Complete Chapter 1 6 Edited 1 2

Chapter 1

PROJECT SUMMARY OF THE FEASIBILITY STUDY NAME OF THE PROPONENTS

The names of the proponents are Jeff Kein E. Belgira, Pamela Francisco and Farah T. Nami, currently enrolled in East Systems Colleges of Rizal for their Bachelor of Science in Business Administration major in Financial Management. Presently, Mr. Belgira is residing at Antipolo City, Ms. Francisco at Prinza Teresa, Rizal and Ms. Nami at Quisao, Pililla, Rizal. NAME OF THE BUSINESS

A business name is one of the most important aspects to be prepared in starting up a business. The name of the business to be established in Quisao, Pililla Rizal is Aqua Thirst Water Refilling Station. “AQUA” means water and “THIRST” means a desire or need to drink. The name was chosen because the proponents believed that using humorous name; the business will be easily recognized by costumer which will help a lot in effective marketing of Aqua Thirst. Aside from a way to catch people attention, the name was chosen because the proponents want to create a unique name since many water refilling establishment used “aqua” as the name of their business

Figure 1.1 shows the proposed logo and the name of the business

Figure 1.1 Logo and Name of the Business

The proponents came up with this logo because they believed that it can reflect and represent their main business essence thoroughly. The blue colors in the logo signify water as the main product the business, whereas, the gold colors represent prosperity and stability. LOCATION

Location is one of the major factors to be considered in starting up a business. It must be assured that it is accessible to the target market. If location is later found to be incompatible to the situation as to give consideration to its target market, it may lead the company to failure. Right choice of location means reaching your target customers and you respond correctly to their market needs. Aqua Thirst Water Refilling Station will be established in Brgy. Quisao, Pililla, Rizal which is considered as the biggest b iggest barangay in the municipality of Pililla.

The proposed location of the business is E. Acosta St. Quisao, Pililla, Rizal as shown in Figure 1.2. Aqua Thirst Water Refilling Station is expected to occupy the first floor of the building measuring 20sqm. The rent for the building is P2, 500 per month.

Figure 1.2 Map of Provincial Road, Brgy. Quisao, Pililla, Rizal

Final results of the latest Census of Population (POPCEN 2010) conducted by the National Statistics office placed the municipal’s population at 59,527 persons as of

May 1, 2010. Pililla has 9 barangays. The biggest barangay in terms of population is Brgy. Quisao with13, 284 inhabitants followed by Brgy. Hulo (9,740) and Brgy.Bagumbayan (9,406). The smallest

is Brgy. Imatong with (962) and Brgy.Takungan (1,643). (Source: NSO Rizal POPCEN 2010)

CENSUS YEAR

2000

2007

2010

2013

AGR:

AGR:

AGR:

AGR.

4.37%

3.60%

0.62%

5.14

7,230

9,346

9,406

12,625

Halayhayin

5,941

7,679

7,759

10,373

Hulo

7,509

9,707

9,740

13,113

Imatong

669

865

962

1,168

Malaya

6,037

7,804

7,721

10,542

Niogan

3,570

4,615

4,627

6,234

Quisao

9,603

12,412

13,284

16,767

Wawa

3,528

4,561

4,385

2,075

Takungan

1,188

1,536

1,643

6,161

TOTAL

45,275

58,525

59,527

79,059

BARANGAY

Bagumbayan (Pob.)

Table 1.1 Population Growth Rate per Barangay 2000, 2007, 2010, 2014

DESCRIPTIVE DEFINITON OF THE PROJECT

According to international non-profit organization Water.org, for every 21 seconds, 1 child dies globally from water related illnesses due to contaminated water. In the Philippines, around 6,000 Filipinos dies prematurely a year from such diseases including diarrhea which is the country’s second lead of death as stressed by the Department of Health. Furthermore, 16% of Filipino households lacked access to clean and potable water; this is why unsafe water which kills more people than violence and wars remains a problem. The World’s Water Problem is shown in Table 1.2.

The United Nation enacted a resolution 2005-2015 as the “water for life decade,” to encourage countries to create policies and actions addressing water issues. The UN also recognizes one's access to water and sanitation as a basic human right:



Sufficient: Individuals need 50-100 liters of water/day for personal and domestic use. Poor families use only 5 liters or less, equivalent to what rich countries use to flush toilets



Safe: no harmful microorganisms, chemicals, health threats



Accessible: Water source must be within 1,000 meters of the house; collection time should not exceed 30 minutes. Meanwhile, some Filipinos still walk long distances while carrying heavy buckets of water to and from their Affordable: Water costs should not exceed 3% of the household income. Despite the UN Resolution, some Filipinos still remain thirsty, hungry, and dirty

daily

*No access to basic sanitation

2.5 billion (40% of global population)

*No access to safe drinking water

783 million (11% of global population)

Child deaths (under age 5) per year related 1.5 million to water-related illness School days per year lost due to water443 million related illness *Deaths per year due to inadequate water 3.5 million supply, sanitation, hygiene Table 1.2 The World’s Water Problem (Source: UN Right to Water 2010, MDG 2012, *UN Water 2013)

On the other hand, to address the issue of the country, the Philippines have the “Water Code of 1976” and the National Water Resources Board which focus on water

resources ownership and management. The Department of health also prescribed standards on drinking water. But not all Filipinos, however, directly benefit from these policies. In 2011, then Senator Eduardo Angara filed SB 2997 or the "Water Sector Reform Act" which proposed to increase funds and to improve the country's water supply and sanitation management. But then, the bill remains pending. Moreover, part of water supply and sanitation management in the country are piped-water systems, in some places, piped-water systems are lacking; in others, people are unreliable about biological contaminants, disinfection by-products from the

chlorination process, taste, and odor. In fact in Manila, only about three fourths of the population receives piped water from the municipal authority. Outside Manila far less 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 produced by the foul, contaminated water available in their neighborhoods. In accordance to this matter, thousands of water refilling stations has appeared, though it does not address the long term water delivery and sanitation infrastructure improvements necessary to provide reliable water to all, these systems has established a major foothold. Water refilling station began as privately-run community sources, where consumers would bring containers and fill them for a per-gallon fee that is a small portion of commer cially bottled water’s cost. Demand is such 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. The demand at the water refilling stations is now increasing. Today, the water refilling stations has widely spread that one can see one station almost in every corner of the municipality. Globally, the world bottled water market represents an annual volume of 89 billion liters, and is estimated to be worth US$ 22 billion. 75% of the world market is still controlled by local actors. More than half (59%) of the bottled water drank in the world is purified water, the remaining 41% being spring or mineral water. While bottled water originates from protected sources (75 percent from underground aquifers and springs), tap water comes mostly from rivers and lakes. Figure 1.3 shows The Global Water Use.

