Tag Archives: demographic

The Secret to Marketing Cannabis to Women

By Jacquie Maynard
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The world is changing, and women are the ones changing it. Classic methods of advertising to women just don’t work anymore, and worse, make you seem outdated and out of touch.

According to a 2017 study by BDS Analytics, 45 percent of cannabis users are women and that number is quickly rising. It could be even higher since according to Van Der Pop’s Women & Weed survey, 66 percent of women hide their cannabis use. No one seems to be able to agree on the exact figure, but experts do agree that women are the fastest growing market in the cannabis industry.

Harvard Business Review reported in their 2009 article “The Female Economy” that worldwide, women control nearly $30 trillion in household spending and make the majority of purchasing decisions in the family. If they’re not directly purchasing something with their $18 trillion in collective income, they are influencing others’ purchasing decisions. Often, they are the primary caregivers in their family circles, making them responsible for buying things for their children, or on behalf of their elderly loved ones.

Gender can often be a marketing blind spot, even though it’s the biggest influence on consumer behavior, according to a 2017 report from The Journal of Business and Management. Now that the number of women working in the cannabis industry is at 36 percent and rising, they are using their experiences and perspectives to market effortlessly to women, and it shows. If your brand is ignoring this powerful demographic, you’d better catch up quick.

Why do women use cannabis products?

Women are into cannabis wellness, but like to get high, too.

In Headset’s 2019 report entitled “What Women Want in Cannabis: Shopping Trends Among Female Cannabis Consumers,” some of the most popular cannabis products among women are still classics like flower and pre-rolls, but women are more likely than men to try capsules, topicals and sprays. They are fascinated by the concept of CBD helping them with issues like menstrual cramps, body and muscle pain, and even sensitive skin, but enjoy products with THC as well.

In general, women’s purchases in the cannabis industry end up being more centred towards wellness, but it’s not all about spa treatments and relaxing.

Sex sells, but not in the way you think.

The structure of cannabidiol (CBD), one of 400 active compounds found in cannabis.

There has been a growing interest in using cannabis and CBD for women’s sexual health. Researchers haven’t quite caught up with the science yet, but researchers at the Center for Sexual Health at Saint Louis University think that cannabis and CBD can help women overcome pain and anxiety during sex. Foria Wellness is a brand that sells CBD suppositories and lubricants that help women have a better sex life. Not only are their products seemingly effective, but they provide loads of education to their audience and work with influencers to build their community.

Beauty is Pain.

Being a woman is hard. Or at least, painful. Between walking in heels, getting in an intense workout, and feeling the stress of general life, women end up with quite a few aches and pains. Topicals and bath bombs seem to be leading the way in this area. Celebrity stylists have been using CBD lotions on the feet of starlets before a long night on the red carpet, and more brands are marketing their products to fitness buffs.

Market to specific kinds of women.Skincare is another burgeoning market. Van Der Pop reports that 60 percent of women are interested in cannabis skin care. Again, the science hasn’t quite caught up, but anecdotally it has been shown to have anti-bacterial and anti-inflammatory properties when applied to the skin. Women with psoriasis, eczema and other skin troubles are also finding relief with CBD. A bunch of large retail brands have already jumped on the bandwagon and indie brands are starting to pop up as well.

Life is Stressful.

A report from Spate and Landing International found that there has been a 24 percent increase in consumer interest in anxiety. Young people these days are under more pressure than ever, and they are turning to their products to solve it. The American Psychological Association says that 12 percent of millennials are officially diagnosed with an anxiety disorder, so it’s no surprise that anxiety and depression are the fastest-growing search terms associated with CBD.

Does this make me a bad mom?

Being a mom is stressful, and a lot of moms have been toking since before their kids were born, so after the kids are asleep they relax on the porch with a joint. It’s right for them, but the stigma is still there and they can feel it. Over 70 percent of women believe that there is still a stigma attached to cannabis use. The answer is not only marketing to Mary Jane moms but also using marketing to help end the stigma around cannabis consumption.

What do women look for in cannabis brands?

Women use cannabis for different reasons than men, so it makes sense that they would look for different things in a cannabis brand.

“Traditionally, marketing weed to men has either been about projecting fantasy, or appealing to the everyday guy that men feel like they could smoke a bowl with,” Mary Pryor, CEO and co-founder of Cannaclusive, told AdAge. “But women want to know what gets the job done without having to do too much work to know what we’re going to get.”

That means lots of education and support at the customer level. Women are used to a higher level of customer service and will most certainly take their business elsewhere if they feel they aren’t being heard or served effectively.

