Xycris - Marketing Plan

Republic of the Philippines UNIVERSITY OF SOUTHEASTERN PHILIPPINES College of Governance, Business and Economics Obrero, Davao City

THE 2012 – 2014 MARKETING PLAN FOR LIVING WATER – NAVAL REFILLING STATION A PURIFIED DRINKING WATER BUSINESS

Submitted by Xycris M. Fuerzas

Submitted to Professor Remegio Gabuya

10 August 2011

Contents THE 2012 – 2014 MARKETING PLAN FOR LIVING WATER – NAVAL REFILLING STATION........................................................1 A PURIFIED DRINKING WATER BUSINESS ......................1 I.Executive Summary.........................................................7 Statement of the Problem................................................12 Scope and Limitation.......................................................13 Situation Analysis............................................................14 A. Macroenvironment...................................................14 1. Political and Legal.................................................14 2. Economical............................................................14 3. Sociocultural.........................................................15 4. Technological........................................................15 5. Environmental.......................................................16 B. Market Analysis........................................................17 1. Market Definition...................................................17 2. Living Water’s Purified Drinking Water..................20 3. Market Segmentation............................................20

4. Competitor Review................................................21 C. Consumer Analysis...................................................22 D. Internal....................................................................23 1. Mission Statement.................................................23 2. Vision Statement...................................................24 3. Corporate Objectives.............................................24 4. Financial Objectives..............................................24 5. Marketing Objectives.............................................25 E. Summary.................................................................. 26 1. Internal Environment.............................................26 2. External Environment............................................27 3. Sustainable Competitive Advantage......................28 Marketing Strategy..........................................................29 F. Positioning: Emphasize Haste to Market...................29 G. Price......................................................................... 29 H. Promotion: Emphasise Corporate Social Responsibility ............................................................................................. 29 I. Distribution: Emphasize Speedy Delivery and Creation of More Outlets..................................................................... 31

Budgets...........................................................................32 Sales Forecast ................................................................33 Conclusion.......................................................................34 Appendices......................................................................35 J. Barangay Lagao 2004 Statistics................................35 Map: General Santos City by Barangay.......................40 Images of Barangay Lagao..........................................41 Company Questionnaire..............................................63 I.Marketing environment audit........................................63 1. The macroenvironment............................................63 2. The task environment...............................................64 II.Marketing strategy audit..............................................65 III.Marketing organisation audit.......................................65 IV.Marketing systems audit.............................................66 V.Productivity audit.........................................................67 VI.Marketing function audit..............................................67 Customer Questionnaire..............................................69 Income Statement - 2004............................................70 Facility Images............................................................71

Bibliography....................................................................73

7

I.

Executive Summary Access to potable water supply for the population of

barangay Lagao in General Santos City remains a predominant issue for health interventions to be successful. The inadequate numbers of water and sanitation facilities are causing health emergencies in infants, children and health-conscious adults who are having problems with allergies and other water-borne related diseases and often bringing detrimental outcomes among low income and/or middle level families. However, there is a need to document these claims. A survey was conducted to look into the water consumptions and facilities as mechanisms commonly used by the business enterprises who are engaged primarily in water purifying and capturing markets for clean, safe, healthy, yet affordable water for drinking. A one-page questionnaire containing eleven (11) questions was developed and used to gather information from the residents, institutions and establishments located within the vicinity of Lagao where the Living Water is being produced and distributed in the City of General Santos. A total of 25 families were interviewed using a standardised questionnaire. The respondents consisted of community leaders, school

8 administrators, heads of the household, and members of the community who have the capacity to order purified drinking water from the Living Water facilities. Certain questions related to potable water that were not answered by the primary respondents were obtained from the office of the barangay officials and local government/health workers in the area. There are three main issues that are being explored: the level of awareness about health risks encountered in drinking water, the basic features/benefits from the product, and the cost of the product using a state of the art water facility ensuring high quality and safe water for drinking. The water facility used by the families who from the area often depended upon availability and affordability whether or not it is free from any type of contamination. Their water facility uses substandard water pipes and other materials, sources water from the shallowest water table at most 15 meters deep, the presence of high chlorine concentration for community shared water tanks or other alternative means of sanitizing/purifying their water source through boiling that is preferred by the family who belonged to the lower income (considered within the 12,000php annual income threshold). In

