Are you about starting an air purifier company? If YES, here is a detailed sample air purifier product business plan template & feasibility report you can use for FREE.
Indoor air quality has always been a major problem in the world, with pollutants estimated to be 10 times higher than outdoor air and sometimes as much as 100 times worse than the outdoors. An air purifier is simply explained as device which traps contaminants from the air in a room. With the growing awareness about the effects of contaminated air, the demand for businesses that manufacture or retail air purifiers is booming.
If you decide to venture into this business, have it in mind that your target market is massive. Its better you choose a specific niche which will also help you define your target market. For example, you can decide to sell purifiers to people who need one for their homes due to allergies.
Meanwhile, you can also supplement sales by offering filter replacements to keep generating revenue long after you sell the purifier itself. Always try to keep track of when each customer buys an air filter, and send out a postcard reminding them a month ahead of when it’s time to change the filter. Make it easy for the customer to order new filters by providing your website address if you sell filters online or give your phone numbers.
A Sample Air Purifier Product Business Plan Template
- Industry Overview
According to industry data, the global air purifier market size peaked at USD 7.27 billion in 2018 and is expected to rise at a CAGR of 10.7% from 2019 to 2025. The growing pollution levels coupled with rising disposable income and growing health awareness regarding the harmful effects of air pollution on human health is expected to fuel industry growth.
We all know that air is one of the most important elements of human life. But, rapid urbanization and industrialization coupled with an increase in the number of vehicles have significantly contributed to air pollution around the globe.
Some few years back, air purifier was considered a luxury good. But, due to rising outdoor and indoor pollution levels coupled with growing concerns regarding the health problems associated with air pollution, air purifiers have become a necessity.
Pollen, dust, mold spores, and pet dander can all give allergies to people who are sensitive to them, while volatile organic compounds (VOCs) and smoke particles can pose serious risks to health. That is why air purifiers play a crucial role in removing these contaminants from the air and, in turn, improving air quality.
Reports also have it that the U.S. accounted for the biggest market share of the total market in North America in 2018. Rising disposable income coupled with environmental protection laws, massive industrialization, and growing awareness to reduce pollution is anticipated to have a positive impact on the industry over the next few years.
Even though air purifiers are seen as a necessity in developed countries, they are still considered a luxury good in developing countries such as india.
Note that the overall cost associated with the purchase and maintenance of these products is high, which proves to be a disadvantage for many consumers. The maintenance cost associated with the replacement of filters and other components is also high.
A lot of government and international organizations have set standards and regulations as well as issued guidelines pertaining to the indoor air quality, which are expected to drive the air purifiers industry. Also, several air pollution awareness campaigns undertaken globally by various governments and NGOs are further expected to ginger industry growth within the next 5 years to 2023.
Also note that the demand for air purifiers is expected to grow over the next few years due to increasing health consciousness, rising awareness regarding the harmful effects of air pollution through various campaigns undertaken by the government and non-profit organizations, and the improving standard of living especially in developing countries. Since the industry is price-sensitive, manufacturers often compete on the price factor in order to gain a competitive advantage.
Table of Content
- Air Purifier Product Business Plan – Executive Summary
- Air Purifier Product Business Plan – SWOT Analysis
- Air Purifier Product Business Plan – Market Analysis
- Air Purifier Product Business Plan – Sales and Marketing Plan
- Air Purifier Product Business Plan – Publicity and Advertising strategies
- Air Purifier Product Business Plan – Financial Projection and Costing
- AIR PURIFIER BUSINESS GROWTH: Sustainability and Expansion Strategy
Air Purifier Product Business Plan – Executive Summary
Rennes Huntsville® Air Purifier, Inc. is a start-up company that will specialize in the distribution and marketing of leading brands of air purifiers and other medical therapeutic systems. After establishing a market presence with our various products, we hope to expand to offer other products related to further treatment and management of air quality.