Figure 1.3 The Global Water Use (Source:http://purewatershop.com/market.php)

The target market of water stations includes primarily those people in rural areas who needed most the safe drinking water. Other target market are those in residential areas who health conscious people of all ages, especially people who already purchase bottled water, senior citizens and families caring for their children and babies as well as those commercial businesses such as offices, hotels, schools, banks, apartment, high rise building, catering businesses, beauty and facial and list goes on. Primarily, the project is intended for the residents of the municipality of Pililla and this is in line with the government programs to fight against waterborne disease and regulates their quality control practices and final product as much as possible. This institution will be managed by a partnership that has great concern on how to lessen the problem in water contamination, through that, the target market is rest

assured that Aqua Thirst will provide with the cleanest and most convenient fresh water, thus, water-related diseases will be expected to be of low rate. This study will examine the feasibility and investment opportunity of establishing water refilling business named Aqua Thirst Water Refilling Station. The business wants to emphasize that holistic and meticulous method of purifying water, personal trust and interaction with customers are the most important parameters for ensuring water safety as well as meeting the customer’s needs and wants.

Aside from the eight complete processes of water filtration and purification such as multimedia sediment, multimedia carbon, water conditioning and softening, ultra micron, reverse osmosis, polishing, anti-microbial, and water sterilization process. Legal water drinking standard will be assured and met through having a regular water analysis on a monthly basis. Through the use of latest innovation, purified water in different bottle sizes is proposed to offer because according to the proponents’ survey most of the consumers in Brgy. Quisao, Pililla, Rizal selected purified water as their preference in terms of water to drink. The fact that Aqua Thirst has several target market it is but timely to offer purified water in different bottle sizes that give the customer the best option on what to buy on their budget, preference and free to choose. There is a strong potential for Aqua Thirst to be a very profitable business because it only requires minimal investment but has the potential to generate high net profit and fast investment return.

PROJECT’S LONG-RANGE OBJECTIVES

Aqua Thirst Water Refilling Station will position itself as the future market leader in providing healthy drinking water in the Philippines. Guiding by vision and mission statement of Aqua Thirst (Figure 1.4), the long range objectives of the institution are shown on Table 1.3. FEASIBILITY CRITERIA

In judging the feasibility of the project, it is important to consider how Aqua Thirst Water Refilling Station able to operate in the market, how it varies from other water station in municipality and how long it stays in spite of the competition. Its profitability can be judged based upon on its six months of operation because it only requires nominal investment with the potential to produce high net profit due to great consumer demand. Aqua Thirst Water Refilling Station must prove its worth to the customer and how they will benefit from the product that they will patronize.

Aqua Thirst Vision & Mission Statement •

•

To become a high standard of excellence and top producer of clean, safe and healthy drinking water at homes of every Filipino. To deliver the best quality and best form of water at a very affordable price to customer. In Aqua Thirst our customer are our assets.

Figure 1.4 AQUA THIRST Vision and Mission Statements

Using the latest technology in water purification and the newest filtration systems will be the basis in providing best water quality and bests form of water. Profitability is not just the major aim of the project but also to be a socially responsible business, the project will be extended its commitment to the environment through observing proper waste disposal in order to maintain cleanliness and orderliness. Aqua Thirst Water Refilling Station will be using environmentally friendly detergents eliminating any pollutants as well as technology to use less detergent.

STRATEGIC CATEGORY

Market Position

LONG-RANGE OBJECTIVES

To become a leader in the water refilling industry nationwide by 2018.

New Markets

To have at least 30% of revenue in 2017 from markets not current being served .

Product/Service Mix

To have a minimum 30% of sales from new product that will be offered by 2018.

Technology

To be updated in the field of using technology innovation to produce the highest quality of water.

Human Resource

To be able to create a high performance team involving all employee by 2018 through various program such as organized seminars and training, team building and recognition that will improve the business productivity and define the business objective and goal.

Image

To become recognized as one of top 10 in water refilling industry not only in terms of servicing consumer but also in embracing responsibility to contribute and foster a better society.

Profitability

To achieve solid profitability and strong financial position through reducing direct costs and valuing a good systems.

Growth/Diversification

To have its own building in Pililla, Rizal and have a branch in nearby towns such as Tanay, Baras, Morong, Teresa and Antipolo.

Table 1.3 Long-Range Objectives of Aqua Thirst

HIGHLIGHTS OF THE PROJECT Project Time Table and Studies

With some hard work and dedication, the project will be opened in time. The time table for the operation of Aqua Thirst Water Refilling Station is shown using the Gantt chart, Figure 1.5. The analysis and research on the feasibility study will be accomplished from February 1 2015 to February 28, 2015. The partners will be in charged to analyze the feasibility study. After the analysis and research on the feasibility of the project, the partners will provide the contribution for the initial capital to start the venture.

The initial preparations and documentations for the applications of business permits and licenses will be done by the partners. All activities before the start of the operation are enumerated in the Gantt chart, Figure 1.5. Mode of Financing

The project will be financed by the Three (3) partners as shown on Table 1.4. It will come from the contributions of each partner and this business will be their investment. The Aqua Thirst Water Refilling Station is not a business that needs huge amount capital to start since it will only rent a commercial building. The partners chose to finance all the portion of the capital needed by the business to lessen other expenses that may occur if we’re going to lend money from the bank or from the lending company. Investment Cost

The project cost is Php 543,411.13. The capital investment will come from the investment of Three (3) partners in the amount of Php 600,000. Each partner will share its contribution equally to finance the capital requirement of the business in the amount of Php 200,000/each. The table 1.4 shows the financing of the projects.

Source of Funds

Amount

Partnership’s Investment

Php 600,000

Total Financing

Php 600,000 Table 1.4 Financing of Projects

MAJOR ASSUMPTIONS AND SUMMARY OF FINDINGS AND CONCLUSION Market Feasibility

Marketing is a system of business activities designed to plan, price, promote and distribute want-satisfying goods and services to present and potential customers. It is considered as the lifeblood of every business transactions because it is a strategic way on how to cope up to the needs and wants of the costumers, finding opportunities regarding it, introduce and market the product, achieve customer’s loyalty

and patronage. This aspect includes the following topics: demands, supply, demand and supply gap analysis, marketing programs and the projected sales. The objective of the proposed project is to delight the customers, not just by meeting their expectation but rather exceeding and going extra mile. Moreover, it’s

about profitability. Marketing aspect serves as the basis of the financial section through the projected demand. There can be no discussion of profitability or of the other aspects of the study; if in the first place, there is no demand or market. Every business is practically aspiring for productivity but practically in order to last in the business world the first thing to take into consideration is the target market. The costumers will be the key factor to achieve the objectives of the organization. Finding opportunities and spotting the right market are both important in establishing a business. Knowing customer’s demand and supplying them right products at reasonable prices.

