Professional Documents
Culture Documents
plan.
A Business Plan on
Boxed Water
Prepared by:
HGR Consultancy
3 March 2021 1
Table of Contents
2
Statement of the Problem
3
Statement of the Problem
Main Story:
• Non-biodegradable plastic waste pollution impacting
Filipinos’ quality of life
4
Statement of the Problem
• 2.7 million tons of plastic waste are generated in the Philippines each year, 20% of which
is estimated to end up in the ocean (McKinsey, 2015).
• The Philippines stands as the third largest global contributor to the eight million tons of
plastics that are estimated to flood our oceans each year.
• The Philippines struggles with unsustainable plastic production and consumption and a
waste management infrastructure that relies heavily on open dumping sites, giving plastics
an easy path into waterways.
5
Statement of the Problem
A SWS survey showed that seven out of 10 Filipinos feel that the best thing to do with
SUPs is to ban their use at all times. The following is the list of materials that should be
regulated or used less:
• sando bags (71%)
• plastic straws and stirrers (66%)
• plastic labo bags (65%)
• styrofoam or polystyrene food containers (64%)
• sachets (60%)
• Tetra pack or doy pack for juices (59%)
• plastic drinking cups (56%)
• cutlery such as plastic spoons and forks (54%)
• plastic bottles for juice (49%)
• plastic bottles for water (41%).
In addition, 6 out of 10 said they are willing to buy their food condiments in recyclable or
refillable containers instead of sachets while 4 out of 10 feel that companies should find
alternative materials to plastic.
6
Statement of the Problem
• With a burgeoning urban population and unsustainable water supply, Filipinos suffer from
water supply interruption on an intermittent basis, most particularly during the dry season
or during times when El Nino hits the country.
• During times of severe typhoons and flooding, clean water supply may be disrupted in
areas hit by these disasters.
7
Statement of the Problem
Access to Clean and Safe Drinking Water: Another Major Problem in the Country
• While many of the drinking water suppliers in the country claim that their water meets
regulatory standards, every now and then, people suffer from diarrhea or other related illness
due to unclean or contaminated drinking water.
8
Statement of the Problem
Access to Clean and Safe Drinking Water: A Major Problem in in the Country
• A 2017 PSA Study revealed that half of Filipino families’ drinking water supply is not
free from E.coli contamination at the source.
• Only 34% of Filipino families (47% in urban areas) have access to drinking water that
is free from E.coli contamination.
9
Statement of the Problem
• While water from plastic bottles may be safe to drink, some are
however not 100% free from contaminants such algae, types of
bacteria, and chlorine.
11
Statement of the Problem
Problems
• Plastic water bottles made from PET may • Reusable drinking water
also be harmful and cannot be reused. container.
13
Market Size Evaluation
14
Market Size
15
Market Size
16
Market Size
17
STEP-N Analysis
18
STEP-N Analysis
19
STEP-N Analysis
21
Competitive Analysis
22
Competitive Analysis
Annual Sales
Market Share
Product Strategy
Pricing Strategy
Distribution Strategy
Promotional Strategy
Strengths
Weaknesses 23
Opportunity Analysis
• Increased health-consciousness
Boxed Water is:
• clean and safe to drink
• Greater out-of-home drink consumption • environment-friendly
• beneficial to one’s health
• reusable/ refillable
• Strong need for convenience and ready • convenient to use
availability of products. • and helps provide ready supply of
drinking water, in and out of
home. 24
Target Market
25
Target Market
Demographic Target
• SEC ABC Males and Females aged 15 to 39
• Students and Working Professionals
• Parents of young children aged 12 and below (Young families)
Geographic Target:
• Urban residents
• Key metros such as Metro Manila, Metro Cebu, Metro Davao
• Other 1st to 2rd tier cities such as San Fernando (Pampanga), Lipa, Iloilo, Bacolod,
Cagayan de Oro, and others.
26
Target Market
Behavioral Target:
• Packaged or Bottled water buyers and drinkers (in-home and out-of-home
consumption)
• Consumers who:
– work outdoors or spend a large amount of their time outside their workplace
– are physically active, exercise regularly
– dine out on a frequent basis
– travel a lot locally, either for leisure or for business
Psychographic Target:
• Environment-aware and conscious
• Prefer convenience
• Highly concerned with safety and quality
• Health-conscious.
27
Target Market
Meet Josephine
Josephine, aged 32, is married with a 6 year old
son who just started schooling in a nearby small
private school.