Women buy things that make them feel good, or items that help them express themselves, so aesthetic is important, too. There was a time in cannabis culture when most cannabis accessories had flames, or skulls, or aliens, and while that may appeal to some women, the majority want a more feminine and streamlined look. Brands like Van Der Pop offer modern designs that will readily fit into the consumer’s decor, and Lord Jones packages their CBD oil with an ornate style that invokes more of a luxury perfume brand than a cannabis product. Women are looking for a product that will look good on their shelf or in their homes.

The Secret? Know Your Audience

The first rule of marketing to women is: don’t market to women.

The absolute best way to reach women is to create authentic content for women, by women, addressing their specific concerns.At least, not women as a mass, general group. Market to specific kinds of women. Like cannabis, women come in many beautiful and exotic varieties, each one more interesting and lovely than the last, and each with their own values and shopping habits. For example, the wellness guru will have different needs from the sun-weathered gardener, who will have different needs from the stressed-out mom with a sore back.

Here are some time-tested generalizations that could help you out, though. The Journal of Business and Management reports that women are more likely to appreciate finer distinctions and enjoy more of a conversational style dialogue. When it comes to problem-solving, women care more about how a problem is solved, and like sharing and discussing it. Similarly, shopping is also a process where women tend to enjoy more interaction and take more pride in finding the best bang for their buck and the best product for them.

According to Bloomberg, you should study women as if they were a foreign market. All groups of women have their own culture, values and even language. The key here is to get to know each and every one of these personas so that you can create a targeted strategy to reach them specifically.

The absolute best way to reach women is to create authentic content for women, by women, addressing their specific concerns. Create a community for them. Formulate products for them that actually work. Hire them, listen to them, hear them and they will choose your brand every time.

Cannabis Legalization in Massachusetts: An Interview with Steven Hoffman, Chairman of the Cannabis Control Commission

By Aaron G. Biros
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On February 13 at the upcoming Seed To Sale Show in Boston, MA, Steven Hoffman, Chairman of the Cannabis Control Commission of Massachusetts, will deliver a keynote discussion. Hoffman will sit down with National Cannabis Industry Association (NCIA) Executive Director Aaron Smith to discuss the first few months of recreational legalization, challenges and the path forward for the state. We caught up with Hoffman to hear about some of the biggest obstacles and successes when it came to standing up a regulated adult-use cannabis market.

On November 8, 2016, voters in Massachusetts ushered in a new era for the East Coast, when they passed a ballot initiative to legalize adult-use cannabis. Almost immediately after that, the Massachusetts Legislature put a hold on implementation in order to study the issues and revise the legislation, which was ultimately signed in July of 2017. That September, Steven Hoffman and his colleagues at the Cannabis Control Commission were appointed to figure out how the state should regulate the market, enforce its regulations and roll out the new adult-use program.

Steven Hoffman, Chairman of the Massachusetts Cannabis Control Commission

The Commission was tasked with creating something brand new, without a roadmap in place and developing rules around some very contentious issues. “I think the biggest obstacle was that we were doing something unprecedented,” says Hoffman. “Every state is different demographically and the laws differ state to state, and we got a lot of help from other states sharing their experiences with us, but we were still going down an uncharted path for Massachusetts.”

Hoffman told us the very first thing they needed to do in 2017 was conduct listening sessions in which the commissioners listened to citizens for recommendations and heard people’s thoughts on cannabis legalization. “We did that immediately. We needed to conduct a process that was transparent, thoughtful and inclusive,” says Hoffman. “We then, in public, debated policies around adult-use marijuana regarding licensing processes, criteria and enforcement.”

They debated policies in a public forum for four days and came back the following week to embed their decisions in draft regulations that were submitted to the Secretary of State in December 2017. Then, they had 10 more public hearings, made some modifications to the rules, and promulgated a final version of the adult-use regulations in March 2018, keeping everything as transparent and inclusive as possible. “I don’t think anyone has been critical of that process behind it,” says Hoffman.

Certain pieces of the regulations stand out as particularly inclusive and progressive for Massachusetts’ cannabis program. For example, certain mandates encourage diversity and support communities affected by the drug war. Hoffman says the Commission couldn’t take credit for those completely because their objectives are explicit in the legislation, however, the agency still made sure the state followed through. “The mandate said the industry should look like the state of Massachusetts in terms of our diversity,” says Hoffman. That includes creating a diverse industry with respect to ethnicity, gender, LGBTQ, veteran and disabled participation. Additionally, he added, “it was a very explicit set of requirements that those communities who were disproportionally harmed by the drug war are full participants in the new industry we set up. Those were both legislative mandates, so we take them very seriously and I wouldn’t have taken this appointment if I didn’t think it was absolutely essential.”

