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Fs Water Refilling Jun 2
Fs Water Refilling Jun 2
on
WATER REFILLING
STATION
INTRODUCTION
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 produced by traditional water supply
systems in terms of removed impurities.
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.
In Nasugbu, most of the water refilling stations is connected to the pipes of Nasugbu
Water District for their source of raw water while in other areas they opt to use private deep
wells. The “potable water” supplied by the providers is then further purified by utilizing a
combination of water treatment equipment, such as sediment filters, carbon filters, water
softeners, reverse osmosis membranes, ultra-violet lamps, and ozone generators. Typical
water refilling stations can produce 3,000 to 12,000 liters of purified water per day. In
previous years, most of the people were bringing a container to a water refilling station to buy
purified water.
Proponent:
Proposed Location:
“Aqua Kabayan” will also offer additional services like free delivery and the
product can also be availed on credit (for members only).
MARKETING ASPECT
Target Market
Local Residents
Demand
Cooperative
523 1,569 6,276
members
Market Share
It is assumed that since the targeted market is members of the organization, 80% of
the member will opt to buy from “Aqua Kabayan” (members buying in the cooperative earns
dividends and refunds at the end of the year). While considering the accessibility factor, 80%
of the local residents are also going to consider getting their purified water supply from the
store.
Estimated Estimated
Weekly Monthly
Target Market Consumption Consumption (in Market Share
Market Share
(in 5 gallon 5 gallon
containers) containers)
Cooperative
1,569 1,255 6,276 5,020
members
Product Strategy – Refilling Station will be constructed with transparent glass and
according to prescribed standards so that the customers will be able to see how
carefully and cleanly the products are being processed. Excellent quality will be
maintained by giving the workers training and guidance on good manufacturing
practices.
Pricing Strategy – Being a new entrant, “Aqua Kabayan” will offer an affordable price
of 25.00 per container.
SALES PROJECTIONS
Selling Price 25 25 25
Delivery Vehicle
There is a need to purchase a delivery vehicle to ensure the fast and timely
delivery of products. Consumers prefer to buy products that are readily available and
with minimal waiting time. Water is a basic need and there should be no delays in the
delivery. Estimated cost of a delivery vehicle is at Php 75,000.00. Estimated Useful
Life is five (5) years.
Information Dissemination
The awareness campaign will entail costs of printing flyers (for distribution) and
tarpaulins (to be placed at strategic locations). Cost of these materials is estimated at Php
10,000.00.
Initially, 100 units of containers (5 gal) will be purchased. Since most of the
consumers already have containers, the said containers will be replaced every
delivery. Empty containers will be refilled and delivered to other customers so that
consumers will only have to pay for the contents and not the containers.
All containers should have labels, bearing the name of Aqua Kabayan and all
containers should all be sealed to ensure that the product reaches the end consumer
with utmost quality. Fifteen thousand pieces of labels and seals will be printed on a
quarterly basis. Estimated cost is Php 3.00 per container.
Manpower
There will be 2 persons handling the delivery, both of which should know how to drive
the delivery vehicle so that they can work alternately on the tasks to be assigned to them.
They are going to receive salaries of Php 4,500 a month or Php 150.00 daily.
Account Title Amount in Pesos
Promotions 10,000.00
TOTAL 169,000.00
MARKETING EXPENSES
Land 50,000.00
COST OF LABOR
Materials and Supplies are estimated at Php 6,000.00 monthly (water is the
major raw materials needed).
FACTORY OVERHEAD
1. Form of Business
Multi-Purpose Cooperative
2. Business name
3. Organizational Chart
Board of Directors
Coop. Manager
Cooperative Manager – In charge of the overall operation of the business. Acts as the
marketing officer and represents the business in all external concerns. The manager will
oversee the entire operation of the business and collects cash sales for remittance to the
cooperative treasurer.
Worker 1 & Worker 2 – will handle the plant operation. They will be in charge of
cleaning and refilling containers. They will also observe proper sanitation of the plant and
maintain excellent quality of the product.
Worker 3 and Worker 4 – will be tasked in the delivery and distribution of the
products. They will ensure that all deliveries are done at the shortest possible time. They
will also handle collection of payments and issuance of receipts during delivery.
FINANCIAL ASPECT
Fixed Assets:
Land 50,000.00
Workling Capital:
Promotions 10,000.00
Utilities 25,500.00
Marketing Expenses
Cash Outflows
50,000.0
Purchase Land 0
Purchase & Installation of 300,000.0
Machineries & Equipment 0
150,000.0
Construction of Building 0
75,000.0
Purchase of Delivery Vehicle 0
Purchase Returnable 15,000.0
Containers 0
180,000.0 198,000.0 217,800.0
Purchase of Labels & Stickers 0 0 0
180,000.0 198,000.0 217,800.0
Fuel, Gas & Lubricants 0 0 0
216,000.0 237,600.0 261,360.0
Payment of Salaries & Wages 0 0 0
10,000.0 10,000.0 10,000.0
Promotions Expense 0 0 0
Payment of Raw Material 72,000.0 79,200.0 87,120.0
Supply 0 0 0
102,000.0 112,200.0 123,420.0
Payment of Utilities 0 0 0
1,350,000.0 835,000.0 917,500.0
Total Cash Outflows 0 0 0
1,231,500.0 1,138,400.0 1,253,225.0
Net Cash Inflows 0 0 0
1,231,500.0 2,369,900.0
Add: Cash Balance Beg. 0 0
1,231,500.0 2,369,900.0 3,623,125.0
Cash Balance, end 0 0 0
Assets
Return on Assets
1) (ROA)
986,500.0
Net Income 0 0.5
= =
1,774,000.0 6
Total Assets 0
Return on Equity
2) (ROE)
986,500.0
Net Income 0 0.5
= =
1,774,000.0 6
Owner's Equity 0
Net Profit
3) Margin
986,500.0
Net Income 0 0.5
= =
1,794,000.0 5
Sales 0