Cann Case (Case Study Sample)

Cann Case Student’s Name Institutional Affiliation Cann Case 1 What are the primary concerns or pain points for consumers when it comes to consuming cannabis? How does Cann address these barriers to consumption? There are several concerns that consumers have about consuming cannabis. The most significant and notable of these pain points is the reputation of cannabis or marijuana as a hallucinogen. That is, people have the common notion that cannabis has the power to change the way people feel or even see things literally. They have been accustomed to seeing people getting stoned from using the drug. Many literatures inform the public of the many risks that the use of marijuana can bring to the user. For instance, the Substance Abuse and Mental Health Services Administration (SAMHSA) (2023) noted that using marijuana at a young age could reduce one's IQ by as much as 8 points. The use of the narcotic has also been reported to slow reaction time, which is crucial in safety when driving. Another severe consequence of using marijuana is on the health of babies, as the drug can be transferred to them through breastfeeding. In short, consumers are likely wary if using cannabis-based products can harm their health. Cann, however, was able to address these barriers to consumption by positioning their product as a low-dosage vehicle for cannabis. In particular, they have packaged their 8-ounce product to only have 2 mg of THC and 4 mg of CBD, which are low compared to levels when you ingest cannabis the traditional way, such as smoking (Israeli & Wilson, 2023). This should address consumers' reluctance, who used only to eat the corners of cannabis-laden chocolate bars or gummy bears to ensure they do not get overwhelmed by the drug. To prove its point, Cann has even packaged their micro-dosage beverages in six packs to relay the message that Cann is to be consumed as a social drink. You have to drink a lot of it to get a distinguishable effect on your senses. Another pain point for consumers already using cannabis is their expectation that the beverage will taste something similar to smoked marijuana or too sweet in the case of the other beverage varieties. Cann has addressed these challenges by developing tasty flavors for their products. Designed as a tonic or seltzer drink, Cann comes in flavors such as yuzu elderflower, blood orange cardamom, grapefruit rosemary, and lemon lavender. These varieties are intended to exude a branding that is not strong but similar to light-seasoned fruit drinks. 2 Who is the largest market for Cann? Evaluate Cann’s decision to target this market specifically. The biggest market for Cann is people who want to enjoy the joys of alcohol but are reluctant to drink booze and get drunk. This stems from the personal experience of the company's founders, who were heavy drinkers. They wanted a beverage that could offer them a good sensation and a bit of euphoria without the drowsiness or drunken feeling that alcohol brings (Israeli & Wilson, 2023). I think this choice of target market for Cann is ingenious for several reasons. For one thing, people who drink alcohol in the US comprise a significant portion of the population. In particular, the National Institute on Alcohol Abuse and Alcoholism (NIAAA) (2023) estimates that in 2021, around 220 million Americans 12 years old and above have the experience of drinking alcohol. This is a whopping 80% of the total population in this age group. Now, consider the negative publicity of alcohol in modern literature. Besides the usual hangover, too much drinking can cause many serious illnesses, such as heart failure, liver disorders, cancer, and so on (CDC, 2022). As such, cannabis is an excellent alternative for people who drink alcohol but do not like its ill effects on the body. Cann is even more enticing to this target population by making their product in micro-dosage packaging, thus removing the stigma that cannabis has on the market. In sum, the target population of Cann is significant, and they have a good reason to shift to a tonic seltzer with a low dosage of cannabis. 3 What do you think would be Cann's positioning statement? How does Cann's frame of reference and intended target market differentiate it from other cannabis products? What might be the pros and cons of this positioning? Cann's positioning statement would be, “Here’s a product for someone who wants to wean from alcohol but is not ready for complete sobriety." This positioning has been well incorporated into the company's product development and packaging. In particular, Cann's distinct look and ingredients have set it apart from competitors. Cann has been effectively formulated and packaged to distinguish itself from the existing products in the market. Most other cannabis beverages are dark in color and carry the 70s theme (Israeli & Wilson, 2023). As such, they exude a feeling of strength regarding dosage and impact on the consumers' senses. By contrast, Cann has packaged its product as a simple tonic seltzer in bright colors, which carries a micro-dose of cannabis. This was intentionally done to capture people who want to try cannabis, especially those who are weaning from alcohol. However, Cann was careful not to present their product as too widespread. As such, they did not follow the practice of other players, which made their cannabis products in the form of chocolates or gummy bears. Cann wanted their product to resemble how people are used to when they ingest cannabis. This product positioning can have its pros and cons. Cann can effectively sell to such a segment of the population by being definite about the target market they want to reach. However, by being too specific, they may lose out on other potential consumers of cannabis-based products. It would also help to have stronger dosage varieties to reach potential consumers who want a kick out of Cann. The company could package it under a different name and theme to not mess up the branding for its tonic seltzer line. 4 What are the unique marketing challenges for cannabis brands regarding product distribution, branding, and advertising/communications? Why do cannabis brands face these challenges? The complex and ever-changing legal environment that surrounds cannabis products presents a unique set of obstacles for the industries that produce such goods, particularly in terms of marketing. To begin, a patchwork of state and federal restrictions in areas where cannabis is permitted leads to a fragmented market. These regulations make it difficult to distribute products, leading to a fragmented market. In addition, stringent compliance standards are enforced on packaging and labeling to protect consumers' safety and avoid marketing geared toward minors. This results in a logistical minefield for businesses, which necessitates the strict adherence of all employees to an intricate set of norms. Second, there is still a persistent social stigma attached to the use of cannabis, which makes it challenging to promote cannabis products. While cultural views are evolving, a prevalent prejudice still exists, making it difficult to build a strong brand image and appeal to a large market (Joy, 2023). Given that there is still a general lack of information about cannabis, education also becomes a significant factor; businesses need to invest significantly in educating customers about the advantages and potential uses of the items they sell. The realm of advertising and communications presents another severe obstacle. Conventional advertising outlets such as television, radio, and social media platforms sometimes have laws in place that prohibit them from marketing cannabis, which limits the potential ways to reach a bigger audience. Further limitations are placed on outreach efforts due to bans on cannabis-related material by digital advertising giants like Google and Facebook. Because of this, to get beyond these restrictions, unique and innovative marketing methods are required. Additionally, cannabis companies must contend with a one-of-a-kind distribution mechanism primarily based on dispensaries. Establishing and maintaining profitable partnerships with these retail locations becomes necessary for developing a brand. Because the rapidly expanding cannabis sector has increased the number of available goods, the market is very competitive (alchemyleads, 2021). As a result, companies need to identify themselves in a meaningful way. In addition, the limits on packaging and names imposed by various countries hamper prospects for brand building. Because of these limitations, it is more challenging to design unique, attention-grabbing packaging and to come up with original product names. Given the different manufacturing standards across the sector, another urgent challenge is maintaining consistency in the quality and potency of the products. Stringent quality control methods are required to support customers' confidence and keep them safe. In addition, there are barriers to entry for cannabis companies when it comes to accessing banking and financial services. These firms are often prevented from acquiring vital financial assistance due to federal laws, which hinder their capacity to function effectively and securely (Joy, 2023). The industry's development and stability may be hampered due to this economic precariousness. Because of the complex legal and social environment in which their goods are sold, cannabis companies have unique difficulties when promoting their products. These include product distribution, branding, and advertising/communications challenges, among other areas (alchemyleads, 2021). To successfully navigate these difficulties, one needs a blend of legal savvy, inventive marketing methods, and a profound comprehension of the ever-shifting nature of the cannabis sector. 5. Should Cann continue to prioritize a few more extensive marketing campaigns to maximize reac...