Here’s why the cannabis industry should focus on branding

By @chelean on
Manager Vanya Lopez, 26, displays jars of cannabis at the La Brea Collective medical marijuana dispensary in Los Angeles, California, March 18, 2014.
Manager Vanya Lopez, 26, displays jars of cannabis at the La Brea Collective medical marijuana dispensary in Los Angeles, California, March 18, 2014. Reuters/Stringer

Any entrepreneur, no matter how small or big their business is, should prioritise branding. They could say it is the identity of their company. For those in the cannabis industry, they should also put a lot of effort into crafting their brands. Trustworthiness should be implied given the complicated regulatory history of the product.

Your branding can be presented through slogans, presentation and packaging. It is usually said that it is a form of storytelling — answering certain questions like how your company started, what the goal of your company is, and more. But why is branding important to the cannabis industry?

Trust and recognition

Companies establish trust with their consumers and investors by being transparent, which include access to annual reports and quarterly filings. Being consistent with regards to quality of products boosts the trust of your consumers as well.

Branding also allows your brand to be easily recognised. Your unique ideas could assist in improving the recognition of your brand. Try to be different to stand out from the competition.

To be recognised and trusted is important in the cannabis industry because it means that your company is transparent. And when you are transparent, it means you are running a legitimate business in this industry. Different states in the US have distinct regulations when it comes to cannabis.

Financial value

Great branding also builds the financial value of your company, and it can come from your brand’s widespread recognition. You know that your branding is effective when you are able to influence the market price of your products. Consumers are willing to pay for more if they consider that your products are more superior than others. By enhancing your financial value, you could drive not just new customers, but investors as well.

The perfect example

A perfect example of a company that succeeded in creating its own brand in the cannabis industry is PotNetwork Holdings, Inc. (OTCMKTS:POTN). POTN is a public company based in Florida that focuses on the research, development, and marketing of products containing cannabidiol (CBD). It employs medical and industry professionals to make sure they are headed in the right direction.

Being in a risky industry regulatory-wise, such collaboration is a great idea as these experts ensure that every product they produce is safe and effective. This also provides an idea that there could be something new in store for the company as it continues its research — leaving consumers excited for more.

POTN’s subsidiary, Diamond CBD, guarantees that each product has unique packaging styles depending on their types. It offers CBD-derived products such as gummies, vape additives, oils, shots, creams and even pet products.

To establish that trust and improve its visibility and credibility with investors, POTN submitted a Form 10 to the Securities and Exchange Commission (SEC) last June. Such action will help the company become a fully reporting SEC company as well.

Another thing that proves branding success is sales. Diamond CBD has just recently reported that it achieved over US$2 million (AU$2.70 million) in revenues, continuing its trend of setting new record sales year over year.

POTN recognises the importance of branding, especially what it can do not only for the company itself but for the cannabis industry as well. And the company is a proof that when branding is done right, you could have a financial advantage no matter how complicated your industry is.

Article derived from a press release sent for consideration.