You are on page 1of 19

Don Honorio Ventura Technological State University Bacolor, Pampanga College of Computer Studies Department of Information Technology

Feasibility Study ( Aquabest )


Submitted by: Lancelot S. Lulu Pamela O. Paule

Submitted to: Mrs. Juliet Umali

Table of Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Objective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Company Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

I Description of the Industry


Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

II Current Market Analysis


Target Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Step by Step Procedure for Opening WRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Method Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

III Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 IV Potential Buyers and Resources of Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 V Sales and Income Projection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Business Potentials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 VI Description of Business Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Accessories and Uniform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13


2

VII Internal and External Principles and Practices of the Business . . . . . . . . . . . . . . . . . . .14 VIII Motto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 7Ps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Aquabest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

INTRODUCTION Potable water has been an important part of our nourishment. Since most of the water coming from our faucet is not safe to drink anymore, many people now opted to buy purified bottled water to avoid disease causing micro organisms. It is a method of water filtration by means of removing harmful chemicals and micro organisms by using water pumps and filters. Since this has a very good demand, many people also wanted to try to start this kind of business. But the question is, is it really that lucrative to choose this kind of business? and regarding with the operation, since the only product is water, we might assume that this is an easy business. But if you only knew how intricate and costly to operate this, maybe you will have second thoughts. How important is clean water to our health and well being? More and more, we are all becoming concerned with the quality of our water supply. Young or old, everyone needs fresh, clean water to drink. This market driven reality has spurred one of the fastest growing industries in the world. The bottled water business is tremendous opportunity for income and profit to entrepreneurs on a variety of levels.

STATEMENT OF THE PROBLEM A problem can sometimes be transformed into an opportunity. For Aquabest, the problem of getting safe drinking water from the faucet turned out to be an opportunity to handle the business of providing the best source of water. We saw the problem of water, that people cannot depend on it for drinking. We saw the need for people to have access on the present technology of producing healthy pure water.. For close to a decade now, Aquabest has been providing clear solution to the problem of drinking water. And just as water flows from Aquabest, profit also began to make its own course. Water station sales was brisk and good. However, some road blocks happened along the way like theft and unmonitored issuance and hot and cold water dispensers that lead to loss of income. The drive for excellence continues to flow for Aquabest. The company takes great pride in being one of the first companies to offer franchises of water refilling stations to expand the network of best sources of clean and safe drinking water on its second year in business.

OBJECTIVES

To innovate and seek new ways of providing value products and services, never contented that we have the best for we believe that we can always do better. To adopt in the ever changing business environment and welcome crisis as challenges and opportunities for growth. To uphold a tradition of excellence achieved thru hard work and dedication to our goal. To supply products and services that partner clients can build on and grow with and be the industry leader in supplying quality equipment that uses the latest state-of-the-art technology. To deliver customer value by improving performance, product quality by reducing operating costs and extending equipment life in a broad range of products and services. To respond as dynamic business organization always seeking to satisfy the unique demands of each customer. To strive for excellence and develop the prestige as ultimate in Quality, Service, Value and Technology which our customer rightfully deserve with the most skilful and knowledge staff that will set standards for excellence. MISSION To provide turnkey solutions design to clients needs. Dedicate ourselves to give efficient products and services designed to fit the needs of various applicants providing Quality, Service, Value, and Technology.

VISION To be the leading global water supplier of water treatment, waste water treatment and process system solutions.

COMPANY PROFILE Continuing with its thrust and commitment in serving our clients and empowering them with the business insight needed to address their water treatment needs, GQWEST acquired Aquabest franchising rights. The acquisition resulted to a broader market share with a wider clientele base with the introduction of other brands like BESTLIFE, AQUAQUEST.COM, AQUAREVO, AQUASPREE along with Aquabests OXYPLUS, ALKALINE PLUS and MINERAL PLUS. In addition, we offer our clients the widest range of water treatment systems and customer support services by providing training concerning marketing, technical, and operational aspects of the business. From pre-operation activities such as the selection of prospective site, layout design, machine installation to post operation such as supplies procurement, marketing, promotion, and regular machine maintenance. GQWEST Inc, from the core business and flagship brand AQUABEST has grown to be one of the dominant player in the water treatment industry to where the quest for the best water treatment systems and total customer satisfaction is a constant motivation to the company and that for over 12 years of unwavering pursuit for excellence, GQWEST is the only water store franchisor certified by ISO.

Having this stature, our business partners will have the assurance that our Franchise system from Marketing to Technical and After sales service has gone through the scrutiny of the Quality Systems of ISO and so we exude with confidence that our clientele can be assured of a world class standard that only AQUABEST water store can offer.

I - DESCRIPTION OF THE INDUSTRY

LOCATION Our water refilling station will be situated in a highly populated University- Don Honorio Ventura Technological State University, Cabambangan, Bacolor, Pampanga. Since it is located in the highways, the place is accessible to passing motorists and the general public. And actual site inspection revealed that there is no existing water refilling station in the barangay and other nearby barangays. The residences are forced to go to the town properin order to buy their bottled water spending atleast P15.00 for their jeepney fare.

II - CURRENT MARKET ANALYSIS

Aquabest is the fast growing franchise network of Water Refilling Stations. It was recently awarded by the Entrepreneur Magazine as the Fastest Growing Franchise, Best Local Franchise and Best Most Promising Franchise. Aquabest Pure Drinking Water is a product that utilizes only the highest quality materials, stringent manufacturing standard and strictest quality control measures. The source water is refined into a pollutant and contaminant - free product using the latest state-of-the-art NASA technology Reverse-Osmosis Machine System monitored by an enhanced computer controller with the Exclusive Grander Water Technology from Austria.

TARGET MARKET DHVTSU Populations Canteens of barangay public schools Residents of barangay San Vicente and other nearby barangays. Jeepney and tricycle drivers

STEP BY STEP PROCEDURE FOR OPENING A WATER REFILLING STATION (WRS)

1. Call office for opening for seminar schedule. Franchising hotline 371-0478 look for Miss Lyn Cordon 2. Bring 1 Liter of your sample source water for free testing analysis. 3. Attend free Business Presentation and Seminar on WRS. 4. Fill-up application form and choose equipment package and accessories. 5. Non-refundable Reservation Deposit, to hold the promo package and secure the territorial rights. 6. Schedule for site inspection and layout. 7. Store renovation or construction of site. 8. Apply for business name at DTI (We may use the Franchise Station ID as our business name but only after the installation of the machine) 9. For Machine Payment procedure: A. For Cash Payment a. 70% down payment b. 30% upon installation issued in PDCs c. Issuance of PDC for monthly dues (For Franchised Stores) B. For Financing a. Full Down payment for chosen machine package b. Issuance of PDCs for the balance of the machine package c. Issuance of PDCs for monthly dues (For Franchised Stores) 10. Signing of Memorandum of Agreement and Franchise Agreement (Present residential certificate for notary purpose). 11. Choose/ purchase the starting inventory for store (label, bottle, stickers, etc.) 12. Delivery and Machine Installation A. Assessment and payment of freight forwarding expenses. B. Assessment and payment of technicians fare (if it is outside Metro Manila) C. Schedule of: 1. Delivery of Tanks 2. Machine Delivery and Installation 13. Call a DOH accredited laboratory for the physical, chemical, and bacteriological water
10

testing *(Aqualab, Environmental, Elarsi) Result usually come out after 2 weeks. As soon as the water result came up, we can start operation for a soft opening.

METHOD EXECUTION The AQUABEST Package is the most advance Water Refilling and Purification System designed for a Water Refilling Station Package. The Purification system is composed of 24 28 Stage stateoftheart NASA Space Technology Reverse Osmosis system using the latest Low maintenance High Production Permeable Membrane Technology by Hydranautics USA producing a Pure Water Quality at a very minimal maintenance cost. Mechanical Filtration Division 1st stage Raw Water Tank for Sediments setting 2ND stage The water passes through an all stainless pressurized feed water pump with stainless tank to obtain the necessary water pressure 3rd stage The water passes through coarse gravel, which traps solid particles of about 150 microns 4th stage The water passes through coarse corals, which traps solid particles of about 100 microns 5th stage The water passes through sand filters that removes sediments of 75 microns rating 6th stage The water passes through fine sand that eliminates solid particles down to 50 microns. 7th stage The water passes through fine clear silt that eliminates solid particles down to 30 microns 8th stage Water passes through fine pebbles to prevent carbon from escaping the FRP tanks. MultiMedia Activated Carbon Process 9th stage Makes use of the Lignite Carbon that removes foul odor and taste. 10th stage Makes use of Bituminous Carbon that eliminates yellowish and brownish color 11th stage Makes use of Silver Impregnated Granular Activated Carbon that eliminates chlorine, volatile organic chemicals (VOC), chlorinated hydrocarbons (Activated Carbons does not remove chlorine but changes it from molecular chlorine to chloride. It also oxidizes hydrogen sulphide to sulphates that do not cause taste and odour problems. The longer the water is in contact wih the carbon the more adsorption or catalytic reactions that will take place.) 12h stage Water passes through fine pebbles to prevent carbon from escaping the FRP tanks. Water Softener and Ion Exchange 13th stage Makes use of resins for ion exchange and adsorption of salt compounds and hardness of water due to inorganic minerals found in deep well water thereby softening the water source.
11

