How to Find Product-Market Fit: A Case for Getting Started
Changemakers in cannabis industry do a few things to achieve product-market fit. They improve their early-stage product or service to entice consumers. They create a value hypothesis that encompasses a business model that is customer-centric and understands why people love them. Lastly, they scale when they’re ready.
However, the cannabis market faces a unique set of challenges. This article will share strategic insights for start-up founding teams and showcase best practices from our client cases.
What is Product-Market Fit, Really?
The Artrix team has dedicated years to understanding and achieving product-market fit, which simply means recognizing the business value of your product. Another definition of product-market fit that we like is from Eric Ries: “the moment when a startup finally finds a widespread set of customers that resonate with its product.”
Sounds simple, and the companies that have found product-market fit make it look easy. But in reality, the rare confluence of skill and circumstances required for success is often very challenging, even for the best and most experienced founders.
Why the Product-Market-fit Matters More Than Anything
You can liken creating a valuable cannabis business to constructing a stool with three legs: people, markets, and innovative products. Each component is crucial for success, yet Don Valentine stressed the importance of focusing on the market first. He said, “The marketplace comes first because you can’t change that, but you can change the people.” This approach highlights the need to target a big, active market where strong demand can lead to success.
In this vein, Artrix has adeptly harnessed its 3-in-1 service model to ensure an excellent fit within the cannabis market. By providing not only high-quality product hardware but also custom marketing strategies and strong operational support, Artrix enhances its products’ market fit.
This integrated approach is designed to maximize the potential for success in the highly competitive cannabis industry, reflecting a strategic emphasis on the ‘market’ leg of the business stool. Here is some advices:
#1 Find and Work on the Best Products to Find Product-Market Fit
Finding and working with standout cannabis products to achieve product-market fit is essential in the dynamic and competitive cannabis industry. As the market evolves, choosing innovative products that appeal to dedicated customers can greatly speed up a brand’s progress towards product-market fit. This approach is vital as it can change the direction of a brand, especially since top producers and key industry players often follow innovators.
Here are some signals you’ve found the right partner, and some tips for how to work one right products:
Partnerships are crucial
Who are the experts in this space? A good signal of product quality is the background and reputation of the people behind those projects. If they are well-respected experts in space, or have previously built something impressive in the cannabis industry (or tech more broadly), that is a strong sign of quality.
Market traction
Pinpointing products that are consistently celebrated and preferred by consumers, or endorsed within expert circles, is crucial. These products often set industry trends and pull the market in new directions. Early engagement with such influential projects can be hugely advantageous, laying a robust foundation for sustained growth.
#2 Let the “Smartest” Users Influence Product Roadmaps
In the cannabis industry, allowing the “smartest” users to influence product roadmaps can significantly enhance product relevance and market fit. They are not just everyday consumers; they are connoisseurs, medical patients with specific needs, or professionals in the space who recognize quality and innovation and can forecast trends before they become mainstream.
Engaging with these experienced users early in the product development phase is essential. They offer critical insights that help refine product features, capacity, delivery methods, and branding to better satisfy market demands.
For instance, consider Leafly, initially a simple strain catalogue. Through feedback and contributions from informed users, it has expanded to include locations for finding strains and the latest cannabis news, while continuing to offer detailed, visually appealing strain reviews and information.
How to Get There ? One Case for Getting Started
In Michigan’s developed cannabis market, small to medium oil processors are updating their products to attract younger, trendier buyers. Traditional items like pre-rolls and basic vaporizers were common, but lacked the fresh appeal needed to attract new users looking for discreet and stylish vaping options.
For Michigan-based cannabis oil processor
Our client, a mid-sized cannabis oil processor based in Michigan, had traditionally focused on pre-rolls and standard 510 cartridges. While these products had a stable market, the company was struggling to appeal to a younger demographic and expand its market presence beyond its traditional offerings.
The need to penetrate the vaporizer market, particularly with products that could appeal to tech-savvy and health-conscious consumers, was critical to sustaining growth.
Solution: The ArtrixDemo™
In response, Artrix introduced the ArtrixDemo™, the world’s smallest cannabis vape. Marketed as comparable in design ethos to Apple Airpods, the ArtrixDemo™ targets Generation Z consumers, emphasizing its compact size and superior functionality.
Key Features of ArtrixDemo™:
– Dimensions: 817.252.6 mm, ultra-portable and lightweight at only 7.9g.
– Tank Volume: 0.1 mL, ideal for controlled, moderate consumption.
– Activation: Inhalation-activated for ease of use.
– Tank Material: Made from food-grade PCTG, ensuring safety and durability.
– Coil Type: Mesh ceramic coil, known for its superior heating and flavor enhancement.
– Tip Type: Snap-in mouthpiece for secure and easy replacement.
– Customizable Options: Available in various colors, allowing users to personalize their vape experience.
To introduce ArtrixDemo™, Artrix and the client employed a multi-channel marketing strategy:
– Product Innovation: The DEMO’s 0.1ml tank is designed for high-quality oils like live rosin, appealing to those who prefer premium, small-dose products. This new approach addresses the needs for luxury and introduces a new way to consume cannabis.
– Youthful Packaging: Bright, attractive packaging appealed directly to younger users.
– Diverse Situations: Available in gift boxes, travel packs, weekly packs, sharing packs, vending capsules , and more.
“The ArtrixDemo™ was key to our growth. It helped us enter a new market, attracting customers who want discreet and stylish vapes,” said the spokesperson from the Michigan-based cannabis oil processor. “This entry was crucial for driving our company’s second growth phase”.
