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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 Manila, only about three fourths of the population receives piped water

from the municipal authority. Outside Manila far fewer people have access to

clean water distribution. In both locations, these families must find alternate water

sources if they are to avoid cholera epidemics and other health problems spawned

by the foul, contaminated water available in their neighborhoods. In the provinces,

the scenario is worse. Some people rely on wells or even on rivers for their supply

of water for their daily consumption. Amidst this uncertainty, a solution has

appeared in the thousands of water refilling stations that now dot the Philippine

landscape. These shops began as privately-run community sources, where

consumers would bring containers and fill them for a per-gallon fee that is a small

fraction of commercially bottled water’s cost. Demand is high that most stores

now offer home delivery for regular customers. Most shops produce between

3,000 and 12,000 liters of water per day. Typically, the supply comes from the
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pipes of municipal concessionaires. Entrepreneurs invest in treatment equipment

and further purify their product before sale. Nowadays, bottled water has

established a major foothold in the Philippines. With such an intense competition,

how do businesses cope up with the pressure? This is what the researches of this

study would like to unveil. In the course of this study, the researches aim to

discover and compare marketing strategies employed by these water refilling

stations. And this study also tackles the safeties of processes used by water

refilling stations in the Philippines, specifically on the National Capital Region, on

the purified water it sells to its customers. The study focuses on the processes the

water refilling stations implements to purify the water from its concessionaires not

in the working place of water refilling stations. The group chose to research on

this topic since nowadays, as the demand for cleaner water becomes higher, the

price of household water purifiers and bottled water has become prohibitive.

Water refilling stations managed by private entrepreneurs offer a cheaper and

more convenient solution to the public’s drinking water needs than bottled water

or the use of household filters. The demand at the water refilling stations - water

stores that sell purified water is now increasing. The quality of purified water

conforms to the national standards for drinking water and is even better than the

quality of water produce by traditional water supply systems in terms of removed

impurities.

ii. Historical Background of the Company


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One of the fast expanding businesses in many cities nationwide is the water

refilling station. It's mushrooming on every street corner, because a lot of people

in urban areas prefer to get their drinking water from these water stations, it's

simply clean and safe to drink. Over the years, as the demand for cleaner water

becomes higher, the price of household water purifiers and bottled water has

become prohibitive. Water refilling stations managed by private entrepreneurs

offer a cheaper and more convenient solution to the public's drinking water needs

than bottled water or the use of household filters. SOCIAS Purified Water

Refilling Station is owned and personally managed by Maribeth M. Socias. It is

located at Sitio Bogo, Poblacion, Getafe, Bohol. The vicinity is surrounded by

residential 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?
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5. What are the different marketing strategies used for the promotion of the

business?

6. What are the qualifications for human resourcing?

iv. Statement of Objectives

The objectives of SOCIAS 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 SOCIAS 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.


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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 water refilling station has been named “SOCIAS Purified

Water Refilling Station”.

ii. Nature of Business

Our business proposal is setting up a water refilling station

whereby the station will cater the reproduction of water through selling

large and small amounts of volume. The station will provide a

combination of 4 varieties of water with excellence in water processing

– includes filtration and necessary processes - value pricing, and

atmosphere.

iii. Location of Business

The water refilling station will be situated in Sitio Bogo,

Poblacion, Getafe, Bohol.

In Sitio Bogo, there is no water refilling station thus giving us a

competitive advantage.
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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 – SOCIAS 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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v. Permits and Licenses to Operate

DTI

Business Permit from the Mayor

Barangay Permit

Sanitary Permits from Municipality or DOH


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Chapter III

The Company Organization and Human Resource

Management

i. The Company Organizational Chart

Manager

Maribeth M. Socias

Accountant Administrative Assistant

Atty. Jairus T. Socias, CPA Yevgeny M. Socias

Technical Front Liner Delivery Man


Assistant
Person # 1 Person # 2
Cyrus M. Socias
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ii. The Human Resource Requirements of the Company

 Manager (Maribeth M. Socias)

- Overseas store operations at least 4 hours a day

 Accountant (Atty. Jairus T. Socias, CPA)

