Jimmy Young

Building a true brand-driven MSO   Most cannabis executives and sector analysts concur: Winning MSOs will be brand-driven. Great, but what does that mean in practice and how do you get there?   A strong brand is more than a logo or THC level. It is a promise of value reliably delivered to consumers – and, if done right, a provider of strong margins and sustainable advantage for producers.   I've worked with some of the biggest consumer & B2B brands in the world (e.g., P&G, Merck, AmEx) plus many ambitious Canadian and US weed brands.   Here's what I learned in cannabis. It doesn’t matter how many CPG people you hire, the amount of executive ‘happy talk’ or how much money you throw around.   Great brands will emerge from the creation of a brand development engine that forms the core of how a firm competes. This engine is built on a foundation of strategic clarity, an unwavering focus on channel & consumer needs and the assembling of enabling capabilities such as market research & analytics, innovation, and product line management.   One MSO that is dialed into this advanced thinking is Ayr Wellness.   Ayr’s go-to-market strategy is based on the notion of a ‘flywheel’. This is an understanding that the company is simultaneously seeking to be a retailer of choice and a house of sought-after CPG-like brands. Their operational ‘secret sauce’ includes quickly capturing and leveraging market & consumer learnings, ensuring quality throughout the supply chain and designing the ideal consumer brand portfolio and experience.   This approach seems obvious, but it is not. Many MSOs plan/execute their retail and brand strategies in silos, thereby increasing complexity, hindering learning and challenging cost minimization efforts.   For Ayr’s differing brand and retail strategies to work, they need to support one another and leverage available synergies. For example, Ayr’s CPG brands need strong equity and a unique identity, and not be seen as ‘me too’ house brands. Ayr has rationalized its brand portfolio from 12 single-form factor brands to 2 core brands that cross form factors to ensure that each provides a differentiated value proposition and carries a strong physical and digital presence. When done successfully, brands can become a driver for retail, much like carrying Coca Cola is de rigueur for any grocery chain.   On the other side of the flywheel, Ayr’s strong retail platform gives them the ability to launch/build brand equity through readily available shelf space, a supportive retail service team and direct access to market data. The retail brand is being built to convey clear positioning and resonating pillars and focused on generating customer loyalty.    When fully developed, Ayr’s flywheel could powerfully drive corporate performance, including delivering market-leading brands, service levels and margins. 🔔Hit that follow bell to always get my unique, impactful content #cannabisindustry #MSOS #branding #cannabis #marketing #AyrWellness

30

8 Comments