2 Concerning Numbers That Highlight Some of the Biggest Marketing Challenges for the Cannabis Industry
Cannabis company Canopy Growth (NYSE: CGC) has brought some big-name star power to its brand over the years, including Snoop Dogg, Martha Stewart, Drake, and Seth Rogen. But one of the challenges in the cannabis industry, especially in Canada where regulations are very rigid, is that Canopy Growth can't easily use its size, resources, or branding to its advantage. Spending a lot more on marketing may not pay off in the industry, and that's no more evident than in the following two numbers.
Research company Brightfield Group has been following the industry's growth, and it found that more than one-third of Canadian consumers weren't even aware which brand of cannabis they had purchased. From that, we can derive that the brand didn't matter to at least one-third of customers. For investors who have seen the packaging of Canadian cannabis products, it's easy to understand why that's the case.
Unlike U.S. cannabis products that often have bright colors on them and attractive pictures, Canadian cannabis products are quite the opposite: plain white packaging with warning stickers taking up a lot of space and little to no room for a company to differentiate its products from others. It would take effort for a customer to ensure they're buying from a specific cannabis brand.
Source Fool.com
