Ch. 4 Marketing Enviornment

Economic Factors

Shea Butter is conveyed as a global cosmetic company. It is known for its amazing moisturizing components. The business expansion focuses on the use of ingredients. All of the ingredient in everything from soothing and nourishing hair and skin care products to lip balms and exfoliating creams. The benefits of shea butter are in high demand across the globe. The association of shea butter is desperate among the women of Africa who can harvest the nut of the Karite tree, from which shea butter contains. They are among the 1.2 billion people that live in extreme hardship. 

This equals one out of every five people on the planet living on less than a dollar a day. Shea Moisture takes processing in two routes. The raw nuts are sold to Asian oil companies in a mass quantity who extract, refine and sell the oil to Europe. When sent to Europe, this is when they are used for cosmetic purposes. Through contrast shea butter is locally processed, certified organic, looked after and checked for freshness. Afterwards it's then pushed onto the world market by upper level distributors. 

In both scenarios a large markup is added with none of the profits spill down. Money is generated from shea butter production to those in desperately needed. It pays for food, clothing, and child school fees. Fair trade compensation is connected to survival. Overall, their is the women recognization based on its many uses. Throughout the generations shea butter has been proven to be a precious substance. Overall, this is why shea butter is a global multi-million dollar industry. Last year an estimated 150,000 tons were exported with up to 23% of the total exports consumed by cosmetic companies. The women who collect the shea nut as part of their life are not completely lacking wisdom but are unaware of its true market worth. This results in a continued undervaluing of the product.