You can expect to hear more from Hoffman on this and other matters related to implementing cannabis regulations at the upcoming Seed To Sale Show in Boston, MA, February 12-13, 2019. On November 20, 2018, the first adult-use dispensaries in the state opened their doors for business and began selling cannabis. Hoffman says he is most proud of their rollout of the program as well as the transparency and inclusiveness through which they conducted the process. “I think this is a very controversial issue; the voters approved this issue by 53-47%,” says Hoffman. “No matter what we do, we won’t make everyone happy, but we’ve done everything possible to allow people to participate and feel like they’ve been listened to. We made our decisions publicly and transparently.”

Beyond that, the Commission wanted to take their time to make sure things were done the right way the first time. “From day one, we decided we were going to do this right rather than meet an arbitrary timeline,” says Hoffman. “It’s gradual, it’s maybe slower than some people would like, but our rollout has been well-received and relatively smooth. I think a gradual and thoughtful process, not focused on a deadline, went very well. Hopefully we have given other states a model when they plan their own rollout.”

Hoffman wouldn’t comment on whether or not he would encourage other states down a similar path, but he did say they could probably learn a thing or two from them. “I expect other states will do what we did,” says Hoffman. “They will talk to other states ahead of them like us and hopefully will benefit from learning from our experiences. I don’t know what the laws will look like but I expect other states need to make it work for them specifically.”

You can expect to hear more from Hoffman on this and other matters related to implementing cannabis regulations at the upcoming Seed To Sale Show in Boston, MA, February 12-13, 2019. Make sure to check out his keynote discussion with Aaron Smith on Wednesday, February 13 at 10:30am.

German Public Health Insurer Takes First Look at Cannabis Coverage

By Marguerite Arnold
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Techniker Krankenkassen (or TK as it is also frequently referred to) is one of Germany’s largest public or so-called “statutory” health insurance companies. It is companies like TK that provide health insurance to 90% of the German population.

TK is also on the front lines of the medical cannabis discussion. In fact, TK, along with other public health insurers AOK and Barmer, have processed the most cannabis prescriptions of all insurers so far in the first year after the law change. There are now approximately 15,000 patients who have received both a proper prescription and insurance approval coverage. That number is also up 5,000 since the beginning of just this year.

In a fascinating first look at the emerging medical market in Germany, TK, in association with the University of Bremen, has produced essentially the first accessible report on approvals, and patient demographics for this highly stigmatized drug.

Because it is in German, but also contains information critical to English-speaking audiences in countries where the medical issue is being approached more haphazardly (see the U.S. and Canada), Cannabis Industry Journal is providing a brief summary of the most important takeaways from TK’s Cannabis Report.

Patient demographics from the report

Most Patients Are Women

This is not exactly surprising in a system where symptomology rather than ability to pay is the driver of authorizations and care. This is also exactly the opposite trend when it comes to gender at least, that emerged in Colorado on the path to medical legalization circa 2010-2014. While chronic pain is still the most common reason for dispensation, the drug is going mostly to women, not men, in their forties, fifties and sixties.

Even Chronically Ill Patients Are Still not Getting Covered

This data is super interesting on the ground for both advocates and those who are now pushing forward on “doctor education” efforts that are springing up everywhere. The only condition for which cannabis was approved 100% was for patients suffering from terminal cancer pain from tumours. In other words, they were also either in hospice or hospital where this kind of drug can be expedited and approved quickly. Other conditions for which the drug was approved were both at far lower rates than might have been expected (see only a 70% approval rate for Epilepsy and a 33% approval rate for Depression).

Conditions and degrees of coverage chart from the report

Expect approval rates to change, particularly for established conditions where the drug clearly helps patients, even if there are still questions about dosing and which form of cannabis works best, along with improved research, data and even patient on boarding.

Also expect interesting data to come out of this market for patients with ADHD (or ADHS).

Imported Cannabis Is Very Expensive

A table showing the different medicines prescribed in Germany

TK and other public health insurers are also on the front lines of another issue not seen in any other legalizing cannabis country at the moment. An eye-wateringly high cost per patient. The biggest reason? Most of the medical cannabis in the market is being imported. This will change when more cannabis begins to enter the market from other EU countries (see Spain, the Baltics and Greece) and, yes, no matter how many elements of the German government are still fighting this one when it begins to be cultivated auf Deutschland.

