target marketing and marketing mix project

Target Markets 

Primary Market 

 

 

 

Our main target market would be people aged 45 and older and described in more detail above. These people tend are more likely to develop nerve pain and mental health issues, and historically would be prescribed pharmaceuticals for their ailments. A 2017 Canadian study that surveyed “271 patients found that 63% of users report using cannabis as a substitute for prescription drugs, while 42% use cannabis as a substitute for more harmful recreational drugs like alcohol and illicit drugs” (Lucas & Walsh, 2017 p. 127). One third of the population of Edmonton fit into this demographic, which would provide us with a large initial base of customers (Stats Canada, 2017). Median age in Canada in general is also trending upward, so long term we should only see our primary market grow.  This target market tends to have the more disposable income than others which is extremely important as it would help drive sales. The overall design of the store would also be designed to appeal to an older market that wants to be served in a classy, upscale environment. Our design will look to mimic upscale private clinics, and it’s important that we spare no expense with regards to interior design as well as architecture.   

Secondary Market 

 

 

 

Our secondary target market are recreational users between the ages of 18-35. With the inclusion of edible products, like cannabis brownies or candies, we aim to a group of customers who would be either new to the market or do not like physical action of smoking. We cannot ignore the recreational market, and would aim to serve their needs as well. Just like the medical market the more professional look of our store would attract a more professional group of customers compared to the stereotypical marijuana user. This age group also accounts for about one third of Edmonton’s population according to the Canadian census (Stats Canada, 2017). Our goal is to be able to serve as many people as possible who desire a positive retail experience and want information about the different cannabis products available. As it stands, many resort to finding information about cannabis online, and frequently information is skewed either towards treating cannabis like a miracle drug or as being an inherently dangerous gateway drug. Our staff, app and advertising would all stress the importance of cannabis education and in doing so we will appeal to health-conscious people who want to use cannabis recreationally. 

 

Marketing Mix 

At Emerald Sinsemilla we understand that in order to be successful we need to coordinate the four elements of the marketing mix: price, product, place and promotion (Bonifacio, 2017). In the following section we will discuss our strategy in depth. 

Product 

There are two main active ingredients in Cannabis that produce different effects: delta-9-tetrahydrocannabinol, hereafter referred to as THC, and cannabidiol (CBD). THC is the chemical normally associated with a sense of euphoria while CBD has no psychoactive effects and can be useful controlling symptoms of epilepsy and other disorders (Haug, 2017, p.343).  

We will aim to carry the best flower strains available on the market and carry both indica and sativa products that are high in THC. According to a recent study by Oliver, Indica flowers have a more relaxing effect, are popular for people who use cannabis to relax or as a sleep aid. Sativa flowers have more of a cerebral effect that people who suffer from anxiety or depression may find helpful. High CBD strains are well suited to medical patients who do not want the “high” associated with smoking cannabis, but still want the pain relieving effects. Market research indicates that the demand for both products is fairly stable, and that they are the biggest sellers in the market (Oliver, 2017 p. 24-40). 

Aside from flower products, we can cater to the different needs of our customers by also providing prepackaged edible products. We realize that some people want the effects but are put off by smoking in general. Another product available to these types of customers are concentrates, which come in the form of a liquid, and CBD creams which can locally treat nerve pain. We will carry these products, but our focus will be on flower sales as they represent the best sellers in the American market. 

Price 

Players in this industry are in a unique position in that supply will be governed at the provincial level, and markups will be based on the same prices industry wide. However, to differentiate ourselves from the competition, we intend to carry only premium flower products and will aim at a prestige price point of $15 - $20 per gram. We will also have a model of bulk discounts for multi gram purchases and further discounts as part of our loyalty program. We will also incorporate weekly sales on edible products to appeal to mid-income earners. 

Our model anticipates a lower volume of sales at a higher price compared to a regular dispensary that would aim primarily to serve the recreational market. Based on our research, we think our consumers will be willing to pay more for superior service and an innovative retail experience. 

Place 

We plan to create our first full service retail location in Ward 6 (downtown) Edmonton. It is the central business district of the city and home to many older, white-collar workers. We plan on first building a brand in the Edmonton market and expanding to other locations in the future. 

Our retail space needs to have modern architecture and be eye catching from a street level. We want to intrigue people, get them to come into the store and create a positive experience through exceptional customer service and the incorporation of technology. For omnishoppers, we will offer an app they can use before their visit to view ongoing promotions and learn more about the different products and how they might suit their needs. We will have tablets featuring our app in store where returning customers who are not in need of consultation may place their orders directly. Incorporating automation for repeat customers will help our efficiency and provide customers with a very modern experience. 

 

 

Promotion 

Our promotion will focus mainly on non-traditional marketing, but we will also run print and TV ads in recognition of the media uses of our target market. Our social media accounts will focus on educating the public about the various uses of medical cannabis. We will also encourage direct feedback through our app to engage customers directly. Local sponsorship of medical industry events will also be a key part of building our brand. All promotion will be done at a municipal level in order to get a footing in the Edmonton market. It is also imperative that all promotion stresses the medicinal nature of Emerald Sinsemilla’s business plan. 

As our business grows, we will look to use profits to establish research funds and scholarships for people studying cannabis. Private investment in research will establish our credibility and could lead to breakthrough medical research that increases the demand for our products.