Ch. 11 Developing and Managing Products

After reading the chapter the chapter, the most important and final step of marketing in the new product devolpment process is commercialization. As the popularity of Shea Moisture increases, some retailers are using the label Shea Moisture African Black Soap for commercially produced cleansers. Shea Moisture African Black Soap is soft in texture, sometimes crumbly and varies in color from very dark brown to very pale tan. Most have a marbled color combination of these hues. This variation in color is due in part to the natural nature of the soap, roasting times of the cocoa pods, different combinations, levels of natural oils and Shea butter in soap.

The decision to commercialize the product sets several tasks in motion: ordering production materials and equipment, starting production, building inventories, shipping the product to field distribution points, training the sales force, announcing the new product to the trade, and advertising to potential customers. The time from the initial commercialization decision to the product's actual introduction varies. It can range from a few weeks for simple products that use existing equipment to several years for technical products that require custom manufacturing equipment. And the total cost of devolpment and initial introduction can be staggering.  

Ch. 8 Segmenting and Targeting Markets

Marketers segment markets for three important reasons. First, segmentation enables marketers to identify groups of customers with similar needs and to analyze the characteristics and buying behaviors of these groups. Second, segmentation provides marketers with information to help them design marketing mixes specifically matched with characteristics and desires of one or more segments. Third, segmentation is consistent with the marketing concept of satisfying customer wants and needs while meeting the organization's objectives.  

Introducing new products is important to expand growth, increase profits, and attract new and potential consumers. Shea Moisture understands the importance of they decided to expand their business platform. The company went from just selling soap and selling hair styling products to now hair treatments, body wash, aftershave, cosmetics, and more. The introduction of new product lines have not been previously offered allow it enter a new done of segments. This helps companies like Shea Moisture to double the increase of profits. Since Shea Moisture does sell beauty products, it may be a little harder to create things that are sold by thousands of different companies. This is why as a company they stay true to their vision of making natural, cruelty-free beauty products. 

Ch. 10 Product Concepts

In the business world of marketing, products can be classified as either business or consumer on the buyer's intentions. A convenience product is a relatively inexpensive item that merits little shopping effort that is, a customer is unwilling to stop extensively for such an item. A shopping product is usually more expensive than a convenience product and is found in fewer stores. Consumers usually buy a shopping product only after comparing several brands or stores on style, practicality, price and lifestyle compatibility. When consumers search extensively for a particular item and are very reluctant to accept substitutes that item is a speciality product. A product unknown to the potential buyer or a known product that the buyer does not actively seek is referred to as an unsought product.

Shea Moisture's brand overall is a collection of convenience products. The most highly rated product is their coconut and hibiscus curl enhancing smoothie. It is part of the product line, that caters to women who are looking to maintain healthy and beautiful curly hair while avoiding the damage other products that contain chemicals might create. Through the use of product lines, Shea Moisture is able to sell many items at once. A lot of consumers are willing to buy a whole line of products, especially if they've had a good experience with one specific product from that line it will expand their reference. 

Ch. 17 Personal Selling and Sales Management

Completing a sale requires several steps. The sales process is the set of steps a salesperson goes through to sell a particular product or service. You can spend five minutes or a few years on a sale, and there are seven basic steps in the person selling process:

1. generating leads
2. qualifying leads
3. approaching the customer and probing needs
4. developing and proposing solutions
5. handling objections
6. closing the same
7. following up

Building customer relationships is essential for a business' growth. The relationship with the customers sells products in a better way. Shea Moisture is aware of this being part of the company's success in is its ability to build and retain customer loyalty by living up to its promise. They offer desirable products that match needs, while also maintaining customer satisfaction. The main way this interaction is done with customers on social media. Shea Moisture makes it a point in conversing and responding to feedback and comments on social media platforms like Instagram, Facebook and Twitter. 

Shea Moisture expanded their interaction by having it go from web, to interpersonal interaction. They launched pop-up shops in order to sell customer favorites or new products. If you decided to attend one of these events you would be able to speak to representatives of the company. This can help you learn more about certain products or further your knowledge in the company by purchasing or even receiving samples. Interaction amongst customers and the company is important in order to maintain a healthy and successful business relationship. 