9 some of these conditions, the residents may have to walk or take several rides before he or she reaches the cheapest water facility. Transportation fees and handling in some cases and/or many instances are mostly considered and dependent upon the type of vehicle, distance to the captured market and difficulty of the road network. An interesting realization in providing a safe, affordable and state of the art potable water facility is: Living Water. Living Water seems to compound the question of the families seeking a high standard water facility, establishing the needs of an affordable drinking water and seeing the total impact on the health of the family. (I am not sure about the meaning of this sentence; please follow one verb tense for this sentence.) Every family has their own unique and defined way of using purified drinking water for each members of the family from different points of preferences and age levels. The responses of the respondents may have common grounds but each area dictates a different approach and understanding of the needs and the resources that they have. The survey was conducted despite many challenges of operational and time restraints. It is apparent that more

10 information (the term ‘a lot’ is not good for academic writing) still needs to be extracted or expounded. It is important to realise that alongside the declared communication and information flows are intricate methods, networks and systems that affect production critically. There is a need to geographically map the market networks from all the different purok, residents, institutions and establishments to determine appropriate strategies for the water facilities and increase its demands. We see here a large need for systems to be developed to improve the mechanisms of market segmentation, distribution and handling. Resources or promotional/marketing strategies may be lacking in these areas but the presence of individuals, schools/institutions, establishments and local government agencies/organizations already availing services and patronizing the product for health awareness reasons is a big opportunity for the business to kick-off but should be expanded by setting up market networks, doing/working with appropriate and adaptable state of the art systems, with much consideration for a customer/community involved product enhancement and planning. With the wealth of information

11 that is at hand, some advocacy and networking for the establishment of a healthy, safe, accessible and affordable Living Water business could already be initiated. Advocacy to the community residents, schools, institutions/establishments and the local government for better if not best water facilities should be strengthened. There should be renewed focus on the private institutions on shared/corporate responsibilities in the area. Implementation and tracking of substandard water facilities and systems & sanitations that would have been established could be brought up to the Barangay Officials and the whole Lagao constituent for water borne diseases towards sustainable development.

12

Statement of the Problem The primary purpose of this study is to help Living Water – Naval Refilling Station in understanding the market they have ventured into since this was never done since operations began on November 2009. Specifically, this study sought to answer the following: 1) Who are the current markets for purified drinking water? 2) What opportunities can be tapped? 3) What strategies can be employed to tap the opportunities?

13

Scope and Limitation This study was limited to the usage of out dated secondary data in determining the statistics of the population of barangay Lagao. The available statistics was for the year 2004. Barangay San Isidro, an adjacent barangay to Lagao and the location of the Living Water facility where the border of Lagao is just 100 meters east of its facility, is not included

14

Situation Analysis A.

Macroenvironment 1.

Political and Legal

The legal environment of the city of General Santos has been stable. This is because the current administration and previous administrations were relatives and close friends of the Antonino family that reigns over the city. 2.

Economical

The city of General Santos experienced a huge economic downturn for the fiscal year 2010 due to the decline in the city’s major industry, the fishing industry, upon implementation of many newly passed laws especially the Republic Act 9379 otherwise known as The Handline Fishing Law. However, despite the downturn, the cost of living in the city of General Santos remains less expensive compared to other urban areas in the Philippines. The citizens are enjoying farm fresh vegetables, fruits, chicken and beef from within the city, Sarangani province and South Cotabato province. The citizens are still favoured with affordable rates on seafood products despite the decline of the fishing industry.

15 Furthermore, the investors were even more motivated to invest as new businesses began to open and commercial infrastructures were being built especially in barangay Lagao.

3.

Sociocultural

The city of General Santos is mainly composed of migrants from other parts of the Philippines and the world. Thus, the city is a melting pot of many cultures. Majority of the cultures of the residents in the barangay of Lagao alone are Tagalog, Cebuano, Ilonggo, Ilocano, Kapampangan, Boholano, Waray, Badjao, Maguindanao, Maranao, Tausug, Others include Muslim, B’laan, T’boli, Chinese and other foreign nationals. 4.