We believe that our target market is currently served poorly and inconsistently by a patchwork of local pharmacies and distributors. That is why we plan to offer a regional, and ultimately national, network of clinical sales professionals, which will make us the partner of choice for large, geographically diverse healthcare facilities and Assisted Living (A.L.) chains, and will make us attractive to potential supplier partners.
We also plan to establish concrete relationships with decision makers at major healthcare chains to gain unique access to sell into their facilities. This will allow us to provide “pre-qualified” sales opportunities to our field-based clinical sales team. We also plan to establish excellent marketing strategies and tactics to position ourselves as leaders in providing modern air purifiers and clinical product solutions to help facilities care and protect mankind.
We at Rennes Huntsville® Air Purifier, Inc. strongly believe that Tulsa, Oklahoma is an ideal location for our business. The Saint Francis Health System alone owns and manages a handful of hospitals with a central location at Saint Francis Hospital in the southern part of the city.
The facility contains 700 doctors and 918 beds, and with more than 7,000 employees. Rennes Huntsville® Air Purifier, Inc. has created and maintained a proven business model that thrives in the healthcare industry, with more than 6 locations successfully operating globally, since 2016.
We believe that our entire Business model is built around the growing need in the healthcare industry for a sustainable and clean environment. We plan to establish and gain distribution relationships with a unique combination of top suppliers to build a comprehensive line of product solutions for managing air pollution and contamination.
We will create an effective channel of distribution that will be indispensable to suppliers as a cost effective way for them to penetrate the post-acute market.
We at Rennes Huntsville® Air Purifier, Inc. also plan to utilize the air purifier and therapeutic system offering as a means to gain entrance into the market and build our organization. Then we will add complimentary products, followed by other products related to our products and target market.
Our owners (Michelle Stuart, Florence Berry and Benjamin Wick) will invest personal savings in the business. We are seeking an additional short-term (2 year) loan, to supplement initial cash flows from sales for the first year. We anticipate a first year net profit. This should grow substantially by year three.
- Our Products and Services
Rennes Huntsville® Air Purifier, Inc. will sell and distribute air purifiers and other therapy systems for use by healthcare facilities and assisted living residences. With no additional charge whatsoever to the facilities, we also provide value-added services like initial consultations, management of all paperwork for order placement, billing and reimbursement, training on the system upon delivery, and management of annual reorder processes.
With time, we also plan to contract with leading suppliers to distribute additional complimentary products for managing and ensuring a clean air for our vast clients.
In addition to the above products, we at Rennes Huntsville® Air Purifier, Inc. will have the ability to source any other medical equipment that is not in our inventory lines. This can be things like X-Ray machines, CT scanners, MRI machines, and other computerized diagnostic equipment.
- Our Vision Statement
Our vision at Rennes Huntsville® Air Purifier, Inc. is to become the recognized leader in the united states for distributing/supplying air purifier health related equipment and medical goods.
- Our Mission Statement
Our mission at Rennes Huntsville® Air Purifier, Inc. is to provide healthcare facilities with product solutions to help manage contaminated air. We take pride in helping to alleviate suffering associated with poor air quality and a polluted environment.
- Our Business Structure
Rennes Huntsville® Air Purifier, Inc. is founded by three individuals with a combined 30+ years of healthcare sales and marketing experience. This start-up company is a division of Medical Outreach, LLC., which is equally owned by Michelle Stuart, Florence Berry and Benjamin Wick. Our three founding management team executives will be our sole employees during the start-up phase until we go live at the beginning of February 2020.
They will not take a salary until the second year, because they will be under a profit sharing agreement. Starting February 1, we will add one sales rep per month starting on the first of each month in February, March, April, May, June, July, and September.
