In the legalization era, the cannabis industry has evolved from a stoned-age business to a fast-thriving sector. Growing competition is pushing players in the sector to adopt the use of high-tech strategies to survive. There is a growing need for players to reinvent their businesses through rebranding to improve their marketing approaches.
Marketing strategies determine how deep a brand can reach the market. Rebranding triggers curiosity from people and builds higher expectations from the brand. It covers areas such as change of colors, packaging material, and inventing new products and product sizes. Many marijuana companies that have invested in packaging rebranding are already experiencing massive growth.
Company rebranding with a focus on packaging
Research shows the marijuana industry in the US has been growing at a rate of 30.5% year-to-year from 2018 to 2023. In 2021, it was valued at $10.8 billion, and in 2022, its value increased to 16.7 billion. Its growth projection is forecasted to reach $52.6 billion by 2026. The impressive growth has consistently attracted many new players into the industry.
The main impact of new players is increased competition as players scramble for a share of the market. One of the major ways to gain an edge amid competition is to overhaul packaging. Marijuana companies seeking to rebrand are first creating a budget for an overhaul of their packaging. To rebrand packaging, the companies are focusing on three key features.
Showcasing the content inside
In the recent past, marijuana packaging was opaque, meaning users could not see the product inside. The packaging is now rebranded and includes a transparent window that reveals the content inside. It has a psychological impact on the user because they can see the product’s color and freshness.
Staying up-to-date with trending designs
Design trends impact customer emotions and influence buying decisions. Working with the current design trends makes customers believe the brand’s products are good, quality, and fresh. Hubspot reports that 70% of customers believe brands should offer a personalized experience, and company rebranding is one of them.
Use of eco-friendly materials
Many environmental conservation stakeholders have created massive awareness of the importance of conserving the environment. One of the ways to conserve it is to use environmentally friendly packaging materials. One of the marijuana company rebranding strategies is adopting eco-friendly packaging. Packaging rebranding separates a marijuana brand from its competitors.
It is one of the effective advertising strategies that marijuana brands can use and benefit from. Packaging is what gives users the first impression of a brand. Most players in the weed sector have the plan to rebrand, and packaging is a top priority. It is what gives products a different look on display which makes it easy for consumers to find them. There are different types of packaging that brands can choose from, but sustainability requires attention.
The impact of company rebranding in overcoming competition
Marijuana brands rebrand for different reasons but standing out among the competition is a major reason. It helps customers recognize the brand and remember it for many days. Different companies rebrand to attract new markets, retain customers, and increase sales. The purpose of rebranding is broad-based.
Company rebranding has different benefits, and one of them is drawing new customers into the sales funnel. After a rebrand, a marijuana company can have a new logo, colors, or packaging. It helps create cohesion within the brand and its target market. It positively reflects company values which helps build stronger trust with customers.
To get an edge in the market, marijuana brands need to alter their market status without altering their identity. Repositioning is a key strategy that is helping brands to achieve their revenue generation goals. Most brands change their marketing approach, products, price, and packaging. Repositioning helps brands enhance the reflection of their spirit and identity.
Refreshing stale products
After a product stays in the market for a longer period, a refresh can help it stay competitive. Marijuana companies seeking to rebrand relook into their product list first. They reimagine the stale ones to give them a new look and feel. Some brands change the product’s name, while others change its packaging or both. The packaging comes in new colors, styles, and sizes. After the rebrand, the product stays relevant in the market and could receive a demand boost.
Changing product characteristics
Company rebranding may involve changing product characteristics to attract new markets and customer perception. The changes may include product style, ingredients, color, and quality. The characteristics changes are made based on consumer preferences. It helps create a new influence in the market that raises product demand. After changing product characteristics, the brands change packaging, too, as part of marketing.
Company rebranding due to changing state guidelines
The state governments that have legalized marijuana keep updating growing, harvesting, processing, use, and transportation guidelines. Packaging and labeling are one of the most affected features in the marijuana market. If the guidelines state a brand should add a specific symbol on the packaging, the brand has to comply to remain in the market.
The company takes it as an opportunity to rebrand its packaging and give its products a new look. Brands need to check with their local government or board to get the most recent guidelines and updated information. Failure to follow the guidelines could lead to a brand losing its business or incurring hefty penalties from regulators, the government, or courts.
Sustainability in business can help boost efficiency and profits. Some states have strict guidelines that require marijuana brands to invest in sustainable packaging. In some markets, many brands have already invested in the production of eco-friendly packaging solutions. The rebrand aims to create packaging solutions that do not affect the environment and ecosystems.
Sustainability is not only focusing on the packaging but also on the product itself. Customers are likely to embrace a marijuana brand that uses environmentally friendly packaging. It changes customer perception about the brand, and they build greater trust with it. Rebranding to address sustainability is capital intensive, but the long-term benefits are more. It benefits the brand, its customers, and the entire society.