THE EFFECT ON MARKETING WHEN MEDICAL TURNS RECREATIONAL HOW TO MARKET RECREATIONAL CANNABIS by Celeste Miranda

1. THE EFFECT ON MARKETING WHEN
MEDICAL TURNS
RECREATIONAL
HOW TO MARKET RECREATIONAL CANNABIS
by Celeste Miranda
As recreational cannabis sweeps the nation, medical marijuana product
companies and dispensaries are preparing a shift in their business and
marketing platforms to incorporate a recreational market.

3. CONTENTS
Intrduction ... 3
Chapter 1
What Is The Difference between
Medical & Recreational Cannabis?
Medical Cannabis ... 4
Recreational Cannabis ... 4
The Basic Difference ... 5
The Difference For A Specific Brand ... 6
Chapter 2
How to Market Recreational Cannabis
Branding for Recreational Use ... 7
Targeting and Branding For An Untapped Market ... 8
Shift the Focus to Educating Potential Customers ... 9
Conclusion ... 10

4. As recreational cannabis sweeps the nation, medical marijuana
product companies and dispensaries are preparing a shift in their
business and marketing platforms to incorporate a recreational
market. Cannabis companies in states like California and Arizona
are reassessing their strategies in the industry in case cannabis is
recreationalized in the November 2016 election. Whether the
business is a brick and mortar store, genetics and plants or a
specialized product like edibles and vapor cartridges, the brand
strategy must be evaluated and re-structured to incorporate the
new and abundant recreational market. Ignoring the shift in the
cannabis culture is equivalent to digging a grave for the business,
get ahead ofcompetition by following some key steps to ensuring
success in the inevitable scenario that cannabis becomes recre-
ational across the United States.
3 THE EFFECT ON MARKETING WHEN MEDICAL TURNS RECREATIONAL
INTRODUCTION

5. 1What Is The Difference between
Medical & Recreational Cannabis?
Medical Cannabis
The earliest uses of marijuana were medical but in these modern days the herb
is more commonly associated with recreational use. The first records of canna-
bis date back to 2027 BC when Chinese Emperor Shen Nung wrote a medical
text that included cannabis and other herbs along with their effects when
ingested or inhaled. These writings cited that cannabis could help in treating
gout, absent-mindedness and even constipation. 2nd century Egyptian text is
the first to use cannabis as a treatment for tumors and cancer. Even the Ancient
Greeks were known to dress their horse’s wounds after battle with a
cannabis salve for fast healing and relief from pain. Modern diagnoses for
medical cannabis often cite these same issues, only solidifying the basis for
common cannabis medical claims. Medical marijuana is provided after a doctor
diagnosis and specific strains and products will be necessary to treat specific
ailments and patients.
Medical cannabis was the first legal form of the plant in the United States since
prohibition, but not every state created a medical marijuana program. Certain
states including California, Arizona and New York made the plant legal for
medical growth and distribution. While some programs are strict and only had
a couple of patients, other programs are lenient and granted countless patients
their recommendations. From state to state the cannabis laws and regulations
are different, the plant is still considered federally illegal which has created a
grey area that has been exploited by both sides of the legalization front.
Recreational Cannabis
In the same writings by Emperor Shen Nung it is noted that cannabis has an
intoxicating effect, but the medicinal aspects of the flowering plant were found
more important to the community. In 1545 cannabis was brought to North
America by the Spanish, where it became a major crop grown next to to
bacco in Jamestown. At this time hemp was used mostly as a fiber and in the
late 1800’s it had replaced cotton as the major cash crop in the South.
THE EFFECT ON MARKETING WHEN MEDICAL TURNS RECREATIONAL 4

6. At this time most medicines were made of opium and cocaine instead of CBD.
It was in the 1920’s with alcohol prohibition and the rise of jazz music that
cannabis became a hip “drug” in the United States. This didn’t falter as the
hippy and anti-war movements of the 1960’s attracted young America with
psychedelic rock music and doobies passed around on the lawn. A cannabis
culture had been born and has remained steadfast through different decades
and generations of young rebellious teens, artists and bohemians.
While the culture surrounding the plant is a major bonus for creating a strong
foundation of supporters, it created a divide between the professional, older
America and the young, hip citizens of the country. Medical legalization
created a space where the elderly, the middle aged executive and the young
tie-dye wearing stoner can all investigate what the plant is truly about without
feeling as if they don’t fit in. This milestone in cannabis legalization is what is
making recreational legalization possible in the first place, voters are ready to
free the plant and in the process they will completely change the face of mari-
juana business in America.
The Basic Difference
The obvious difference between these two types of cannabis is that medical
grade is used to treat a specific ailment while recreational is used to simply
alter the mind and body for the sake of feeling intoxicated. Recreational
cannabis is still medicinal, but a customer won’t necessarily come in under the
pretense of treating a medical condition. Similarly, the necessity of safety
jargon like “patient” instead of “customer” and “donation” instead of just calling
it a “price” will be long gone, budtenders will have the freedom of language
that was lacking in the medical cannabis dispensary world.
Similarly the type of packaging and marketing available between medical and
recreational cannabis will differ. Medical cannabis products should be labelled
with a patient in mind, for example the lab tests and toxicity results are a must.
However when it comes to recreational cannabis the brand and packaging
should be fun, exciting and attractive to a potential buyer in what will soon be a
very a saturated market. For products or brands that exist in an already
medically legal environment it is possible that re-vamping or even rebranding
a product may be necessary.
5 THE EFFECT ON MARKETING WHEN MEDICAL TURNS RECREATIONAL

7. The Difference For
A Specific Brand
Some products translate quite easily from the medical to the recreational
business model but others tend to become stagnant in that shift. Edibles,
psychoactive strains and wax concentrates are very well received within both
a medical and a recreational retail model while tinctures and CBD strains are
sometimes found to be less interesting to this target demographic. Take an
objective look at your business to properly assess any possible aspect of the
brand tahat might not translate over well into a recreational store. To transfer
seamlessly over from a medical cannabis company to recreational market there
may be changes to the packaging, labels and overall marketing stance that are
imperative to the success of any cannabis company.
First, identify whether or not the brand will translate easily into the recreational
market, if that answer is yes then the marketing work will be more simple than it
would with a product that is seen only as medicinal. If it is a primarily
medicinal company like CBD tinctures or low THC flower strains then there are
two different routes to take. One way to handle this is to find an ingenious
direction in which to remarket that will attract a recreational customer. For
example, CBD tincture have very little to no psychoactive effect but they do
lubricate the cannabinoid system in the body to deepen the effects of THC,
THCv and all of the other cannabinoids. Find a way to make the product
attractive to the recreational consumer and try to play down pushing healing
properties.
The alternate option is to rebrand the product for a recreational market as
something different to dissociate the consumer from thinking of the product
as medicine. Whether the item or business has medical benefits or not, a shift
in perspective towards recreation is imperative for success in this new market.
Where the market once called for a need to only emphasize the medicinal
aspects of cannabis it now encourages emphasis on the way a strain, edible or
store atmosphere feels more than how the plant heals.
THE EFFECT ON MARKETING WHEN MEDICAL TURNS RECREATIONAL 6

8. Branding For Recreational Use
There are a couple of new trends in the cannabis market worth recognizing
while brainstorming a rebranding program or even a revamp to an existing
brand. The first rule of thumb for a recreational market is to lay off of the puns
and weed leaves. Every cannabis market in every state is saturated with brands
featuring a cannabis leaf icon or pun on the words “ganja”, “cannabis”, “weed”
etc. Instead of going with this easy option try to branch out. A great starting
point is to have an all staff meditation on the specific emotions that the brand
is hoping to evoke. With the right vision in mind the perfect color, name and
shapes will present themselves. The important fact to take away from this point
is that puns and cannabis leaves are played out, it’s time to create brands that
are based on the vision of the brand’s creators.
Similarly, as far as products are concerned labelling and packaging are equally
as important as the brand that’s plastered on them. While attracting the eye in a
saturated market is imperative, it’s also important not to make any outstanding
claims or spend too much on this aspect of the product before the FDA
decides exactly what the regulations are when it comes to advertising
cannabis. Colorado has seen quite a few different laws come into place
throughout their run as a recreational state that have turned some company’s
valuable marketing capital into useless advertisements as new laws were made.
While solidifying the brand is recommended in the economical climate, being
conservative with advertising and packaging claims is just as important while
legislation is still in progress.
Also be sure to keep track of what has become passe in Colorado, Oregon and
other recreational states. For example, edibles legally cannot be shaped like
child’s candy so gummy bear companies must change their product before it
becomes illegal and they have to scramble. Similarly companies that use puns
of already trademarked names are going to be liberally sued once the
country legalizes federally. For this reason it is very important to make sure that
the brand is original so that it doesn’t get taken down by lawsuits once the feds
start to recognize the millions of patents and lawsuits pertaining to patents that
have to do with cannabis.
2How to Market Recreational
Cannabis
7 THE EFFECT ON MARKETING WHEN MEDICAL TURNS RECREATIONAL