Technological

The city of General Santos’s technological infrastructure’s foundations has already been laid. Data and communications in the city are not anymore limited to wire connections but also to wireless signals. Furthermore, many citizens are already equipped with Internet-ready devices while many institutions provide free Wi-Fi Internet connection. The academic institutions are also revving up their facilities and their curriculum to include the latest technologies

16 in sharing knowledge, experience, fun, and actual applications. Many academic institutions already opened advanced Science and Math curricula for high schools and held technology-based fairs and contests in the field of robotics, computer science, renewable energy, physics and more. The events also boost the interest of the younger generation to creatively think of new things to invent. Highly technological firms are also being enticed to open up in the city due to the opening of Philippine Economic Zone Authority’s (PEZA) Mabuhay IT Park. Furthermore, PEZA also plans to accept more IT Park applications from the city with two applications currently pending for approval. 5.

Environmental

The city of General Santos has a hot and humid climate with no severe storms almost all year round. This is all attributed by its location just five degrees above the equator and its being surrounded by mountains where two are volcanoes with only one small inlet via the Sarangani Bay. It is situated near a fault causing strong earthquakes in the area

17 B.

Market Analysis 1.

Market Definition

a)

What is Purified water?

Pure water is composed only by water molecules. A water molecule’s composition is two atoms of hydrogen and one atom of oxygen (H20). However, pure water rarely exist naturally for even clouds get contamination from air pollution. It is commonly found with a mixture of other elements, molecules, ions, or microorganisms commonly termed as impurities. The impurities in water are being removed due to the negative consequences that the impurities bring to many living organisms such as to humans. Purified water, therefore, is water from any source that is physically processed to remove impurities. b)

Types of Purified Water (1)

Distilled Water

Distilled water is purified water that has been produced by a process of distillation and has an electrical conductivity of not more than 10 µS/cm and total dissolved solids of less than 10 mg/litre. Distillation involves boiling the water and then

18 condensing the vapour into a clean container, leaving solid contaminants behind. Distillation produces very pure water but also leaves behind a white or yellowish mineral scale on the distillation apparatus, which requires the apparatus to be frequently cleaned. Distillation does not guarantee the absence of bacteria in drinking water; unless the reservoir and/or bottle are sterilised before being filled, and once the bottle has been opened, there is a risk of presence of bacteria. Furthermore, distillation is an expensive process. (2)

Double-distilled Water

Double-distilled water (abbreviated "ddH2O", "Bidest water" or "DDW") is prepared by double distillation of water. Historically, it was the de facto standard for highly purified laboratory water for biochemistry and trace analysis until combination methods of purification became widespread. (3)

Deionised Water

Deionised water, also known as demineralised water (DI water, DIW or de-ionised water), This type of water has had its mineral ions removed, such as cat-ions from sodium, calcium, iron, copper and an-ions such as chloride and bromide. Deionization is a physical process which uses a special

19 manufactured ion exchange resins which bind to filter the mineral salts from water. Because the majority of water impurities are dissolved salts, deionization produces a high purity of water that is generally similar to distilled water, and this process is quick and without scale build-up. However, deionization does not significantly remove uncharged organic molecules, viruses or bacteria, except by incidental trapping in the resin. Specially made strong base an-ion resins can remove Gram-negative bacteria. Deionization can be done continuously and inexpensively using electrodeionisation. Deionization does not remove the hydroxide or hydronium ions from water. These are the products of the self-ionization of water to equilibrium and therefore are impossible to remove. (4)

Others

Other purified water are a result of other methods including reverse osmosis, carbon filtration, micro-porous filtration, ultrafiltration, ultraviolet oxidation, electro-dialysis or a combination of multiple processes. These are used in place of, or in addition to the processes listed above. Processes rendering water potable but not necessarily closer to being pure H2O / hydroxide + hydronium ions include use of dilute

20 sodium hypochlorite, mixed-oxidants (electro-catalysed H2O + NaCl), and iodine. 2.

Living Water’s Purified Drinking Water

Living Water’s Purified Drinking Water is purified water with a few minerals retained. The process of purification is reverse osmosis composed 33 stages of filters such as ceramic filters and carbon filters. 3.

Market Segmentation

Barangay Lagao was chosen because this barangay is the business district of the city of General Santos. It is the location of the four (4) main malls of the city: Gaisano City, KCC, Robinsons Place, and SM SouthCity GenSan1. It is the location of many small to medium enterprises of the city. Lagao stands as the model barangay of all the 26 barangays of the city. Despite the economic downturn of the city, this barangay still manages to grow economically with fast turnarounds when it comes to business establishments, buildings, subdivisions, and other infrastructure. The customers of Living Water in Lagao are families who does not have access to clean, safe, and healthy drinking water 1

SM Southcity Mall GenSan is still under construction and will open by the first quarter of 2012

21 or families who have members that are sensitive to certain water impurities. Many of the interviewed households were able to try other purified drinking water brands and preferred Living Water over them due to either satisfaction with cleanliness, safety and health or the affordable price.

4.

Competitor Review

A number of purified drinking water companies selling at the 5-gallon container level have been established in General Santos City. Despite the number of companies, they were not able to saturate the market especially in barangay Lagao area where only 1.10% of the total household population are availing of the purified drinking water. The currently more prominent and arguably the leading brand of purified drinking water that started with multiple branches upon launch at the mid of 2009 is the Pacman Tubig. Pacman Tubig is locally sourced and marketed purified drinking water owned by world renowned professional boxing player Manny Pacquiao. Currently, it has already closed a few of its filling stations.

22 There are also national purified drinking water brands such as Aqua Best, Aqua Soft and Crystal Clear, however, they are not able to perform well due to the quality of water they produce still has a strong taste of water impurity and long lead times. Other purified drinking water in the city are: • H2Zero Distilled Water • Dewfall Purified Water • 2Big • AlkaMega

C.

Consumer Analysis

The current consumers of Living Water’s Purified Drinking Water have been enjoying safer drinking water at an affordable price. They are mostly families just near the water outlet or within barangay Lagao. They prefer to order purified drinking due to one of the following reasons (1) their own water source pumped out or water well gives water that is rusty in colour and smell, (2) their community source of water or General Santos City Water

23 District’s water is high in chlorine, or (3) due to sensitivity to tap water. The market for purified drinking water has a very volatile brand preference. Only a few of the current consumers of Living Water state that they are already loyal to them. Many are sensitive to the price of Living Water and their competitors. They currently prefer Living Water because it has the lowest price of purified drinking water in the market. D.

Internal 1.

Mission Statement

It is the mission of Living Water – Naval Filling Station to ensure to every family that every bottle of water being delivered is safe and healthy to drink at lightning speed delivery and to guarantee that every bottle costs at the most convenient price to the family for everyone to afford a more healthy life far from any water-borne diseases. Furthermore, Living Water commits to connect its advocacy campaign about the importance of water and the issues that the population faces about the status and outlook of water to ensure security of water even for the next generations to come.

24 2.

Vision Statement

Living Water – Naval Filling Station envisions being the leading provider of safe and healthy drinkable water at the most affordable price; educating fathers, mothers and children about the importance of water and the issues about the status and outlook of water that further grant every member of the family with more security and happiness by being more responsible and caring. 3.

Corporate Objectives

The corporate objective in line with the mission and vision statements of the company is to be able to establish Living Water as the trusted provider of safe and healthy drinkable water in barangay Lagao in the span of three (3) years. 4.

Financial Objectives

The financial objectives of Living Water is to be able to achieve annual revenues of at least three million pesos (Php 3,000,000) in the span of three (3) years to be able to finance expansion of the business.

25 5.

Marketing Objectives

The marketing objectives of Living Water through this marketing plan in the span of three years are as follows: • To be able to provide customers with safe and healthy drinkable water at the price the customers are able to pay with minimal delivery lead times or at an outlet that is near them. • To be able to educate the public about the problems we are facing about water at the purok and school level reaching mainly the mothers and the children: its importance to life, scarcity, safety, unwanted minerals and ions, needed minerals, conservation tips, water borne diseases and proper hygiene and storage. • To be able to provide publicity materials about the information given through decorative yet informative posters, bookmarks, and calendars that also includes information that customers can request free lectures about the same information.

26 E.

Summary 1.

Internal Environment

a)

Strengths

The company has its own water source where the raw water is identified as naturally drinkable alkaline water. The company employs the latest technology on reverse osmosis process to filter the water with 33 stages. The electricity cost to pump water is lower than tapping General Santos City Water District. The company offers the lowest priced purified drinking water compared to competitors. The company is known for its swift delivery speed. b)

Weaknesses

The Living Water facility is currently situated at the 5th block in Naval, San Isidro that has no bridge to easily access the main road, Conel Road, that separates San Isidro and Lagao. The lack of the bridge also forces walk-in customers to take the long way via the second or the third block’s bridges to get to their facility.

27 2.

External Environment

a)

Opportunities

The overall market for purified drinking water is still young and unsaturated The natural climate of the city is hot causing the citizens to easily get thirsty There is a positive economic outlook for year 2012 in the city of General Santos due to a current upsurge in investments b)

Threats

The water source may get contaminated due to improper environmental hygiene and pollution caused by neighbouring families and institutions. Strong competitors might arise and have higher momentum to gain the market Decreasing city economic growth – fishing industry, a major industry of the city, is down due to inhibition of fishing in certain areas due to creation of marine life protection, preservation and rehabilitation and increase of penalty in the inhibition of fishing beyond Philippine waters.

28 Electricity outage during summer months hampers production due to lack of electricity to pump water because there is no back up power generator. 3.

Sustainable Competitive Advantage

The sustainable competitive advantage of Living Water – Naval Refilling Station is its source of water. Unlike its competitors that source their water from the expensive General Santos City Water District, Living Water’s water source is electronically pumped 30 meter deep well located at their own premises. Sourcing water from the local water district is more expensive because its pricing matrix are higher compared to the cost of electronically pumping water by South Cotabato Electric Cooperative (SOCOTECO)

29

Marketing Strategy F.

Positioning: Emphasize Haste to Market

Living Water is positioning itself as the most affordable provider of trustworthy purified drinking water in barangay Lagao. Taking positioning actions via the corporate social responsibility approach hastily before other competitors enter in the same approach. G.

Price

Living Water will be established in barangay Lagao as the most affordable yet competitively safe and healthy drinkable water pricing at twenty pesos (Php 20) per bottle with free delivery. H.

Promotion: Emphasise Corporate Social

Responsibility The company offered purified drinking water to improve the quality of the drinking water of their fellow residents in barangay Lagao at the most affordable rate. To further strengthen that cause, it will be the company’s social responsibility to all its customers and other stakeholders to educate them more about water.

30 The company will be involved in holding educational speeches at the purok level and at the school premises to campaign about critical issues on water namely the following: • The status of water in General Santos City • The effects of pollution and improper waste management • Potable water is not infinite: there is a need to conserve • Humans can only live 3 to 5 days without water • Trade-offs of boiling water a. The presence of chlorine and other water ions b. The presence of minerals at high amounts c. Water borne diseases from boiling • Trade-offs of distilling water a. The effects of pure water to the body b. The absence of required minerals from water c. Water borne diseases from distilled water • Trade-offs of reverse osmosis processed water a. The benefits of the right amount of minerals in the body b. Water borne diseases from reverse osmosis process • Responsibility of Drinkers: Secure your water • Tap safe drinkable water

31 • Know proper storage of water a. Water borne diseases from improper storage or contaminated water This will serve as the advocacy campaign of the company to inform the people about water especially the mothers and the children. After the seminar, to further implement the advocacy of the company, there will be posters and bookmarks that will be given that contains reminders about the issues on water.

I.

Distribution: Emphasize Speedy Delivery and

Creation of More Outlets Less lead time is best since water is needed by the human body from time to time so delivery should be fast especially since many consumers order when they are really out of water.

32

Budgets After Educational Session Materials Cost Price Quant Cost ity B ookmark

PHP 15.00

4000

PHP

0 600,000.00

s Po sters

8000

PHP

PHP

3000

320,000.00 PHP

40.00 C

alendars To tal

PHP

100.00

300,000.00 PHP 1,220,000.00

33

Sales Forecast

Note: • Annual Expenses is estimated to be 90% of the Total Annual Revenue based on the computation 2009 Income Statement.

34

Conclusion With the

35

Appendices J.

Barangay Lagao 2004 Statistics

Population: Distribution by Age Group Age

Frequenc

Percentag

0–9 10 – 19 20 – 29 30 – 39 40 – 49 50 – 59 60 – 69 70 – 79 80 + Total

y 8522 8058 7068 5351 4083 2401 1223 466 197 37369

e 22.80% 21.56% 18.91% 14.32% 10.93% 6.43% 3.27% 1.25% 0.53% 100%

36

Population: Education Educational Attainment

Frequenc

Percentag

No grade completed Kinder/ prep/ nursery Primary School Primary School Graduate Secondary School Secondary School

y 3080 4849 6618 2575 5772 5062

e 8.24% 12.97% 17.71% 6.89% 15.44% 13.54%

Graduate Post Secondary School Post Secondary School

289 413

0.77% 1.11%

Graduate Tertiary School Tertiary School Graduate Post Graduate Post Graduate –

4247 4181 41 246

11.36% 11.19% 0.11% 0.66%

Completed Total

37373

100%

37

Population: Class of Worker Class of Worker

Frequenc

Percentag

Worked for private household Worked for private establishment Worked for government office or

y 1189 5980 1004

e 9.27% 46.61% 7.83%

government controlled corporation Self-employed without any employee Employer in own family operated farm

3601 500

28.07% 3.90%

or business Worked with pay on own family

306

2.39%

operated farm or business Worked without pay on own family

249

1.94%

operated farm or business Total

12829

100%

38

Monthly Salary Monthly Salary Bracket

Frequenc

Percentag

1 - 999 1000 - 4999 5000 - 9999 10000 - 19999 20000 - 29999 30000 - 39999 40000 - 49999 50000 - 69999 70000 - 99999 100000+ Total

y 4533 4735 2256 822 129 56 7 20 2 5 12565

e 36.08% 37.68% 17.95% 6.54% 1.03% 0.45% 0.06% 0.16% 0.02% 0.04% 100.00%

39

Water Supply for Drinking and Cooking Water Source

Frequenc

Percentag

y Own faucet, community owned 2209

e 26.50%

water system Shared faucet or shared

7.93%

661

community water system Own use tubed/ [i[ed deep well 2175

26.09%

(at least 30m deep) Shared tubed/ piped shallow

2663

31.95%

well Dug well Spring, lake, river, rain, etc. Peddler Bottled water No answer Total

49 12 7 92 468 8336

0.59% 0.14% 0.08% 1.10% 5.61% 100%

40 Map: General Santos City by Barangay

41 Images of Barangay Lagao

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63 Company Questionnaire

I. Marketing environment audit 1. The macroenvironment 1. Demographic. What primary demographic trends pose threats and opportunities for this company? 2. Economic. What developments in income, prices, savings and credit will impact on the company? 3. Natural. What is the outlook for costs and availability of natural resources and energy? Is the company environmentally responsible? 4. Technology. What technological changes are occurring? What is the company’s position on technology? 5. Political. What current and proposed laws will affect company strategy? 6. Cultural. What is the public’s attitude towards business and the company’s products? What changes in consumer lifestyles might have an impact?

64 2. The task environment 1. Markets. What is happening to market size, growth, geographic distribution and profits? What are the large market segments? 2. Customers. How do customers rate the company on product quality, service and price? How do they make their buying decisions? 3. Competitors. Who are the chief competitors? What are their strategies, market shares, and strengths and weaknesses? 4. Channels. What main channels does the company use to distribute products to customers? How are they performing? 5. Suppliers. What trends are affecting suppliers? What is the outlook for the availability of key production resources? 6. Publics. What key publics provide problems or opportunities? How should the company deal with these publics?

65

II.

Marketing strategy audit 1. Mission. Is the mission clearly defined and marketoriented? 2. Objectives. Has the company set clear objectives to guide marketing planning and performance? Do these objectives fit with the company’s opportunities and strengths? 3. Strategy. Does the company have a sound marketing strategy for achieving its objectives? 4. Budgets. Has the company budgeted sufficient resources to segments, products, territories and marketing-mix elements?

III.

