No the red dotted lines are just to show you the area where you should keep all your essential design aspects to make sure they will appear on the air freshener, like your text, logo and important part of your photo. If it is not within this area it could get cut off. The outside blue area is the bleed which you want to use if you are printing an image that needs to completely cover the whole air freshener and the shaded line in between is the cut line which will give you an idea where your design will be cut. You can always click on the preview button to see how your design looks.