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Feasibility Study (Water Refilling Station)

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A feasibility study / business plan about a water refilling station.

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Feasibility Study (Water Refilling Station)

  1. 1. Alpha Purified Water Refilling Station A Feasibility Study Presented to the Faculty of the ICS Department Of Philippine State College of Aeronautics In Partial Fulfillment of the Requirement for Feasibility Study Of Information Management in Airline Operation 113 Presented By; Queency Mharae Sanchez Darlene Enderez Lindsey Therese Matidios Irish Capul 2014
  2. 2. P a g e | 2 ACKNOWLEDGEMENT The researchers would like to thank first and foremost the Lord God Almighty for His never ending grace; Our teachers for giving us the knowledge and advice to finish this project with ease and also to our loving parents who are always there for financial support and they were the ones who showered us with encouragement in order for us to really do our best on this project. Without these people, this project wouldn’t be successful or possible. That’s why the researchers would like to say, “Thank you and May God Almighty bless us all”.
  3. 3. P a g e | 3 TABLE OF CONTENTS Page Chapter I: Introduction/Background of the Study -------------- 9 i. Rationale of the Study -------------------------------------- 9 ii. Historical Background of the Company ---------------------- 11 iii. Statement of the Problem -------------------------------------- 12 iv. Statement of Objectives -------------------------------------- 13 v. Mission -------------------------------------- 13 vi. Operational Definition of Terms ------------------------------ 14 Chapter II: The Company Study -------------------------------------- 16 i. Name of the Company -------------------------------------- 16 ii. Nature of Business -------------------------------------- 16 iii. Location of Business -------------------------------------- 17 iv. Target Markets -------------------------------------- 18 v. The Stockholders -------------------------------------- 19 vi. Permits and Licenses to Operate ------------------------------ 20
  4. 4. P a g e | 4 Page Chapter III: The Company Organization and Human Resource Management ---------------------- 21 i. The Company Organizational Chart ---------------------- 21 ii. The Human Resource Requirements of the Company ------- 22 iii. The Management Information System Office And Organizational Chart ---------------------- 23 iv. Job Description and Job Specification ---------------------- 24 v. Salary, Benefits, and Incentives ---------------------- 29 Chapter IV: The Financial Requirements ---------------------- 30 i. The Capitalization Aspects ------------------------------ 30 ii. The Company Budget ------------------------------ 31 iii. Estimate of Income and Expenditures for One Year and Three Years ------------------------------ 32
  5. 5. P a g e | 5 Page Chapter V: The Marketing Mix ------------------------------------ 36 A. Nature of the Product i. Variety ------------------------------------ 36 ii. Design ------------------------------------ 37 iii. Quality & Features ------------------------------------ 38 vi. Brand Name ----------------------------------- 39 B. Price and Pricing Scheme of the Product i. Price ----------------------------------- 40 ii. Pricing Strategies ------------------------------------ 40 iii. Price List and Brochures ---------------------------- 41 iv. Payments Scheme and Terms -------------------- 41 C. Place i. Location ------------------------------------ 42 ii. Channels of Distribution ---------------------------- 43 iii. Coverage ------------------------------------ 44 iv. Transportation ------------------------------------ 45
  6. 6. P a g e | 6 Page D. Promotion i. Advertising ------------------------------------ 46 ii. Sales Strategies ------------------------------------ 47 iii. Sales Promotions ------------------------------------ 47 Bibliography --------------------------------------------------- 48 Curriculum Vitae --------------------------------------------------- 49
  7. 7. P a g e | 7 LIST OF TABLES Page Table 3.1 : Salary, Benefits and Incentives -------------------- 29 Table 4.1 : The Capitalization Aspects -------------------- 30 Table 4.2 : The Company Budget -------------------- 31 Table 4.3 : Expenses -------------------- 34
