Known as “The Apple Store of Weed,” MedMen has repositioned cannabis to the modern consumer in an environment that’s welcoming and akin to any other shopping experience.

MedMen’s CMO David Dancer discusses the emerging cannabis market, the challenges that come alongside marketing a federally-banned substance, and the opportunity to shift the conversation to a new group of consumers who don’t identify as “stoners,” but rather use cannabis for health, wellness, or enjoyment. Known as “The Apple Store of Weed,” MedMen has repositioned cannabis to the modern consumer in an environment that’s welcoming and akin to any other shopping experience.

The History of Cannabis in the U.S.

Cannabis has a long history in the United States, dating back to when hemp was farmed on George Washington’s Mount Vernon. It was used as an everyday remedy in American households until the Marijuana Tax Act of 1937 was passed. In 1970, the Controlled Substance Act made cannabis a controlled substance and illegal drug.

Twenty years later, the United States started legalizing the cannabis plant for its medicinal benefits. In 2016, California legalized it for both medical and recreational use, consequently creating a vast opportunity for the future of cannabis: a projected 40-billion-dollar industry.

America’s Perception of Cannabis

There is a stereotype attached to cannabis, but what do Americans really think about it today? According to MedMen, 55 percent of consumers claim to be cannabis consumers, and more than 70 percent of consumers want it legalized in some way. Moreover, 70 percent claim that it has significant benefits, positively changes lives, and is a way to treat wellness issues. MedMen identified three universal truths about what people are looking for from cannabis in both medical and recreational use states:

1. People want to get rid of pain.

2. People want to sleep better.

3. People want to live a life free of anxiety and be able to relax and unwind.

MedMen Today

MedMen, a cannabis company with 19 licensed facilities nationwide, saw an opportunity and set out to change the cannabis narrative in the United States, making shopping for cannabis the same as shopping for any other product. The company was founded on the notion that “a world where cannabis is legal and regulated is safer, healthier, and happier,” and MedMen’s mission is “to provide an unparalleled experience that invites the world to discover the remarkable benefits of cannabis.”

MedMen has embraced its red branding color, setting it apart from the category’s staple green. Today MedMen’s footprint is in five states, with a stronghold in California, where there is an economy and desire for cannabis. Over the next several months it will continue opening stores as the sole national cannabis retailer. Once future stores open, MedMen will serve more than 50 percent of the United States population.

MedMen’s Strategy

MedMen’s goal is to grow, manufacture, and produce cannabis in every state it operates in, allowing it to build its own product brand strategy and deliver a consistent product that consumers can purchase at any MedMen store. The retail experience for cannabis is critical, and the brand’s flagship store stands proudly in West Hollywood, presenting a fluid check-in process that leverages technology to scan identification and gather data. Store merchandise is displayed on tables, allowing consumers to browse products. Moreover, sales associates are all trained to share product benefits, and store purchases are packaged in iconic MedMen red bags.

From a marketing perspective, these are traditional strategies: innovation, optimization, and delivery of message to drive growth. The challenge in cannabis, however, is that it is regulated in each state on a county level. Regulations monitor messaging, creative content, and the channels used. To comply with all regulations, MedMen needs a hyper-local marketing strategy that is based on every single retail location. In southern California and Las Vegas particularly, MedMen has a robust out-of-home (OOH) strategy that encourages the cannabis conversation. Out of those that see MedMen’s OOH advertising, more than 30 percent take action. When consumers come into stores, OOH is the No. 2 reason why they’ve heard of MedMen; the No. 1 referral source is word of mouth.

In Los Angeles, where billboard advertising is popular, regulations prevent MedMen from having billboards near schools, residential areas, and churches. Only 20 percent of billboard space is cannabis-compliant, and only 5 percent is compliant and desirable. In the end, MedMen owns only 1 percent of L.A. billboards.

Las Vegas is another big market for MedMen, although regulations prevent MedMen from marketing at the airport, the Strip, hotels, or casinos — key areas where tourists spend their time. Unable to reach consumers through traditional channels, the company is constantly challenged to find new ways to deliver its message. A few years ago, MedMen partnered with a taxi cab company that deployed 150 cabs with MedMen branding, driving passengers to the airport, the Strip, hotels, casinos, and all other Las Vegas venues. This hyper-local tactic was an extremely effective tool that helped MedMen reach consumers in Vegas.

