Building Cannabis Brands That Reach Across Markets

Consumers can be a perplexing group – and even contradictory – especially in an industry as new and complex as cannabis. This makes the task of building cannabis brands that resonate across geographical areas a significant challenge.

The best brands find ways to connect, knowing their audience will react to brands that help them feel good about themselves, their community, and the decisions they make. As former Starbucks CEO Howard Schultz said, “If people believe they share values with a company, they will stay loyal to the brand.”

Consumer Appeal and Connection

For marijuana businesses, consumer nuances pose a unique challenge: How can a brand create mass appeal while still providing the connection their audience desires?

The answer: cannabis operators must cater to local audiences and expectations while still delivering a consistent and universal brand message. The marijuana industry demands that companies simultaneously think nationally and act locally, embracing market uniqueness while staying true to a brand identity that creates social contracts with customers.

One of the primary challenges of scaling cannabis brands across markets is navigating the different regulatory environments. Nearly all aspects of products needed for consistency and brand awareness—ingredients, product formulation, packaging, labeling, colors, logo, etc.—are subject to inconsistent state regulations.

In the early days, these challenges were less critical. But as legalization expands and new consumers begin to investigate products, creating brand recognition across state lines is increasingly important.

No One Size Fits All

To the dismay of many operators, what works in California might not be possible in Florida because of differences in packaging, potency limits, and even the types of products approved by state regulators.

In a mature market such as Colorado, consumers might be more knowledgeable about specific strains, sustainability practices, or cultivation methods. However, in emerging markets such as New York—where adult-use sales are just beginning—the focus might be more on accessibility, convenience, and product education.

Brands need to tailor their messaging, product offerings, and tactics accordingly.

For example, although Starbucks is an international brand, the company works to keep a personal feel through its practice of baristas writing names and messages on cups. In the marijuana industry, Wana Brands and Grön have created well-known names for edibles through a focus on quality and consistency—combined with extensive localized outreach in the markets they enter. (Editor’s note: Proud’s iAnthus Capital Holdings and Grön entered a strategic partnership in January 2024.)

When you look at these companies, a number of common strategies and tactics become apparent in their approach toward brand awareness, including the following:

1. Know the Customer

Starbucks, Wana Brands, and Grön each maintain a keen, laser-focused understanding of their brand’s core audience.

In the case of the coffee consumer, Starbucks understands its customers all possess a universal need for top-notch service, a desire for high quality, and a consistent experience.

With some of the widest edibles distribution in the industry, Wana Brands and Grön have recognized similar traits in their customers—a desire for quality as well as a need for consistency and reliability. All three companies work diligently to meet customer expectations. Other cannabis companies attempting to create compelling brands should follow suit.

2. Leverage Data to Win Across Markets

Building brands that resonate with multiple markets also requires a deep understanding of data sources to inform customer preferences.

While marijuana data can be hard to come by because of various restrictions, successful brands invest in gathering consumer insights—often working with third-party partners to track trends and preferences.

Some of the largest multistate operators use data to understand consumer needs at the local level while building brands with a national identity. Often, this data allows operators to fit products in both medical and recreational marijuana markets, rooting their products in wellness-focused messaging.

By consistently analyzing consumer data, operators ensure their products remain relevant regardless of location.

3. Craft a Customizable Message That Resonates Across Audiences

Starbucks, Wana Brands, and Grön rely on overarching messaging that connects with each company’s core customer base. However, this messaging is cleverly constructed to be flexible enough to connect with audiences through localized marketing and outreach campaigns.

Before the 1990s, most office workers either sipped a cup of coffee at home or waited until they arrived at the office to get their morning caffeine fix. Starbucks changed all that with messaging that created a “third place” beyond home and work where people can gather, relax, and talk.

The messaging is universal, yet the experience is local—with locations right in customers’ neighborhoods.

Today’s cannabis industry faces what might be an even more challenging messaging task. With a rapidly expanding universe of cannabis consumers, brand messaging can no longer be confined to the core marijuana connoisseur (i.e., “stoner”) crowd.

To create lasting, recognizable brands that resonate across markets and audiences, the industry must reach the hearts, minds, and wallets of an increasingly diverse group of consumers.

Great marijuana brand messaging must identify the intersections among these groups while acknowledging their differences in order to be vital and robust across markets.

4. Local Relevance, Universal Appeal

Building cannabis brands that reach across markets is a balancing act between local relevance and universal appeal. Successful brands understand the importance of creating products and messaging that cater to the unique needs of each market—while maintaining values that resonate with consumers everywhere.

By focusing on the customer, leveraging data, and building universal appeal, marijuana companies can grow their influence across diverse markets, creating meaningful connections with consumers.

As Sir Richard Branson, founder of the Virgin Group, reminds us, “Branding demands commitment—commitment to continual reinvention, striking chords with people to stir their emotions, and a commitment to imagination.”

Although it might be difficult to define, the reality is that consumers know a great brand when they see one.