  8. 8. P a g e | 8 LIST OF FIGURES Page Fig. 2.1 : Location of the Business -------------------------------- 17 Fig. 2.2 : Stockholders Shares of Stocks Chart -------------------------------- 19 Fig. 2.3 : Permits and Licenses to Operate -------------------------------- 20 Fig.3.1 : Company Organizational Chart -------------------------------- 21 Fig. 3.2 : The Management Information System Office -------------------- 23 Fig. 4.1 : Gross Sales for One Year up to Three Years ----------------------- 33 Fig. 4.2 : Gross Sales and Gross Expenses for Three Years --------------- 35 Fig. 4.3 : Profits for Three Years -------------------------------- 35 Fig. 5.1 : Design of the Product -------------------------------- 37 Fig. 5.2 : Brand Name -------------------------------- 39 Fig. 5.3 : Price List and Brochure -------------------------------- 41 Fig. 5.4 : Place/Location of the Business -------------------------------- 42 Fig. 5.5 : Coverage -------------------------------- 44 Fig. 5.6 : Transportation -------------------------------- 45
  9. 9. P a g e | 9 Chapter I Introduction / Background of the Study i. Rationale According to the World Health Organization (WHO), about 3.4 million people die annually from water-related diseases. About a million Filipinos get sick with water-borne diseases yearly. And these are diarrhea cases alone. They don’t include other water-borne disease like amoebiasis, cryptosporidiosis and cholera. These problems are accredited to the poor water system in the Philippines. Even in the capital Manila, only about three fourths of the population receives piped water from the municipal authority. Outside Manila far fewer people have access to clean water distribution. In both locations, these families must find alternate water sources if they are to avoid cholera epidemics and other health problems spawned by the foul, contaminated water available in their neighborhoods. In the provinces, the scenario is worse. Some people rely on wells or even on rivers for their supply of water for their daily consumption. Amidst this uncertainty, a solution has appeared in the thousands of water refilling stations that now dot the Philippine landscape. These shops began as privately-run community sources, where consumers would bring containers and fill them for a per-gallon fee that is a small fraction of commercially bottled water’s cost. Demand is high that most stores now offer home delivery for regular customers. Most shops produce between
  10. 10. P a g e | 10 3,000 and 12,000 liters of water per day. Typically, the supply comes from the pipes of municipal concessionaires. Entrepreneurs invest in treatment equipment and further purify their product before sale. Nowadays, bottled water has established a major foothold in the Philippines. With such an intense competition, how do businesses cope up with the pressure? This is what the researches of this study would like to unveil. In the course of this study, the researches aim to discover and compare marketing strategies employed by these water refilling stations. And this study also tackles the safeties of processes used by water refilling stations in the Philippines, specifically on the National Capital Region, on the purified water it sells to its customers. The study focuses on the processes the water refilling stations implements to purify the water from its concessionaires not in the working place of water refilling stations. The group chose to research on this topic since nowadays, as the demand for cleaner water becomes higher, the price of household water purifiers and bottled water has become prohibitive. Water refilling stations managed by private entrepreneurs offer a cheaper and more convenient solution to the public’s drinking water needs than bottled water or the use of household filters. The demand at the water refilling stations - water stores that sell purified water is now increasing. The quality of purified water conforms to the national standards for drinking water and is even better than the quality of water produce by traditional water supply systems in terms of removed impurities.
  11. 11. P a g e | 11 ii. Historical Background of the Company One of the fast expanding businesses in many cities nationwide is the water refilling station. It's mushrooming on every street corner, because a lot of people in urban areas prefer to get their drinking water from these water stations, it's simply clean and safe to drink. Over the years, as the demand for cleaner water becomes higher, the price of household water purifiers and bottled water has become prohibitive. Water refilling stations managed by private entrepreneurs offer a cheaper and more convenient solution to the public's drinking water needs than bottled water or the use of household filters. Alpha Purified Water Refilling Station had just been established last August 2013 and inaugurated its normal operation last December of the same year. This business is owned and personally managed by the Group 5. It was located at Sangi Road, Lapu-Lapu City, Cebu. The vicinity is surrounded by residential and commercial areas. The store is air conditioned to maintain cleanliness and so with the personnel. It also provides parking space for those who are picking up bulk orders. The location of the store is very accessible to the neighbor. The refilling operations start at 7:00 AM and ends at 5:00 PM.
