Free Essay

Market Analysis: Chi Flat Iron for Men

In: Business and Management

Submitted By dsone
Words 1826
Pages 8
Danielle Sone
Mktg 370-03
12-26-13
805950938
Chi Flat Iron for Men
Every morning men and women around the world are graced with the inherent ability of waking up with bed head. Bed head is hair that has been tousled from sleep. It begins from the moment we lay our head down on our pillow, and continues throughout the night as we toss and turn. After a couple hours, the chain reaction begins and a rat’s nest is formed into our hair the second our morning alarm goes off. For most, the solution to bed head is a simple shower. However, not everyone has the time to take showers in the morning. A majority of men and women take their showers the night before. For both sexes, washing your hair the previous night only enhances the likelihood of waking up with severe bed head. Males are often left in the dark when it comes to finding a cure for this morning ritual. Women on the other hand have already figured out a solution to this bed head problem, it is called The Chi Flat Iron. Now it is time for men to realize the benefits this tool can have for them as well.
The Chi Flat Iron is a high-end salon model hair straightener that can turn the most brutal bed head into a work of art. Made in the USA, the Chi brand is designed by Farouk Hair Care Systems, a pioneer in the hair care industry. Farouk prides themselves on their ability to make quality hair care products utilizing some of the best technology available. The Chi Flat Iron is a prime example of one of their lines of hair care products their company currently offers to the hair straightening market. The Chi line was created by Christine Shiraz, a family friend of Farouk Shami, the CEO of Farouk Hair Care Systems. She envisioned a hair straightening tool that not only provided heat at an exceptionally fast rate, but provided heat that was safe for all hair types in order to prevent hair damage. Christine went a step further and created one of the first ever ceramic plated flat irons that utilizes the latest innovative tourmaline ceramic technology to provide even heat distribution by producing an exceptionally high amount of negative ions and far infrared. This Chi Flat Iron reduces static electricity so that you can create the perfect hairstyle every time, rescuing women all over the world from the terrors of bed head.
After using the Chi Flat Iron, your hair is left smooth and silky with an unparalleled shine. The Chi Flat Iron has won countless accolades and beauty awards. They currently have a contract with the Miss Universe pageant as the only hair care product sponsor. Below is a full list of Chi’s 2013 awards: A. American Salon Professionals Choice Awards Favorite Flat Iron: CHI Ceramic Hairstyling Iron B. Behind the Chair Stylist's Choice Award: Favorite Tool Company: CHI C. Behind the Chair Stylist's Choice Award: Most Innovative Tool: CHI Ceramic Hairstyling Iron D. Essence Magazine's Best in Black Beauty Award: CHI Ceramic Hairstyling Iron E. Glamour Romania's Beauty Award: CHI Ceramic Hairstyling Iron F. Jones' Magazine Best in Beauty Award: CHI Ceramic Hairstyling Iron G. Naturally Curly's Best of the Best Award Favorite Styling Tool: CHI Ceramic Hairstyling Iron * NewBeauty's Beauty Choice Award Best Flat Iron: CHI Ceramic Hairstyling Iron * SheKnows.com Editor's Choice Award Best Styling Tool: The Original CHI Ceramic Hairstyling Iron * Teen Vogue Reader's Choice Award Best Hair Tool: CHI Ceramic Hairstyling Iron * Total Beauty Reader's Choice Award Best Flat Iron: CHI Ceramic Hairstyling Iron
The Chi Flat Iron brand prides themselves on their ability evolve faster than their competition. The Chi Flat Iron retails for $120. The top ten competitors for Chi Flat Iron hair straightening market are as follows: 1.) Sedu- $159.99 2.) Solia- $89.99 3.) BaByliss- $129.99 4.) Hai- $79.95 5.) Ghd- $185.00 6.) Theorie- $150.00 7.) Rx-7- $69.99 8.) Hana- $114.98 9.) Corioliss- $99.99 10.) Cloud 9- $129.95
The current target market for Chi Flat Iron consumers are young, fun, and flirty women between the ages of 16-35 who want tamed hair. According to the MRI database, 80% of the consumers who purchased electric beauty products over the last 6 months are predominately female, leaving males with the remaining 20% of electric beauty product market consumption. Chi’s current advertising strategy focuses entirely on young women from all ethnic backgrounds who have long, thick hair and want to be noticed. They utilize mainly print ads for their media class. The media vehicles used are popular women’s style magazines such as Cosmopolitan, Teen Vogue, and Marie Claire to name a few. Chi’s main focus is to get women to buy into the idea that by using the Chi Flat Iron, you too can have amazing, tamed hair like their models.
Chi has yet to include the male demographic into their target segment. This is something the company should consider because males too have a need for the Chi Flat Iron, they also experience bed head.
According to the data collected on the perceptual map (Appendix A), eleven competitors were identified in the hair straightening market, and two attributes were considered: price and hair straightness. Price was measured on a scale from the lowest cost ($69.99) to highest cost ($185) hair straightener. Hair straightness was measured on a scale from 1 to 5, 1= not very straight/tamed and 5=very straight/tamed. The results showed the highest market saturation in the high price, very straight/tamed region in quadrant II. The second highest market saturation was low price, very straight/tamed region in quadrant IV. The unsaturated markets were located in quadrant I and III. Quadrant I only had one competitor in the market with high price, not very straight/tamed hair. Quadrant III had two competitors in the market with low price, not very straight/tamed hair.
The results also showed that the attributes chosen did not directly correlate with one another. High price did not always determine greater hair straightness, some of the lower cost straighteners proved to be better than the higher cost ones and vice versa. The perceptual map showed that the Chi Flat Iron is positioned right along a majority of their competitors in a highly saturated market that seeks to have higher priced straighteners that yield maximum hair straightness. Chi can however consider dropping their prices and pushing a new lower cost Chi Flat Iron into the second highly saturated market they are not part of yet. Chi can develop a new product that is less costly for the consumer yet can still provide a 4 or 5 on the hair straightness scale. This new design could possibly be a mini version of their successful Chi Flat Iron. By joining this new market, Chi would have an opportunity to target the male demographic since males typically have much shorter hair than females, they would not need as large of a straightener, and are less willing to spend over $100 on electric hair care products.
Research conducted was performed using conjoint analysis (Appendix B). The results of this analysis showcased the optimal product design for this new target segment of consumers. Based on our attributed chosen, there were 256 possible combinations. After calculating the minimum number of parameters, 13 different score cards were created. I identified four significant attributes and their accompanying data: Heating Time, Price, Size, and Color. Each attribute was broken down into 4 levels. Heating time had the option of 30, 45, 60, or 75 seconds, price had the option of $49.99, $59.99, $69.99, or $79.99, size had the option of ¼”, ½”, ¾”, or 1”, and color had the option of black, blue, brown, or grey. I surveyed 25 male respondents aged 16 to 35 over a week long period at the Brea Mall in Orange County. Each respondent was given a set of 13 different combination scorecards to fill out and give a preference rating for each product design. Once the 25 surveys were all completed, the data collected from each respondent was inputted into excel. From there the data was transformed by deleting one column from each attribute. The results of this updated data were run under a regression analysis and the results gave us the optimal product design preferred by our target segment: 30 second heat time priced at $59.99 in ½” size and brown color.
This optimal product design was figured out by creating a linear equation of regression: Y= 11.68 +2.01(x1) -3.57(x2)-4.00(x3)-8.13(x4)+4.31(x5)+0(x6)+0(x7)+12.06(x8)+0(x9)-1.79(x10)-12.49(x11)-1.89(x12)+e. This equation was then re-inputted into a stylized output sheet, and the largest positive numbers for each attribute were picked to represent the optimal design as shown below:

You do not need to be a female with long hair to receive the benefits the Chi Flat Iron has to offer. Gone are the days of using nothing but gel and pomade to calm the male bed head. This is where the revolution needs to begin, and this is where I believe the Chi Flat Iron can benefit from a new target market, the male demographic introduced. This new target market gives Chi the opportunity to create a new product that will give them the ability to gain yet another position in a different saturated market, but this time with a product that is meant for a different gender segment than they are normally used to. By targeting males aged 16 to 35, Chi is becoming a pioneer in this new segment. This different market penetration will allow them to gain male consumers, and shake the image that hair straighteners are only meant for women. The conjoint data revealed the optimal product design that this new target segment would be interested in purchasing and as a result the Chi Flat Iron for males should prove to be a pioneer in the male electric beauty product market with success.

Appendix A.) Perceptual Map Competitors | Attribute 1: Price | | Attribute 2: Hair Straightness (1=not very straight/tamed 5=very straight/tamed) | | | 1. Sedu | $159.99 | 5 | 2. Solia | $89.99 | 4 | 3. BaByliss | $129.99 | 3 | 4. Hai | $79.95 | 2 | 5. Ghd | $185.00 | 5 | 6. Theorie | $150.00 | 2 | 7. Rx-7 | $69.99 | 1 | 8. Hana | $114.98 | 4 | 9. Corioliss | $99.99 | 4 | 10. Cloud 9 | $129.95 | 3 | 11. Chi | $120.00 | 5 |

B.) Conjoint Analysis

C.) References http://www.wisegeek.com/what-is-bed-head.htm http://www.chi-christina.com http://www.farouk.com/press/awards http://www.folica.com/shop-by/top-10/flat-irons
http://www.mriplus.com…...

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