The Green Thumb

The Green ThumbAlex LunaAnh Tuan NguyenGenelly RamosJessica RitchieMary KimMeredith CrawfordShaan SomaneyGroup 11April 23rd, 20141

Table of Contents History and BackgroundGoals & Mission StatementMarket ResearchPhone InterviewsMarket Analysis Promotional PlanSocial MediaThe Green Thumb, a local & recreational marijuana dispensary based out of Colorado

Background Information136+ growing dispensaries across USA total of $3.5 million dollars was made in its first month of legalityRevenue has met expectationsColorado became the first state to permit recreational sale to anyone 21 and older

Police force across US shift in focus over more illicit drugs

Rise of Dispensaries and RewardsGazette.com, Wikipedia.com, Cnnmoney.com, Businessweek.com, Smallusiness.foxbusiness.com, Drugrehab.us

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Caused a decline in medical marijuana use1 ounce purchase limit at point of sale Tax Revenue has increased dramatically15% excise tax10% special tax2.9% sales tax

Background InformationIssues Behind LegalizationThere is rising competition with street dealers because it is less expensive

Gazette.com, Wikipedia.com, Cnnmoney.com, Businessweek.com, Smallusiness.foxbusiness.com, Drugrehab.us

5LegislationCurrent and past changes to the use of marijuana

Colorado Amendment 64 (2013): Legalized the recreational use of marijuana and allows licensed dispensaries to sell it by the ounceAdults 21 and older can buy or grow cannabis plantsThe number of plants that can be grown at once is limited to six

Amendment 20 (2000):Legalized the use of cannabis in the state constitution for approved patients with medical written consent

Gazette.com, Wikipedia.com, Cnnmoney.com, Businessweek.com, Smallusiness.foxbusiness.com, Drugrehab.us

6Goals & Mission StatementHigh quality cannabis, generally comparable to medical strainsHave a large selection of strains and edibles for any consumerHave a friendly, knowledgeable staff to aid the diverse ailments of each customerTo advocate aproactive approach to health management by providing a local, affordable, and safe environment to dispense recreational marijuana

Market AnalysisDomestically, we werent able to find any market that is growing as quickly.

Researchers estimated that over 1.43 billion worth of legal marijuana will be sold in 2013 with that figure to grow by 64% to 2.34 billion next year, putting the rate of expansion greater than that of smartphones.Market Analysis

Market AnalysisA report predicts that 14 more states will legalize marijuana for recreational adult use in the next five years, creating a potential $10.2 billion cannabis market by 2018.

The Sacramento News and Review saw a big boost in ad revenue when it offered advertising space for more than 60 medical marijuana dispensaries, enabling the publication to hire three additional employees, according to News 10.

Primary Data:Phone InterviewsWe contacted live dispensaries within the Colorado area to obtain realistic statistics to determine consumer behavior, competition, & strategy

Consumer behavior, competition, strategy11Primary Data:Phone Interviews(consumer behavior, competition, strategy)1-2 gramsTop Shelf vs. Bottom Shelf SelectionPre-Rolled Joints ($10)Some people come in every day and spend $5 and other people come in every 3 days and spend $200.Loyalty Programs and IncentivesSales on excess strains not selling well.Online Newsletters, Chat Rooms

Ex. Mile High Medical Center

Secondary Data: Competition ProsConsRecreational Marijuana DispensariesHave access for marijuana without needing a cardIllegal occurring to federal lawHigher state taxesMedical Marijuana Dispensaries Government doesnt closely regulate their dispensaries

Need a medical cardNon-profit organizationhttp://www.kindclinics.com/washington-medical-marijuana-dispensary-market-facing-competition/

14Secondary Data: SWOT StrengthsWeaknessesOpportunitiesThreatsGrowing MarketAttractive PromotionsBoth Medical and Recreational DispensariesCentral Location Illegal in the eyes of federal governmentCompliance IssueExperimental Fresh imageOpportunities for new products Federal GovernmentGetting shut down Existing Dispensaries Potential health issue

Secondary Data: Competition Product DevelopmentProduct Differentiation-Promotions -The key to long term success http://www.recreationalmarijuanamarketing.com/

