Alex Luna

Anh Tuan Nguyen

Genelly Ramos
Jessica Ritchie
Mary Kim
Meredith Crawford
Shaan Somaney

The Green
Thumb
Group 11
April 23rd, 2014

Table of Contents
History

and Background
Goals & Mission Statement
Market Research
Phone Interviews
Market Analysis
Promotional Plan
Social Media

The Green Thumb, a local &

recreational marijuana
dispensary based out of
Colorado

Background Information
Rise of Dispensaries and Rewards

136+

growing
dispensaries across
US
A total of $3.5
million dollars was
made in its first
month of legality
Revenue has met
expectations

Colorado

became the
first state to permit
recreational sale to
anyone 21 and older

Police

force across
US shift in focus over
more illicit drugs

Background Information
Issues Behind Legalization

Caused

a decline in
medical marijuana
use
1 ounce purchase
limit at point of sale

Tax

Revenue has
increased
dramatically
15%

excise tax
10% special tax
2.9% sales tax
There is rising
competition with
street dealers
because it is less
expensive

Legislation
Current 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 ounce
Adults 21 and older can buy or grow cannabis plants
The 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

Goals & Mission Statement

High quality cannabis, generally comparable
to medical strains
Have a large selection of strains and edibles
for any consumer
Have a friendly, knowledgeable staff to aid
the diverse ailments of each customer
To advocate aproactive approach to health
management by providing a local, affordable,
and safe environment to dispense recreational
marijuana

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

Market Analysis
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

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 Interviews
We contacted live
dispensaries within the
Colorado area to obtain
realistic statistics to
determine consumer behavior,
competition, & strategy

Primary Data:
Phone Interviews

(consumer behavior, competition, strategy)

1-2

grams
Top Shelf vs. Bottom Shelf Selection
Pre-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 Incentives
Sales on excess strains not selling well.
Online Newsletters, Chat Rooms

Ex. Mile High Medical Center

Secondary Data: Competition

Pros

Cons

Recreational
Marijuana
Dispensaries

Have access for

marijuana without
needing a card

Illegal occurring to
federal law
Higher state taxes

Medical Marijuana
Dispensaries

Government
doesnt closely
regulate their
dispensaries

Need a medical
card
Non-profit
organization

Secondary Data: SWOT

Strengths

Weaknesses

Growing

Market
Attractive
Promotions
Both
Medical and
Recreational
Dispensarie
s
Central
Location

Opportunitie
s

Fresh image
Illegal in
the eyes of Opportuniti
federal
es for new
governmen
products
t
Compliance
Issue
Experiment
al

Threats
Federal
Government
Getting shut
down
Existing
Dispensarie
s
Potential
health issue

Secondary Data: Competition

Product

Development
Product
Differentiation
-Promotions
-The key to long
term success

Secondary Data: Targeting

To the general public who are looking to use for:
Recreational use

The experience
Stress relief
Sense of serenity

Medical issue such as

Appetite loss
Nausea
Chronic pain
Serious illness like cancer

Secondary Data:
Segmentation
Basis of
Segmentation

Segmentation
Variables

Typical
Breakdowns

Types of Use

Medical vs. Recreational

Typical Use: more than 3x a

week
Average Use: 3x a week
Moderate Use: less than 3x a
week

Demographic

The licensed & the un-licensed

California, Colorado, etc.
Dispensaries vs. selling on the
street

Private Selling
Public Selling
Legal limitations

Psychographic

Values
Life style
Needs

Reliability
Sustainability
Not Price Sensitive

Behavioral

Outlet Type
Direct
Product Feature
Usage rate
User status
Awareness/Intentions

Medicinal vs. Recreational

Variety in strains and edibles
Accessibility within states
Legal limitations
Health issues

Secondary Data: Positioning

Quality

product
Fair pricing
Exceptional Customer service
Goal: Gain customer trust and loyalty while to
have long term success

Secondary Data: Product

Marijuana

strains Joints

Size
Exotic
Flavor
Medical
substance
World class
cannabis
Edibles
Spiritual
Cookies
Special interest
Brownies
Popular cannabis Lollipops

Secondary Data: Price

Spiritu Specia
al
l
Strains Interes
t
Strains

Popula World
Exotic
r
Class
Strains
Canna Strains
bis
Strains

Medica
l
Mariju
ana
Strains

Gram

$8

$10

$14

$18

$20

$30

Eights
(3.5g)

$30

$35

$45

$55

$60

$75

Quarter $60
(7g)

$70

$90

$110

$120

$150

Half Oz
(14g)

$90

$105

$135

$165

$180

$225

Ounce
(28g)

$120

$140

$180

$220

$240

$300

Joints

$8

$8

$8

$8

$8

$8

Promotion
Plan

Promotion Plan

Radio Advertising: May 14 16

107X Denver's Rock Alternative Station

3 ads a day

Newspaper

$2,700

Advertising: May 12

Denver Post 254,000 readers

Metropolitan State College 10,000 readers

$2,400
$1,680

BUY ONE GRAM GET ONE GRAM

Buy one gram of marijuana & get the

second of equal or lesser value for free

Green Thumb Marijuana Dispensary

Promotion Plan
Opening Day: May 17, 2014

Concert Ticket Raffle

LOHI Music Festival
2 VIP Tickets

$330

T-Shirt Giveaway
1st 100 customers receive free shirt

$1,600

Promotion Plan
Source

Price

Local Radio

$2,700

Denver Post (Newspaper)

$2,400

Metropolitan State College

(newspaper)

$1,680

Text Messaging Service

$600

Concert Ticket Giveaway

$330

T-Shirt Giveaway

$1,600

Facebook (Business Page)

FREE

Facebook

$20 for

Twitter

FREE

Total

$9,330

Advertising Timing Pattern

Advertising Timing Pattern

Store Promotions & Social

Media

Monthly Text Messaging

1st Year

$600

Facebook
www.facebook.com/greeenthumb

FREE

Twitter
www.twitter/greeenthumb

FREE

Social Media

Social Media

Bibliography
Bloomberg

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.