Category AnalysisAuto Air Fresheners

Martin Jackson

Current Market

• Car Air Freshener total US market was $450M in 2013– Grew ~8% from 2012– Fastest Growing type is vent clips

and sticks +18% YOY– Paper fresheners still hold the

overall lead

Auto Air Freshener Revenue $M

$-

$50 $100 $150 $200 $250

$300 $350 $400 $450 $500

+8%

2012 2013

Current Market Share

• Confusion over market leader– Car-Freshner claims “Global

Leader in automotive air fresheners”

– Handstands claims “the #1 NPD market share producer in the USA”

– Kline Group lists P&G as the leading marketer in the category

– Auto Expressions claims “dominates the Air Freshener Market across US and Canada with approx 43% market share”

• Very diverse channels but ~75% is focused on a few retailers

Potential Market

• A lot of potential for growth

• Market facing new entrants seeking to pick up share– P&G bringing the $1B

brand febreeze into the category

– Bath and Body Works and Yankee Candle offerings for auto scents in their mall stores as well as expanding them into other large retailers

$450 M Category Revenue÷ 244 M Vehicles registered in US

$1.84 Spent per Vehicle

244 M Vehicles registered in USX 12 monthsX $1 Average cost for air freshener

$2.9 B Maximum Total Market

What is right?• Targeting 3 distinct target

markets with 3 brands• 28 patents for air care

products protects design • Wide distribution• Product designs project

lifestyle and image for consumer

• Kline Group claims they are the fastest growing

What is wrong• Profitability issues based on

cash infusion May 2013• Product lines outside the

category results in less focus• Foreign manufacture

increases risk for supply chain

What is right?• $1B Brand name established

in home care section• Heavy marketing funding

available through P&G• Enhanced access to areas of

store• Television and print

advertising reaching customers in new ways and may increase the market

What is wrong• P&G requires fast growth or will

kill product line• Current advertising targets same

market as home lines, ignores much of the rest of the market

• Focused on vent clips in car category and extending spray from home line

• Home brand advantage not as strong in auto stores and other channels

What is right?• Multiple product categories in

automotive give more leverage with channel

• Participation in all segments of car air freshening category

• Assorted with home air care at mass retailers/grocery as well as in automotive

• Multiple brands allow larger ownership of shelf space

• Unique in category Odor elimination product Ozium

What is wrong?• Licensed Glade brand increases

cost• Foreign manufacturing

increases supply chain risk• Ownership by diverse equity

firm confuses strategy• Likely limited focus on

innovation • Multiple brands do not have

separate target markets or value propositions.

What is right?• Primarily serves the car

freshener market allowing focus and flexibility

• Has almost 60 scents available• Iconic design in the little trees

line with strong trademark history

• Manufactures and distributes own line providing flexibility

• Made locally in US and in Europe

What is Wrong?• Power of brand mostly in

Paper category which is losing share of market

• Younger consumers tie to parents

• Single category limits leverage with channel partners

Recommendations

• Emphasize made in America on the packaging– Move from back of package to the front

• Pursue additional facings in other areas of the store– Clipstrip/side counter/kicker display in home fragrance– Seasonal displays with Christmas and garden departments

• Prompt consumers to replace regularly by tying to other car care tasks like oil change– Check your tree when you refill your gas

• Continue expanding into new delivery vehicles, scents and finishes to tie to consumer lifestyle