You must identify the segment of the market you are catering to by including the following factors:
- Age
- Sex
- Education levels
- Economic status
- Sophistication
You are in luck because you can learn from successful conventional and natural beauty brands which have preceded the CBD market.
After you’ve analyzed the cost of production, think about where you want to position your product in the market:
How should I position My CBD product to become more competitive?
You will have to understand the psychology of the consumer. For example, who buys a luxury product? It’s not always the rich. Rather, it’s those who aspire to the lifestyle and to the image.
What about a natural product? Will a consumer who cares about natural ingredients, sustainability, and who is eco-conscious spend more? Probably.
Luxury markets are dominated by baby boomers and Generation Xers, but will you be appealing to them or are you going to be in for the long haul and market to millennials and younger generations?
Understand that luxury and natural products are not mutually exclusive. There are pricey botanicals on the market as well. Sisley, Cle de Peau, among others are well known. Study their marketing techniques.
Will your products be priced economically? Consider that you will have to sell more of them.
You will then have to analyze your targeted consumers’ shopping patterns. The younger they are, the more open they are to purchasing from various venues-online, in store etc. That will affect where your product will be distributed and how you will advertise it.