for the brands that speak with authenticity to their audience. You can't pander to the audience. It's not about cannabis tropes. It's not about like, you know, oh, I put up, you know, seven point or on my ad, and that is irrelevant. It's not like that, it shouldn't be like that, we should just step right over it, and start speaking to them and us in an authentic way that says, Dude, come in, you know, midnight, my Gmail, you know?
DAVID PALESCHUCK
Thank you, Michael. We appreciate what you do and all your insights and knowledge.
ADRIANA:
Thank you, Michael.
MICHAEL ROSENFELD
We love you guys. It was a lot of fun. Thank you, everybody, for sure.
DAVID PALESCHUCK
That’s our show for today. We’ll be back again next Thursday, July 6th when we’ll be chatting about "Cannabis & The Media" with Amy Deneson, Founder of The Cannabis Media Council.
If you can’t catch us live on LinkedIn, you can find Branding Bud Live on YouTube, and now listen to us on Apple Podcasts, Spotify, and other podcast platforms.
ADRIANA:
We just dropped a link in the chat for next week’s episode. Hit that button to register so you don’t miss it. If you miss us in the meantime, you can re-watch today’s episode, or any of our previous episodes, on our LinkedIn page, Branding Bud Live, or on our YouTube channel. Please give us a follow on LinkedIn to stay on top of everything Branding Bud Live.
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DAVID PALESCHUCK
And don’t forget to check out cannabis’s best-kept secret at www.brandingbud.com
Thank you everybody!
ADRIANA HEMANS
Thanks for joining everyone. Please follow us!
DAVID PALESCHUCK
Thank you everybody. We'll see you next week. And don't forget to check out cannabis is best kept secret at www.brandingbud.com. Until then!
ADRIANA HEMANS
Bye
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