We also plan to continue contracting more representatives in 2021 to reach 18 salespeople by mid-year 2021, and then 26 by mid-year 2022. Our sales team will be contract employees paid straight commission, with no expenses reimbursed or benefits. All our sales team will be recruited from our network of contacts within the arena of healthcare salespeople. We plan to employ qualified and competent hands to occupy the following offices;
- Chief Executive Officer
- Managing Director
- Admin and HR manager
- Marketing and Sales Manager
- Sales representatives
Roles and Responsibilities
Chief Executive Officer
- He will be tasked with providing work direction for the business
- Charged with building, communicating, and implementing the vision, mission, and direction of the business – which also includes leading the achievement and implementation of the all the business strategy.
- Responsible for fixing prices and signing business deals for the business
- In charge of employment
- Tasked with paying workers salary
- Responsible for Signing checks and documents for and on behalf of the business
- Also Evaluates the success of the business
- In charge for managing the daily activities in the company
- Make sure that the facility is in very good shape and conducive enough for customers
- Connects with third – party providers (vendors)
- Tasked with supervising and training new staff members
- Reports to the Chief Executive Officer
- Settle all Customers complains and enquiries
- Any other duty as assigned by the CEO
Admin and HR manager
- Tasked with overseeing the running of HR and administrative tasks for the company
- Monitor office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- State job positions for recruitment and managing interviewing process
- Organize induction for new team members
- Tasked with training, evaluation and assessment of employees
- Tasked with arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Marketing and Sales Manager
- Oversee external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Creates demographic information and analyze the volumes of transactional data generated by customer purchases
- Understand, prioritizes, and reaches out to new partners, and business opportunities et al
- Understand development opportunities; follows up on development leads and contacts
- In charge for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Create, executes and evaluates new plans for expanding increase sales
- Keep all customer contact and information
- Represents the company in strategic meetings
- Aid to increase sales and growth for the business
- Quickly attends to customers in a friendly and professional manner
- Explain all available products services to customers
- Takes care of any other duty as assigned by the Chief Operating officer / managing director
- Make sure the toiletries and supplies don’t run out of stock
- Make sure that both the interior and exterior of the facility are always clean
- Handles any other duty as assigned by the manager.
Air Purifier Product Business Plan – SWOT Analysis
Our objective at Rennes Huntsville® Air Purifier, Inc. is to focus on our target markets that will provide us with the fastest market penetration: the specialty business users, the general business users, and the personal users. We also plan to offer products and service packages that are priced appropriately for each segment and we will offer the services that best suit each segment’s needs.
We have analyzed our business and we are prepared for anything. We employed the services of a renowned Consulting firm to aid with our SWOT Analysis. Outlined below are the results presented to us at Rennes Huntsville® Air Purifier, Inc.:
- We provide a comprehensive line of innovative, top quality products.
- We offer excellent clinical support on a regional (national) level to healthcare facilities.
- We also boast of close relationships with major decision makers in top healthcare chains, and with key administrators and clinicians at the facility level.
- We position ourselves in a clear, powerful, and memorable way in the marketplace.
- We boost of a business structure with a unique spirit that makes people eager to join us or do business with us.
- Market players have been experiencing intense competition in terms of product offering at a competitive price range.
- Business hours are limited for a retail establishment (Monday through Friday 9:00 a.m. to 6:00 p.m.)
The demand for air purifiers is expected to grow over the next few years due to increasing health consciousness, rising awareness regarding the harmful effects of air pollution through various campaigns undertaken by the government and non-profit organizations, and the improving standard of living especially in developing countries.
We at Rennes Huntsville® Air Purifier, Inc. understand that E-commerce retailers provide substitute industry products, sometimes at heavily discounted prices. Products available online through e-commerce retailers are normally more convenient to buy, especially due to improved smartphone technology and next-day delivery services. Hence, as more consumers visit online retailers for their shopping needs, demand for our services might fall.
Air Purifier Product Business Plan – Market Analysis
- Market Trend
According to reports, ambient air quality has been deteriorating within the past decades due to the expanding industrialization and urbanization. Experts believe that this will in turn affect the indoor air quality due to dust, gases, and other contaminants entering the indoor premises owing to which there has been a growing requirement for a clean environment which is expected to grow market growth over the next few years.
