Capturing Cannabis Consumers on 420
The cannabis industry continues to be the one of the largest growing business verticals in America. In 2020, the industry generated $18.3 billion and the biggest sales day of the year was the green holiday, 420. In fact, sales of cannabis products on April 20th in 2018 saw a 170% year-over-year increase and 2019 saw a 148% year-over-year increase. To put that into perspective, in 2019 Americans bought $90 million worth of cannabis products on 420 alone. Due to the circumstances of a global pandemic, 2020 did not see as strong of numbers as previous years but still experienced a modest year-over-year increase of 46%.
While the global pandemic still persists, the last several weeks have shown there is a positive road ahead. With more people getting vaccinated and “mask culture” settling into the norm, the world appears to be moving back to a sense of normal and shoppers are returning to their favorite storefronts. All of this coupled with the November Election “Green Rush”, and consumers increasing appetite to experiment with CBD and cannabis for health purposes, this year’s 420 is set up to be a massive sales event.
So how should brands prepare and capitalize on 420 this year? To take advantage of the opportunities around 420, it’s important for brands to first craft a message that resonates with the largest growing audience segment in the U.S. and develop a targeted approach to deliver that message. The strategy and approach is going to be different for cannabis retailers, cannabis brands, and non-cannabis brands, so we’ve addressed each one individually:
Cannabis Retailers:
The number one goal for any cannabis retailer or dispensaries is driving consumers into their stores, e.g. foot traffic. Starting a few weeks prior to 420, retailers should:
Understand who your customers are:
Activate an audience analysis for insights on who your 420 shoppers are. With a clear profile of your consumer, retailers can develop creative that will resonate with this specific audience and target like-minded consumers with your message to drive new customer acquisition.
Develop specific 420 promotions:
Offer unique promotions that integrate 420 into the deal, e.g. 4 pre-rolls for $20; or 20% off when you buy 4 or more products.
Target customers based on location:
Leverage hyper-local geo-location solutions to retarget consumers who have been to your stores recently as well as those who spent money with you on previous green holidays including 420. You should also be able to find consumers who have been shopping at competing retailers in the same location to target them with your message.
Reach out to loyal or repeat customers:
Work with a geo-location provider and leverage your own CRM or loyalty partner to target consumers who shopped at your stores and competing stores on 420 last year.
Measure your success and learn from past campaigns:
Always measure the success of your campaign with a foot traffic measurement study. After analyzing what worked and what didn’t, you’ll have data to help you make decisions about future campaign strategies.
Cannabis Brands:
The key for cannabis brands to take advantage of 420 is to generate awareness in an increasingly crowded marketplace. When consumers walk into a dispensary or shop online, they should have some brand awareness before they see your product on the cannabis digital menu or shelves. Brands should activate a strategy that will increase visibility to help drive a lift in sales around 420:
Identify your audience target:
Work with POS providers and leverage CRM to identify who your consumer was on 420 last year. Leverage this data to develop your messaging and campaign strategy to target those consumers and like-minded consumers.
Understand and leverage what’s worked in the past:
Work with retailers, technology partners, or point of sale partners to measure a campaign’s impact on sales. Segment that report and analyze any emerging trends. For example, did a specific edible flavor have higher sales volume? What product sold more flower or vape cartridges?
Give customers and potential customers a call to action (CTA):
Offer a unique promotion with a clear CTA to drive them into a store where your products are sold or online into your e-commerce environment.
Advertise at the point of sale (POS):
In addition to driving brand awareness through digital or programmatic advertising and public relations; once in the store, advertise at the point of sale to drive incremental sales. You can also retarget consumers who were in dispensaries where your point of sale ad was served to drive a consistent brand message and drive those consumers into your e-commerce or website ecosystem to increase engagement.
Measure, rinse, and repeat:
Work with your e-commerce provider to track sales and ensure tools like Google UTMs are in place to track online sales. Leverage this data to understand what worked and what can be improved for the next green holiday.
Non-Cannabis Brands
While the cannabis industry continues to grow so does its popularity – and the opportunities it presents – for non-cannabis brands. Since as early as 2015, numerous mainstream brands have jumped at the opportunity to align with an unconventional holiday that makes consumers want to explore the outdoors, be entertained, and obviously…satisfy the cravings that come with the munchies. Here are some ways non-cannabis brands have captured cannabis consumers in the past:
Ben & Jerrys:
Pushed social justice reform leveraging video across all social platforms.
Nike:
Their website doesn’t mention 4.20 but sneakerheads and cannabis bloggers “went insane” over the brand’s SB Dunks, which were released on 4.20 and clearly inspired by the high life. The $100 Intergalactic sneakers went on sale at 10 a.m. with the slogan “Where No SB Dunk Has Gone Before.”
White Castle:
The QSR chain which is also featured in the movie ‘Harold and Kumar go to White Castle’ promoted a “hot box” special featuring its signature sliders.
HBO:
Advertised a scene for the hit TV series, ‘Silicon Valley’ featuring a garage full of marijuana.
Vans:
In honor of Bob Marley, the New England-based retailer, Concepts dropped a sneaker collaboration with Vans Old Skool on 4.20. The limited-edition, three-shoe collection is inspired by Marley’s island home of Jamaica and was sold on a first-come, first-serve basis.
Uber:
Promoted a campaign to “celebrate responsibly this 4.20” by taking $4.20 off your ride to/from Downtown Denver using the promo code SAFE420!
Comedy Central:
Tapped into like-minded, cannabis-friendly consumers by promoting a Zoom celebration with the help of Broad City stars Abbi Jacobs and Ilana Glazer.
Non-Endemic brands looking to capitalize on 420 and potentially create a viral moment should look at upper funnel opportunities that make a splash. For example:
Campaign activation leveraging a mobile dispensary
Influencers to promote specific offers
Leverage cultural moments
Incorporate music & pop culture
Activate exclusive product launches
Leverage dispensary drop-ins that are authentic to your band
Partner with brands and tech partners that understand the cannabis space
Remember cannabis marketing is not a one-size-fits-all approach but all marketers should be tapping into this cannabis consumer holiday. No matter what your budget, Mango Media can help your brand craft a strategy that targets consumers and gives your business a competitive advantage. Learn more about how we can help build your 420 campaign today.