- Makes financial statement of business operations

 Administrative Assistant (Yevgeny M. Socias)

- Logs and handles cash sales and purchases and monitors

the business

 Technical Assistant (Cyrus M. Socias)

- Maintains and runs the machine

 Front Liner (Person # 1)

- Accepts and refills containers of customers

 Delivery Man (Person # 2)

- Transport refilled containers to customer’s home


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iii. The Management Information System Office and Organizational Chart

Manager

Accountant Administrativ
e Assistant

Delivery Man Technical


Assistant
(Fig. 3.2)

The company’s information system includes the Delivery Man and the

Technical Assistant since the Delivery Man informs the Administrative Assistant

how many customers and who to deliver while the Technical Assistant informs the

Administrative Assistant what particular occurrence or damage may happen to the

equipments. The Administrative Assistant can directly inform the Manager about

the information gathered between the Delivery Man and the Technical Assistant.

Since the Administrative Assistant also has the responsibility to handle cash from

sales, she can also directly inform the Accountant about the cash whereabouts and

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

will then be passed to the manager.


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iv. Job Description and Job Specification

Manager

Maribeth M. Socias

Job Description Job Specification

 Maintains staff by recruiting,  Approximately 4-6 years of


selecting, orienting, and
training employees. sales experience in the
marketing industry.
 Accomplishes staff results by
communicating job  Experience with a company
expectations. in a related company sector.
 Establishes strategic goals by  Extensive experience of
gathering pertinent business, developing, maintaining and
financial, service, and delivering on marketing
operations information.
strategies to meet company
 Accomplishes financial
objectives.
objectives by forecasting
requirements.  A strong understanding of
 Maintains quality service by customer and market
enforcing quality and dynamics and requirements.
customer service standards.  If applicable, a willingness to
 Maintains professional and travel and work in a global
technical knowledge by team of professionals.
reviewing professional
 A proven ability to oversee
publications; establishing
personal networks; all marketing, advertising and
benchmarking state-of-the-art promotional staff and
practices; participating in activities.
professional societies.
 Contributes to team effort by
accomplishing related results
as needed.
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Accountant

Atty. Jairus T. Socias, CPA

Job Description Job Specification

 Maintaining the financial  Trained in QuickBooks


records of the company using accounting package
bookkeeping software and  Relevant Bookkeeping
online spreadsheets
Experience
 Maintaining records of  Knowledge of Microsoft
subsidiaries
Office & Internet
 Preparing and processing  QuickBooks Accounts
payroll/s
experience
 Reconciling all accounts  Excellent interpersonal skills
periodically
(e.g.; communication, self-
 Preparing monthly, quarterly, awareness, building trust,
half-yearly, and yearly
questioning & listening,
financial statements
influencing, assertiveness,
 Calculating taxes, collecting
problem solving, decision
bad debts, paying creditors,
and analyzing financial making)
statements  Numerate & Literate
 Producing accounting reports  Excellent organizational
and income and expenditure skills
statements  Able to prioritize
 Processing sales invoices,  Able to work to deadlines
receipts and returns  Able to work on own
 Maintaining a monthly profit initiative
and loss statement  Discreet
 Safeguarding and securing all  Flexible
financial records of the  Self Motivated
company  Pro-active Team Worker
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Administrative Assistant

Yevgeny M. Socias

Job Description Job Specification

 Maintains workflow by  Basic reading, writing, and


studying methods; arithmetic skills required.
implementing cost reductions;  Knowledge of Microsoft
and developing reporting Office and telephone
procedures. protocol.
 Creates and revises systems  Excellent communication
and procedures by analyzing skills both written and oral.
operating practices,  Ability to use initiative to
recordkeeping system. organize and prioritize work
 Ensures operation of and meet deadlines.
equipment by completing  Ability to work as part of a
preventive maintenance team and use own initiative
requirements; calling for where applicable.
repairs.  Ability to operate data
management and filing
 Maintains supplies inventory
systems, and interpret and
by checking stock to
analyze data.
determine inventory level.
 Ability to initiate and prepare
 Maintains professional and routine correspondence,
technical knowledge by reports and memos.
attending educational  Reception skills including
workshops; reviewing effective answering of
professional publications; telephone and face to face
establishing personal contact with the public.
networks; participating in
 Financial skills with an
professional societies.
ability to understand and
 Contributes to team effort by analyze figures.
accomplishing related results
as needed.
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Technical
Assistant

