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

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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”.

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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

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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

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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

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Page

D. Promotion

i. Advertising ------------------------------------ 46

ii. Sales Strategies ------------------------------------ 47

iii. Sales Promotions ------------------------------------ 47

Bibliography --------------------------------------------------- 48

Curriculum Vitae --------------------------------------------------- 49

LIST OF TABLES

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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

LIST OF FIGURES

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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

Chapter I

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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

3,000 and 12,000 liters of water per day. Typically, the supply comes from the

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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.

ii. Historical Background of the Company

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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.

iii. Statement of the Problem

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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?

iv. Statement of Objectives

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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. 

vi. Operational Definition of Terms

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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.

Water purification - is the process of removing undesirable chemicals,

biological contaminants, suspended solids and gases from

contaminated water.

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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.

Chapter II

The Company Study

i. Name of the Company

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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.

iii. Location of Business

The water refilling station is situated in Sangi Road, Lapu-Lapu

City, Cebu.

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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)

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

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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.

v. The Stockholders

Stocks Share Percentage

Queency Mharae Sanchez 50%

Darlene Enderez 25%

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Lindsey Therese Matidios 25%

Stockholders Share of Stocks Chart

Ms. SanchezMs. EnderezMs. Matidios

(Fig. 2.2)

vi. Permits and Licenses to Operate

DTI

Business Permit from the Mayor

Barangay Permit

Sanitary Permits from Municipality or DOH

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(Fig.2.3)

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

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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 refilled containers to customer’s home

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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

Manager

Technical Assistant

Administrative Assistant

Bookkeeper

Delivery Man

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the Bookkeeper can make a summary of cash flows, expenses, sales and etc. which

will then be passed to the manager.

iv. Job Description and 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

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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

Processing sales 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

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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

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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

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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

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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

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(Table 3.1)

Chapter IV

The Financial Requirements

i. The Capitalization Aspects

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

(Table 4.1)

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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)

iii. Estimate of Income and Expenditures for One year and Three Years

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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

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Gross Sales for One Year up to Three Years

First Year of ServiceSecond Year of ServiceThird Year of Service

(Fig. 4.1)

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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)

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First Year Second Year Third Year0

1

2

3

4

5

6

7

8

Gross Sales and Gross Expenses for Three Years

Gross SalesGross Expenses

(Fig. 4.2)

Note: Numbers in the left are in hundred thousand.

Profits for Three Years

1st Year (P260,050.00)2nd Year (P439,600.00)3rd Year (P332,950.00)

(Fig. 4.3)

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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.

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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).

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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.

Purified Water

- 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.

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iv. Brand Name

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(Fig. 5.2)

APWRS stands for Alpha Purified Water Refilling Station. The logo

represents water and nature.

Water is a basic necessity for life. Without water, we humans will never

survive the ever changing occurrences of life.

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

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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.

iii. Price List and Brochure

Alpha Purified Water Refilling 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 .

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(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.

C. Place

i. Location

The water refilling station is situated in Sangi Road, Lapu-Lapu

City, Cebu.

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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)

ii. Channels of Distribution

Here is the list of our sister companies:

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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.

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

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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)

iv. Transportation

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(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.

D. Promotion

i. Advertising

To MBEAB Gate

Old Bridge

Petron

Gaisano Mactan

To Mercado To Pusok / Mepz 1

To MECO

To Tamiya / Mepz 2

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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.

ii. Sales Strategy

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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.

BIBLIOGRAPHY

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Online Sources:

http://www.bplans.com/water_purification_business_plan/

strategy_and_implementation_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/