In the presence of existing water refilling station in Pililla, Rizal which is considered as direct competitor, Aqua Thirst will be established using R.O. (Reverse

Osmosis-Purified) water station. This will allow the business to grow requires considering the kind of water to offer to all kinds of customers with different preferencesin taste, price, and health benefit. Considering the population of the target market, the business will be an advantage since most of the residents of Pililla, Rizal have different preferences in terms of water to drink. Aqua Thirst will position itself as the future market leader in providing healthy drinking water in the Philippines. All marketing and communication material present a consistent reinforcement of this position and the core ideal behind it, through the use of images, slogans and languages. Since most of the water refilling station doesn’t usually appear on T.V. and on print ads, the promotional campaign that will be used by Aqua Thirst is by word of mouth, this will be done through offering fliers in residential areas as well as in crowded areas like markets and churches. Aqua Thirst will also use posters, tarpaulins including social media like Facebook, Instagram and Twitter. Financial Feasibility

The financial feasibility quantifies the results of the marketing, technical, management, taxation and legal phase of the project study and expresses in peso terms the possible outcome of operating the project. The major parts of the financial study are: Projected financial statements; Details of various amounts contained in the projected financial statements; and Analysis of the financial projections. Basically, project studies consist of the skillful coordination of the information on all the factors in the form of financial projections. It covers all the factors that are

pertinent to an intended venture having established the existence of a sample market and the feasibility of the production facilities to supply this market, the investigation should move on the study of finance cost. What remains is to study the result of the market and technical studies. Management Feasibility

Management is one of the important aspects in establishing a business. It is the performance of conceiving and achieving desired results by means of group effort consisting of utilizing human talents and resources. Therefore, management is considered as the force that runs an enterprise and is responsible for its success or failure. The overall implementation plan is discussed in the organization and management study. This aspect includes a study of the officers and key personnel, basic consideration in forming the organization, form of ownership, organizational chart and project schedule. The objective of the management feasibility is to determine the option effectiveness of the organizational setup and the qualifications of the individuals who will make up the organization. This aspect will determine the successful realization of the project study. Technical Feasibility

After having determined the market size and area, product demand and growth, the potential and technical feasibility of the project may be analyzed. This stage deals

with the allocation of resources that will be needed in order to satisfy the market. The technical soundness analysis will be considered complete if all pertinent technical aspect of the project have been taken into account in the analysis and if the planned construction or procurement conforms to accepted standards and practices. The estimated cost of the project should be as low as any other reasonably available alternate which would produce the intended results. The objective of this portion of the feasibility study is to determine to what extent the project meets the technical soundness criteria. Socio-Economic Feasibility

The socio-economic impact of this study will clearly state its relevance to the

external aspect of the business. The objectives of this are to determine the

contributions of the business to the Philippine economy, to describe the benefits of the business to its community, and to ensure the active participation in the maintenance of cleanliness in the environment.

Chapter 2

MARKETING ASPECT A. MARKET DESCRIPTION A.1. Area’s Geographical Coverage

Pililla is located in the province Rizal in Region IV-A CALABARZON. It lies approximately between latitudes 14 26’ and 14 39’ north and longitudes 121 07’ and 121 11’ east. It is seated about 18 km south -east of province capital City Of Antipolo

and about 33 km east-south-east of Philippine main capital Manila. The geographical area covered by AQUA THIRST WATER REFILLING STATION and the potential market are just exclusive – it covers only the 9 barangays of municipality of Pililla including Quisao which serves as the proposed location of the project. A.2. Methods of Transportation and Existing Rate of Transportation

Various means of public transportation are available to go to Barangay Quisao, Pililla, Rizal. Inter municipality transportation is provided by a combination of private or owned vehicles, PUJ (Jeepneys), tricycles and bicycles inter –connecting the 9 barangays of the municipality through various routes. Existing rates of transportation as mandated by the Land Transportation and Franchising Regulatory Board (LTFRB) are also minimal since the project is located along the provincial road. (Jeepney and Tricycle).

Tables 1.1 shows the existing rates of Transportation

Figure 2.1 Brgy. Quisao, Pililla, Rizal Interactive Map

The Tables below shows the existing rates of Transportation (Jeepney and Tricycle)

y n P

)r e

p

or

T(

o

w

lo a

u

P

P

a

y

b-

n

al w o T(

H

a

n n

a

m

oi

k u

Y Q

B

B

g

a

u

a s

a M

pi

is pi L

n

la N

L

in

y

u a

g b

iy

a a

a

ar si

k

/

/ a

a

h

li n

t

o

u a

or

li

a T

y

al

a

ol

e

p

Php (Peso)

/ in

)r

P M

ni S

32

28

23

20

15

13

12

12

10

8.50

Linis

28

25

21

18

13

12

10

10

8.50

8.50

Sipsipin

26

21

18

15

13

10

10

8.50

8.50

Puang

26

21

18

15

13

10

8.50

8.50

Malaya/Mabiya

23

18

15

13

12

10

8.50

Niogan

21

15

13

12

10

8.50

Jala-jala (Town Proper)

8.50

Barak/ Lamuan

18

14

12

10

Quisao

17

13

10

8.50

Bulo-bulo/Yakat

13

10

8.50

Halayhayin

10

8.50

Pililla

8.50

(Town Proper)

8.50

Source: PUJ Drivers Tanay-Jalajala Route

Area

Amount

Quisao Proper

Php 10.00

Note: Payment to other places depends on the agreement of both parties.

Source: Quistoda (Quisao Toda) Table 2.1 Existing rates of Transportation (Jeepney and Tricycle) A.3. General Trade Practices

Aqua Thirst is a water retail and bottled water delivery business and there cannot be a standardized viable economic sized. However for this particular set up, it is expected to offer purified water with at least 200 household to be served in the area of delivery in Brgy. Quisao, Pililla, Rizal which will enable the entrepreneurs to earn health return on their investment. To make sure the production of safe water and to avoid waterborne diseases, Aqua Thirst will be complied with all sanitation requirements of

Presidential Decree 856 as well as the sanitation standard for retail water system of refilling station of the Department of Health. However, to assess the procedures such as washing and sanitizing of containers, refilling and capping of the product water into the bottle containers, protection and transportation of the drinking water from the refilling station to the household of the consumers, the handling practices will be closely monitored. Complete and accurate water testing and analysis through the help of local health office, proper operation and maintenance of water purification equipment, sanitary surveys, water quality monitoring and training on how to keep delivered water safe at home will be also considered by Aqua Thirst to ensure a continuous

production of quality and safe

drinking water. From the main source of water of Aqua Thirst which is Pililla Water District, the water will be treated through a water refilling machine, the water will go through the process of water filtration and purification system which is consist of eight units with sixteen stages. These eight units are multimedia sediment process, multimedia carbon process, water conditioning and softening process, ultra micron

process, reverse

osmosis, polishing process, antimicrobial process and water sterilization process. After the treatment the product water will be filled to the empty bottles collected from the consumers. Afterwards, the bottled water and refilled water will be distributed free of charges by the authorized staff through motorcycle with carrier or multi-cab. The payment system is through Cash on Deliver where payment is made at the time of delivery rather than in advance. To know if the bottled water is consumed, the customer will be texted through SMS or will be personally visited by the staff twice a week. The

empty bottles will be collected upon the delivery of the refilled bottles. The process of production and distribution of drinking water to customer is shown in Figure 2.2. Aqua Thirst will satisfy a need in the market for a basis of low –cost high purity water from a business that the customer can trust. The target markets of the business in the residential area are health conscious people of all ages, especially people who already purchase bottled water, senior citizens, and families caring for their children and babies. Commercial markets to consider are offices, hotels, schools, banks, apartment and high rise buildings, catering business, beauty and facial.

