The Four CBD Cohorts: How to Identify Them, How to Market to Them
Matt Pesce and Rachael Shayne break down branding and marketing for the four primary CBD cohorts they created as a way to help clients better understand targeting and focus for launch and scale.
You’ve heard it countless times: the CBD industry is like the Wild West. That’s not hyperbole. The 2018 Farm Bill was passed less than one year ago, giving the beginnings of order to the industry. According to Brightfield Group, CBD was far less than a $1 billion industry in 2018. Still, it’s expected to grow a scorching 706% this year. That’s 13x faster than the next closest industries. (IBISWorld does not track the CBD industry.) If you’re in the business or thinking about getting in, you knew that part. But, that’s just the beginning: Brightfield is projecting the CBD market to be $23.7 billion by 2023. Product purity, the FDA, branding, and marketing will determine whether you succeed.
To be successful in such a rapidly growing–and changing–environment, it’s essential to understand the evolving consumer landscape. We’ve uncovered the four types of CBD customers: CBD OGs, CBD BOHO, CBD Scientists, and CBD Pop.
CBD OG
The CBD OGs are the original believers in the power of the (hemp) plant. They believe that industrial hemp will improve wellness, counteract climate change, and even heal diseases. This group buys Turmeric, St. John’s Wort, and Fermented Mushroom Extract from the nutraceuticals section of their locally-owned organic food store.
They are hippies. They don’t trust the government or big corporations. In their minds, it’s a travesty of justice that hemp was illegal for so long. And big companies are just greedy, soulless entities that don’t care about people or the planet.
How Brands Win with CBD-OGs
Authenticity: CBD OGs can smell bullshit a mile away, so don’t even try. Authenticity is always vital for brands, but never more so than with the CBD OGs.
Natural: CBD OGs are crunchy. They want products and packaging to be as natural and earth-friendly as possible. No pesticides, no GMOs, organic, local. Even better if the hemp is grown using regenerative agriculture. The extraction method matters to this group. Extraction using hydrocarbons (propane, hexane, butane) is not acceptable. This group is educated on CBD and believes in the power of products made with full-spectrum CBD (vs. distillate or isolate). Formulating products with other nutraceuticals enhances attractiveness and value for CBD OGs.
Transparent: CBD OGs are skeptics. Openness goes a long way. Brands should make COAs (lab results) available for products to earn trust. Tell the story of your products from farm to extraction to production and don’t use overly-manufactured imagery.
Human: CBD OGs want products from family farms (not corporate ones). Human stories matter. Brands should tell stories about farms and farmers in the supply chain. They should tell stories about how they are making a positive difference in the world (for example, by providing their CBD products to particular populations in need).
Branding and Marketing Tips for CBD OGs
Down to Earth Packaging: Packaging should emphasize nature. Don’t look too corporate or too slick as that will be a turn off for CBD OGs.
Local/Small Distribution: CBD OGs prefer to shop at locally-owned stores or online at smaller companies that share their values. Do not try to sell to CBD OGs at gas stations or mainstream grocery stores.
Humble Marketing: As with packaging, don’t try to be too flashy. Graphics should emphasize “real” small farmers (not Big Ag) and “real” people (not models).
The Power of Nature: Formulate products with other natural ingredients with wellness benefits like Tumeric. Full-spectrum CBD oil is viewed as more beneficial than isolate or distillate, as it is a more faithful representation of the plant. All of those terpenes and flavonoids provide the Entourage Effect, magnifying the benefits of CBD.
CBD BOHO
Sweet beards and a love of craft beer are tropes now. Those things have lost their edginess, and the BOHO set needs to be at the forefront.
[BOHO. informal]: socially unconventional in a way regarded as characteristic of creative artists; bohemian.
These men, women, and non-gender conforming people want to be trendsetters with authenticity and soul. They will humble-brag about being fans of a band before they got popular–and then lament how the band has sold out for fame and riches, losing their creative edge.
That brings us to CBD BOHO. They’ve heard relatable social media micro-influencers talk about hemp, the “miracle” plant. CBD BOHO wants to use CBD before it goes fully mainstream. They live to tell the story of how open-minded they are and how CBD has changed their lives.
How Brands Win with CBD BOHO
Hip/Fresh/Vibey: It’s gotta’ be fresh–but not so cool that your brand is popular/mainstream.
Self-Image: It’s not about you, Ms. CBD Brand. It’s about them. Do you make these people feel hip, earthy, and vibey? Do you reinforce the self-image that they crave? If this is your target audience, everything you do should enhance how CBD BOHO wants to view themselves.
Megaphone: If a “hipster” brags about her coolness in the woods and no one is there to hear it, is she really a hipster? Now that you’ve bolstered CBD BOHO's self-image, you’ve got to enable them to jump up on the pedestal and share their stories. Remember: it’s not about you; it’s about them.
Synchronicity: Align your brand with other like-minded lifestyle brands that they already like. Think craft beers using a new/special process or hand-crafted cocktails. Consider the non-alcoholic movement, pet products, and even houseplants as brand activations.
Branding and Marketing Tips for CBD BOHO
Social Media: There are two parts to this. First, find the right micro-influencers to connect you to CBD BOHO. Second, make everything you do #socialmediafriendly. Help your IG-ready customers get up on their digital/book club/plant swap podium and tell their friends how fire they are (by sharing your just discovered CBD BOHO brand, products, and marketing).
Edgy Graphics: Unlike CBD OGs, packaging and website graphics should be well designed and cool. Highlight the hipster lifestyle.
Hold Up a Mirror: Your marketing should show images of the hipsters your target market dreams of being. Cool fashion, beards, and tats. Be sure to speak their language. Use that woke slang, bro. Throw in some ironic humor.
