It's All in the Package: How Design Impacts Consumer Spending

By Noah Tomares, Senior Research Analyst, New Frontier Data?

Whether it’s a restaurant entrée, a Vrbo rental, or swiping right for a New Year’s Eve date, presentation means everything. The same is true for cannabis retail marketing, where the competition is fierce for sales, and a winning customer experience can be what seals the deal for attracting premium newcomers and fostering customer loyalty.

What makes a consumer choose one brand over another? We know more than half (51%) of consumers cite a product’s advertised effect (i.e., "sleep," "energy," "chill," or "create") as their chief concern when considering a purchase. The potency/THC content and strain name are also notable, but branding goes way beyond information alone. Being able to evoke an appealing response as a customer eyeballs a package is essential for making a crucial first impression.

According to Harvard professor and marketing expert Gerald Zaltman, author of “How Customers Think: Essential Insights into the Mind of the Market”, about 95% of all purchasing decisions are completely subconscious, and about 93% of buyers rely on visual cues when considering new products.

Among cannabis consumers, nearly 2/3 of them tell us either that they always (21%) or sometimes (43%)?seek out their flower among particular brands. Moreover, most (52%) of them report preferring to buy an unfamiliar strain from a favorite brand rather than a preferred strain from an unknown brand.

In attempts to qualify the styles of visual elements which customers find most appealing, and to quantify those consumer segments likeliest to seek out specific brands, New Frontier Data surveyed active cannabis consumers (i.e., those having consumed in the previous year, and planning to again) about six different faux brands imagined in the forms of 1/8th-oz. jars, and asked them to describe and rank their responses. Check out the results:

Black Minimalist Jar: Most preferred by 7% of consumers

• Consumers among all age groups were equally inclined to prefer this jar, which was slightly more favored by men than women. It was described as “cool, modern, and masculine”.
• ?Among Consumer Archetypes, it was most favored by Social Nibblers and Modern Medicinals.
• More than half (53%) of those preferring it reported spending between $50-$199 per transaction,?and being more likely than average (59% versus 47%, respectively) to consume cannabis daily.?

Gold Jar: Most preferred by 9% of consumers

• Ages 55+ were twice as likely than younger consumers to report this as their favorite jar. Consumers described it as “cool, natural, or modern”, and though most found it more feminine than masculine, it was slightly more preferred by men.
• Among our nine described Consumer Archetypes, the Holistic Healers and Infrequent Partakers were those most likely to select it.
• More than 1 in 3 (35%) of those preferring the Gold Jar reported consuming between 3.5 and 14 grams monthly. Similarly, 34% reported spending between $50-$99 per purchase. They were more than twice as likely (5% to 2%) to identify a topical/transdermal as their favorite form of cannabis.

Craft Paper Jar: Most preferred by 14% of consumers

• Consumers using cannabis to enjoy social experiences were slightly more likely (at 20%) than others to choose this jar. Consumers using cannabis for wellness found it less appealing than did others, who described it as “natural, authentic, and cool”.
• Savvy Connoisseurs were the archetype likeliest to prefer it.
• More than 3/5 (61%) among consumers preferring it report spending between $20-$99 per purchase.

Mountain Landscape Jar: Most preferred by 16% of consumers

• Younger consumers headed for the hills almost twice more favorably (by 18% to 11%, respectively) than did those consumers ages 55+. It was deemed “cool, natural, and authentic”.
• Engaged Explorers were the archetype more likely to select this jar.
• Consumers favoring this design were also those likeliest (by 11% to 8%, respectively) to cite vapes as their favorite product form.

Hippie Colorful Jar: Most preferred by 17% of consumers

• Consumers using cannabis strictly for medical reasons were less likely than others to choose the Hippie Colorful Jar, which was described as “cool, authentic, and modern”.
• Legacy Lifestylers were the Consumer Archetype likeliest to select it.
• Nearly 2/3 (64%) of consumers choosing this jar reported spending between $20-$99 per purchase. They were also more likely (27% vs. 22%, respectively) than average to identify edibles as their favorite cannabis form.

?Prescription White Jar: Most preferred by 36% of consumers

• Vanilla wins! Among all of those polled, this was the most popular design overall, appealing to?consumers across all categories (regardless of age, gender, archetype, or reasons for consumption) who described it as “medicinal, authentic, and natural”.
• At 40% approval among each, it was just what the doctor ordered whether for Legacy Lifestyles, Holistic Healers, or Infrequent Partakers archetypes.
• Consumers selecting this jar were likeliest (at 19%) to report consuming more than 1 oz. of cannabis per month, and also the most likely (64% to 60%, respectively) to identify flower as their favorite form of cannabis.

Takeaways:

• The most popular jar was also that most directly related to cannabis for medicinal purposes, featuring the “Rx” abbreviation integrated in the logo with plain black lettering against a white background.
• Brands should closely consider how consumers (per their targeted Consumer Archetypes) view cannabis and its desired roles in their lives before deciding how to package their product.
• Regardless of their respective rankings, each design was described as something which a majority of consumers would reportedly purchase, which seemingly underscores a need for brands to pair a clear intention or compelling message with the packaging aesthetic.
• As consumers become increasingly diverse and delineated in both their motives and methods for consumption, brands should aim to directly articulate how a given product suits a consumer’s goals, rather than settle simply for selling flower.

Retailers looking to adapt to the latest sales trends and purchasing behaviors should consider subscribing to Equio?, our cannabis business intelligence platform, to put the data in context. In addition to our straight point-of-sale data in the Retail Suite, and five dashboards of interactive data widgets included in base subscriptions, we give Equio? subscribers access to extended analysis and expertise on the data displayed — something that our competitors don't necessarily provide to the same extent.

See for yourself: Download a complimentary copy of our Cannabis Consumers in America report. Interested in accessing Part I of the report series??Purchase an Equio subscription?to gain access to New Frontier Data’s?entire?library of Analyst Reports, and our five dashboards of interactive data widgets connecting you to the best-in-class retail, consumer, and market intelligence.