  12. 12. P a g e | 12 iii. Statement of the Problem Here are some questions which aim to support the topic: 1. Where to get the capital for the business? 2. Where to find the location to set-up business? 3. Where to get the permits for the business? 4. Where to get the materials and equipments? And the cost of it? 5. What are the different marketing strategies used for the promotion of the business? 6. What are the qualifications for human resourcing?
  13. 13. P a g e | 13 iv. Statement of Objectives The objectives of Alpha Purified Water Refilling Station are outlined below:  To create a service-based company whose primary goal is to exceed customers' expectations.  The utilization of The Water Station products by at least 10% of the local population.  To increase the number of sellers by 20% each year.  To develop a sustainable home-based business, surviving off of its own cash flow. v. Mission The Alpha Purified Water Refilling Station's mission is to provide customers with the finest quality purified water. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall in to place. Our services will exceed the expectations of our customers.
  14. 14. P a g e | 14 vi. Operational Definitionof Terms Water refill station business - refers to the selling for profit either wholesale or retail of water placed in refillable water containers or in customer’s containers in refilling stations. Water Supply System - infrastructure for the collection, transmission, treatment, storage, and distribution of water for homes, commercial establishments, industry and irrigation, as well as for such public needs as firefighting and street flushing. Of all municipal services, provision of potable water is perhaps the most vital. People depend on water for drinking, cooking, washing, carrying away wastes, and other domestic needs. Water supply system must also meet requirements for public, commercial, and industrial activities. Water quality - refers to chemical, physical, biological, and radiological characteristics of water. It is a measure of the condition of water relative to the requirements of one or more biotic species and or to any human need or purpose.
  15. 15. P a g e | 15 Water purification - is the process of removing undesirable chemicals, biological contaminants, suspended solids and gases from contaminated water. Bottled water - refers to water that is intended for human consumption and that is sealed in bottles or other containers with no added ingredients except that it may optionally contain safe and suitable anti-microbial agents and may optionally contain minerals such as, but not limited to fluorides, chlorides, carbonates and sulfates, including flavoring within limitations established by the bottler's country. Deep well - is an excavation or structure created in the ground by digging, driving, boring, or drilling to access groundwater in underground aquifers.
  16. 16. P a g e | 16 Chapter II The Company Study i. Name of the Company The name of the company is derived from the first letter of the Greek alphabet – Alpha (Αα) – which means “first” or “beginning”. The water refilling station has been named “Alpha Purified Water Refilling Station”. ii. Nature of Business Our business proposal is setting up a water refilling station whereby the station will cater the reproduction of water through selling large and small amounts of volume. The station will provide a combination of 4 varieties of water with excellence in water processing – includes filtration and necessary processes - value pricing, and atmosphere.
  17. 17. P a g e | 17 iii. Locationof Business The water refilling station is situated in Sangi Road, Lapu-Lapu City, Cebu. In Sangi Road, there are few water refilling stations thus giving us competitive advantage as there is no other water refilling stations catering the 4 varieties of water which will be discussed in Chapter 5. (Fig. 2.1)
  18. 18. P a g e | 18 iv. Target Markets Our target customers are everyone in the society. Nevertheless despite the fact that there are also water refilling stations nearby, the researchers intend to target majority of the people as the water offered will be well purified and it will cater 4 varieties of water which will indeed cater people’s needs such as to what type of water they prefer to drink. In addition, the water refilling station – Alpha Purified Water Refilling Station – will be targeting personal contacts as the prospective customers. This is an ideal market segment because a positive relationship already exists with the personal contacts, making the water refilling station’s job of selling the products significantly easier. If this segment will continue to progress, the number of customer count in the refilling station would progress largely. For example, the refilling station originally or has 5 customers in their first day, if those customers will be satisfied with the service and the product, they will spread the news about the firm. Let’s just say “the power of communication”. If they communicate with a large clique of people, that clique will then be curious and would try the refilling station, if they will also be satisfied, the same procedure would then occur. This is being practical.