Cyrus M. Socias

Job Description Job Specification

 Ensure legal compliance of  Excellent interpersonal skills


OEA packaging, both to provide quality customer
suitability for purpose and service to both internal and
disposal. external customers.
 Strive to minimize  Ability to interact with
environmental impact of different levels of personnel.
packaging, operations, and  Strong organizational and
waste management. time management skills.
 Carry out environmental and  Additional experience may
personnel swabbing and ATP be substituted for lack of
evaluation of hygiene formal degree.
systems.  Has at least vocational 2 year
 Evaluating and trialing new diploma.
machinery for water  Has a good personality.
processing and improving
 Has a good communication
production processes.
towards people.
 A person who can work
 Knows how to deal with
under pressure.
customers.
 A person who knows how to
 Efficient at work
operate the water refilling
station equipment.  Discreet
 Knows how to repair the  Flexible
equipment in case it’s  Self Motivated
broken.  Pro-active Team Worker
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Delivery Man

Person # 2

Job Description Job Specification

 Knows how to drive a 10-  At least high school


wheeler truck or less. graduate
 Knows how to operate water  Hardworking
station equipments.  Has good personality
 Has valid license  Who can work under
pressure
 Contributes to team effort by  Self Motivated
accomplishing related results  Pro-active Team Worker
as needed.

Front Liner

Person # 1

Job Description Job Specification

 A person who can be all  At least high school


around in a water refilling graduate.
station business (except  Hardworking
manager, Accountant and  Has good personality
administrative assistant)  Who can work under
 A person who at least knows pressure
how to operate water  Self Motivated
processing equipment.  Pro-active Team Worker
 Contributes to team effort  Efficient at work
by accomplishing related  Knows how to deal with
results as needed. customers.
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v. Salary, Benefits and Incentives

Salary Benefits Incentives

 SSS  Service

Technical  Phil Health Incentive

Assistant P250.00/day  Pag - ibig Fund Leave

 13th Month Pay  Meal and

 Overtime Pay Rests Period

and Holiday/Rest  Holiday/


Front P200.00/day
Day Pay Christmas
Liner
 Night Shift Bonus

Differential  Mid-Year

Delivery P200.00/day Bonus

Man  Cost of

Living

Allowances

 Paid Holiday
P16,9000.00/month
Total and Vacation

Leaves

(Table 3.1)
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Chapter IV

The Financial Requirements

i. The Capitalization Aspects

CAPITAL INVESTMENT

1. Water Refilling Machine P 250,000.00

2. Renovation or New Store at least 75,000.00

20sqm. size

3. Delivery vehicle 150,000.00

a) For house delivery

b) Small Tank Truck

4. Business permit & other legal docs 10,000.00

5. Initial Supplies / Miscellaneous 31,750.00

a) 150 Bottles slim – 18,750.00

b) 50 Bottles round – 7,500.00

c) heat gun – 2,500.00

d) Stickers – 3,000.00

6. Others 8,250.00

Total P 525,000.00

(Table 4.1)
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ii. The Company Budget

The company – SOCIAS Purified Water Refilling Station – has an initial

budget of P700, 000.00 (Seven Hundred Thousand Pesos Only).

The table below shows the money allocation for each area concerned.

MONEY ALLOCATION

1. Water Refilling Machine P 300,000.00

2. Renovation or New Store at least 80,000.00

20sqm. Size

3. Delivery vehicle 200,000.00

4. Business permit & other legal docs 10,000.00

(DTI, Mayor’s permit, Water testing,

etc.)

