Shea Moisture: Changing Demographic

Changing Demographic

Sundial Shea Moisture

• Shea Moisture recently sold a portion of there company to an investment firm Bain Capitol.• Shea Moisture is looking to broaden its customer base

outside of its normal core base 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.

Article Overview

• The switch to marketing to a broader audience has been unsettling for Shea moisture core base.• Customer feels that the company has “sold out” and now

this base is being neglected. • Co-founder Richelieu Dennis ensures that he will continue

to serve his core customer while still engaging with a broader audience .

Article Overview

• Worlds leading private investment firm• Partners with management teams to provide and plan

resources for equitable growth• Partnerships: Dunkin Donuts, Nabisco, Dow Chemical

Company

Bain Capitol

• Statistical Descriptions of characteristics of a population; race, age, income etc… • Bain capital and Shea moisture are looking to capitalize on

a growing market• Shea moisture core demographics is African American

woman.

Demographics

Female Male <24

25-34

35-44

45-54

55-64 65

+

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Caucas

ian

Hispan

ic

demog

raphic

Has Kid

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No Kids

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$20k-

40k

$40k-

60k

$60k-

80k

$80k-

100k

$100

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$125

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No Colle

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College

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What is Shea Moisture Demographic

Demographics

• Growing company who has become popular among customer who love natural ingredients• Growing market means more opportunity for profits• Growing margin for more equable opportunity

Changing Demographic

• With the financial backup Shea Moisture has begun to change its market strategies:– Producing more products– Partnering with major retailers –Expanding representation in advertisement–Growing its availability in Social networks– Pop-up shops

Cater to the markets

• Cosmetics • Hair

• Bath

Expansion of Products

• Walgreens

• Meijer

• Target

• Ulta Beauty

Major Retail Partnerships

Advertisements

• Many of the core customers (African American) felt as the Shea Moisture would abandoned them with the interest of Bain Capitol• New advertisement confirmed this for most and it prompt a

boycott• To ensure that core customer knew they wouldn’t be

forgotten co founder Richelieu made countless statements about a “ New General Market”–New General Market- no segregation of products based

on cultures, ethnicities and demographics

Major Issue with advertisement

• Twitter–Uses twitter as a way to engage with customer while

keeping up on the latest trends.

• Instagram – Promotes and advertise latest sales and free giveaways

Social Networks

• A relatively new phenomenon where Shea Moisture does a takeover of a specific event which offers its products at discount prices

Pop-up shops

• Shea Moisture core customer felt as though they would become neglected• Shea Moisture has is making changes to ensure no portion

of its demographics have gone neglected• Ever changing products and constant acknowledgement of

all customer its what's making this brand grow.

What does this mean for customers?

• Shea Moisture is adamantly involved in growing communities and economic advancement for woman• Bain Capita share the same commitment and the vision for

growth• Investment in new ways to endure the growth of the New

General Market and better ways to serve the community

Why Bain Capitol?

• Shea Moisture is expanding its consumer base with the help of investments from the private investment firm Bain Capitol• A New General Market opens up opportunities to serve and

expand its demographics• Expansion and growth does not equal exclusion

Summary

• If moving forward with New General Market cause negative affects in core customer sales, how will Shea moisture strategies to cover lost equity?• Will Shea moisture ever remove language on products that

are specific to African American consumers?• What are ways Bain Capitol is ensuring growth?

Questions

• Because of the negative backlash with new advertisement, what are more inclusive ways to advertise products?• Has Shea Moisture seen a drop in sells with the new

marketing strategies?• Does Shea Moisture expect to expand to global markets?

Questions

• Bain capital. (n.d.). Retrieved February 15, 2016, from http://www.baincapital.com/• NG, S., & DEZEMBER, R. (2015, September 2). Bain Capital

to Take Minority Stake in Sundial Brands. Retrieved February 15, 2016, from http://www.wsj.com/articles/bain-capital-to-take-minority-stake-in-sundial-brands-1441197867• Shea Moisture Consumer Data and Demographics |

InfoScout.co. (n.d.). Retrieved February 15, 2016, from http://infoscout.co/brand/shea_moisture/

Sources