  19. 19. P a g e | 19 v. The Stockholders Stocks Share Percentage Queency Mharae Sanchez 50% Darlene Enderez 25% Lindsey Therese Matidios 25% (Fig. 2.2) Stockholders Share of Stocks Chart Ms. Sanchez Ms. Enderez Ms. Matidios
  20. 20. P a g e | 20 vi. Permits and Licenses to Operate DTI Business Permit from the Mayor Barangay Permit Sanitary Permits from Municipality or DOH (Fig.2.3)
  21. 21. P a g e | 21 Chapter III The Company Organization and Human Resource Management i. The Company Organizational Chart (Fig. 3.1) Manager Queency Mharae Sanchez Bookkeeper Darlene Enderez Administrative Assistant Lindsey Therese Matidios Delivery Man Person # 2 Front Liner Person # 1 Technical Assistant Irish Capul
  22. 22. P a g e | 22 ii. The Human Resource Requirements of the Company  Manager (Queency Mharae Sanchez) - Overseas store operations at least 4 hours a day  Bookkeeper / Accountant (Darlene Enderez) - Makes financial statement of business operations  Administrative Assistant (Lindsey Therese Matidios) - Logs and handles cash sales and purchases and monitors the business  Technical Assistant (Irish Capul) - Maintains and runs the machine  Front Liner (Person# 1) - Accepts and refills containers of customers  Delivery Man (Person# 2) - Transport refilledcontainers to customer’s home
  23. 23. P a g e | 23 iii. The Management Information System Office and Organizational Chart (Fig. 3.2) The company’s information system includes the Delivery Man and the Technical Assistant since the Delivery Man informs the Administrative Assistant how many customers and who to deliver while the Technical Assistant informs the Administrative Assistant what particular occurrence or damage may happen to the equipments. The Administrative Assistant can directly inform the Manager about the information gathered between the Delivery Man and the Technical Assistant. Since the Administrative Assistant also has the responsibility to handle cash from sales, she can also directly inform the Bookkeeper about the cash whereabouts and the Bookkeeper can make a summary of cash flows, expenses, sales and etc. which will then be passed to the manager. Manager Technical Assistant Administrative Assistant Bookkeeper Delivery Man
  24. 24. P a g e | 24 iv. Job Descriptionand Job Specification Manager Queency Mharae Sanchez  Maintains staff by recruiting, selecting, orienting, and training employees.  Accomplishes staff results by communicating job expectations.  Establishes strategic goals by gathering pertinent business, financial, service, and operations information.  Accomplishes financial objectives by forecasting requirements.  Maintains quality service by enforcing quality and customer service standards.  Maintains professional and technical knowledge by reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.  Contributes to team effort by accomplishing related results as needed.  Approximately 4-6 years of sales experience in the marketing industry.  Experience with a company in a related company sector.  Extensive experience of developing, maintaining and delivering on marketing strategies to meet company objectives.  A strong understanding of customer and market dynamics and requirements.  If applicable, a willingness to travel and work in a global team of professionals.  A proven ability to oversee all marketing, advertising and promotional staff and activities. Job Description Job Specification
  25. 25. P a g e | 25 Bookkeeper Darlene Enderez  Maintaining the financial records of the company using bookkeeping software and online spreadsheets  Maintaining records of subsidiaries  Preparing and processing payroll/s  Reconciling all accounts periodically  Preparing monthly, quarterly, half-yearly, and yearly financial statements  Calculating taxes, collecting bad debts, paying creditors, and analyzing financial statements  Producing accounting reports and income and expenditure statements  Processingsales invoices, receipts and returns  Maintaining a monthly profit and loss statement  Safeguarding and securing all financial records of the company  Trained in QuickBooks accounting package  Relevant Bookkeeping Experience  Knowledge of Microsoft Office & Internet  QuickBooks Accounts experience  Excellent interpersonal skills (e.g.; communication, self- awareness, building trust, questioning & listening, influencing, assertiveness, problem solving, decision making)  Numerate & Literate  Excellent organizational skills  Able to prioritize  Able to work to deadlines  Able to work on own initiative  Discreet  Flexible  Self Motivated  Pro-active Team Worker Job Description Job Specification