The products we supply at Rennes Huntsville® Air Purifier, Inc. are used in numerous industries including HVAC, power plants, and manufacturing among others.
Our air purifiers eliminate weld smoke, asbestos, construction dust, tobacco smoke, and other particles that are harmful to employees, workers and the environment. Reports also have it that the industry is highly fragmented in nature with the presence of a huge number of participants across the value chain.
But, the major market share is being shared by industry giants such as Panasonic Corporation, Unilever PLC, Honeywell International, Inc., and LG Electronics, Inc. We also acknowledge that players in this industry have been witnessing intense competition in terms of product offering at a competitive price range.
Experts expect the global air purifier industry to witness significant rivalry over the next few years. Commercial application segment dominated the market and is expected to grow at a CAGR of 10.5% from 2019 to 2025. Rising number of commercial spaces including offices, hospitals, educational institutes, and recreational facilities among others is expected to have a positive impact on the industry over the forecast period.
Residential application includes small and large scale homes and residential properties. Experts believe this to be one of the fastest growing application segments on account owing to the growing pollution levels and rapid urbanization in developing countries including India, and China. Also, rising health consciousness among consumers globally will ginger up product demand.
- Our Target Market
Geographically, we will focus on facilities located in the Oklahoma and other neighboring states. We plan to leverage our relationships with these chains to get easier and faster access at the facility level for our field clinical sales team. We believe that this would allow us achieve economies in marketing, promotions, and sales costs, and should allow our field sales team to be more efficient in working only with highly qualified facilities.
We will begin by targeting healthcare and A.L. chains with the majority of their facilities located in Tulsa, Osage, Rogers and Wagoner in year one, then we will expand further into Virginia, Louisiana, Mississippi, and Texas in years two and three.
In years three and four we will expand across the country into other regions to create a national presence. Of course, our field reps will also call on non-chain accounts within their territories where opportunities arise, but our strategic focus will be on trying to leverage corporate account relationships to open doors at the facility level for the field reps.
- Our Competitive Advantage
From our extensive research, we believe that our market is currently served inconsistently and, in some areas very inadequately, by a variety of players including pharmacies, healthcare equipment manufacturers, rehab facilities and therapists, and local dealers/distributors who lack a national presence, a clear marketing strategy, and the ability to leverage corporate chain relationships.
We believe that their field sales team mainly functions as order takers, going out and visiting facilities, targeting only residents they believe are covered under Medicare part B or an equivalent private pay coverage, then submitting orders for these residents.
Meanwhile, our own growth will not come entirely from overall market growth, but also from taking market share away from our competitors. We also believe that with our combined 30 years of healthcare industry sales and marketing experience, we have built industry relationships and networks that we will leverage to build our business. Our competitive advantage lies in four major areas:
- Our solid connection with decision makers at homecare chains.
- Our focus to effectively build a strong national clinical sales team.
- Our quest to build a comprehensive long-range marketing strategy and create a compelling therapeutic system program.
- Our secure distribution relationships with a unique combination of leading suppliers by creating a very effective channel of distribution that will make us indispensable.
Air Purifier Product Business Plan – Sales and Marketing Plan
- Marketing and Sales strategy
Our primary market at Rennes Huntsville® Air Purifier, Inc. are residents of healthcare facilities and post-acute care facilities who are covered and considered to be at risk of complications and contamination. For starters, we plan to focus on serving these patients in facilities that are part of healthcare or Assisted Living chains in Oklahoma, USA.
We believe that our success will be dependent on establishing a solid field clinical sales team that can build relationships at the facility level, successfully leveraging of national account relationships, and effectively marketing the value proposition that our air purifier and therapeutic system program can offer to both the resident and the facility.