14th stage Water passes through fine pebbles to prevent resins from escaping the FRP tanks. 15th stage Brine Tank where salt compounds are stored and automatically regenerates the resin periodically as needed 20 Slim Type Filters 16th stage Uses to trap any residue of about 20 microns and up. 17th stage Uses to trap any residue of about 10 microns and up 18th stage Uses to trap any residue of about 5 microns and up 19th stage Uses to trap any residue of about 1 micron and up and as protection to prolong the life of the R.O. membrane 3,000 GPD Reverse Osmosis Membrane 20th stage A special Carborator motor and a solid brass Water Pump is installed to pump a high pressure water into the heart of the reverse osmosis membrane. Pure Water Storage, Ozonation, and Sterilization Process 22nd stage Pure water is stored at a pure water tank. 23rd stage An Ozonator is installed to sterilize the pure water stored inside the tank. Ozonization is the process of converting Oxygen to Ozone (O2 to O3). Ozone kills bacteria and viruses on contact destroying them a thousand times faster than chlorine. 24th stage Water passes through another all stainless feed water pump with stainless tank to maintain water pressure for final water output 25th stage Post Carbon Filtration uses another type of carbon to polish the pure waters taste enhancing the natural sweetness of water. 26th stage 20 1 micron Filter Cartridge to eliminate any actual carbon spills that might escape from the Post carbon Filtration 27th & 28th stage Uses a 12GPM capacity U.V. Sterilization Lamp with the latest 2 in 1 U.V. plus ozonation. Made from Australia, the U.V. lamp emits 2 wavelengths of UVC 253.7 nm and 185 nm wavelengths. The high tech lamp changes Oxygen into Ozone thru the 185 nm wavelength. The U.V. set also comes with a Digital Control Gear that stabilizes the electrical power fluctuations to prevent premature damage to the expensive U.V. lamps.

MONEY Approximately the capital needed is php250,000 but it will depend on the franchiser or vendor who will install the equipment but I think you will need more if you choose water refilling station franchise to known distributor of purified water because you need to pay a franchise fee. Nevertheless the operating costs of water refilling stations will depend on how you will
12

handle the sales and overhead expenses like for example if you can install it in your home the overhead cost will be lower because you dont need to pay rent but the sales will be not as much as if you will set it up in a high traffic foot location by renting a commercial space.

III COMPETITION Since we are franchising Aquabest, we have no choice but to follow the existing pricelist of our franchisor. A review of the pricelist of Aquabest shows that its prices are the same as that of other well known water refilling station who caters the need of the DHVTSU community (Cabalantian and Parulog). IV - Potential Buyers and Resources of Revenues DHVTSU Populations Canteens of barangay public schools Residents of barangay San Vicente and other nearby barangays. Jeepney and tricycle drivers

V SALES AND INCOME PROJECTION GIVEN: 100 or 200 containers of 5gal each day 500 Gallons 1000 Gallons Selling Price P 7.00 P 7.00 Estimated Sales in one day P 3,500.00 P 7,000.00 Days in a month 30 days 30 days Monthly Sales P 105,000.00 P 210,000.00 Less Expense Labor Cost (3 employees) P 21,000.00 P 28,000.00 Rental P 10,000.00 P 10,000.00 Electricity P 10,000.00 P 15,000.00 Water at 40% Recovery Rate P 9,000.00 P 8,000.00 Maintainance/Miscellaneous P 7,000.00 P 10,000.00 Gasoline/ Diesel P 3,000.00 P 6,000.00 TOTAL MONTHLY EXPENSE P 60,000.00 P 87,000.00 NET PROFIT P 45,000.00 P123,000.00

13

ROI = 6 to 12 MONTHS, Depending on sales volume COMPUTATION PER GALLON OF WATER (MAYNILAD) GIVEN: P60.00 per cubic meter industrial rate 1 cubic meter is equivalent to 264 gallons Less: 60% waste water Chapvestm ent FORMULA 264 gallons @ 40% = 105.2 gallons actual production P60.00 / 105 gallons = P0.60 per gallon P0.60 x 5 gallons = P3.00 per 5 gallons

BUSINESS POTENTIALS

14

VI Description of Business Structure PRICE

PRODUCTS

15

16

VII Internal and External Principles and Practices of the Business

CORPORATE MOTTO

17

7Ps

18

Life is a choice. Choose the Best.AQUABEST.

19