Meet Jhunjun
Jhunjun, aged 24, is a first-time Dad to a daughter and
he is always concerned about his child’s overall health
and well-being. He tries to come home from work as
early as he can so he can spend time with her before she
goes to sleep.
Jhunjun and his wife always make sure that her daughter
has her boxed fruit juices as well as bottled water
available when they go out of the house. His sister
drinks water from the tap and he had from time to time
reminded her about possible contaminants or chemicals
29
found in tap water.
Target Market
30
Product Strategy
31
Product Description
32
Product Description
• Boxed Water is also available in different variants that have health benefits
such as Boxed Water in lemon, cucumber, and grapefruit flavors. These
drinks contain zero sugar and zero artificial ingredients.
35
Product Uniqueness
36
Product Applications and Potential
• Boxed Water uses an 8-step water purification process which includes reverse
osmosis, carbon filtration, and mineral removal for purity, giving Boxed Water its
clean, crisp taste.
• For product safety, a UV light and ozonation process is used. Boxed Water is free of
chromium, arsenic, MTBE, chlorine, fluoride, and trace pharmaceuticals.
38
Skills Required
40
Brand Name
41
Base: All Respondents (200).
Packaging
Boxed Water is available in different sizes for use in-home or out-of-home.
42
Protection
Trademark
Boxed Water
43
Product Support
44
Product Positioning
• Eco-friendly:
– Biodegradable
– Recyclable
– Reusable/refillable
– Small carbon footprint
• Healthy
• Long life
45
Product Positioning Justification
Reasons to Believe:
• Eco-friendly: biodegradable, recyclable and reusable, small carbon footprint
– Made from paper which is 100% biodegradable unlike PET which is not
– Recycable
– Reusable: twice daily refill for the same Boxed Water will be good for 30 days
– Can ship more units of Boxed Water due to its shape than bottled water
• Long life
– Contains 1% aluminum which serves as a barrier to light and oxygen,
protecting the flavor and allowing the contents to last for months (2 years)
without preservatives or refrigeration.
• Easy waste disposal: used Boxed Water can be flattened for easy disposal/storage
unlike plastic water bottles. 46
Product Positioning Justification
47
Boxed Water SWOT Analysis
Strengths
Opportunities
• Eco-friendly
• Heightened eco-awareness
• Safe and Clean
• Target market open to buying Boxed
• Healthy
Water (based on survey)
• Current and highly visible
• Additional partnerships with
product category
institutions such as LGUs and other
• Multi-variant offering
government agencies
• Competitive pricing
• Tie-up with schools to promote the
• Proper and strong management
health benefits of Boxed Water
• Strong promotions
• Partnerships with LGUs and
Threats
agencies like DENR
• Competitive reaction by incumbents
• Entry of similar product by
Weaknesses
competitors
• New entrant to a crowded
• Constant supply of paper/boxes
packaged water market
• Stringent government regulations
• Low brand awareness
restricting access to paper from trees
• Perceived as a brand for upscale
• Price war 48
consumers only
Boxed Water TOWS Analysis
SW Strategy ST Strategy
• Leverage the high visibility of • Embark on a regular tree
product category to speed up planting campaign across the
awareness of Boxed Water country, in cooperation with
• Promote its competitive pricing DENR, as a way of ensuring
in order to position it as an steady supply of paper
affordable product • Access to new technology and
• Leverage promotional improved R&D with the
capabilities to fast-track market objective of further reducing
penetration. production cost.
• Use of Boxed Water variants as
SO Strategy flankers versus competitors’
• Boxed Water, being an eco- brands.
friendly product will be seen as
one of the solutions to the
country’s ecological problems
49
Key Success Factors
50
Pricing Strategy
51
Price (SRP)
52
Product Pricing
53
Competitive Strategy:
Pricing
54
Competitive Strategy
Product Positioning
Boxed Water is
positioned as mid-
priced but top quality
water.
55
Competitive Strategy
Product Positioning
Boxed Water is
positioned as mid-
priced but most
sustainable.
Eco-friendly
Poor
Eco-friendly
56
Competitive Strategy:
Brands to Attack & Avoid
Boxed Water will compete with directly the other brands from launch except for the
market leader, Wilkins, during its first two years of operation.