We also plan to use these system offering as the means to gain entrance into the market and build our organization. Then we will add complimentary products, followed by other products related to managing air pollution. Our key to marketing success will be to effectively manage the building of our brand platform in the market place, which will consist of the following elements:
- Brand Vision – Our vison at Rennes Huntsville® Air Purifier, Inc. is to become the recognized leader in the United States for distributing/supplying air purifiers and health related equipment and medical goods.
- Brand Attributes – Partners, problem solvers, fast on our feet, flexible and easy to work with.
- Brand Essence – It simply illustrates the shared soul of the brand, the spark of which is present in every experience a customer has with our products.
- Brand Image – This is what the outside world feels or sees about our organization.
- Brand Promise – This is the explicit and concise statement of what we do, why we do it, and why customers should do business with us.
- Brand Statement – Our mission statement is: “to provide healthcare facilities with product solutions to help manage contaminated air. We take pride in helping to alleviate suffering associated with poor air quality and a polluted environment.”
Air Purifier Product Business Plan – Publicity and Advertising strategies
Our distribution and supply business will operate under a globally recognized brand, Rennes Huntsville® Air Purifier, Inc.
Our company will provide a robust corporate marketing strategy that revolves around advertising, high quality collateral and local marketing that not only captures attention from healthcare facilities, but will also be bringing people specifically looking for our products to our company. Our other promotional plan is diverse and includes a range of marketing communications:
- Public relations – We plan to issue press releases to both Oklahoma City journals and business publications.
- Trade shows – Our sales representatives will attend and participate in several trade shows.
- Print advertising – Our print advertising program will includes advertisements in magazines.
- Internet – We will establish a presence on the Internet by developing a website. Note that plans are underway to create a professional and effective site that will be interactive and from which sales will be generated worldwide.
- Other – We also plan to leverage other channels including billboards, radio and television commercials, and a street team.
Our Sources of Income
The primary revenue for our business will come from the sale of air purifiers and other therapy systems for use by healthcare facilities.
With no additional charge whatsoever to the facilities, we will also provide value-added services like initial consultations, management of all paperwork for order placement, billing and reimbursement, training on the system upon delivery, and management of annual reorder processes. With time, we also plan to contract with leading suppliers to distribute additional complimentary products.
In addition to the above products, we at Rennes Huntsville® Air Purifier, Inc. will have the ability to source any other medical equipment that is not in our inventory line. This can be major medical equipment pieces such as X-Ray machines, CT scanners, MRI machines, and other computerized diagnostic equipment.
- Sales Forecast
Our sales forecast is based on 11 reps being hired from February 2020 to December 2020. For the first 12 months each rep is in their territory, it is expected they will generate increasing unit volume each month. The rate of increase in unit sales may slow down in later months because more time is devoted to servicing the clients who were sold to earlier in the year, leaving less available time to drive new unit volume.
Units per rep tops out at a max capacity of 50 units per rep per month. Meanwhile, net sales are calculated using the average sales price of $211.32, which is 80% of the total sales which are based on the $264.04 Medicare approved rate. Below are the sales assumptions for Rennes Huntsville® Air Purifier, Inc.:
- Sales increase at 30% in 2020 due to the addition of a commissioned outside sales representative in February 2020
- Sales increase an additional 30% in 2020 due to the continued effect of adding a commissioned outside sales representative all through 2020
- Sales increase an additional 10.0% in 2021 due to the continued effect of adding a commissioned outside sales representative in 2021
- The relationship of equipment sales to total sales continues at its present level of 41%
- We project that the total gross margin remains constant at its three-year average of 40.5%
Our Pricing Strategy
Our sales strategy at Rennes Huntsville® Air Purifier, Inc. will be to call on Healthcare and Assisted Living chains doing business in Oklahoma to educate them on the benefits of an Air Purifier and Therapeutic System program. We plan seek and gain their support in allowing our field clinicians to visit their facilities to meet with residents.