9. At the moment it seems that the federal government has put these issues on
hold but once they begin to identify cannabis as law they will be forced to
take down strains like Girl Scout Cookies and edibles that are modeled after
Reese’s; to name a few brands that are already on thin ice. Being a couple of
steps in front of any possible litigation or changes to law that would hinder
sales, force a recall or stop production altogether will keep the brand both safe
and successful.
Targeting & Branding
For An Untapped Market
Everyone who has worked even a brief moment could name the stereotype
patients that frequent cannabis dispensaries from state to state. There is always
the menagerie of college students and professional stoners. Also, you’ll find a
good handful of elderly patients and old hippies who have become familiar-
ized with cannabis since their younger days. The reality of recreational
cannabis that the entire country becomes a potential consumer.
Post-recreational marijuana will change the face of cannabis culture as it is
known today. The big buyers and cultured stoners of marijuana past are still
important but it has been proven over the years that they will seek out cannabis
at all costs. The real untapped potential demographic is the soccer moms,
business professionals and other unassuming pedestrians that have finally
become curious enough to see what the hype is all about. This potential
consumer base is massive and with the right technique can be easy to
market to.
While the general stoned population can be lured with cannabis puns, tie dye
and/or stoner culture the new, occasional user will not respond to this type of
marketing. Clean, inconspicuous packaging and labelling would be most
preferred by this target demographic. It would also be wise to make
packaging opaque and provide samples to stores in order to keep the items
discreet for this demographic. It is also a good idea to take an educational
approach to the advertising and marketing campaign. This target demographic
is looking to learn about what cannabis really is with out feeling like an idiot.
Simple, straightforward education is the best way to attract a casual and
occasional recreational patient. Word of mouth is going to be very important
in the recreational arena. A brand that educates recreational clients will not
only turn those first timers into return customers, they will also garner word of
mouth business from these converts.
THE EFFECT ON MARKETING WHEN MEDICAL TURNS RECREATIONAL 8

10. Shift the Focus to Educating
Potential Customers
This is a specifically important ideology for a dispensary model but every
aspect of cannabis business will benefit from this shift. Across different states
there are countless models of dispensaries. Some are boutique style, some
look like an Apple store and some are seedy, uncomfortable buildings with
large bodyguards at the door. With the hard to acquire permits and real estate
it hasn’t been easy to open up a dispensary which makes it easy to succeed
because there aren’t many businesses in the playing field. Recreational
legalization will mean that many entrepreneurs throw their hat into the ring of
canna-business. This will create a surplus in the market in which only well
marketed brands will rise to the top. In order to acquire the occasional
cannabis user the brand must be focused on simple, precise education.
Similarly a dispensary model should focus wholly on education in their hiring,
purchasing and general business model.
In a dispensary model, education begins right at the door. When potential
customers are checking in have pamphlets and handouts available at the front
desk to provide opportunities to educate themselves at both the entrance and
exit of the store. The next important educational phase comes with the
cannabis consultant or budtender as they’re often called. Hiring beautiful but
unintelligent women will perhaps draw in a specific clientele but will keep the
soccer mom, they shy CEO and the new, casual user at bay. These potential
customers are nervous, shy and out of the loop when it comes to cannabis
jargon. It is imperative that consultants walk a fine line between scientific speak
such as CBD, terpenes, cannabinoids while also maintaining an intelligence
based assessment of the plant. Essentially, present a smart and educating case
for each product without intimidating a complete newbie. This will turn new,
curious clients into returning customers that refer others to the business. As
medical programs turn to recreational legalization, education is crucial to
longevity in the cannabis market.
9 THE EFFECT ON MARKETING WHEN MEDICAL TURNS RECREATIONAL

11. Conclusion
Cannabis will be legalized federally in our lifetime, this much can be decided
upon even by opposing political parties. This is simply reality and if current
cannabis companies don’t shift their gaze towards recreational cannabis as well
as medical their sales will plummet. The only way to rise above what will surely
lead to an enormous surge of new competition in the industry is to rely on an
educationally based marketing platform. Shifting the perspective of a sales
team, the label, packaging, brand and maybe even aspects a product is going
to be imperative to the success of cannabis businesses in the next 5 years.
Great success will come from proper preparation before recreational cannabis
comes to your state. Proper preparation includes solidifying a brand, creating
packaging and labels that reflect that brand. Fortifying an effective marketing
plan will manifest the vision of this brand or company that lies in the hearts of
those that created it in a recreational climate.
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