One of the reasons why CBD is now legal is because of its medicinal benefits. With the legalization of CBD products to some countries and the low barrier to enter this market, starting a CBD oil business is a temptation. Branding your CBD business can also become rough. Before starting your journey to the CBD market, know and prepare for these following marketing challenges that you may come across.
Due to lack of education and information, most people are not aware that CBD is legal, safe, and is an effective alternative medication. The public always uses CBD, marijuana, and hemp interchangeably and think they are the same thing. This misconception can significantly affect your CBD oil business for some time. From the cannabis plant, Cannabidiol (CBD) is a non-psychoactive compound, so anyone can use it without getting high. Moreover, CBD oil has lower THC levels, a substance that can cause euphoria or hallucination, compared to THC infused oil. If the public is well-informed about this information, then it can help sell CBD products to more consumers.
The CBD market has been increasing, along with the widening of its consumers. Statistics said that CBD sales would increase by $1.8 billion annually in 2022 due to its safer and more effective medicinal benefits. However, the downside of this growth is a few hurdles in entering this market and its lack of regulations, making it too crowded. With this challenge, only the most deliberate CBD brands can withstand this do-or-die competition.
As CBD oil products have too many benefits, you might get overwhelmed and confused about how you should position your brand upon entering the market. You have to choose whether you would cater to pain problems, depression, or the pet food industry. With the diversity of CBD health benefits, most products fail to identify what their brand fit is. Your brand mission should have a unique angle to stand out among others. However, take note that your brand fit must resonate well with your target consumers and audience.
In any business field, targeting the right audience is a must when starting your business. Consumers of CBD products vary from personal backgrounds, ethnicities, and age groups. The following questions can guide you on finding your target consumers:
Also, consider your business competitors when picking your target audience and assess what it takes to compete against them. Some of your rivals might not be CBD-oriented, as they may pursue your target audience to resort to traditional medicines or natural remedies instead.
Growing cannabis is delicate and complicated, so indica strains are available to withstand the hard-hitting growing patterns (click this link to know more). Aside from this conflict, confusing and conflicting laws regarding the cultivation of cannabis plants can hinder you from your business, especially if your area is not open to marijuana plantation. The acts regarding CBD production are not yet stable and regulated, so bank lenders and other potential investors are hesitant to finance. Most entrepreneurs often distinguish CBD brands as high-risk commerce, so you might struggle to work with ad agencies and consulting firms.
As the federal government shifted its stance on marijuana, CBD advertising also follows with it. Online business is rampant today, so online advertising restrictions regarding marijuana have limits. Some of the most dominating ad-buying online platforms, Google Ads, Facebook, Twitter, and Instagram, lifted the ban for marijuana advertisements. Fortunately, Google wants to consider CBD ads as they performed a trial run for CBD advertising in cooperation with several companies under CBD space.
Every business needs to transact, and the CBD market is not an exception to this matter. As a business owner, transaction fees for salaries, payment, orders, etc. is a natural inclusion. However, financial institutions, merchant firms, and lenders of your bank’s credit card might charge more than the standard rates as your business’ nature is risky. You might resort to cash basis payments or merchant processing services in your local area.
No business starts smoothly, as everybody has been a beginner. No matter how known your brand is, problems are always around your range. Despite the evident challenges in CBD oil businesses, there lies increasing market growth due to the potential of CBD product itself. Aside from health benefits that CBD offers, pet food manufacturers have also successfully integrated CBD into their products with no severe side effects reported. More research, information dissemination, firmer regulation of laws, and improved public awareness can alleviate the marketing challenges associated with the CBD industry.