Cannabis Market Positioning: Strategies & Analysis

Here’s a quick guide to positioning your cannabis brand in the market:

• Understand your target audience (age, location, preferences) • Define your unique selling point (USP) • Craft a clear brand message • Choose the right sales channels • Stay compliant with regulations • Address negative perceptions • Balance medical and recreational messaging • Use technology for branding and sales • Be ready to adapt to market changes

Key positioning tips:

Know your customers
Differentiate your brand
Follow regulations
Ensure product quality
Be transparent

Strategy	Purpose
Market research	Understand customer needs
Niche focus	Stand out in specific segments
Eco-friendly practices	Appeal to conscious consumers
Tech innovation	Stay competitive
Global expansion	Tap into new markets

The cannabis market is evolving rapidly. Successful positioning requires staying flexible, watching trends, and adjusting your strategy as needed.

Cannabis Market Segments

Age, Gender, and Location

Cannabis users come from many age groups. More adults over 21 are using cannabis. Older adults are using it more for health reasons. Where people live affects how much and what kind of cannabis they use. This is because of different laws, cultures, and how easy it is to get cannabis.

Age Group	Use Trends
21-34	More use for fun and health
35-44	More interest in wellness and health use
45-54	More older adults using for health
55-64	More use for health and wellness
65+	More use for age-related health issues

Why People Use Cannabis and What They Care About

People use cannabis for different reasons. Many use it for both fun and health. About 53% say they use it for both. People use it to relax, lower stress, feel less anxious, and manage pain. Users want to learn about cannabis and care about good, safe products.

Reasons for Use	What Users Care About
Relaxing	Learning about cannabis
Less stress and worry	Good, safe products
Less pain	Honest sellers
Having fun	Many product choices

How Often People Use Cannabis

How often people use cannabis varies. Half of new users say they use it 5 or more times a week. Many young adults (39%) use it several times a day. People use different types of cannabis products. More people are using CBD products, oils, and edibles.

Use Patterns	Popular Products
Often	CBD products and oils
Sometimes	Edibles and skin products
For health	Strong products for pain

Health Use vs. Fun Use

People use cannabis for health reasons and for fun. Health use is growing fast. It helps with health problems. Fun use is for relaxing. Many people use it for both reasons.

Health Use	Fun Use
Helps with health issues	For relaxing
Strong products for pain	Mild products for wellness
Doctor’s orders needed	Buy without prescription

Factors Shaping Cannabis Positioning

Laws and Regulations

Cannabis businesses must follow many rules that change often. These rules affect how companies sell their products. Different places have different rules about:

What can be in cannabis products
How to package and label products
Where and how to sell cannabis

Companies need to keep up with these changes to stay in business and follow the law.

What Customers Want

To sell well, cannabis companies need to know what customers like. Here’s what many customers care about:

Customer Preferences	Details
How to use cannabis	Smoking, eating, or other ways
Types of cannabis	Different strengths and effects
Taste and smell	Flavors customers enjoy
Product choices	Many options to pick from
Safety	Clean, tested products

Customers also want to learn more about cannabis and trust the companies they buy from.

Market Competition

There are many cannabis companies now. New ones start, and old ones grow bigger. To do well, a company needs to:

Make products that are different from others
Have a brand that people remember
Give customers a good experience

When companies try to be better than others, it helps make new and better products for customers.

Standing Out from Others

To be noticed, cannabis companies should:

Tell a clear story about their business
Show why their products are good
Keep up with new trends

This helps them be different from other companies and get more customers.

Brand Identity

Having a strong brand is important. A good brand:

Has a clear story
Looks nice and is easy to recognize
Speaks to customers in a way they like

When a brand does these things well, customers are more likely to trust it and keep buying from it.

Creating a Positioning Strategy

Market Research Methods

To make a good positioning strategy, you need to know your market. Here are some ways to learn about it:

Method	What It Does
Online surveys	Ask people questions on the internet
Focus groups	Talk to small groups of people
Social media listening	See what people say online
Customer feedback	Read what customers think
Competitor analysis	Look at what other companies do

These methods help you understand what people want and what other companies offer.

Defining Your Audience

Knowing who you want to sell to is important. Think about:

How old they are
Where they live
How much money they make
What they like and need
What problems they have

This helps you make products and ads that people will like.