16Secondary Data: TargetingTo the general public who are looking to use for:Recreational useThe experienceStress reliefSense of serenityMedical issue such as Appetite lossNauseaChronic pain Serious illness like cancer

www.recreationalmarijuanamarketing.com

17Basis of SegmentationSegmentation VariablesTypical BreakdownsTypes of UseMedical vs. Recreational Typical Use: more than 3x a weekAverage Use: 3x a weekModerate Use: less than 3x a week DemographicThe licensed & the un-licensedCalifornia, Colorado, etc.Dispensaries vs. selling on the streetPrivate SellingPublic SellingLegal limitations PsychographicValuesLife styleNeedsReliabilitySustainabilityNot Price SensitiveBehavioralOutlet TypeDirectProduct FeatureUsage rateUser statusAwareness/IntentionsMedicinal vs. RecreationalVariety in strains and ediblesAccessibility within statesLegal limitationsHealth issuesSecondary Data: SegmentationSecondary Data: PositioningQuality productFair pricingExceptional Customer serviceGoal: Gain customer trust and loyalty while to have long term successSecondary Data: ProductMarijuana strainsExoticMedicalWorld class cannabisSpiritualSpecial interestPopular cannabis

JointsSizeFlavorsubstanceEdiblesCookiesBrowniesLollipops

Secondary Data: PriceSpiritual StrainsSpecial InterestStrainsPopular Cannabis StrainsWorld Class StrainsExotic StrainsMedical Marijuana StrainsGram$8$10$14$18$20$30Eights (3.5g)$30$35$45$55$60$75Quarter (7g)$60$70$90$110$120$150Half Oz (14g)$90$105$135$165$180$225Ounce (28g)$120$140$180$220$240$300Joints$8$8$8$8$8$8http://www.mhmcdenver.com/#!rates/cjg9http://typesofmarijuana.net/

21Promotion Plan

Promotion PlanRadio Advertising: May 14 16 107X Denver's Rock Alternative Station3 ads a day $2,700

Newspaper Advertising: May 12Denver Post 254,000 readers$2,400Metropolitan State College 10,000 readers$1,680

BUY ONE GRAM GET ONE GRAM

Buy one gram of marijuana & get the second of equal or lesser value for freeGreen Thumb Marijuana Dispensary

Promotion PlanOpening Day: May 17, 2014Concert Ticket RaffleLOHI Music Festival 2 VIP Tickets $330T-Shirt Giveaway 1st 100 customers receive free shirt$1,600

Promotion PlanSourcePriceLocal Radio$2,700Denver Post (Newspaper)$2,400Metropolitan State College (newspaper)$1,680Text Messaging Service $600Concert Ticket Giveaway$330T-Shirt Giveaway$1,600Facebook (Business Page)FREEFacebook$20 for TwitterFREETotal$9,330Advertising Timing Pattern

Store Promotions & Social MediaMonthly Text Messaging1st Year $600

Facebookwww.facebook.com/greeenthumbFREE

Twitterwww.twitter/greeenthumbFREE

Social Media

Social Media

BibliographyBloomberg Business Week. Bloomberg, n.d. Web. 20 Apr. 2014."CNNMoney."CNNMoney. Cable News Network, n.d. Web. 19 Apr. 2014."The Colorado Springs Gazette."Colorado Springs Gazette. N.p., n.d. Web. 22 Apr. 2014."Comprehensive Marijuana Strain Guide."Types Of Marijuana. N.p., n.d. Web. 22 Apr. 2014."Drug Rehab | Drug Rehabilitation | Choosing the Right Treatment."Drug Rehab. N.p., n.d. Web. 22 Apr. 2014."Marijuana Marketing."Marijuana Marketing. N.p., n.d. Web. 22 Apr. 2014."Mile High Medical & Recreational Cannabis Denver Cannabis Denver."Mile High Medical & Recreational Cannabis Denver Cannabis Denver. N.p., n.d. Web. 22 Apr. 2014."Washington Medical Marijuana Dispensary Market Facing Competition."Kind Clinics. N.p., n.d. Web. 22 Apr. 2014.