30 May
In the cannabis industry, keeping pace with the market’s dynamic changes is a constant challenge. Turff Analytics, an industry-leading cannabis analytics platform, has developed a groundbreaking solution that simplifies and enhances the process of product segmentation.
A Segmentation Approach Inspired by the Street
Turff Analytics has taken an innovative approach to the standardization problem, using a size segmentation method familiar to the cannabis community. They’ve broken down the product sizes into categories that reflect traditional street denominations of cannabis quantities:
1. Convenience: 0-2 gram eq.
2. Standard: 2-5 gram eq.
3. Large: 6-10 gram eq.
4. X-Large: 10-21 gram eq.
5. Bulk: 21+ gram eq.
This methodology is intuitive and practical and applies to most categories and geographies, embodying the dynamic nature of the cannabis market.
Statistical Segmentation for Clear Definition of Product Tiers
Following size segmentation, Turff applies a statistical approach to assign product tiers such as Value, Mass, Mass Premium, and Ultra-Premium. This level of segmentation offers a more accurate comparison and a clearer market understanding.
A use case presented in the company’s recent presentation – pre-rolls – aptly demonstrates the effectiveness of this methodology. Given the wide range of pack and joint sizes in the pre-roll market, accurate price comparison can be challenging. Turff’s innovative segmentation approach brings clarity to this complexity.
The Value of This Approach
This product segmentation approach is valuable in several ways:
1. **Insightful Analysis:** It aids in dissecting market dynamics and understanding product positioning accurately. This insight can guide businesses in making informed decisions on pricing, product development, and marketing strategies.
2. **Accurate Benchmarking:** With explicit price ranges and product tiers, businesses can benchmark their products against competitors more accurately, identifying gaps and opportunities.
3. **Future Forecasting:** By understanding the current market trends, businesses can predict future movements and plan accordingly.
Empowering Brands and Retailers
Turff Analytics’ product segmentation method provides a wealth of benefits for brands and retailers. It clearly explains how their products are positioned in the market, which can inform their pricing strategy and marketing efforts.
Furthermore, this segmentation helps brands and retailers identify gaps in their product portfolio. For instance, if a brand doesn’t have products in the ‘Mass Premium’ category but has a significant market for that tier, it could consider developing products to fill that gap.
In a rapidly evolving industry like cannabis, accurate, detailed, and dynamic segmentation is essential. By providing this, Turff Analytics empowers brands and retailers to gain a competitive edge and thrive in the market. Stay tuned to see how this revolutionary approach continues to shape the cannabis industry.
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