57
PLACE STRATEGY
(DISTRIBUTION)
Boxed Water Distribution
DISTRIBUTION STRATEGY
Convenience stores
Trade Retailers
Supermarkets
Trade
Grocery stores
Channel
Distributor 1
E-commerce Platforms Lazada
Manufacturing
Shopee
Distributor 2
FB/Viber Marketplace
Private/Govt offices
Schools
Trade Channels:
Year 1 Year 2 Year 3
Traditional Channels:
• Convenience stores x x x
• Supermarkets x x x
• Grocery stores x x
Digital / Online:
• E-commerce sites
(Lazada, Shopee) x x x
• FB Marketplace x x x
• Viber Marketplace x x x
• Own website x x
Boxed Water Distribution
Trade Channels: Priority channels on Year 1 are 7-11, Mini-Stop, The Landmark,
MarketPlace, SM Supermarket, Robinson’s Supermarket, S&R and Landers Superstore.
Boxed Water Distribution
Institutional Sales: Boxed Water will also be made available in performance venues as
well as transport hubs.
Boxed Water Distribution
Institutional Sales: Three to 5-star channels, restaurants, pubs and bars are key
institutional targets for Boxed Water distribution.
Boxed Water Distribution
Institutional Sales: In addition, Boxed Water will also be made available in sports
centers, gyms and sports clubs.
Boxed Water Distribution
Institutional Sales: Boxed Water will work with CHED and DepEd, the individual school
authorities, and the school cafeteria management to make sure that Boxed Water will
be made available in campus.
Boxed Water Distribution
Lazada Website
Boxed Water Distribution
Geographic Distribution:
Boxed Water will be distributed in NCR only in Year 1, followed by key cities in South Luzon
and Central Luzon and Metro Cebu in Year 2. Distribution will happen in other key cities
nationwide in Year 3.
Year 1 Year 2 Year 3
Luzon
• NCR x x x
• Calabarzon x x
• Bulacan x x
• Pampanga x x
• Quezon Province x x
70
Boxed Water Promotion
Year 1: “I am Natural, not Plastic.” Build Boxed Water brand awareness, create social
buzz, induce product trial and brand switch.
Year 2 Promotion
Local celebrities as Boxed Water influencers (i.e. those without any past or current
bottled water endorsements.
POS Shelf Materials
Promotion Budget
87
References
• Alegado, Jed. Philippines: Banning Single-Use Plastics at the National Level and Strengthening Existing Laws Needed to
Curb Plastic Pollution Crisis. THBoel.org. https://th.boell.org/en/2020/01/20/philippines-banning-single-use-plastics-
national-level-and-strengthening-existing-laws
• Buzalka, Mike. Food Mangement. https://www.food-management.com/colleges-universities/boxed-water-replaces-
plastic-princeton
• Castillo, Jillianne. (2018, April 28). 5 Reasons to Drink Boxed Water. Smart Parenting.
https://www.smartparenting.com.ph/health/your-kids-health/avoid-refilling-plastic-water-bottles-a00026-20180428
• Water is Better. https://boxedwaterisbetter.com/blogs/blog/5-reasons-to-drink-boxed-
water#:~:text=Boxed%20Water%20is%2092%25%20renewable&text=Our%20box%20is%20made%20from,harvested%
20trees%20are%20continually%20recycled.
• In choosing purified water, are you sure it’s ‘untouched by human hands’? (2020, 12 August) Business Monitor.
• FDA. http://www.fda.gov.ph/fda-circular-no-2019-004-ban-of-bisphenol-a-bpa-from-infant-feeding-bottles-and-sippy-
cups-as-child-care-article-products/
• GenerationHope.ph
• Primer.com.ph
• Statista
• Tiwari, Priya. Technological innovations and rising consumption of bottled water drives the market. Smartwater.
https://smartwatermagazine.com/blogs/priya-tiwari/technological-innovations-and-rising-consumption-bottled-
water-drives-market
• Turning the Tide on Ocean Plastic Pollution in the Philippines. (2020, 21 July). Urban Links. https://urban-
links.org/insight/turning-the-tide-on-ocean-plastic-pollution-in-the-
philippines/#:~:text=A%20staggering%202.7%20million%20tons,According%20to%20Dr.
• Water Right Group. Stop Buying Bottled Water. https://www.water-rightgroup.com/resources/stop-buying-
bottled-water/
• Wilkinswater.com 88
Appendix
Brand Name Test
• Boxed Water is the brand name for this new product, as preferred by target
consumers per Name Test conducted.