Do you want to start an air freshener production company? If YES, here is a sample air freshener production business plan template & FREE feasibility report.
If you are convinced that you have a winning formula for producing air fresheners, then you should consider launching your own air freshener production company. This business is still pretty much open for investors to come and compete for the available market.
A Sample Air Freshener Production Company Business Plan Template
1. Industry Overview
Businesses in the air freshener manufacturing industry manufacture household and commercial air fresheners. Industry products include air freshener products, such as gaseous air freshener, liquid air freshener and solid air freshener.
Companies that majorly manufacture aftershave, disinfectants, perfumes and insecticides et al are not part of this industry even though some of air freshener production companies may engage in manufacturing the above listed.
The Air Freshener Manufacturing industry is a thriving sector of the economy of the united states of America and they generate several million dollars annually from more than 200 registered and licensed air freshener manufacturing companies.
The industry is responsible for the employment of several people. Experts project the air freshener manufacturing industry to continue to experience upward growth.
The U.S. air freshener market size was valued at USD 1.62 billion in 2016. The market is anticipated to grow at a CAGR of 3.4 percent over the forecast period owing to rising economic indicators such as disposable income, population growth, and per capita income.
The U.S. is recovering and exhibiting a trend of increasing per capita growth in the last quarter of 2017 after a drastic fall in the period 2015-2016 hitting positive growth trend for the “non-essential” air freshener market.
For example, in 2017, the total number of air freshener cans that have been sold were estimated to be more than 300 million, considering that more than 30 million residents in the U.S. have used 6 cans or more in a year. These figures have shown an excellent positive co-relation with disposable income indexes in this region.
Some of the factors that encourage entrepreneurs to venture into this business is the fact that the market is pretty huge and not seasonal.
That makes it easier for entrepreneurs who are interested in the business to come into the industry at any time they desire; the entry barriers are quite affordable and any serious – minded entrepreneur can comfortably raise the startup capital without collecting loans from the bank.
The Air Freshener Manufacturing industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business as long as you are able to obtain the required license.
2. Executive Summary
Red Ribbon© Air Freshener Production Company, Inc. is a licensed air freshener production company that will be located in Fort Smith – Arkansas.
We have been able to secure a long term lease for a facility in a strategic location with an option of a long term renewal. The facility has government approval for the kind of production business we want to run and the facility is easily accessible.
Red Ribbon© Air Freshener Production Company, Inc. is in the air freshener production industry to produce widely accepted air fresheners and (Aerosol/Spray, Electric Air Fresheners, Gels, Candles, Others). We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our products the opportunity to be part of the success story of our brand.
We are aware that there are several air freshener production companies scattered all around the United States, which is why we spent time and resources to conduct our feasibility studies and market survey.
We ensured that our facility is easy to locate and we have mapped out plans to develop a far – reaching distribution network for wholesalers of air freshener products all around Fort Smith – Arkansas and throughout the United States of America.
Beyond producing quality air fresheners, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they purchase our air fresheners.
Red Ribbon© Air Freshener Production Company, Inc. is family business that will be owned by John Jefferson and his immediate family members. Mr. John Jefferson who is the Chief Executive Officer of the Company is Graduate of Chemical Engineering and he holds a Master’s Degree in Business Management (MBA).
He has a Chemical Handler’s Certificate and he is a Certified Perfume and Air Freshener Manufacturer. He has over 10 years’ experience working in related industry as a senior manager prior to starting Red Ribbon© Air Freshener Production Company, Inc.
3. Our Products and Services
Red Ribbon© Air Freshener Production Company, Inc. is going to run a standard and licensed air freshener production company whose products will not only be sold in Fort Smith – Arkansas but also throughout the United States of America and Canada.
We are in the air freshener production industry to make profits and also to give our customers value for their money. These are some of the products that we will be offering;
- Producing sold air fresheners
- Producing liquid air fresheners
- Producing gaseous air fresheners
- Producing (Aerosol/Spray, Electric Air Fresheners, Gels, Candles, Others)
4. Our Mission and Vision Statement
- Our vision is to establish standard air freshener production company whose products will be not only be sold in Fort Smith – Arkansas, but also throughout the United States of America and Canada.