CONSUMER

Figure 2.2 Production and Distribution Process

B. DEMAND

The current study consisted of one primary method of study in evaluating the need and demand for the establishment of Aqua Thirst Water Refilling Station in Brgy. Quisao, Pililla, Rizal. This method of research consisted of sampling and surveying of relevant populations (selected residents of municipality) and their perceptions and opinions regarding the proposed business. It is very essential to know the demand of the products in order to answer the customer needs and wants. Knowing the demand will help the proponents to determine the trend for their products. Analyzing the demand thoroughly will give the projection of the total number of quantity of each product that they are going to produce daily, weekly, monthly and annually. B.1. Past Demand B.1.1. for the Industry

Because there’s no statistical recorded data in NSO and DTI regarding the

demand for water refilling station, the proponents computed the past demand by getting the target population in Pililla, Rizal for the year 2009-20013 multiplied by market acceptability which is obtained by getting the percentage of respondents who are willing to try the products with 84.17 and multiplied to the purchase frequency or can be defined as the number of times that a customer makes a purchase in a given period of time usually a year. It increases annually based on the annual growth of population of Pililla, Rizal by 5.14% and based on the percentage of every products on the survey,

the proponents distributed the annual past demand to get the past demand for every products.

Year

Target

Purchase

Annual

Population

Frequency

Demand

M.A.

2009

84.17

64,696

104

5,663,281

2010

84.17

68,021

104

5,954,341

2011

84.17

71,518

104

6,260,457

2012

84.17

75,194

104

6,582,242

2013

84.17

79,059

104

6,920,572

Table 2.2 Past Demand for the Industry

Past demand for industry is computed by getting the target market population times the frequency of agreement. It increases annually based on the annual growth of population of Pililla, Rizal by 5.14% B.1.2. for every Product

Past demand for every bottle sizes of purifies water that respondents preferred to drink are computed by the percentage of each products answered by the respondents multiplied to the annual past demand of industry.

Bottle

330 ml

500 ml

1L

1.5 L

3L

Sizes (12.31%)

(11.31%)

(12.56%)

(5.03%)

(3.77%)

2009

697,149

640,517

711,308

284,863

213,506

2010

732,979

673,436

747,865

299,503

224,479

2011

770,662

708,058

786,313

314,901

236,019

2012

810,274

744,452

826,730

331,087

248,151

2013

851,922

782,717

869,224

348,105

260,906

Total

3,862,986

3,549,180

3,941,440

1,578,459

1,183,061

1.5 gal

2.5 gal

Year

Bottle Sizes Year

1 gal

5 gal (24.37%)

Total

(18.34%)

(8.54%)

(3.77%)

2009

1,038,645

483,644

213,506

1,380,142

5,663,280

2010

1,092,026

508,501

224,479

1,451,073

5,954,341

2011

1,148,168

539,643

236,019

1,525,673

6,265,456

2012

1,207,183

562,124

248,151

1,604,902

6,582,244

2013

1,269,233

591,016

260,906

1,686,543

6,920,572

Total

5,755,255

2,684,928

1,183,061

7,647,523

31,385,893

Table 2.3 Past Demand for the Products B.2. Projected Demand B.2.1. for the Industry

The annual increase of demand for the years 2016 – 2020 is based on the annual population growth rate from 2009 – 2013 by 5.14%. The annual projected demand was obtained by multiplying the market acceptability which is 84.17 to target population and to the purchase frequency. Based from the obtained demand, it was distributed again to every product in order to determine its demand. The projected demand for industry in 2016 – 2020 is as follows:

Year

Target

Purchase

Population

Frequency

Annual

M.A. Demand

2016

84.17

91,887

104

8,043,494

2017

84.17

96,610

104

8,456,930

2018

84.17

101,576

104

8,891,638

2019

84.17

106,797

104

9,348,668

84.17

2020

112,286

104

9,829,157

Table 2.4 Projected Demand for the Industry B.2.2. for the Product

It is computed by multiplying the projected annual demand of industry to the percentage of each product based on the survey.

Bottle Sizes

330 ml

500 ml

1L

1.5 L

3L

(12.31%)

(11.31%)

(12.56%)

(5.03%)

(3.77%)

Year

2016

990,154

909,719

1,010,263

404,588

303,240

2017

1,014,048

956,479

1,062,190

425,384

318,826

2018

1,094,561

1,005,644

1,116,790

447,249

335,215

2019

1,150,821

1,057,334

1,174,193

470,238

352,445

2020

1,209,969

1,111,678

1,234,542

494,407

370,559

Total

5,486,553

5,090,854

5,597,978

2,241,866

1,680,285

Bottle 1 gal

1.5 gal

2.5 gal

5 gal

Sizes

Total

(18.34%)

(8.54%)

(3.77%)

(24.37%)

Year

2016

1,475,177

686,914

303,240

1,960,199

8,043,494

2017

1,551,001

722,22

318,826

2,060,954

8,456,930

2018

1,630,726

759,346

335,215

2,166,892

8,891,638

2019

1,714,546

798,376

352,445

2,278,270

9,348,668

2020

1,802,667

839,410

370,559

2,395,366

9,829,157

Total

8,174,117

3,806,268

1,680,285

10,861,681

44,569,887

Table 2.5 Projected Demand for the Product B.3. Market Segmentation

Marketing segmentation is a marketing strategy that deals with a process of defining and subdividing a large standardized market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment. The market segmentation of Aqua Thirst is shown below:

Figure 2.3 Market Segmentation C. SUPPLY

According to the percentage of the population who already has drinking water dealer from the survey questionnaire, the proponents determined their past supply. C.1. Past Supply

It was multiplied from the percentage of purchases which is 45.48 to the target population and to the purchase frequency. The increase in supply was also based in the growth rate of population. It was also distributed per product to know the past supply.

C.1.1 for the Industry

Percentage of

Target

Purchase

Annual Past

Purchases

Population

Frequency

Supply

2009

45.48

64,696

104

3,060,069

2010

45.48

68,021

104

3,217,339

2011

45.48

71,518

104

3,382,744

2012

45.48

75,194

104

3,556,616

2013

45.48

79,059

104

3,739,427

Year

Table 2.6 Past Supply for the Industry C.1.2. for Product

Bottle 330ml

500

1L

1.5L

3L

2009

376,694

346,094

384,345

153,921

115,365

2010

396,054

363,881

404,098

161,832

121,294

2011

416,416

382,588

424,873

170,152

127,529

Sizes Year

2012

437,819

402,253

446,711

178,898

134,084

2013

460,323

422,929

469,672

188,093

140,976

Total

2,087,306

1,917,745

2,129,699

852,896

639,248

1 gal

1.5 gal

2.5 gal

5 gal

Total

2009

561,217

261,330

115,365

745,739

3,060,070

2010

590,060

274,761

121,294

784,066

3,217,340

2011

620,395

288,886

127,529

824,375

3,382,743

2012

652,283

303,735

134,084

866,747

3,556,614

2013

685,811

319,347

140,976

911,298

3,739,425

3,109,766

1,448,059

639,248

4,132,225

16,956,192

Bottle Sizes Year

Total

Table 2.7 Past Supply for the Products C.2. Projected Supply

The projected supply will help to determine the total satisfied market or the total number of customers who have purified bottled water dealer for five years. It was

obtained by percentage of purchases to the target population with 5.14% growth rate to the purchase frequency and it was distributed per product to determine the total satisfied market for every product. C.2.1. for the Industry