We understand that businesses in our industry make money from the interest and commissions they charge for services and products, so we hope to keep our prices at the average market rate for now, but will increase as our identity in the market increases. Most of our products will sell between $200 and $281 to take advantage of impulse purchasers. Our average sale is around $240, which also includes a professional installation.
- Payment Options
We at Rennes Huntsville® Air Purifier, Inc. will always work hard to create a conducive business platform and payment methods that will suit our diverse clients at different times. We have also partnered with a renowned banking platform to help serve our clients very well and comfortably. We hope to make available the following payment options for our clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment through POS
- payment through PayPal
- Payment via check
- Payment via bank draft
- Payment with cash
Air Purifier Product Business Plan – Financial Projection and Costing
Our start-up requirements are legal fees to draw up employment agreements and various company legal documents, office supplies, business cards and stationery with the new company’s information; this is also intended to cover basic office supplies (pens, paper, calculators, files, etc.); the initial cost to obtain appropriate General Liability Insurance policy on our facility, rent, office equipment, marketing materials and inventory. Our financial projection and costing is more clearly outlined as follows;
- Cost of incorporating the Business – $750.
- Cost for basic insurance policy covers, permits and business license – $10,000
- The cost of acquiring a suitable location in Tulsa, Oklahoma (Re – Construction of the facility inclusive) – $55,000
- The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
- The price of purchasing the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $12, 000
- The Cost of Launching our official Website – $600
- Our budget for paying at least three employees for 6 months plus utility bills – $36,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Our Inventory fund – $2,000,000
- Miscellaneous: $1,000
From our cost analysis above, we will need $182,850 and our $2million inventory fund to start Rennes Huntsville® Air Purifier, Inc..
Generating Funding/Start up Capital for Rennes Huntsville® Air Purifier, Inc.
Rennes Huntsville® Air Purifier, Inc. is founded by three individuals with a combined 30+ years of healthcare sales and marketing experience. This start-up company is a division of Medical Outreach, LLC., which is equally owned by Michelle Stuart, Florence Berry and Benjamin Wick.
Our three founding management team executives will be our sole employees during the start-up phase until we go live at the beginning of February 2020. Capital for start-up costs will be provided out of private funds from Michelle Stuart, Florence Berry and Benjamin Wick. Rennes Huntsville® Air Purifier, Inc. will also seek an SBA Micro-Loan to supplement the private funding provided by the three managing executives.
AIR PURIFIER BUSINESS GROWTH: Sustainability and Expansion Strategy
Revenue growth through customer acquisition and retention is as important a requirement in retail as it is in other aspects of the business. We plan to make our website informational and able to serve as a repository for the organization through password-accessible pages where we will update critical company information.
All Web pages viewable by the public will be designed to be extremely fast and easy to use, and will enhance our brand image as, “a recognized leader in the United States for distributing/supplying air purifiers.” We will also attempt to drive customers and sales reps to use the website as our primary source of communicating company information and any other relevant information on air pollution, the market, reimbursement, etc.
We will explore using Web portals as a means to get corporate office decision makers to drive program compliance. We also plan to develop our website using standard packages and doing the development work in-house. We will target going live with the basic site by early February, then we will enhance the site as we go along.
We at Rennes Huntsville® Air Purifier, Inc. believe that all our products are straightforward and limited in scope (initially), and we will be hiring clinicians with experience in the post-treatment marketplace who are generally familiar with Medicare reimbursement, so we anticipate the ramp-up time to full productivity to be brief (30-60 days). We also plan to provide trainings in the following areas:
- A review of our company strategy, job expectations, and our internal processes for ordering, billing, collecting, commissions, record keeping, etc. (one-half day required)
- Product-related training from the manufacturer (one day required)
- A review of the basics of air contamination, ideally conducted by a qualified environmentalist (one-half to full day required)
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank 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
- Conducting feasibility studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress