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

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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 _______________.

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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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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

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 high-

quality 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.

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4.1 Objectives

The primary objectives are:

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

Sales

Gross Margin

Net Profit

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

Year 1 Year 2 Year 3

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 -------------- 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

Page

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Chapter III: The Company Organization and Human Resource Management

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

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

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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

Page

D. Promotion

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

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

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

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

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

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LIST OF TABLES

Page

Table 3.1 : Salary, Benefits and Incentives -------------------- 29

Table 4.1 : The Capitalization Aspects -------------------- 30

Table 4.2 : The Company Budget -------------------- 31

Table 4.3 : Expenses -------------------- 34

LIST OF FIGURES

Page

Fig. 2.1 : Location of the Business -------------------------------- 17

Fig. 2.2 : Stockholders Shares of Stocks Chart -------------------------------- 19

Fig. 2.3 : Permits and Licenses to Operate -------------------------------- 20

Fig.3.1 : Company Organizational Chart -------------------------------- 21

Fig. 3.2 : The Management Information System Office -------------------- 23

Fig. 4.1 : Gross Sales for One Year up to Three Years ----------------------- 33

Fig. 4.2 : Gross Sales and Gross Expenses for Three Years --------------- 35

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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

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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

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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 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.

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. 

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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.

Deep well - is an excavation or structure created in the ground by digging, driving,

boring, or drilling to access groundwater in underground aquifers.

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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

varieties of water which will be discussed in Chapter 5.

(Fig. 2.1)

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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.

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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