Most German Patients Are Still Only Getting Dronabinol

If there was one thing that foreign investors should take a look at, it is this. One year after legalization, just over 1/3 of those who actually qualify for “medical cannabis” are in fact getting whole plant medication or a derivative (like Sativex).

This means only one thing. The market is continuing to grow exponentially over at least the next five to ten years.

piechart
Most German Patients Are Still Only Getting Dronabinol

How Science Is Going To Save Your Cannabis Business

By Kay Smythe
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Marketing cannabis and the products that accompany recreational use is set to become one of the biggest industries in the United States. With 29 states promoting legal medical cannabis, 14 with it decriminalized and 8 having legalized it completely, you might be thinking this will be the easiest ad-campaign of all time. Unfortunately, science suggests otherwise.

The Science of Marketing

You heard correctly, marketing is a science, but almost half of what we know about the process cannot be applied to cannabis. Why? Because cannabis lives in the grey area of the American psyche. How do I know this?

Science.

In 2015, I completed and published The Safe Haven theory, a socio-demographic linguistic analysis of attitudes toward recreational drug use in the United Kingdom. I won’t bore you with the intricacies of the study, but the findings are important.

The study, using theoretical sociological trends, found that even non-recreational drug users in the United Kingdom favor cannabis legalization. A great number of police jurisdictions have chosen to not longer punish cannabis users, meaning that the law is (mostly) on our side – the side of full legalization and taxation of cannabis as a product for recreational usage, not so dissimilar from alcohol.

In the UK, we could easily put a huge billboard of someone’s grandmother smoking a spliff and make a million on the first day.

Unfortunately, the same can’t be done in the United States.

Advertising law aside, Americans just don’t have the same view of cannabis as Brits. In the last two years, I applied the same framework to a host of American demographics, and – as I hypothesized – localism rules the American market.

If you live in a Red town and you’re a recreational cannabis user, stigma will prevail over the scientific data, and changing that stigma is almost impossible without hard scientific evidence to back-up the marketing campaign.

Qualitative research is key when understanding why people buy into particular industries. This might not be the general belief held by most folks in advertising, as stats and numbers are distinctly easier to work with. However, as last year’s General Election and Brexit vote showed: numbers can lie. Therefore, the best means of understanding what people really want is to actually talk to them – and I mean in-person.

Marketing rules are shifting. More and more, the heads of marketing departments are turning to scientific and scholarly data to assess the current trends in social development, molding their campaigns around this data as a means of showing that they are industry leaders in understanding the phenomena, as well as speaking to target buyers in their own language.

Am I being too wordy? Let me put it simply.

Say your new product is an indoor indica strain with sleep/stress aid properties, this is how you should market it to three specific demographics:

  • Californian recreational smoker in the 50+ age demographic with a moderate knowledge of cannabis strains, “Indoor indica, grown locally with minimal chemical input, good as a sleep aid and positive for stress reduction.”
  • New York medical user, 30+, business background, “This strain is an excellent sleep aid, can decrease stress without taking off the edge of your day-to-day workload; highly recommended for those employed in a full-time, private sector position.”
  • Small town with predominantly low-income demographic employed in blue-collar industry, “affordable means of relaxing after a tough day at work that won’t give you the same cancer risk as tobacco.”

We market the same strain to each of these demographics, but the language used in the campaign is more important than the product itself. In the UK, the same strain would be marketed across the country using something like:

“Dank strain with sleep aid and relaxation properties, best for chilling out at the end of the day – definitely not recommended prior to work!”

What this means for the United States cannabis marketing specialist is simple: you need to invest as much as you can in getting scholarly researchers out into the field and figuring out the local socio-demographic linguistic trends for your target buyers. Luckily, this can be a fairly affordable means of research.

Marketing specialists have two options in uncovering this data:

  • Use students currently enrolled in universities and colleges, either offering paid internships or college credit for bulk research.
  • Hire an academic consultancy corporation. This is rapidly becoming a norm in for companies looking to expand their marketing by using scientific data, particularly in industries related to sport and the outdoors.

Just like how Pepsi really missed the mark with their latest failed advertising campaign, cannabis companies are at significant risk of ostracizing themselves from a wealth of demographics that would otherwise be open to recreational or medical cannabis use as an alternative to harsh pharmaceuticals, alcohol and even some forms of therapy.

Language is key, and if you can’t talk to your buyers on their level then you’ve already lost your edge over the competition.