- Our mission is to establish a standard and world class air freshener production company / brand that in our own capacity will favorably compete with leaders in the industry.
- We want to build a business that will be listed amongst the top 10 air freshener brands in the United States of America.
Our Business Structure
Red Ribbon© Air Freshener Production Company, Inc. is established with the aim of competing favorably with other leading brands in the industry. This is why we will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Plant Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Machine Operators
- Distribution Truck Drivers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization.
- Responsible for overseeing the smooth running of the air freshener production plant
- Part of the team that determines the quantity and quality of air freshener products that are to be produced
- Maps out strategies that will lead to efficiency amongst workers in the plant
- Responsible for training, evaluation and assessment of plant workers
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the plant meets the expected safety and health standard at all times.
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily office and factory activities.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Responsible for the purchase of chemicals and packaging materials
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Sales and Marketing Manager
- Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels/documents for the company
- Distributes mails in the organization
- Handles any other duties as assigned by the line manager
Production Workers/Machine Operators:
- Operates machines such as chemical mixer, vessels, crystalizing machines, burner and conveyor belt system et al.
- Assists in packaging and loading air freshener products into distribution trucks
Distribution Truck Drivers
- Assists in loading and unloading air freshener products
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assists the transport and logistics manager in planning their route according to a delivery schedule.
- Transports finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
- Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
- Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Reports defects, accidents or violations
6. SWOT Analysis
We are quite aware that there are several air freshener product manufacturing companies in the United States of America which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Red Ribbon© Air Freshener Production Company, Inc. employed the services of an expert HR and Business Analyst with bias in startup business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Red Ribbon© Air Freshener Production Company, Inc.;
Part of what is going to count as positives for Red Ribbon© Air Freshener Production Company, Inc. is the vast experience of our management team, we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon.
So also, our closeness to leading perfume related plant farmers and chemical production companies, large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
A major weakness that may count against us is the fact that we are a new air freshener production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like Procter & Gamble and S.C. Johnson & Son Inc. et al are already determining the market direction.
The opportunities available to air freshener products manufacturing companies with a wide range of products are enormous.
This is due to the fact that almost all Americans and make use of air freshener in their house and facilities. As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market and also to create our own new market.
We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power.
Another threat that may likely confront us is the arrival of a new air freshener production company in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
The wide-scale consumer awareness coupled with product modifications are few of the significant trends which are estimated to exhibit healthy growth in this market. Manufacturers are experimenting drastically with fragrances in order to pacify consumer preferences in this market, and this trend is successfully being adopted by consumers in this region.
Essential oil demand for various fragrances is at an all-time high currently, therefore hinting progressive product diversification in this region. So also, the trend of consumers willing to pay a premium price for aesthetic fragrances is encouraging air freshener manufacturers to expand their product portfolio, therefore, prompting growth in revenue in this region.
This market is being driven by consumer’s quest for their homes to smell good. In a recent survey conducted by the Census data and Simmons National Consumer Survey (NHCS), more than 80 percent of the U.S. population uses air freshener products, primarily for residential applications.
Lastly, the air freshener production industry is adopting eco – friendly approach towards the production and packaging of its products. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.
8. Our Target Market
When it comes to selling air freshener, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in our target market locations. We are in business to engage in wholesale distribution and to retail our air freshener to the following groups of people;
- Commercial cleaning companies
- Corporate Executives
- Government Officials
- Business People
- Laundries and Laundromats
- Funeral Homes
- Churches and other Religious Centers
- Car owners
- Everybody in our target market location
Our Competitive Advantage
A quick of the air freshener production industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the competition and we are well prepared to compete favorably with other air freshener production companies in Fort Smith – Arkansas.
Part of what is going to count as competitive advantage for Red Ribbon© Air Freshener Production Company, Inc. is the vast experience of our management team, we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon.