  26. 26. P a g e | 26 Administrative Assistant Lindsey Therese Matidios  Maintains workflow by studying methods; implementing cost reductions; and developing reporting procedures.  Creates and revises systems and procedures by analyzing operating practices, recordkeeping system.  Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.  Maintains supplies inventory by checking stock to determine inventory level.  Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; participating in professional societies.  Contributes to team effort by accomplishing related results as needed.  Basic reading, writing, and arithmetic skills required.  Knowledge of Microsoft Office and telephone protocol.  Excellent communication skills both written and oral.  Ability to use initiative to organize and prioritize work and meet deadlines.  Ability to work as part of a team and use own initiative where applicable.  Ability to operate data management and filing systems, and interpret and analyze data.  Ability to initiate and prepare routine correspondence, reports and memos.  Reception skills including effective answering of telephone and face to face contact with the public.  Financial skills with an ability to understand and analyze figures. Job SpecificationJob Description
  27. 27. P a g e | 27 Technical Assistant Irish Capul  Ensure legal compliance of OEA packaging, both suitability for purpose and disposal.  Strive to minimize environmental impact of packaging, operations, and waste management.  Carry out environmental and personnel swabbing and ATP evaluation of hygiene systems.  Evaluating and trialing new machinery for water processing and improving production processes.  A person who can work under pressure.  A person who knows how to operate the water refilling station equipment.  Knows how to repair the equipment in case it’s broken.  Excellent interpersonal skills to provide quality customer service to both internal and external customers.  Ability to interact with different levels of personnel.  Strong organizational and time management skills.  Additional experience may be substituted for lack of formal degree.  Has at least vocational 2 year diploma.  Has a good personality.  Has a good communication towards people.  Knows how to deal with customers.  Efficient at work  Discreet  Flexible  Self Motivated  Pro-active Team Worker Job Description Job Specification
  28. 28. P a g e | 28 Front Liner Person # 1 Delivery Man Person # 2  Knows how to drive a 10- wheeler truck or less.  Knows how to operate water station equipments.  Has valid license  Contributes to team effort by accomplishing related results as needed.   At least high school graduate  Hardworking  Has good personality  Who can work under pressure  Self Motivated  Pro-active Team Worker  A person who can be all around in a water refilling station business (except manager, bookkeeper and administrative assistant)  A person who at least knows how to operate water processing equipment.  Contributes to team effort by accomplishing related results as needed.  At least high school graduate.  Hardworking  Has good personality  Who can work under pressure  Self Motivated  Pro-active Team Worker  Efficient at work  Knows how to deal with customers. Job SpecificationJob Description Job Description Job Specification
  29. 29. P a g e | 29 v. Salary, Benefits and Incentives Salary Benefits Incentives Technical Assistant P250.00/day  SSS  Phil Health  Pag - ibig Fund  13th Month Pay  Overtime Pay and Holiday/Rest Day Pay  Night Shift Differential  Service Incentive Leave  Meal and Rests Period  Holiday/ Christmas Bonus  Mid-Year Bonus  Cost of Living Allowances  Paid Holiday and Vacation Leaves Front Liner P200.00/day Delivery Man P200.00/day Total P16,9000.00/month (Table 3.1)