Computation of projected supply for product is the same in past supply per product. It changed only in the target population based on the annual growth rate of 5.14%

Year

Percentage of

Target

Purchases

Population

Purchase

Annual Projected

Frequency Supply

2016

45.48

91,887

104

4,346,182

2017

45.48

96,610

104

4,569,576

2018

45.48

101,576

104

4,804,464

2019

45.48

106,797

104

5,051,413

2020

45.48

112,286

104

5,311,038

Table 2.8 Projected Supply for the Industry

C.2.2 for the Products

Bottle Sizes

330 ml

500 ml

1L

1.5 L

3L

2016

535,015

491,553

545,880

218,613

163,851

2017

562,514

516,819

573,939

229,850

172,273

2018

591,430

543,385

603,441

241,665

881,139

2019

621,829

571,315

634,458

254,086

190,438

2020

653,789

600,678

667,066

267,145

200,226

Total

2,964,577

2,723,750

3,024,784

1,211,359

1,607,927

1 gal

1.5 gal

2.5 gal

5 gal

Total

2016

797,089

371,164

163,851

1,059,165

4,346,181

2017

838,060

390,242

172,273

1,113,606

4,569,576

2018

881,139

410,301

181,128

1,170,848

5,504,476

Year

Bottle Sizes Year

2019

926,429

431,391

190,438

1,231,029

5,051,413

2020

974,044

453,563

200,226

1,294,300

5,311,037

Total

4,416,761

2,056,661

907,916

5,868,948

24,782,683

Table 2.9 Projected Supply for the Products COMPETITORS MARKETING

PROJECT’S MARKETING PROGRAM

Promotional Description

Qty

Unit Price

Amount

10’ x 5’

5

Php350

Php3500

5’ x 4’

25

140

3,500

3’ x 2’

25

40

1,000

2000

1

2,000

Free

Free

Free

Materials/Media

Tarpaulin

Flyers

5.5’ x 8.5’

Full colors

Facebook

Facebook Account

Instagram

Instagram

Free

Free

Free

Account

Total Price

Php10,000

Table 2.10 Promotional Media/Materials

Chapter 3

TECHNICAL ASPECT PRODUCTS

Through the use of latest innovation, Aqua Thirst Water Refilling Station is proposed to offer Purified Water Only. In addition, 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 Aqua thirst Water Refilling Station caters all this to ensure that they will provide a quality, safe and healthy drinking water to its customer.

Variety of Water

Description

It 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

purified water. But water can also be purified by other processes including reverse

osmosis,

carbon

filtration,

microfiltration, ultra filtration, ultra filtration, ultraviolet oxidation or electro dialysis.

Table 3.1 Variety of Water

LEGAL REQUIREMENTS

Registration with BIR (Bureau of Internal Revenue) Registration of Business Name with DTI (Department of Trade and Industry) Barangay Clearance and Business Permit Mayor’s Permit

Permits & Licenses

Unit Price

Amount

Barangay Clearance

Php75

Php75

Mayor’s Permit

4,000



Business Tax

750



Business Plate

100



Sanitary Permit

250



Occupational Tax

300



Inspection Fee

400



Filing

100



Processing

100



Zoning

300



Electrical Inspection

250



Fire Inspection

300

BIR DTI

6,850

250

250

5,450

5,450

Total

Php12,625

Table 3.2 Cost of Legal Requirements

Figure 3.1 Business Registration PRICELIST OF PRODUCTS Products

With Bottle (Php)

Refill (Php)

330ml

6.00

2.00

500ml

8.00

3.00

1L

17.00

8.00

1Gallon

40.00

12.00

1.5Gallon

50.00

15.00

5Gallons (Slim with Faucet)

250.00

35.00

5Gallons (Round)

250.00

35.00

Table 3.3 Price of the Products RESOURCES (EQUIPMENT, MACHINERIES, MATERIALS & SUPPLIES) Equipment Qty

Description

Supplier & Source

Unit Price

Total Price

1 unit

Reverse Osmosis System

ELM Water Systems & Equipment

Php 150,100.00

Php 150,100.00

35,000.00

35,000.00

35,000.00

35,000.00

22v/60H2, complete with [email protected]

membrane, stainless housing, self-standing with

http://www.olx.ph

gauges

1 unit

Multi-Media 220v/60H2,


automatic wash with [email protected]

stainless steel jacket, 9GPM

1 unit

Granular Activated Carbon

http://www.olx.ph


(GAC) 220V/60H2,9GPM, [email protected]

automatic backwash with stainless steel jacket

http://www.olx.ph

1 unit

Single softener with


35,000.00

35,000.00

25,600.00

25,600.00

30,700.00

30,700.00

2,620.00

2,620.00

2,328.50

2,328.50

9,075.00

9,075.00

10,960.00

10,960.00

3,410.00

3,410.00

bypass, brine tank, resin, [email protected]

stainless steel jacket http://www.olx.ph

1 unit

Ultra violet 12GPM


220V/60H2 [email protected] http://www.olx.ph

1 unit

Ozone pure 220V/60H2

ELM Water Systems & Equipment [email protected] http://www.olx.ph

1 unit

Polisher carbon


1 unit

0.20 Micron with housing


1 unit

Pressure tank with pump


1HP, stainless steel [email protected] http://www.olx.ph

1 unit

Storage tank @P7600 480


gallons, stainless steel [email protected] http://www.olx.ph

1 unit

Magnetic flow meter .5-


5GPM,1/2” MPT [email protected] http://www.olx.ph

Subtotal

Php 339,793.50

Table 3.4 Machineries and Equipment

Qty

Description

Supplier & Source

Unit Price

Amount

27.31 cu/m or

Unpure water

Pililla Water District

Php 21.05 Cu/m

Php 574.88

Brine Solution


300

300

7,215 gallons

50kls

[email protected] http://www.olx.ph

Subtotal

Php 874.88

Table 3.3 Raw Materials

Qty

Description

Supplier & Source

Unit Price

Amount

1pc

20” Slim single filter


Php1,290.00

Php1,290.00

1,050.00

1,050.00

housing ½” #20 blue [email protected] http://www.olx.ph

1pc

20” Slim sediment cartridge


polyspon 5, 10 & 20 micron [email protected] http://www.olx.ph

1pc

20”Slim carbon cartridge


2,070.00

2,070.00

1,170.00

1,170.00

1,715.00

1,715.00

1,000.00

1,000.00

925.00

925.00

186.25

186.25

320.00

320.00

CTO matrix solid carbon 10 [email protected]

micron http://www.olx.ph

1pc

Ionization mix bed 20”L X


2.5” OD [email protected] http://www.olx.ph

1pc

Absolute cartridge 20”L X


2.5”OD, .2 micron [email protected] http://www.olx.ph

1pc

800 GPD membrane 4”OD


X 21”L desalFilmtec [email protected] http://www.olx.ph

1set

Membrane housing 4”X21”


complete with end cap & [email protected]

pins http://www.olx.ph

1set

Membrane Cleaning


1pc

Liquid gauge 212” 0-300


PSI [email protected]