Ch. 16 Advertising, Public Relations and Sales Promotion

Advertising, public relations, and sales promotion are all tools that communicate a message to consumers that represent a market. 

The brand of marketing in the beauty industry is very ongoing and developing. It has been proven through the years that people will always pay money to look good or even feel good. 

The beauty industry is constantly pushing products at consumers through advertisements. Shea Moisture for example, has taken this way of doing. Through the use of advertisements the demonstrate their brand and products while maintaing a friendly standpoint on the pros to your health. The advertisements attract customers who want to be healthy and care about the depth of ingredients that go into their hair, skin and nails. The main reason being why they constantly promote their products as organic and natural. 

Sales Promotion consist of all marketing activities, other than personal selling, advertising, and public relations that stimulate purchasing. It can include free samples, contests, premiums, trade shows, vacation giveaways, and coupons. Sales Promotion is important in any aspect of business. It is effected to have good promotion in order to have your product do well. 

Chapter 14. Supply Chain Management and Marketing Channels Retailing

Four of SheaMoisture's main retailers include Target, Walgreen's, Walmart and Ulta. Over the week passed, I've been able to visit all the retailers except for Ulta Beauty. I've noticed in my research that the variety of products varies through store to store. All the retailers have the most common product known from Shea Moisture which is their "Cantu Shea Butter". Target contained the lines of "Coconut & Hibiscus", "African Black Soap", and "Jamaican Castor Oil". Walgreen's had the "Superfruit Complex" and "Raw Shea Butter". It was Walmart that contained the two line of products that I have never saw before. They had the "Manuka Honey & Mafura Oil" and "Mongongo & Hemp Seed Oils".

In the relationship with their retailers, Shea Moisture's is taking a jump on beauty standards.With the launch of SheaMoisture’s #BreakTheWalls campaign they sparked a meaningful conversation and action towards the mind-set in the beauty industry and our society. They are confronting the mental walls that encourage us to force fit ourselves into ‘good hair’ ideals. By questioning the very concept of a normal standard, especially as it applies to beauty and to hair type or texture, we can begin to see how narrow minded and potentially destructive it is. Our forward messages must focus on everyone, embracing everyone and celebrating the beauty.  

While many women are elated by the message this topic is bringing to the African American hair care community, some women argue that having an ethnic aisle makes it easier for them to find the exact products they're looking for, fearing that adding their favorite beauty products to the mainstream aisle may cause them to get lost in the mix of things.Which ever way you look at it, this is a revolutionary moment for African Americans in beauty as Shea Moisture is the only African American beauty company to run a major advertisement on television. 

Chapter 6. Consumer Decision Making

Changing Demographic 

Shea Moisture recently sold a portion of there company to an investment firm Bain Capitol. They were looking to broaden it's customer base outside of it's normal core of African Americans. Bain Capitol is aiming to boost growth by taking a brooder approach by marketing outside of ethnicity. Shea Moisture is trying to capitalize off the growth of more Americans using products that are organic and natural. The switch to marketing to a broader audience has been unsettling for Shea Moisture core base. Customers feels that the company has "sold out" and now this base need is being neglected. Co founder Dennis ensures that he will continue to service his core customer while still engaging a broader audience. 

Demographic Make up

Bain Capitol is a world leading private investment firm. Partners with management teams provide and plan resources for growth. They partner with Dunkin Donuts, Nabisco, and Dow Chemical Company. The statistical descriptions of the characteristics include population, race, age, income, etc. Both companies are looking to capitalize on a growing market. Shea Moisture's core demographic is the African American woman. A growing market means more opportunity for profits. A growing margin means more equable opportunity. Now with their new financial backup, Shea Moisture has begun to change it's strategies. They've recently become producing more products, partnering with major retailers, expanding representation in advertisement, growing availability in social networks, and pop up shops. Now instead of just hair products, they've also began making bath and cosmetic products too. The partnerships with major retailers include Target, Ulta Beauty, Walgreens, and Meijer.