  30. 30. P a g e | 30 Chapter IV The Financial Requirements i. The Capitalization Aspects (Table 4.1) CAPITAL INVESTMENT 1. Water Refilling Machine P 250,000.00 2. Renovation or New Store at least 20sqm. size 75,000.00 3. Delivery vehicle a) For house delivery b) Small Tank Truck 150,000.00 4. Business permit & other legal docs 10,000.00 5. Initial Supplies / Miscellaneous a) 150 Bottles slim – 18,750.00 b) 50 Bottles round – 7,500.00 c) heat gun – 2,500.00 d) Stickers – 3,000.00 31,750.00 6. Others 8,250.00 Total P 525,000.00
  31. 31. P a g e | 31 ii. The Company Budget The company – Alpha Purified Water Refilling Station – has an initial budget of P700, 000.00 (Seven Hundred Thousand Pesos Only). The table below shows the money allocation for each area concerned. MONEY ALLOCATION 1. Water Refilling Machine P 300,000.00 2. Renovation or New Store at least 20sqm. Size 80,000.00 3. Delivery vehicle 200,000.00 4. Business permit & other legal docs (DTI, Mayor’s permit, Water testing, etc.) 10,000.00 5. Initial Supplies / Miscellaneous a) 150 Bottles slim – 20,000.00 b) 50 Bottles round – 10,000.00 c) heat gun – 10,000.00 d) Stickers – 10,000.00 50,000.00 6. Others 30,000.00 Total P 670,000.00 (Table 4.2)
  32. 32. P a g e | 32 iii. Estimate of Income and Expenditures for One year and Three Years SALES: A. ) First Year of Service a. First 2 Months [January(27 days) – February(24 days)] 60 containers / day x P 15.00 selling price x 51 days = P 45,900.00 Remaining Months (March – December) 262 days 120 containers / day x P 15.00 selling price x 262 days = P 471,600.00 GROSS SALES = P 517,500.00 B. ) Second Year of Service b. (January – December) 313 working days 150 containers / day x P 15.00 selling price x 313 days GROSS SALES = P 704,250.00 C. ) Third Year of Service c. (January – December) 300 working days 125 containers / day x P 15.00 selling price x 310 days GROSS SALES = P 581,250.00
  33. 33. P a g e | 33 (Fig. 4.1) Gross Sales for One Year up to Three Years First Year of Service Second Year of Service Third Year of Service
  34. 34. P a g e | 34 EXPENSES: First Year Second Year Third Year 1. Manpower / Salaries Technical Assistant – P250/day Front Liner – P200/day Deliver Man – P200/day P 203,450 P 203,450 P 195,000 2. Electric Bill 18,000 30,000 24,000 3. Phone Bill 6,000 7,200 4,800 4. Transportation / Gas Allowance 18,000 12,000 12,500 5. Consumables and Others 12,000 12,000 12,000 GROSS EXPENSES P 257,450 P 264,650 P 248,300 (Table 4.3)
  35. 35. P a g e | 35 (Fig. 4.2) Note: Numbers in the left are in hundred thousand. (Fig. 4.3) 0 1 2 3 4 5 6 7 8 First Year Second Year Third Year Gross Sales and Gross Expenses for Three Years Gross Sales Gross Expenses Profits for Three Years 1st Year (P260,050.00) 2nd Year (P439,600.00) 3rd Year (P332,950.00)
  36. 36. P a g e | 36 Chapter V The Marketing Mix A. Nature of the Product i. Variety Alpha Purified Water Refilling Station caters 4 products. These are the following:  Mineral Water  Purified Water  Alkaline Water  Pi Water In addition, each of this type of water has different characteristics. Yes, water has also characteristics. It is said that our immune system works accordingly to what type of water we will intake. The Alpha Purified Water Refilling Station caters all this 4 products to ensure that they will provide whatever type of water their customers would prefer. Also, this will give them the advantage in terms of competition because 1 of this product – which is the “Pi Water” – is not available in its nearby competitors.
  37. 37. P a g e | 37 ii. Design (Fig. 5.1) The design of this product is actually based on its container since water (liquid) has only one face and has an indefinite shape. Alpha Purified Water Refilling Station accepts all kinds of containers such as those commonly used water containers, small / large water bottles and etc. As for the pricing, Alpha Purified Water Refilling Station priced the product according to its volume. (For more details, please refer to our Pricing Scheme on page 40).