http://www.olx.ph

1pc

Spare lamp for UV 12 GPM


513.75

513.75

631.25

631.25

1,012.50

1,012.50

1,500.00

1,500.00

500.00

500.00


1pc

Ballast for 12 GPM


1pc

Mixed bed


1pc

20”L X 4.5” OD water


softener cartridge [email protected] http://www.olx.ph

1pc

20”L X4.5” OD iron reducer


Subtotal

Php 13,883.75

Table 3.4 Supplies

Qty

Description

Supplier & Source

Unit Price

Amount

120pcs

5 gallon round pet bottle


Php 104

Php 12,480

with Label & Sticker [email protected] http://www.olx.ph

120pcs

5 gallon slim with faucet


94

11,280

16

1,920

15

1,800

6

720

3.50

420

3.25

390

0.21

31.50

with Label & Sticker [email protected] http://www.olx.ph

120pcs

1.5 gallon pet bottle with


Label & Sticker [email protected] http://www.olx.ph

120pcs

1 gallon pet bottle with


Label & Sticker [email protected] http://www.olx.ph

120pcs

1 Liter with Label & Sticker


120pcs

500 ml with Label & Sticker


120pcs

330 ml with Label & Sticker


150pcs

Seal for 5 gallon round


150pcs

Seal for 5 gallon slim


0.21

31.50

0.16

24.00

0.16

24.00

0.12

18.00

0.10

15.00

0.10

15.00

2,000

2,000.00

3,500

15,000.00


150pcs

Seal for 1.5 gallon


150pcs

Seal for 1 gallon


150pcs

Seal for 1 Liter


150pcs

Seal for 500ml


150pcs

Seal for 1 gallon


1pc

Heat Gun


5pcs

Water Dispenser for 5-


gallon round bottle [email protected] http://www.olx.ph

Subtotal

Php 46,169.00

Total Direct

Php 60,927.63

Cost

Table 3.5 Packaging LOCATION OF THE BUSINESS

Aqua Thirst Water Refilling Station will be established in Brgy. Quisao, Pililla, Rizal which is considered as the biggest barangay in the municipality of Pililla. The proposed location of the business is E. Acosta St. Quisao, Pililla, Rizal as shown in Figure 1.2. Aqua Thirst Water Refilling Station is expected to occupy the first floor of the building measuring 20sqm. The rent for the building is P2, 500 per month. PLANT LAYOUT

The efficiency of production depends on how well the various machines; production facilities and employee’s amenities are located in a plant. Only the properly

laid out plant can ensure the smooth and rapid movement of material, from the raw material stage to the end product stage. The figure shows the proposed plant layout of Aqua Thirst Water Refilling Station.

Figure 3.2 Plant layout of Aqua Thirst Water Refilling Station

Materials For Renovation (20sqm.)

Amount

Carpenter’s Material

20,000

Labor Cost

10,000

Paint

8,000

Glass Window

3,000

Glass Door

4,000

Tiles

5,000

Total Cost

Php50,000

Table 3.6 Cost of Renovation

UTILITIES

Just like any other businesses now a day, utilities expenses will also be given attention because it greater affects the operation of the business. The table shows the utilities expenses of the business with an expected monthly consumption.

Utilities

Expected Monthly Consumption

Electricity

Php 6,000

Telephone (PLDT Landline Plus)

600

Water (Raw Materials)

574.88

Total

Php7,174.88

Table 3.7 Utilities Expenses WASTE DISPOSAL

Our customers are always our priority. We would like to give them a one hundred percent satisfaction and the maintenance of cleanliness in all areas of our store is included in the customer requirements. So, Aqua Thirst encourages all the members of the organization especially we are in the water industry to strictly comply with the set of standards in cleanliness specifically with the proper disposal of waste. Aqua Thirst will provide two big trash bins in the area with cover and proper label for segregation will be observed to assure the safety on the preparation of our products.

Qty

Description

Unit Price

Amount

1pc

Broom and Dust Pan

200

200

2pcs

Trash Cans

200

400

2pcs

Feather Dust

30

60

1pc

Mop

200

200

6pcs

Powder Soap

5

30

1pc

Air Freshener

75

75

Total

Php965

Table 3.8 Cost of Waste Disposal LABOR REQUIREMENTS

People are considered to be the lifeblood of any business organization. They are very important for the business to operate effectively and efficiently. Aqua thirst will need full - time employees. They are the ones who will perform the functions of following positions: Administrative Assistant Front Liner Technical Assistant Driver/Delivery Man

Manpower Salaries

Monthly Salary

Annual Salary

Php 5,000

Php60,000

5,000

60,000

4,000

48,000

3,000

36,000

Php 17,000

204,000

Administrative Assistant Php250/day x 20days Technical Assistant Php250/day x 20days Front Liner Php200/day x 20 days Delivery Man Php150/day x 20 days

Total

Table 3.9 Manpower Salaries

Chapter 4 FINANCIAL ASPECT TOTAL PROJECT COST

The project will be established by a partnership. The project cost is Php 543,411.13. The capital investment will come from the investment of Three (3) partners in the amount of Php 600,000.00. Each partner will share its contribution equally to finance the capital requirement of the business in the amount of Php 200,000.00/each. Table 1.4 shows the financing of projects. The operating expenses and project cost for the next five years are shown on Table ___. INITIAL CAPITAL REQUIREMENTS

Capital Investment is the money paid to purchase a capital asset or a fixed asset and these are the major components of a total project cost of Aqua Thirst Water Refilling Station. The table below shows the Initial Fund Requirements and Funds Allocation of Aqua Thirst Water Refilling Station.

INITIAL CAPITAL REQUIREMENTS

Water Refilling Machines/Equipment

Php 339,793.50

Renovation or New Store at Least 20sqm. size

Php 50,000.00

Delivery Vehicle

Php 50,000.00

Business Permits and Licenses

Php 12,625.00

Promotions

Php 10,000.00

Raw Materials

Php 874.88

Initial Supplies

Php 13,883.75

Packaging

Php 46,169

Indirect Cost

Php 20,065

Total

Php 543,411.13

Table 4.1 Initial Fund Requirements and Funds Allocation of Aqua Thirst FINANCIAL

PROJECTIONS

FOR

THE

PROJECTED

FIVE

(5)

YEARS

OF

OPERATION

Planning out and working on your company's financial projections each year could be one of the most important things you do for your business. After the comprehensive financial analysis and projections of the project, it shows that the project has a potential to bring healthy and sustainable positive returns to the investor after __ years. Table 4._ shows the balance sheet of the business for the projected five years; Table 4._ shows the income statement of the business for the projected five years; Table 4._ shows the balance sheet of the business for the projected five years; and Table 4._ shows the balance sheet of the business for the depreciation analysis.

FINANCIAL ANALYSIS SHOWING FINANCIAL RATIOS AND PAYBACK PERIOD

A financial analysis is a comparison in which certain financial statement items are divided by one another to reveal their logical interrelationships. Financial Ratios are described, analyzed and computed thoroughly as shown on Table 4._ Payback Period Payback period is the time in which the initial cash outflow of an investment is expected to be recovered from the cash inflows generated by the investment. It is one of the simplest investment appraisal techniques. The formula to calculate payback period of a project depends on whether the cash flow per period from the project is even or uneven. In case they are even, the formula to calculate payback period is: Payback Period =

Initial Investment Cash Inflow per Period

The payback period of the capital is __ years as shown on Table 4._

Ratio

Formula

Purpose

Current Ratio

Current Assets /

The Current Ratio is used to test the company's ability

Current Liabilities

to pay its short term obligations. Below 1 means the company does not have sufficient incoming cash flow to meet its obligations over the coming year.