Co-branding: Partner with a craft cocktail bar like Death & Company for CBD-infused drinks. Sponsor a local music venue that features cool bands.
CBD SCIENTIST
CBD Scientists are looking to emerging research to give them an edge over traditional, mainstream means of maximizing health and wellness. They have moved past the basic tenets of wellness. Exercise, eat veggies, and get regular checkups with your doctor? Don’t waste their time. That’s for newbies.
CBD Scientists share a desire for evidence that CBD will help them achieve their particular goals. This is inclusive of both quantitative and qualitative data (e.g., numbers and true testimonials). Understand which sub-group(s) you’re targeting and what drives their active and healthy lifestyles so that you can tailor your brand to appeal to those individuals. Here are the main reasons CBD Scientists turn to CBD:
Optimize Overall Wellness: CBD has been shown to be a neuroprotectant. Chronic inflammation has been shown to be a contributing factor–if not the root cause–of some cancers. CBD is an anti-inflammatory, so the inference is that CBD may help. There needs to be a lot more research here, and there will be. For now, understand the active subreddit type conversations people are having that go beyond the hype.
Solve a Problem: Many people seek CBD to solve a specific problem they are facing with their health and wellness. Examples include: insomnia, anxiety, depression, inflammation (e.g., an alternative to ibuprofen), headaches/migraines. More uses seem to be uncovered weekly.
Treat a Medical Condition: We all know the FDA has approved CBD in the form of Epidiolex for the treatment of seizures associated with two rare and severe forms of epilepsy. Many who suffer from other diseases and medical conditions believe that CBD provides relief. Examples include: autism, substance abuse, cancer, diabetes, heart disease (high blood pressure, stroke). Again, more applications are frequently emerging.
Improve Athletic Performance: CBD could be used as a workout recovery supplement. Many use it to deal with exercise-induced aches and pains and to speed rehab from injury. That’s what turned pro football rockstar Rob Gronkowski into a CBD evangelist.
How Brands Win with CBD Scientists
Provide Evidence: Whenever possible, reference research that has been done. Augment it with anecdotal evidence from trusted thought leaders and fellow community members.
Leverage Communities: CBD Scientists are very passionate about the area of health and wellness that is of importance to them. Communities are a trusted source for advice. Engage those communities with an authentic, service-first mentality. This isn’t simply a digital strategy, go to the events and races your CBD Scientists go to.
Don’t Sell the Product, Sell the Results: While you cannot make medical/therapeutic claims (see below), you can show images of the life that users could be living. For example, you could show an active grandma taking her grandkids to the park, living her best life.
Branding and Marketing Tips for CBD Scientists
Know the Regs: First and foremost, do not make medical claims. Bad things could happen.
Science and Art: Your marketing and packaging should convey trustworthiness and a science-based approach. This is not the audience for fancy fonts and stylized graphics. Go beyond CBD basics and think of alternative delivery methods as well, in the form of product innovation.
Show Your Target Audience: CBD Scientists vary widely, from weightlifters and triathletes to the aging-in-place. Make sure that your marketing reflects the audience you are trying to reach.
Magnify Impact: Develop products with other ingredients that appeal to CBD Scientists. If, for example, you’re touting the anti-inflammatory benefits of CBD, consider adding turmeric, another anti-inflammatory supplement.
CBD POP
CBD is going super mainstream! The movement is underway, as evidenced by CBD products being carried by national retailers like Urban Outfitters, Ulta Beauty, Sephora, Walgreens, CVS and Dick’s Sporting Goods. Demographics and psychographics of CBD customers obviously vary by retail outlet. In general, CBD Pop wants a stylish, modern brand. Trust is earned primarily through branding vs. through science/research. To win distribution at retailers frequented by CBD Pop customers, brands must be able to ensure quality and consistency and demonstrate that they can meet demand should sales take off.
How Brands Win with CBD Pop
Invest: You can’t half-ass your way with CBD Pop or the distributors that serve them. Even if you’re a small company, you’ve got to look big in all aspects of brand and marketing. Remember: you earn CBD Pop’s trust through your brand.
Embrace Pop Culture: Understand the subset of CBD Pop customers you are targeting and embrace their scene, their style, their music, their design aesthetic.
Go Where the Fish Are: Baby Boomers don’t hang out at the same places (online or IRL) as Millenials. Meet your target audience where they already are.
Branding and Marketing Tips for CBD Pop
Quality and Design: Your brand is what makes you trustworthy and trial-worthy to CBD Pop and to distributors. Make sure your design, packaging, and website are top-notch with a wink of fun.
Social Media: According to GlobalWebIndex, average daily social media usage is over two hours in North America and over three hours in Latin America. Have a strong social presence. Make sure your marketing is appealing enough to share and then make it easy to do so. Consider advertising on social media.
Correction: The RIGHT Social Media. Want to reach Baby Boomers? Go with YouTube and Facebook, but you don’t need to dive into Instagram. Millennials and Gen Z, on the other hand, are comparatively more likely to use and engage on Instagram. One common trait is that all generations prefer visual content, so be sure to have lots of appealing images.
Influencers: More influencers are showing a willingness to endorse CBD. Celebrities, including Kim Kardashian and Jennifer Aniston, have jumped on the bandwagon. Leverage influencers to promote your brand or create a white label product for a specific influencer.
Yum! CBD Pop doesn’t want to choke down foul-tasting products or have the stink of CBD on their skin. Make it yummy, gender-neutral, and accessible. Think sweet gummies, tasty beverages with IG-friendly packaging, and citrus topicals.