More than 26 percent of consumers claim the No. 1 reason they do not try cannabis is that they do not have enough education. Given the inconsistent information available, no nationwide studies, and consumers living in states where cannabis is illegal, MedMen has placed a huge focus on education. As a part of its content strategy, it recently created a magazine, Ember, with thought-provoking pieces on cannabis, culture, legislation, and a variety of other topics. MedMen cannot advertise on Facebook, Instagram, or Google, so it is enforcing authority and credibility through SEO, driving traffic to areas where consumers can learn about cannabis from MedMen. Although MedMen cannot advertise on social media, it remains active, with Instagram as its most successful platform. Over the past eight months, it has increased its following to 100,000 through organic efforts. It has also boosted its email list by more than 1,000 percent over the past six months.

MedMen is outperforming other high-end retailers. To transform cannabis into the new normal, or “mainstream marijuana,” it has aligned with brands and communities such as Gwyneth Paltrow, Goop, and L.A. Pride. From a media perspective, it is the first cannabis company to be on Sirius XM radio. In the lifestyle sector, MedMen launched its own apparel line. Lastly, MedMen has an owned product strategy: owning cultivation, growing its own plant, and developing its own products. It uses consumer data that it collects to better understand existing customers and how it can serve new targets.

Q&A with David Dancer, CMO at MedMen

Q. What motivated you to take on this job?

A. I think there are three things. I am an athlete, and health and wellness is paramount to the way I live and the way I hope people can live. Cannabis is a way people can do that. Two, I realized when I was going through the interview process that I have a personal connection here. I have been fighting my whole life for advocacy for the LGBT community — for people to open their minds and consider something different. I realized this was the same struggle. Finally, my years of experience in the regulated banking industry, retail, and e-commerce were relevant. I wanted a challenge. It’s about relationship-building, educating, and changing the industry. We’re building an industry that benefits everyone. I am proud and happy to do it.

Q. Have you found it hard to recruit talent into the cannabis industry?

A. When I took this role, the founders said two years ago we wouldn’t have found someone with your background to take a job here. It was too risky, and we couldn’t find people who were interested. I have been very fortunate to bring people along with me in my career. I have several folks who have worked with me in prior places. My team, the marketing team, is about 40 people, and we will be closer to 70 by the end of the year. We are overwhelmed with talent who are interested and now working in cannabis. It has really shifted. One of the things I have underway right now is building a group of cannabis CMOs so we can talk about a lot of these things — working with media, messaging, opportunities, and bringing folks together who are coming from industries and backgrounds similar to mine.

Q. Are you trying to create new cannabis users or are you trying to market to existing cannabis users? Does it matter?

A. We finished an attitude and usage study a few months ago — a 3,000-person sample — and we have defined our target audience. We have two targets. We really are serving primarily cannabis users. Many people have been buying it illegally for years. They now have a place to buy cannabis that’s safe, legal, and discoverable. We found that our primary target really is attracting those who are using cannabis today. That secondary target is that consumer who is interested in it for the health and wellness benefits — they want to live a better life, feel better, get sleep, etc. Our secondary target requires more education.

Q. Are product development and innovation part of the marketing strategy?

A. The product innovation piece is huge. Right now, there is a proliferation of products. The No. 1 selling product in our retail stores is still cannabis flower. The second category, which is growing the fastest, is edibles or concentrates. These users are new to cannabis and want to try it in a way that feels more approachable and easier for them. Product development is huge for us. We’re looking into beverages and skin care, all sorts of products.

Q. There are medicinal benefits to cannabis, and recreational. Recreational may be a bigger growth component. Is there any worry that using med in the brand name would create the image that it’s only for medicinal purposes?

A. We just finished our revised and enhanced brand positioning and we are not changing the name of MedMen or creating any sub-brands around it. We have found that we have an enormous amount of brand equity, especially in Southern California. We hope to earn it in other markets that we serve as well.

We are cognizant of feedback from female purchasers around MedMen. You can see that our state-made product was built for and targets female customers with its packaging and design. We’re doing this in ways to make sure we’re appropriately partnering, messaging, and offering. Our female customer requires a different experience in our stores — they’re looking for topicals, edibles, and bath products.

“Shopping for Cannabis with MedMen.” David Dancer, CMO at MedMen. ANA 2019 Brand Masters Conference, 3/1/19.

Shopping for cannabis with medmen