  38. 38. P a g e | 38 iii. Quality& Features Mineral Water - Is water from a mineral spring that contains various minerals, such as salts and sulfur compounds. Mineral water may be effervescent (i.e., "sparkling") due to contained gases. PurifiedWater - Is water that is mechanically filtered or processed to be cleaned for consumption. Distilled water and deionized (DI) water have been the most common forms of purified water, but water can also be purified by other processes including reverse osmosis, carbon filtration, microfiltration, ultra filtration, ultraviolet oxidation, or electro dialysis. Alkaline Water - Alkaline water, also known as ionized water, is a beverage that is neither acidic nor neutral on the pH scale, having a level above 7. Pi Water - Is the water that is very similar to your body water (Living Energy). Living energy means “the energy to live.” Pi Water has the same function (energy) that your body water has.
  39. 39. P a g e | 39 iv. Brand Name (Fig. 5.2) APWRS stands for Alpha Purified Water Refilling Station. The logo represents water and nature. Water is a basic necessityfor life. Without water, we humans will never survive the ever changing occurrences of life.
  40. 40. P a g e | 40 B. Price and Pricing Scheme of the Product i. Price Here is the list of products with prices of Alpha Purified Water Refilling Station:  Mineral Water - P 10.00  Purified Water - P 15.00  Alkaline Water - P 20.00  Pi Water - P 150.00 – P 200.00 Pi Water has the highest price since Pi Water is a type of water which is through thorough experimentation to satisfy customers. (For details about Pi Water, please refer to page 38) ii. Price Strategies As for the pricing strategies, like any other firm, Alpha Purified Water Refilling Station, gathered information through surveying 100 people from the area where the firm will be located at. The survey was about the type of water people in the area most likely used in drinking, nearby refilling stations, and the pricing scheme of the nearby refilling stations. Based from the survey, the researchers concluded prices that are not that high so that it can compete with the nearby stations. In addition, the survey also included comments and suggestions so that the outcome of the refilling station will attract more customers and that it can reassure the owners that the customers are satisfied with their service.
  41. 41. P a g e | 41 iii. Price List and Brochure (Fig.5.3) iv. Payments Scheme and Terms Alpha Purified Water Refilling Station accepts payments through BDO, BPI or check, applicable only if the customer orders in bulk such as our sister companies. As for the walk-in customers, APWRS strongly implements “Pay as you Order Policy”. As for our sister company, the stockholders of APWRS and the stockholders of the other party, agreed to have a 5 year contract in the water distribution scheme. Alpha Purified WaterRefilling Station Sangi Road, Lapu-Lapu City Email Address: APWRS@gmail.com We cater 4 types of water which will definitely quench your thirsts.  Mineral Water - P 10.00  Purified Water - P 15.00  Alkaline Water - P 20.00  Pi Water - P 150.00 – P 200.00 Come and be part of our customers and enjoy a refreshing treat for a new lifestyle. Visit us at Sangi Road, Lapu-Lapu City or contact us at APWRS@gmail.com.
  42. 42. P a g e | 42 C. Place i. Location The water refilling station is situated in Sangi Road, Lapu-Lapu City, Cebu. In Sangi Road, there are few water refilling stations thus giving us competitive advantage as there is no other water refilling stations catering the 4 varieties of water which is stated in Chapter 5 (Nature of Product . i) (Fig. 5.4)
  43. 43. P a g e | 43 ii. Channels of Distribution Here is the list of our sister companies:  Aqua Jam Refilling Station , Lapu-Lapu City  Shiloh Water Station, Kagudoy Lapu-Lapu City  Angelo’s Purified Water, Consolacion, Cebu City  MD Wing Refilling Station, Lapu-Lapu City  Aqua Shen Station, Mandaue City  Tomorrow’s Life Water Station, Mandaue City  Thirsty Water Purified Station, Lapu-Lapu City  Sam’s Purification Station, Cebu City Our sister companies do communicate with us for water distribution. Alpha Purified Water Refilling Station acts as their distributor. Our sister companies also distributes water on their selective area of coverage, In result, our sales increase by 30% every year. The minimum distribution of water in volume to our sister companies is approximately 1,000 Liters per month. Due to personal contacts, Alpha Purified Water Refilling Station gradually increases number of sister companies.