Your Unique Selling Point

Your unique selling point (USP) is what makes your business special. It could be:

Really good products
Knowing a lot about cannabis
Helping customers in a special way
Being good for the environment
New and different products

Your USP should be easy to understand and tell people why they should buy from you.

Crafting Your Message

Your message tells people about your USP. When making your message:

Use words that fit your brand
Tell stories that people care about
Say how your products help people
Use simple words
Use pictures and videos

Make sure your message is the same everywhere people see it.

Choosing Sales Channels

Picking the right ways to sell is important. Here are some options:

Channel	Examples
Online	Websites, social media
Offline	Stores, events
Partnerships	Working with other businesses
Direct-to-Consumer	Selling straight to customers
Wholesale	Selling to other stores

Choose channels that help you reach the people you want to sell to.

Advanced Positioning Tactics

Focusing on Niche Markets

Cannabis businesses can do well by selling to smaller, specific groups of customers. This helps them stand out and build a strong brand.

For example:

Sell fancy products to rich customers
Make health products for people who want to feel better

To do this well, businesses should learn about their customers by:

Looking at who they are (age, where they live, etc.)
Finding out what they like to buy
Watching what’s popular in the market

High-End vs. Budget Branding

Cannabis businesses need to choose if they want to be seen as expensive or cheap.

High-End Brands	Budget Brands
Sell special, high-quality products	Sell cheaper products
Hard to keep up the fancy image	Good for new users
Need to focus on great service	Appeal to people who want to save money

The choice depends on who the business wants to sell to and how they want to be seen.

Cannabis as Part of Wellness

More people are using cannabis to feel healthy. Businesses can use this idea to sell their products.

They can:

Sell CBD products
Offer cannabis treatments for health
Work with health experts
Teach people about how cannabis can help them feel better

Eco-Friendly and Responsible Practices

Cannabis businesses can stand out by being good for the environment. They can:

Practice	Example
Grow plants in a clean way	Use less water and chemicals
Make less trash	Use packaging that can be reused
Use less energy	Use solar power

To show they care about the environment, businesses can:

Use green packaging
Make videos about how they help the planet
Work with groups that protect nature

Leading with Tech and New Ideas

Cannabis businesses can do better by using new technology and coming up with new ideas. This can mean:

Using new ways to grow plants
Making new kinds of products
Using computers to make buying easier

To stay up-to-date, businesses can:

Go to big cannabis meetings
Work with tech companies
Spend money on finding new ideas

Studying Competitor Positions

Gathering Competitor Info

To know where you stand in the cannabis market, you need to check out what other companies are doing. Here’s how to do it:

Method	What to Do
Look at websites	See how they show their products
Read reviews	Find out what customers like and don’t like
Check products and prices	Compare them to yours
Read news	Stay up-to-date on what’s happening

SWOT Analysis for Cannabis

A SWOT analysis helps you see what’s good and bad about your business. Here’s an example:

SWOT	Examples
Strengths	Good name, great products, smart leaders
Weaknesses	Not much money, few suppliers, changing rules
Opportunities	More people want cannabis, new partnerships
Threats	Lots of competition, rule changes, bad press

Learning from Top Brands

Looking at big cannabis companies can teach you a lot. Some top brands are:

Canopy Growth Corporation
Aurora Cannabis Inc.
Aphria Inc.

These companies do well because they:

Have a good name
Make great products
Have smart leaders
Know how to sell their products

Finding Market Gaps

To find what’s missing in the market, you can:

Ask customers what they want
Look at what’s new in cannabis
See what other companies aren’t doing

Here are some things that might be missing:

Market Gap	Description
Good, cheap products	Not many low-cost, high-quality options
Products in some areas	Some places don’t have many cannabis choices
Teaching about cannabis	People need to learn more about using cannabis

Putting Positioning into Practice

Building a Marketing Plan

To put your positioning strategy to work, you need a marketing plan. This plan should say what you want to do, who you want to sell to, and how you’ll reach them. Here’s what to put in your plan:

Part	What It Is
Short Summary	Quick look at your plan
Company Check	Look at what’s happening inside and outside your company
Who You’re Selling To	Who are your customers?
What You Want to Do	Clear goals you can measure
How You’ll Do It	Ways to reach your customers
What You’ll Do	Exact steps to take
Money	How much you’ll spend

Matching Products to Strategy

Make sure your products fit with your positioning strategy. This means making products your customers want. Here’s how:

Ask customers what they like
Make products they want
Keep your products in line with your brand
Keep checking and changing your products to stay ahead

Keeping Brand Message the Same

Your brand message should be the same everywhere. This means your website, social media, and ads should all say the same thing. Here’s how to do it:

Write down how your brand should look and sound
Make sure all your marketing looks and sounds the same
Teach your workers about your brand
Keep checking your message to make sure it still works

Checking if Positioning Works

After you start your positioning strategy, you need to see if it’s working. Here are some things to look at:

What to Check	What It Means
Website Visits	How many people come to your website
Social Media Likes	How many people like and share your posts
Sales	How many products you sell
Happy Customers	How much people like your products

Changing with the Market

The market always changes, so you need to be ready to change too. Here’s how:

Keep watching what your customers want
Learn about new things in your business
Be ready to change your strategy if it’s not working
Keep checking and changing how you sell your products

Hurdles in Cannabis Positioning

Cannabis businesses face many challenges when trying to stand out in the market. Even though more people accept cannabis now, there are still many rules to follow.

Dealing with Legal Limits

Cannabis companies must follow strict rules about how they sell and show their products. This is especially true for medical marijuana.

Area	Rules
Ads	Can’t use many types of paid ads
Packaging	Must follow specific rules for how products look
Medical Use	Extra rules for selling as medicine

Fighting Negative Views

Many people still think badly about cannabis. Companies need to:

Teach people about how cannabis can help
Show their business in a good light
Work with doctors to build trust

Medical and Fun Use Balance

Companies need to talk differently about medical and fun cannabis use:

Type	How to Talk About It
Medical	Serious, focus on health benefits
Fun Use	More relaxed, focus on enjoyment

Addressing Worries

Cannabis businesses must also think about:

Worry	What Companies Can Do
Harm to Nature	Use methods that don’t hurt the environment
Social Problems	Help prevent misuse and teach safe use

Future of Cannabis Positioning

As cannabis becomes more common, businesses need to keep up with changes. Here’s what to expect:

New Customer Groups

More people are trying cannabis, including older adults. To sell to these new groups, businesses should:

Make products for specific needs
Teach new users about cannabis
Create ads that speak to different groups

Tech’s Role in Branding

New technology is changing how cannabis is sold. Businesses should:

Use online ordering systems
Make buying easier with apps
Try new ways to make and sell products

Tech Area	What It Does
Online Ordering	Let people buy from home
Apps	Make buying and learning about cannabis easy
New Products	Use tech to make better products

Going Global

The cannabis market is growing around the world. To do well globally, businesses should:

Learn about laws in different countries
Work with local companies
Change products to fit local tastes

Upcoming Law Changes

Laws about cannabis keep changing. Businesses need to watch for:

Change	What It Means
U.S. Federal Laws	Might make cannabis legal everywhere
New State Laws	More places might allow cannabis
Rule Changes	New ways to package and test products

To do well, cannabis businesses must:

Keep up with new laws
Be ready to change how they work
Think about how to grow if laws change

Wrap-Up

Key Positioning Tips

To make your cannabis brand stand out, keep these tips in mind:

Tip	What to Do
Know your customers	Learn about who buys from you and what they like
Be different	Show why your brand is special
Follow the rules	Keep up with laws about cannabis
Make good products	Sell safe, high-quality cannabis
Be honest	Tell the truth about your brand and what you do

Staying Flexible in Marketing

The cannabis business changes a lot. Here’s how to keep up:

What to Do	Why It Helps
Watch what’s new	Know what’s happening in cannabis
Try new things	Find better ways to sell
Work with others	Learn from other cannabis businesses
Look at your numbers	See how well you’re doing
Be ready to change	Fix problems quickly

FAQs

What is the market segmentation of cannabis?

Market segmentation in cannabis means splitting customers into groups based on what they have in common. This helps companies understand who they’re selling to and make better products.

Here’s how cannabis companies split up their customers:

Type	Examples
Who they are	Age, gender, how much money they make
How they think	What they like, how they live
How they use cannabis	How often they buy, what they buy
What they want	Type of product, how strong, what flavor

Knowing these groups helps companies:

Make ads that speak to the right people
Create products people want
Build good relationships with customers

For example:

Customer Group	What They Want	Product Example
Health-focused	Low THC, high CBD	Mild CBD oil
Fun-seekers	High THC	Strong cannabis flower