As you push your shopping cart up and down the aisles of a grocery store, you might find yourself almost inexplicably drawn to certain brands. This brand of chicken soup tastes better to you. You prefer this brand of toilet paper.
But how do you know that particular brand of soup or toilet paper is higher quality than the others? The truth is: you probably don’t.
Your perception of that brand as being better than others has value, though, which is exactly what brand equity is. And these valuable perceptions can be cultivated in almost any industry, including Canadian cannabis.
How Does Branding Work?
So, what is a brand? Simply put, it’s a customer’s first point of interaction with a company or product. It’s also what differentiates between products in the marketplace, and helps consumers quickly and easily pick the best product for their needs.
How does this apply to the cannabis industry? With the legalization of recreational cannabis slated to happen no later than July 2018, it’s incredibly likely that effective branding and brand equity will become what sets different Canadian cannabis producers apart, which could have huge implications for investors.
Good branding encourages consistent quality, which builds trust among consumers. In the race to stake a claim as a trusted household name in cannabis products, a producer is likely going to establish guidelines and procedures that exceed the minimum standards. Why? They don’t want an inferior product associated with their brand. That can hurt the bottom line.
Developing a trustworthy brand also means getting more information into the hands of cannabis consumers. Information like exact THC and CBD levels, the kind of high that can be expected, and best way to consume the product all contribute to the trust that customers place in a particular brand.
What are the Benefits?
Could you imagine the Apple or Google of Canadian cannabis producers? That kind of brand equity means great things not only for a company, but for its investors, too.
Consumers will also benefit from having access to more information, which helps them tailor their desired high to any situation, whether they’re looking for a product that’s quite powerful, features additional medicinal benefits, or gives a more mellow buzz.
If you’re wondering which Canadian cannabis company to back in 2018, pay close attention to the branding. It’s much more than leaf logos and artfully posed pictures. It’s a company’s way of telling you exactly how they plan to excel in the marketplace.