Debt Ratio

Total Liabilities / Total

The Debt Ratio indicates what proportion of debt a

Assets

company has relative to its assets. The measure gives

an idea to the leverage of the company along with the potential risks the company faces in terms of its debtload.

Debt to Equity Ratio

Total Liabilities / Total

The Debt to Equity Ratio is a measure of a company's

Owner’s Equity

financial leverage. It indicates what proportion of equity and debt the company is using to finance its assets.

Profit Margin

Profit Margin is used to determine the profitability of

Profit / Net Sales

each peso of sales that the company can make.

Rate of Return on

Profit / Average Total

Assets

Assets

Asset Turnover

Profit / Total Assets

Rate of Return on Assets is used to measure overall profitability of assets.

Asset Turnover measures a firm's efficiency at using its assets to generate sales revenue, the higher the better.

Leverage of Assets

Profit / Owner’s

Leverage of Assets measures the ratio between assets

Equity

and owner's equity of a company. The higher the number, the higher the leverage.

Table 4._ Financial Ratios Descriptions OPERATING EXPENSES

Operating Expenses

Unit Price

Amount

Monitoring Testing

300 per Month

3,600

Chemical Analysis

2,500 per Year

2,500

Allotted Money for Maintenance 1,500 per Month

18,000

5,000 (3x a Year)

5,000

4,500 a month

54,000

of Vehicle

Allotted Money for Maintenance of Machine Motor

Fuel/Gas

Total

Php83,100

Table 4. Operating Expenses INDIRECT COST

Indirect Cost

1. Rent Expense (1 month deposit + 2 Php 7,500.00

months advance) 2. Utility Bills a. Electricity

Php 6,600.00

b. Telephone 3. Consumables and Others a. Electric Fan b. Exhaust Fan c. Record Book d. Ball pen

Php 5,000.00

e. Table f.

Chair

4. Waste Disposal

965

Total

Php 20,065.00

Table.4 Total Indirect Cost

CHAPTER 5

MANAGEMENT ASPECTS FORM OF ORGANIZATION

The type of business is a partnership. It is to be registered with the Securities and Exchange Commission (SEC) for the contract called articles of co -partnership. By the contract of partnership, two or more persons bind themselves to contribute money, property and industry with the intension of dividing the profits among themselves. Aqua Thirst Water Refilling Station as partnership will be registered with the different government agencies as Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), Business Permit and Licensing Office of Pililla, Rizal (BPLO) and Bureau of Internal Revenue (BIR). The project will have its full blast after it has complied with all the necessary documents and technical requirements needed to operate and engage in this type of business. The preoperating capital for this business will be Php 200,000 each partners total of Php 600,000. ORGANIZATIONAL STRUCTURE AND OFFICERS

Our business chose the functional type of organization. This is one of the most commonly used type of organizational structure which all activities in the firm are group together according to certain functions like production, marketing, service and administrative. This is the best structure that will fit to our over-all operation. This is quite complex but effective and efficient for every partners and employees of the organization since the work is divided into specialized functions.

Manager/Owner

Administrative Assistant

Front Liner

Technical Assistant

Driver/Delivery Man

Figure 5.1 Organizational Chart

It is very vital in all business organization to know their manpower requirements to operate systematically and effectively at all times. It will help also to determine the capacity or capabilities of the employees to fit in the flow of business as well as to have a clear duties and responsibilities. Having standard qualifications in hiring and selecting, the employee will establish efficient business operations. Job Descriptions

Manager/Owner

Overseas store operations at least 4 hours a day

Administrative Assistant

Logs and handles cash sales and purchases

Front Liner

Accepts and refills containers of customers

Technical Assistant

Maintains and runs the machine

Driver/Delivery Man

Transport refilled containers to customer’s home

Figure 5.2 Job Descriptions

CHAPTER 6

SOCIO-ECONOMIC ASPECT EMPLOYMENT

The business will provide job opportunities to many individuals most especially to those people who have a great concern in safe and healthy water drinking. Every society wants all its qualified members to be gainfully employed. When individuals are employed they are able to raise their children support them through school, provide them with decent homes, acquire medical services whenever needed and contribute to government income through the payment of income taxes. Aqua Thirst Water Refilling Station will help to lessen rate of unemployment and number of poor people. The eradication of poverty will help to solve social problems like crimes, juvenile delinquency and malnutrition. TAXES

Every business establishment will be of great help for the growth and development of the Philippine economy. These will only be possible if every firm will be responsible enough to perform their duties and obligations to their customers, community and of course to the government. Aqua Thirst Water Refilling Station will definitely contribute additional earnings to our government by means of paying right taxes. Through this, the government can able to perform its functions well including continuous support and assistance to the business industry, providing projects for the Community such as building infrastructures, public schools and hospitals, strengthening arm forces for the security

and protection of the country men and other indispensable projects that will benefit the people. OTHER BENEFITS OF COMMUNITIES Environment

Aqua Thirst Water Refilling Station will be sensitive enough to our environment by means of assuring that the processes involve in the business operations will be environmental friendly. Moreover, the firm will apply the principle of Corporate Social Responsibility (CSR). The business will observe proper waste disposal in order to maintain cleanliness and orderliness. This will also help to lessen pollution that causes different diseases and health problems to many Filipinos. The business proponents will allocate enough budgets to sustain the execution of waste management in its operation.

APPENDIX A. Interview Questionnaire

The proponents used questionnaires to get data of the present research through formulation of alternative questions as show below: East Systems Colleges of Rizal

Morong, Rizal Name (optional): ________________________________________ Date: ___________ Address: ______________________________________________________________ Dear Customer:

We, the proponents of Aqua Thirst Water Refilling Station are conducting a survey for us to provide quality drinking water and services that fit your needs and wants. We need your help in filing up this questionnaire. We appreciate your participation in this survey and welcome your feedback. Direction: Answer the following question by putting a checkmark ( ) on the box

provided that correspond your answer. 1. Please indicate your age range.  18-24

 25-34

 35-54

 55

or older

2. Please indicate your Gender.  Male

 Female

3. How many people are there in your family?  2



4

others (specify):_____

 3

 5

4. Please indicate your household income.  P8,

000 and below

 P15,

001 – P 30,000

 P8,

001 – P 15,000

 P30,

001 – P 50,000

 P50,

001 and higher

5. Aqua Thirst Water Refilling Station is currently attempting its establishment in Brgy. Quisao, Pililla, Rizal. Which best describes your opinion of these efforts?  Very

positive

 Somewhat

positive

 I

have no opinion

 somewhat

 Very

negative

negative

6. Would you consider patronizing a water refilling station if one were located in your barangay?  Yes

 No

7. Using the list below what factor/s would most influence you to patronize a water refilling station?  Location

 Convenience

 Cost

 Quality

 Kinds



services

of drinking water

Reputation of water

station 8. How aware you are regarding the safety and cleanliness of water you drink?  Very

much aware

 Much

aware

 Aware  not

 Not

much ware at all

much ware

9. From what source does your drinking water comes from?  Pililla 

Water District

Water refilling station

 Deep

well

 Water

others (specify): _________

10. How frequently do you buy bottled water?

pump

 Daily  Twice

a week

 Once

a week

 twice

a month

 once

a month

11. What size of bottled water do you buy normally?  330

ml

 1.5

 500

ml

 3  1

 1

liter

liters

 1.5

gal

liters

 2.5

gal

gal

 5

gal

12. How many bottles (330 ml) of water do you drink per day?  2 

 4

3

Others (specify):_________

13. In your household, how many bottles (5gal) of water do you consumed in a week?  2 

 4

3

Others (specify):____________

14. Which kind of water do you prefer to drink?  Purified

water

 alkaline

water

 Mineral

water

 Distilled

water

15. Do you already have purified drinking water dealer?  Yes

 No

If yes please specify: ________________ 16. Do you agree for 30 minutes time span for the delivery?  Yes