Marketing organisation audit 1. Formal structure. Does the chief marketing officer have adequate authority over activities affecting customer satisfaction? Are activities optimally structured along functional, product market and territory lines? 2. Functional efficiency. Do marketing, sales and other staff communicate effectively? Are the staff

66 members well trained, supervised, motivated and evaluated? 3. Interface efficiency. Does the staff members work well across functions: marketing with manufacturing, R&D, buying, personnel, etc.?

IV.

Marketing systems audit 1. Marketing information system. Is the marketing intelligence system providing accurate and timely information about developments? Are decision makers using marketing research effectively? 2. Planning system. Does the company prepare annual, long-term and strategic plans? Are they used? 3. Marketing control system. Are annual plan objectives being achieved? Does management periodically analyse the sales and profitability of products, markets, territories and channels? 4. New-product development. Is the company well organised to gather, generate and screen newproduct ideas? Does it carry out adequate product

67 and market testing? Has the company succeeded with new products?

V. Productivity audit 1. Profitability analysis. How profitable are the company’s different products, markets, territories and channels? Should the company enter, expand or withdraw from any business segments? What would be the consequences? 2. Cost-effectiveness analysis. Do any activities have excessive costs? How can costs be reduced?

VI.

Marketing function audit 1. Products. Has the company developed sound product-line objectives? Should some products be phased out? Should some new products be added? Would some products benefit from quality, style or feature changes? 2. Price. What are the company’s pricing objectives, policies, strategies and procedures? Are the company’s prices in line with customers’ perceived value? Are price promotions used properly?

68 3. Distribution. What are the distribution objectives and strategies? Does the company have adequate market coverage and service? Should existing channels be changed or new ones added? 4. Advertising, sales promotion and publicity. What are the company’s promotion objectives? How is the budget determined? Is it sufficient? Are advertising messages and media well developed and received? Does the company have well-developed sales promotion and public relations programs? 5. Sales force. What are the company’s sales force objectives? Is the sales force large enough? Is it properly organized? Is it well trained, supervised and motivated? How is the sales force rated relative to those of competitors?

69 Customer Questionnaire Why order purified water? Why order from Living Water? What makes them better than competitors such as pacman water? What features that you don't want from their product or service? (lead time, customer handling, communication) What features would you like to be added in their product or service or for improvement? Do you look at price to also mean safer water? 1-10 (10 as highest) - how assuring is their price to mean safer water? 1-10 (10 as highest) - how affordable? 1-10 (10 as highest) - how convenient are they? 1-10 (10 as highest) - over all impact Would you recommend them to your friends or relatives?

70 Income Statement - 2004 Living Water Income Statement As of December 2009 Reven ue

PHP 62,319.00

Less Expenses Salaries & wages Allowances 13th month pay SSS Philhealth Telephone Aircon cleaning fee Miscellaneous fee Water District Electricity Fuel Oil Refill Accounts payable-Bing Perez Printing fee Office supplies Temporary receipts Plastic caps NS cars Dishwashing Merienda Refund of deposit Cash Advances Net

Income

PHP PHP PHP

8,817.48 1,900.00 1,243.59

PHP 80.50 PHP 50.00 PHP 150.00 PHP 200.00 PHP 1,346.20 PHP 3,248.60 PHP 12,074.47 PHP 240.00 PHP 7,030.00 PHP 16,666.66 PHP 120.00 PHP 330.75 PHP 55.00 PHP 192.50 PHP 100.00 PHP 320.95 PHP 100.00 PHP 100.00 PHP 6,283.33

PHP 60,650.03 PHP 1,668.97

71 Facility Images

72

73

Bibliography Barangay Lagao Administrative Office2004Barangy Lagao Community ReportGeneral Santos City2004 National Statistical Coordination BoardNSCB ActiveStats - PSGC Interactive- Municipality: GENERAL SANTOS CITY (DADIANGAS)Philippine National Statistical Coordination Board (NSCB)http://www.nscb.gov.ph/activestats/psgc/municipality.as p?muncode=126303000®code=12&provcode=63 Social Group from IV-Einstein Special Science Class, General Santos City Highschool, General Santos City2009Map Gensan - barangayALS: A Second Chancehttp://www.mysmartschools.ph/web/ALS/ Wikipedia member2011Purified water - Wikipedia, the free encyclopediaWikipedia, the free encyclopediahttp://en.wikipedia.org/wiki/Purified_water