So also, closeness to some of the largest perfume plant and chemical manufacturing plants, our large and far reaching national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Red Ribbon© Air Freshener Production Company, Inc. is established with the aim of maximizing profits in the air freshener production industry in both the United States of America and Canada and we are going to ensure that we do all it takes to sell our air freshener to a wide range of customers.
We will generate income by selling;
- Liquid air fresheners
- Solid air fresheners
- Gaseous air fresheners
- (Aerosol/Spray, Electric Air Fresheners, Gels, Candles, Others)
10. Sales Forecast
One thing is certain when it comes to air freshener production company, if your products are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Fort Smith – Arkansas and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.
We have been able to examine the air freshener production industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projections for Red Ribbon© Air Freshener Production Company, Inc., it is based on the location of our business and other factors as it relates to small scale and medium scale air freshener production company startups in the United States;
- First Fiscal Year (FY1): $320,000
- Second Fiscal Year (FY2): $570,000
- Third Fiscal Year (FY3): $980,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location to start Red Ribbon© Air Freshener Production Company, Inc. and also the kind of air freshener products we produce, we conducted a thorough market survey and feasibility studies.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also for our products to favorable compete with other leading air freshener brands in the United States of America and Canada.
We hired experts who have good understanding of the air freshener production industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Fort Smith – Arkansas.
In summary, Red Ribbon© Air Freshener Production Company, Inc. will adopt the following sales and marketing approach to sell our air freshener;
- Open our air freshener production company with a party so as to capture the attention of residence who are our first targets
- Engage in roadshow in targeted communities from time to time to sell our products
- Advertise our products in community based newspapers, local TV and radio stations
- List our business and products on yellow pages’ ads (local directories)
- Leverage on the internet to promote our air freshener brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Red Ribbon© Air Freshener Production Company, Inc. has a long – term plan of distributing our air freshener in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted first in Fort Smith – Arkansas before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Red Ribbon© Air Freshener Production Company, Inc.;
- Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our air freshener brand
- Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
- Engage in roadshow from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
- Ensure that our products are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.
12. Our Pricing Strategy
We are aware of the pricing trend in the air freshener production industry which is why we have decided to produce various flavors, types and sizes of air fresheners.
In view of that, our prices will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months our products are sold a little bit below the average price in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our air freshener brand.
- Payment Options
The payment policy adopted by Red Ribbon© Air Freshener Production Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Red Ribbon© Air Freshener Production Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for air freshener purchase without any stress on their part.
13. Startup Expenditure (Budget)
Starting a standard air freshener production company is indeed a capital – intensive business. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in purchasing chemical mixer, vessels, crystalizing machines, burner and conveyor belt system, protective gears and a mini lab and good drainage system.
Aside from that, you are expected to purchase distribution trucks, raw materials, pay your employees and utility bills. These are the key areas where we will spend our startup capital;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Red Ribbon© Air Freshener Production Company, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring Business Consultant – $2,500.
- The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $115,000.
- The cost for construction of a standard air freshener production plant – $100,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (chemical mixer, vessels, crystalizing machines, burner and conveyor belt system, protective gears, a mini lab and good drainage system, supply of chemicals, and packaging materials et al) – $80,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase of distribution vans – $60,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- The cost for our opening party – $10,000
- Miscellaneous – $10,000
We would need an estimate of three hundred and fifty thousand dollars ($350,000) to successfully set up our air freshener production plant in Fort Smith – Arkansas.
Generating Funds/Startup Capital for Red Ribbon© Air Freshener Production Company, Inc.
Red Ribbon© Air Freshener Production Company, Inc. is a family business that is owned and financed by John Jefferson and other business partners. They do not intend to welcome any other business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from the Bank
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members 20,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Red Ribbon© Air Freshener Production Company, Inc. is to ensure that we continue to make available a wide range of air fresheners, deliver quality services, improvise on how to do things faster and cheaper.
We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store. We will not waste time in adopting new technology, best practices and diversifying our services.
Red Ribbon© Air Freshener Production Company, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and construction of standard air freshener production plant: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members and friends: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of the Company’s Logo: Completed
- Printing of Packaging and Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with vendors – wholesalers, chemicals production companies, air fresheners suppliers and merchants: In Progress