The US auto air freshener market was $450 million in 2013 and grew 8% from 2012. Vent clips and sticks grew the fastest at 18% year-over-year, while paper fresheners still have the overall lead. There is confusion over the market leader as several companies claim to dominate different segments. The market has potential for growth as new entrants like P&G and Bath & Body Works expand offerings. Recommendations include emphasizing American manufacturing, pursuing additional store placements, and tying freshener replacement to other car tasks.

1. Category Analysis
Auto Air Fresheners
Martin Jackson

2. 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
+8%
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Auto Air Freshener
Revenue $M
2012 2013

3. 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

4. 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 US
X 12 months
X $1 Average cost for air freshener
$2.9 B Maximum Total Market

5. 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

6. 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

7. 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.

8. 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

9. 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