5. Initial Supplies / Miscellaneous 50,000.00

a) 150 Bottles slim – 20,000.00

b) 50 Bottles round – 10,000.00

c) heat gun – 10,000.00

d) Stickers – 10,000.00

6. Others 30,000.00

Total P 670,000.00

(Table 4.2)
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iii. Estimate of Income and Expenditures for One year and Three Years

SALES:

A. ) First Year of Service

a. First 2 Months [January(27 days) – February(24 days)]

60 containers / day x P 15.00 selling price x 51 days

= P 45,900.00

Remaining Months (March – December) 262 days

120 containers / day x P 15.00 selling price x 262 days

= P 471,600.00

GROSS SALES = P 517,500.00

B. ) Second Year of Service

b. (January – December) 313 working days

150 containers / day x P 15.00 selling price x 313 days

GROSS SALES = P 704,250.00

C. ) Third Year of Service

c. (January – December) 300 working days

125 containers / day x P 15.00 selling price x 310 days

GROSS SALES = P 581,250.00


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Gross Sales for One Year up to Three Years

First Year of Service


Second Year of Service
Third Year of Service

(Fig. 4.1)
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EXPENSES:

First Second Year Third

Year Year

1. Manpower / Salaries P 203,450 P 203,450 P 195,000

Technical Assistant

– P250/day

Front Liner

– P200/day

Deliver Man

– P200/day

2. Electric Bill 18,000 30,000 24,000

3. Phone Bill 6,000 7,200 4,800

4. Transportation / Gas 18,000 12,000 12,500

Allowance

5. Consumables and Others 12,000 12,000 12,000

GROSS EXPENSES P 257,450 P 264,650 P 248,300

(Table 4.3)
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Gross Sales and Gross Expenses for


Three Years
8

4 Gross Sales
Gross Expenses
3

0
First Year Second Year Third Year

(Fig. 4.2)

Note: Numbers in the left are in hundred thousand.

Profits for Three Years

1st Year (P260,050.00)


2nd Year (P439,600.00)
3rd Year (P332,950.00)

(Fig. 4.3)
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Chapter V

The Marketing Mix

A. Nature of the Product

i. Variety

SOCIAS Purified Water Refilling Station caters 4 products. These

are the following:

 Mineral Water

 Purified Water

 Alkaline Water

 Pi Water

In addition, each of this type of water has different characteristics. Yes,

water has also characteristics. It is said that our immune system works accordingly

to what type of water we will intake. The SOCIAS Purified Water Refilling

Station caters all this 4 products to ensure that they will provide whatever type of

water their customers would prefer. Also, this will give them the advantage in

terms of competition because 1 of this product – which is the “Pi Water” – is not

available in its nearby competitors.


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ii. Design

(Fig. 5.1)

The design of this product is actually based on its container since water

(liquid) has only one face and has an indefinite shape.

SOCIAS Purified Water Refilling Station accepts all kinds of containers

such as those commonly used water containers, small / large water bottles and etc.

As for the pricing, SOCIAS Purified Water Refilling Station priced the product

according to its volume.


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iii. Quality & Features

Mineral Water

- Is water from a mineral spring that contains various minerals,

such as salts and sulfur compounds. Mineral water may

be effervescent (i.e., "sparkling") due to contained gases.

Purified Water

- Is water that is mechanically filtered or processed to be

cleaned for consumption. Distilled water and deionized (DI)

water have been the most common forms of purified water,

but water can also be purified by other processes including

reverse osmosis, carbon filtration, microfiltration, ultra

filtration, ultraviolet oxidation, or electro dialysis.

Alkaline Water

- Alkaline water, also known as ionized water, is a beverage

that is neither acidic nor neutral on the pH scale, having a

level above 7.

Pi Water

- Is the water that is very similar to your body water (Living

Energy). Living energy means “the energy to live.” Pi Water

has the same function (energy) that your body water has.
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iv. Brand Name

SPWRS stands for SOCIAS Purified Water Refilling Station. The logo

represents water and nature.

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

survive the ever changing occurrences of life.


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B. Price and Pricing Scheme of the Product

i. Price

Here is the list of products with prices of SOCIAS Purified Water Refilling

Station:

 Mineral Water - P 10.00

 Purified Water - P 15.00

 Alkaline Water - P 20.00

 Pi Water - P 150.00 – P 200.00

Pi Water has the highest price since Pi Water is a type of water which is

through thorough experimentation to satisfy customers.