  44. 44. P a g e | 44 iii. Coverage This is another map site of the water refilling location. As you can see, there is a circle in the middle of the figure. The circle represents our coverage for water distribution. This includes the, Super Metro, Myshing- Hair and Nail Studio, La Nueva Supermarket, Pajo National High School and other houses located inside the distribution area. Unfortunately, Alpha Purified Water Refilling Station does not cater water distribution (for delivery of per gallon) outside the distribution area. The firm only delivers water outside the distribution area if the order is in bulk (1000 L – 3000 L). (Figure 5.5)
  45. 45. P a g e | 45 iv. Transportation (Fig. 5.6) The figure above is a sketch of the location of the firm; this is for the walk- in customers. As for the home deliveries, the firm owns a small delivery truck that can hold up to 20 containers of water. As for the sister companies, the firm owns a small tank truck that can also hold 1000 L – 3800 L. To MBEAB Gate OldBridge Petron Gaisano Mactan To Mercado To Pusok/ Mepz 1 To MECO To Tamiya/ Mepz 2
  46. 46. P a g e | 46 D. Promotion i. Advertising As for the advertising of the firm, Alpha Purified Water Refilling Station focuses on personal contacts. The people nearby the location of the firm will technically talk about the new company established. Through personal communication, the number of customers will increase annually. But APWRS doesn’t completely depend on personal contacts only. Somehow, the stockholders of the firm came up with an advertising strategy. Since water refilling stations don’t usually have discounts, the company owners come up with the “Buy 10 + 1” water discount. To ensure that the customers bought water that day or so, the customers will be given a card. Every time they buy water, the boxes inside the card will be marked or signed by the front liner or the technical assistant depends on which of the two of them is available. When all of the 10 boxes are fully signed, it is the customer’s choice whether to claim his/her free 1 container of water. After claiming the free item, the box intended for the free item will be marked so that the customer will not use it for another free item. This advertising strategy is only applicable on special occasions declared by the firm. Another idea of advertising is through display advertising, specifically through brochures.
  47. 47. P a g e | 47 ii. Sales Strategy The sales strategy is to concentrate on the segment of the sales advertising, most easily captured by the following sales feature: increase of sales and customers annually. In addition, the fastest way to reach the sales goal for the first several years is by actively working to develop a dealership network specifically, sister companies. Having a large number of sister companies mean increase of sales. At this point, the goal of the firm is to have a large number of sister companies for function. iii. Sales Promotions In order to promote sales is through strategic alliance. The relationship between water service companies (sister companies) and water distributors (APWRS is one) could be called a strategic alliance. These water service companies have an extensive customer base. Most of the customers have needs such as well purified water and some may ask for varied water types however, many water distributors’ customers have needs as well. At present, these water service companies must direct their own needs to the water distributors in order for them to cater their customer’s needs. Forming a relationship between water service companies and water distributors would quickly result in substantial sales increases for the water distributors and would result in increased prestige and profits for the water service companies.
  48. 48. P a g e | 48 BIBLIOGRAPHY Online Sources:  http://www.bplans.com/water_purification_business_plan/strategy_and_im plementation_summary_fc.php  http://en.wikipedia.org/wiki/Alkali  http://www.pi-water.com/new/en_water_DrPi_WhatIsPi.html  http://en.wikipedia.org/wiki/Purified_water  http://en.wikipedia.org/wiki/Mineral_water  http://bizfil.com/starting-a-water-refilling-station-business/  http://www.ehow.com/info_8164329_equipment-used-water-refilling- stations.html  http://businessdiary.com.ph/tag/sample-feasibility-study-for-water-refilling- station/

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