Aqualife Water Refilling Station Half

Aqualife Purified Water Refilling Station

A Feasibility Study Presented to the Faculty of Business Management

In Partial Fulfillment of the Requirement for Feasibility Study Of Business Management

Presented By; Garyldine Nery

2015

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Legal Page Confidentiality Agreement The undersigned reader acknowledges that the information provided by _______________ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _______________. Upon request, this document is to be immediately returned to _______________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date

ACKNOWLEDGEMENT [Type text]

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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”.

4.0 Executive Summary Aqualife Purified Water Refilling Station provides the service of ion exchange portable tanks. This is the process of purifying water for industrial purposes. Water Refilling

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Station will take advantage of an unsatisfied market need for segregated resin regeneration on a portable basis. The company will primarily focus its marketing strategies on offering segregated regeneration services to the untapped market of customers who require highquality regeneration for their deionized (DI) water treatment facilities. The facility that Purified Water Refilling Station will utilize is located in Olangapo City, Subic, Zambales and is already in limited production. Full production will begin at the end of September, with sales growing gradually to near capacity by the end of the first year, with very healthy gross sales in the first year, and increasing in the second and third years.

4.1 Objectives The primary objectives are:

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1.

To segment the market for portable regeneration service by stressing Aqualife Purified Water Refilling Station's capability at providing segregated regeneration. The goal is to reach monthly sales of 1,710 cu ft of segregated resin by the end of the first year.

2.

To build up a dealership network of 15 knowledgeable and efficient water service companies who will represent in areas outside direct sales from the factory and other place in the city.

3.

To set up a bulk regeneration facility with a capacity of 40 cu ft daily, and sell its full capacity in the large general portable exchange service market through its own sales force, and through a dealership network.

4.2 Mission Aqualife Purified Water Refilling Station's mission is to segment the market for pure water by providing niche products to specialized industry sectors who are otherwise not properly serviced by large pure water suppliers. Segregating a customer's Purified Water Refilling Station resin and regenerating it on a portable tank basis to hospital dialysis units is an excellent example of such a niche product that stresses quality and service to users who are prepared to pay a premium price.

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Chart: Highlights

4.3 Keys to Success Purified Water Refilling Station's primary keys to success are: 1.

Good quality control in the factory. Customers for high purity water business have a very low tolerance threshold for flaws.

2.

Fast response. In the case of most of Aqualife Purified Water Refilling's customers, the cost of the water is not a major element in their over-all costs, but a very expensive shut-down could result due to poor or slow servicing.

3.

High-profile allegiances. Key to over-all company success is connected closely with success in achieving the goal of developing a dealership network of service-oriented water companies.

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TABLE OF CONTENTS Page

Chapter I: Introduction/Background of the Study i. Rationale of the Study

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ii. Historical Background of the Company

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iii. Statement of the Problem

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12

iv. Statement of Objectives

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v. Mission

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vi. Operational Definition of Terms Chapter II: The Company Study

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14

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i. Name of the Company

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ii. Nature of Business

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iii. Location of Business

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iv. Target Markets

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v. The Stockholders

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vi. Permits and Licenses to Operate

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Chapter III: The Company Organization and Human Resource Management

i. The Company Organizational Chart

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ii. The Human Resource Requirements of the Company

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iii. The Management Information System Office And Organizational Chart------- 23 iv. Job Description and Job Specification

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v. Salary, Benefits, and Incentives

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i. The Capitalization Aspects

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ii. The Company Budget

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Chapter IV: The Financial Requirements

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

Page Chapter V: The Marketing Mix

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i. Variety

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ii. Design

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A. Nature of the Product

iii. Quality & Features vi. Brand Name

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B. Price and Pricing Scheme of the Product i. Price

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ii. Pricing Strategies

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iii. Price List and Brochures iv. Payments Scheme and Terms

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C. Place i. Location

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ii. Channels of Distribution

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iii. Coverage

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iv. Transportation

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D. Promotion i. Advertising

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ii. Sales Strategies

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iii. Sales Promotions

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Bibliography

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Curriculum Vitae

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LIST OF TABLES Page

Table 3.1 : Salary, Benefits and Incentives

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Table 4.1 : The Capitalization Aspects

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Table 4.2 : The Company Budget

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Table 4.3 : Expenses

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LIST OF FIGURES Page Fig. 2.1 : Location of the Business

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Fig. 2.2 : Stockholders Shares of Stocks Chart Fig. 2.3 : Permits and Licenses to Operate Fig.3.1 : Company Organizational Chart

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Fig. 4.1 : Gross Sales for One Year up to Three Years

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Fig. 3.2 : The Management Information System Office

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Fig. 4.2 : Gross Sales and Gross Expenses for Three Years --------------[Type text]

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Fig. 4.3 : Profits for Three Years

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Fig. 5.1 : Design of the Product

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Fig. 5.2 : Brand Name

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Fig. 5.3 : Price List and Brochure

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Fig. 5.4 : Place/Location of the Business

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Fig. 5.5 : Coverage

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Fig. 5.6 : Transportation

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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 Zambales, only about three fourths of the population receives piped water from the municipal authority. Outside Zambales 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 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

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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 Zambales, 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

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

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than bottled water or the use of household filters. Aqualife 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 Garyldine Nery. It was located at Olangapo City, Subic, Zambales. 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

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?

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iv. Statement of Objectives

The objectives of Aqualife Purified Water Refilling Station are outlined below: 

To create a service-based company whose primary goal is to exceed customers' expectations.

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The utilization of The Water Station products by at least 10% of the local population.

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To increase the number of sellers by 20% each year.

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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.

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vi. Operational Definition of 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. 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.

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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

The name of the company is derived from the first letter of the Greek alphabet – Aqua(Αα) – which means “First” or “beginning”. The water refilling station has been named “Aqualife 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.

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iii. Location of Business

The water refilling station is situated in Olongapo City, Subic, Zambales. In Olangapo City, there are few water refilling stations thus giving us competitive advantage as there is no other water refilling stations catering the 4

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varieties

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of

water

which

will

be

discussed

in

Chapter

5.

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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.

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In addition, the water refilling station – Aqulife 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.

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