Market Research on Fragrance Air Spray

Executive Summary:

Our innovative product is an air freshener spray that is designed to provide value by removing odors, killing odor-causing bacteria, detoxifying toxins and repelling insects when sprayed on garbage, all through a combination of natural ingredients and bactericide agents. This will radically improve air quality and reduce health issues, while at the same time leaving a soothing and relaxing scent. The product is differentiated from other competitors as it is designed to sanitize garbage at home and repel insects from being attracted to its stench, instead of only masking odors. Our primary target market is household consumers. Our brand personality is that of housewives and housekeepers who enjoy hygienic homes. Our secondary target market is for business usage in public areas such as malls, restaurants and parks. Our company's strategy is market development, as we are introducing a new product in an existing market. The reasons why consumers would buy our product are because the spray is convenient and easy to use. It is also a green product made of natural ingredients that provides a cleaner environment with its natural long-lasting refreshing scent.

EVIDENCE:

SOURCE #1: OUST CASE STUDY: regaining a competitive edge in the home fragrance market (Data Monitor, 2009)

* This study suggests that nearly 60% of people surveyed about good indoor air quality are either somewhat or extremely concerned by the issue. The survey is shown in table 1.

Table 1: Level of concern about indoor air quality, in 15 countries across Europe, South America and the US, by country, 2008

Note: Adapted from Datamonitor consumer survey, August 2008

* Research has also shown that bad smells causes a negative physical state, while fresh air creates brain activity that is associated with a relaxed and positive environment.

* New economic trends have made people to have more meals at home, so the concern for the air quality at home has also grown.

* The study also shows that people prefer to buy goods made with natural ingredient, to avoid heavy-chemical products that can have potential health side effects. The survey is shown in table 2.

Table 2: Consumer survey: agreement that "products formulated with 100% ingredients are better for me" in countries across Europe, Asia Pacific, South America and the US, 2008.

Note: Adapted from Datamonitor Consumer Survey, August 2008

SOURCE #2: Air Care in Canada (Passport GMID, 2011)

Table 3 Sales of Air Care by Category: Value 2005-2010 in Canada

C$ million 2005 2006 2007 2008 2009 2010

Candle Air Fresheners 12.5 17.8 22.3 22.8 23.3 22.5

Car Air Fresheners 18.1 18.7 19.5 19.1 19.3 19.5

Electric Air Fresheners 88.5 100.7 108.5 111.2 116.1 120.7

Gel Air Fresheners 5.5 5.5 5.6 5.5 5.4 5.3

Liquid Air Fresheners 10.3 9.9 9.6 9.3 9.4 9.7

Spray/Aerosol Air Fresheners 42.9 44.1 48.7 49.6 49.4 48.9

- Concentrated Spray/Aerosol Air Fresheners 4.1 4.1 4.1 4.1 4.1 4.1

- Standard Spray/Aerosol Air Fresheners 38.8 40.0 44.6 45.5 45.3 44.8

Other Air Care 25.8 25.7 25.5 25.1 24.8 24.4

Air Care 203.5 222.4 239.7 242.6 247.7 251.1

Note: Adapted from Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 4 Forecast Sales of Air Care by Category: % Value Growth 2010-2015 in Canada

% constant value growth 2010-15 CAGR 2010/15 TOTAL

Candle Air Fresheners -0.2 -1.1

Car Air Fresheners 0.3 1.4

Electric Air Fresheners 2.2 11.4

Gel Air Fresheners -3.4 -15.8

Liquid Air Fresheners 1.2 5.9

Spray/Aerosol Air Fresheners -0.6 -2.9

- Concentrated Spray/Aerosol Air Fresheners -2.3 -11.0

- Standard Spray/Aerosol Air Fresheners -0.4 -2.2

Other Air Care -2.7 -12.8

Air Care 0.7 3.6

Note: Adapted from Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

SOURCE #3: AIR CARE IN THE US (PassportGMID, 2011)

Table 5 Sales of Air Care by Category: Value 2005-2010 in the US

US$ million 2005 2006 2007 2008 2009 2010