Starting a dispensary can be a lucrative business, but it’s essential to have a solid marketing plan in place to ensure success.
As the owner of a dispensary business, you know that having a good marketing plan is essential to your success. After all, without customers, your business will not survive.
But what goes into a good marketing plan? Below, we will go over the critical components of a successful marketing plan for a dispensary business.
Key Components of a Dispensary Marketing Plan
A great marketing plan has eleven sections as follows:
- Executive Summary
- Target Market Segments
- Unique Selling Proposition (USP)
- Pricing and Positioning Strategy
- Distribution Strategy
- Marketing Materials
- Promotions Strategy
- Digital Marketing Plan
- Conversion, Referral, and Retention Strategy
- Financial Projections
We provide more detail for each of these key components below.
The executive summary is a brief overview of your entire marketing plan. It should include your overview information from the other sections, such as your target market, unique selling proposition, key promotions strategies, and financial projections.
Target Market Segments
When marketing a dispensary company, it is essential to identify your target market segments. Who are your most likely customers? Consider age, gender, income, location, and lifestyle when determining your target market segments.
For example, dispensary business customers may include:
- Middle-aged men and women who are medical marijuana patients
- People who live in states where recreational marijuana is legal
- People who use cannabis for medicinal purposes
Break down each of these segments by considering their needs, wants, and pain points. For example, the needs of dispensary business customers may include:
- Convenient access to cannabis
- High-quality cannabis products
- A safe and secure buying experience
- Educated and knowledgeable staff members
By understanding your target market segments, you will be better equipped to create marketing messages that resonate with them.
Unique Selling Proposition
Your unique selling proposition (USP) sets your dispensary company apart from other dispensary businesses. What do you offer that nobody else does?
For example, your USP could be that you offer the lowest prices on high-quality cannabis products, or that you offer a convenient online ordering system for customers.
No matter what your USP is, make sure it is clear in your marketing materials. Your customers should be able to see immediately what makes you different from the other business in their area.
Pricing and Positioning Strategy
Your target market segments and unique selling proposition will determine your pricing and positioning strategy.
For example, if your target market is price-sensitive and you have a low-cost USP, then you will want to position yourself as the low-cost leader in your market.
On the other hand, if your target market is willing to pay more for high-quality products, then you will want to position yourself as a premium dispensary company.
No matter what your positioning strategy is, make sure your pricing strategy is competitive. Consider conducting a market analysis to see what other dispensary businesses with which you compete are charging for similar offerings.
Your distribution strategy will determine how you get your cannabis products into the hands of your target market. There are a few different options to consider, such as:
- Direct sales: You can sell your products directly to customers through your own dispensary storefront or website.
- Distributors: You can partner with distributors who will help you get your products into dispensaries in your area.
- Online retailers: You can sell your products through online retailers such as Eaze or Nugg.
No matter your distribution channels, make sure you can reach your target market. For example, if your target market is located in states where recreational marijuana is not legal, then selling through online retailers may be your best option.
Your distribution strategy documents how customers will buy from you. For example, will they buy directly from you in person? Will they buy online? Will they purchase from your partners, distributors, etc.
Providing offers through your business is a great way to entice customers to purchase. Consider offering discounts for first-time buyers or loyalty rewards for frequent customers. You could also offer promotional items such as coupons or free samples.
For a dispensary business, you must consider the type of offer you provide. For example, you may want to offer a discount on cannabis products for medical patients or seniors.
Your marketing materials should be based on your unique selling proposition and target market segments. They should be designed to grab attention and generate interest in your business.
Some marketing materials you might want to create include product brochures, flyers, and website banners. You will also want to make sure your branding is strong and consistent across all of your marketing materials.
Your promotions strategy includes the methods you will use to attract new customers. It should generate excitement and encourage customers to try your business.
Dispensary businesses should consider the following promotional strategies:
- Host in-store events such as product tastings or educational workshops.
- Partner with local businesses and organizations to sponsor events or provide giveaways.
- Run social media contests and giveaways.
- Advertise in local newspapers, magazines, or online directories.
- Sponsor community or charity events.
Digital Marketing Plan
In today’s digital age, it’s essential to have a solid digital marketing plan. This will help you reach a wider audience and drive more traffic to your business.
Some digital marketing tactics you might want to use include search engine optimization (SEO), pay-per-click advertising, social media marketing, and email marketing. You will also want to ensure your website is mobile-friendly and easy to navigate.
Dispensary businesses should consider the following digital marketing strategies:
- SEO: optimizing your website for search engines so that it appears higher in results pages
- PPC advertising: paying to place ads on search engines and other websites
- Social media marketing: using social media platforms to promote your business
- Email marketing: sending promotional emails to customers
- Website design: creating a user-friendly website that is optimized for search engines
Conversion, Referral, and Retention Strategy
Your conversion, referral, and retention strategy should be designed to keep customers coming back. Consider offering loyalty rewards, discounts for referrals, and other incentives to encourage customers to continue using your business.
You will also want to make sure your customer service is top-notch. Respond quickly to any complaints or concerns, and always go above and beyond to exceed customer expectations.
Dispensary businesses should consider the following conversion, referral and retention strategies:
- Loyalty rewards: offering discounts or freebies to customers who frequently make purchases
- Referral programs: offering discounts or freebies to customers who refer new customers
- Incentives: offering coupons, discounts, or other incentives to encourage customers to make a purchase
- Excellent customer service: responding quickly to customer concerns and always going above and beyond to exceed expectations
Lastly, you will need to create financial projections for your business. This will help you track your progress and ensure you are on track to meet your goals.
The key information to include in these financial projections are your monthly marketing expenditures and expected sales. Be sure to update your projections regularly to reflect any changes in your business.
Financial projections for a startup dispensary business may include:
- Monthly marketing expenditures
- Expected sales
- Projected profits/losses
- Break-even analysis
Developing a well-rounded marketing plan is essential for any dispensary business. Using the tips and strategies in this article, you can create a plan to help you reach your target market and succeed.
You can develop a quality marketing plan that will help you successfully launch and grow your dispensary business. Remember to be creative, think outside the box, and always put your customers first. With a little hard work and dedication, you will be well on your way to success!