 No

17. If we offer purified drinking water, are you willing to try?  Yes

 No

18. Will it be possible that you can be our first and loyal customer?  Yes

 No

19. How do you want us to reach you to take your order?  Telephone/Mobile

 Online

 Personal

Sample Size determination

To be able to determine the needed number of respondents, the proponents used Sloven’s Formula Formula:

n = ____N_____ 1+Ne2 Where: N = the number of people who qualify in the area of study e = margin of error which is 5% n = number of needed respondents Solution: n = __79,059__

= 398

1+ (79,059) (.05)2

Sampling Design

The proponents used the stratified random sampling to gather information from the target market. Surveys and interviews are conducted to further the people’s demand regarding purified bottled water by using a specific number of persons or respondents from nine barangays within the municipality. The proponents used the checklist format. Questions are made for the researchers to get their personal choice when it comes to bottled water. By these questions, the researchers will be able to determine the demand of the product. The group provided 398 survey questionnaires which are all in English language.

Tally of Questionnaire

The questions are answerable through choosing their answers on the multiple choices. 1.

Please indicate your age range. Age Range

Number of Respondents

Percentage (%)

18-24

138

34.67

25-34

85

21.36

35-54

115

28.89

55 or older

60

15.08

Total

398

100

Table Question no. 1 Statistic

250

200

Figure

150

100

50

0 18-34

25-34

35-54

55 or older

Figure Question no. 1 Graph

2.

Please indicate your Gender.

Gender

Number of Respondents

Percentage (%)

Male

134

33.67

Female

264

66.33

Total

398

100

Table Question no. 2 Statistic

250

200

150 # of Respondents Percentage (%)

100

50

0 Male

Female

Figure Question no. 2 Graph

APPENDIX B. Price Computation a) For 5-gallon Round

Particulars

Total raw materials & supplies/14gallons/30days Packaging for a 5-gallon & seal Total Add: Total indirect cost/14gallons/30days Total production cost

With Bottle

Php35.14

104.21 139.32 47.77 187.09

Refill Only

Total raw materials & supplies/14gallons(3)/30days Packaging for a 5-gallon & seal Total Add: Total indirect cost/14gallons(3)/30days Total production cost

Add: 25.16% mark-up

Add: 20.46% mark-up

(MV= Selling Price –Total

(MV= Prevailing Price –Total

Production Cost)

62.91

Production Cost)

(MP= Mark-up Value/

(MP= Mark-up

Selling Price x 100)

Value/Prevailing Price x 100)

Selling price

Php250

Selling price

Refill Only

Php11.71

.21 11.92 15.92 27.84

7.16

Php35

b) For 5-gallon Slim

Particulars

Total raw materials & supplies/14gallons/30days Packaging for a 5-gallon & seal Total Add: Total indirect cost/14gallons/30days Total production cost

With Bottle

Php35.14

94.21 129.32 47.77 177.09

Add: 29.16% mark-up (MV= Selling Price –Total Production Cost)

Refill Only

Total raw materials & supplies/14gallons(3)/30days Packaging for a 5-gallon & seal Total Add: Total indirect cost/14gallons(3)/30days Total production cost

Refill Only

Php11.71

.21 11.92 15.92 27.84

Add: 20.46% mark-up 72.91

(MV= Prevailing Price –Total Production Cost)

7.16

(MP= Mark-up

(MP= Mark-up

Value/Selling Price x 100)


Selling price

Php250

Selling price

Php35

c) For 1.5-gallon

Particulars

Total raw materials & supplies/47gallons/30days Packaging for a 1.5-gallon & seal Total Add: Total indirect cost/47gallons/30days Total production cost

With Bottle

Php10.47

16.16 26.63 14.23 40.86

Refill Only

Total raw materials & supplies/47gallons(3)/30days Packaging for a 1.5-gallon & seal Total Add: Total indirect cost/14gallons(3)/30days Total production cost

Add: 18.28% mark-up

Add: 44.07% mark-up



Production Cost)

9.14

Production Cost)

(MP= Mark-up

(MP= Mark-up



Selling price

Php50

Selling price

Refill Only

Php3.49

.16 3.65 4.74 8.39

6.61

Php15

d) For 1-gallon

Particulars

Total raw materials & supplies/70gallons/30days Packaging for a 1.5-gallon & seal Total Add: Total indirect cost/70gallons/30days Total production cost Add: 20.62% mark-up (MV= Selling Price –Total

With Bottle

Php7.03

15.16 22.19 9.56 31.75 8.25

Refill Only

Total raw materials & supplies/70gallons(3)/30days Packaging for a 1.5-gallon & seal Total Add: Total indirect cost/70gallons(3)/30days Total production cost Add: 52.67% mark-up (MV= Prevailing Price –Total

Refill Only

Php2.34

.16 2.5 3.18 5.68 6.32

Production Cost)

Production Cost)

(MP= Mark-up

(MP= Mark-up



Selling price

Php40

Selling price

Php12

e) For 1-Liter

Particulars

With Bottle

Total raw materials & supplies/280gallons/30day

Php1.76

s Packaging for a 1.5-gallon & seal Total Add: Total indirect cost/280gallons/30days Total production cost

6.12 7.88 2.39 10.27

Refill Only

Total raw materials & supplies/280gallons(3)/30days Packaging for a 1.5-gallon & seal Total Add: Total indirect cost/280gallons(3)/30days Total production cost

Add: 39.59% mark-up

Add: 85% mark-up



Production Cost)

6.73

Production Cost)

(MP= Mark-up

(MP= Mark-up



Selling price

Php17

Selling price

Refill Only

Php.58

.12 .7 .8 1.5

8.5

Php10

f) For 550ML

Particulars

With Bottle

Total raw materials & supplies/560gallons/30day

Php.88

s Packaging for a 1.5-gallon & seal Total Add: Total indirect cost/560gallons/30days

3.60 4.48 1.19

Refill Only

Total raw materials & supplies/560gallons(3)/30days Packaging for a 1.5-gallon & seal Total Add: Total indirect cost/560gallons(3)/30days

Refill Only

Php.29

.10 .39 .40

Complete Chapter 1 6 Edited 1 2

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