(For details about Pi Water, please refer to page 38)

ii. Price Strategies

As for the pricing strategies, like any other firm, SOCIAS Purified

Water Refilling Station, gathered information through surveying 100 people from

the area where the firm will be located at. The survey was about the type of water

people in the area most likely used in drinking, nearby refilling stations, and the

pricing scheme of the nearby refilling stations. Based from the survey, the

researchers concluded prices that are not that high so that it can compete with the

nearby stations. In addition, the survey also included comments and suggestions so
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that the outcome of the refilling station will attract more customers and that it can

reassure the owners that the customers are satisfied with their service.

iii. Price List and Brochure

SOCIAS Purified Water Refilling Station


Sitio Bogo, Poblacion, Getafe, Bohol
Cellular Phone Number: 09498215983

We cater 4 types of water which will definitely


quench your thirsts.

 Mineral Water - P 10.00


 Purified Water - P 15.00
 Alkaline Water - P 20.00
 Pi Water - P 150.00 – P 200.00

Come and be part of our customers and enjoy a


refreshing treat for a new lifestyle.

Visit us at Sitio Bogo, Poblacion, Getafe, Bohol or contact us


at Cellular Phone Number: 09498215983.

iv. Payments Scheme and Terms

SOCIAS Purified Water Refilling Station accepts payments through BDO,

BPI or check, applicable only if the customer orders in bulk such as our sister

companies. As for the walk-in customers, SPWRS strongly implements “Pay as

you Order Policy”. As for our sister company, the stockholders of APWRS and the
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stockholders of the other party, agreed to have a 5 year contract in the water

distribution scheme.

C. Place

i. Location

The water refilling station is situated in Sitio Bogo, Poblacion,

Getafe, Bohol.

In Sitio Bogo, Poblacion, Getafe, Bohol, there was no water refilling

stations thus giving us competitive advantage.

ii. Coverage

The coverage of our water distribution extends up to the neighboring towns

of Getafe. This includes the Municipality of Talibon, Buenavista and Danao.

D. Promotion

i. Advertising

As for the advertising of the firm, SOCIAS Purified Water Refilling Station

focuses on personal contacts. The people nearby the location of the firm will

technically talk about the new company established. Through personal

communication, the number of customers will increase annually. But SPWRS

doesn’t completely depend on personal contacts only. Somehow, the stockholders

of the firm came up with an advertising strategy.


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Since water refilling stations don’t usually have discounts, the company

owners come up with the “Buy 10 + 1” water discount. To ensure that the

customers bought water that day or so, the customers will be given a card. Every

time they buy water, the boxes inside the card will be marked or signed by the

front liner or the technical assistant depends on which of the two of them is

available. When all of the 10 boxes are fully signed, it is the customer’s choice

whether to claim his/her free 1 container of water. After claiming the free item, the

box intended for the free item will be marked so that the customer will not use it

for another free item. This advertising strategy is only applicable on special

occasions declared by the firm.

Another idea of advertising is through display advertising, specifically

through brochures.

ii. Sales Strategy

The sales strategy is to concentrate on the segment of the sales advertising,

most easily captured by the following sales feature: increase of sales and

customers annually. In addition, the fastest way to reach the sales goal for the first

several years is by actively working to develop a dealership network specifically,

sister companies.

Having a large number of sister companies mean increase of sales. At this

point, the goal of the firm is to have a large number of sister companies for

function.
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iii. Sales Promotions

In order to promote sales is through strategic alliance. The relationship

between water service companies and water distributors could be a strategic

alliance. These water service companies have an extensive customer base. Most of

the customers have needs such as well purified water and some may ask for varied

water types however, many water distributors’ customers have needs as well. At

present, these water service companies must direct their own needs to the water

distributors in order for them to cater their customer’s needs. Forming a

relationship between water service companies and water distributors would

quickly result in substantial sales increases for the water distributors and would

result in increased prestige and profits for the water service companies.