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Chapter 2

MARKETING STUDY

Marketing is managing profitable customer relationship, the twofold goal of mar-

keting is to attract new customers by promising superior value and to keep and grow cur-

rent customers by delivering satisfaction (Armstrong & Kotler, 2007).

The marketing aspects will cover the following: Business description, vision, mis-

sion, objectives, business name, business logo, target market, demand analysis, competi-

tion and industry, swot analysis, marketing and sales strategy, product, promotion, price,

promotion and packaging.

Business Description

KCC H2O is a water refilling station that produces and sells clean and safe drink-

ing water in different volumes of bottled water that will be fully enforced here in Ka -

bankalan City. It will be fully operated by the expert, from the fineness of water to the

best procedure process; from raw water to finish product, called purified water. This busi-

ness will provide the drinking water needs of people with quick delivery services.

Vision

The KCC H2O Water Station aims to be the best market leader on the water refill-

ing station industry in terms of water quality and customer service.

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Mission

The KCC H2O water station guarantees to provide clean and safe water for the

consumption of its clientele and the assurance of a high grade quality in production.

Objectives

The objectives of KCC H2O purified water refilling station are as follows:

 To earn profit and to augment the income of the school

 To provide valuable services to the customers

 To give the community satisfaction in terms of clean and safe drinking water and

quality product

 To contribute positively to the community and environment

 To create employment opportunities

Business Name

The proponents came up with this name which is “KCC H 2O water station” that

can easily be remembered by the target market/customers when they talk or think about

KCC. It can capture the attention of the customers easily.

Business Logo

The business logo conveys plain yet clear presentation of the business. The KCC

logo is at the top left signifying Kabankalan Catholic College as the owner. The text such

as“KCC H2O” is simply water: two parts hydrogen, one part oxygen and “Purified Drink-
 7

ing Water” as a brief description of the business. “Water Refilling Station” that was de-

signed in wavy style provides an indication to consumers what kind of business it is. Wa -

ter splattered design is used as the background. Figure 1 shows the business logo of KCC

H2O purified water station.

Figure 1.Business Logo

Service Description

KCC H2O water station sells purified drinking water at different volumes of bot-

tled water. The bottled water is already packed and ready for delivery and distribution to

customers.

The proposed business concept of KCC H2O purified water refilling station is typ-

ically homogeneous to those other existing water refilling stations in the City of Ka-

bankalan. But certain things will make it stand out and that includes its quality service

and the professionalism of KCC H2O personnel towards the customers.

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Quality Service. The quality services really matters in KCC H 2O water station. It

is planned to provide services such as free delivery.

Professionalism towards customers. Personnel of the business will surely build

professional customer relationship. More than that, it would be better to set the customers

as part of the top priority of the business. In addition, the personnel will take care of each

customer with a great respect.

Customers can order through personal and telephone contacts and 30 minutes

waiting time for delivery will be observed within the city proper only. It will also be as-

sured that products will be handled properly and will maintain its quality during delivery.

Services from the employees are being given to the customers who purchase products in

the store such as greeting them politely and assisting them in choosing the products they

want to buy. Good services are also being given to the customers who have transactions

with the staff, such as treating them and making them comfortable in the business place.

Since most of the customers already have their containers, the said containers will

be replaced every delivery. Empty containers will be cleaned, refilled and delivered to

other customers so that customers will only have to pay for the contents and not for the

containers, for only (₱20.00) per refill. For those buying direct with containers, the con-

tainers are cleaned and refilled. Containers are lent to regular customers who have no

containers for free.

In order to cater the needs of the customers the business has to continuously come

up with the variants of the products. KCC H 2O water station offers a variety of bottled
 9

water in different sizes to meet the target market needs and these are 350 ml, 500 ml,

1000 ml and 1.5 liters.

Target Market

The target market of the proposed business which is “KCC H 2O water station” are

the KCC faculty and staff, students, and Kabankalan City household consumers. The sec-

ondary target market would be the business firms and convenience/retailing store. One of

the distribution channels of KCC H20 water station is the KCC canteen.

Based on the survey, figure 2 shows that 46% of the target market are students;

20% from KCC Faculty & Staff, 20% are coming from Kabankalan City household con-

sumers, eight percent (8%) from Business firms, and six percent coming from retailing/

convenience stores.

Figure 2.Target Market

Target Market
6%
8%
Students

20% 46% KCC Faculty & Staff

Households

20% Business Firms

Retailing & Con-

venience store
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Demand Analysis

Demand analysis helps in identifying key business areas where demand is highest

and areas which need attention for its very low demand. This very low demand indicates

different problems like either the customers are not aware of the product/service or the

customer needs are not met by current product/service so improvements are needed and

focus on advertisement and promotion be made and the ability of the consumer to pay for

the good or service at the price offered (Amadeo, 2017). The results of the surveys show

important things about the target markets choice when buying water.

The proponents conducted a survey to the respondents on the sources of drinking

water for their family. The result projected that out of the two-hundred fifty respondents,

174 0r 69.60% of the respondents answered water refilling station.

Regarding the awareness of the quality of drinking water and its relatedness to

health, the 45.60% of the respondents answered they are very much aware, 22% an-

swered they are aware, 27.60% answered they are much aware, and 4.80% of the respon-

dents answered not aware. It implies that almost of the respondents are very much aware

regarding the safety and quality of drinking water.

In terms of the frequency of buying bottled purified water, the result pointed out

that 22.80% of the respondents buy bottled water daily, 36% of the respondents buy once

a week, 23.60% respondents buy twice a week, 14.80% buy thrice a week and 2.80% re-

spondents answer others. It implies that most of the participants buy bottled purified wa-

ter once a week.

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On the number of consumption of water per week, the result shows that 21.20%

of the participants use two containers of water; 22% of the participants consume three

containers of water, 17.20% of the participants use four containers of water, 28% of the

participants answer five containers, and 11.60% participants for others. It implies that

most of the participants use five containers of 5-gallon containers consumption in a week.

Using these data, the projected demands of water consumption in a week are as follows:

In your households, how many container of 5-gallon of

drinking water do you consume in a week?
28%

21% 22%
17%
12%

2 container 3 container 4 container 5 container Others

Figure 3: Demand Data

Competitors

Competition is tight in the water refilling station business. There are many com-

petitors operating in the Kabankalan area. The proponents gathered data from the partici-

pants of what water refilling stations are currently supplying them. Table 1 shows the list

of water refilling stations and their location:

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Table 1. Competitors Location

Name Location

Pana Brgy. 2, Sola Street, Kabankalan City

Gelo’s World Brgy.1, Teachers Village, Kabankalan City

Angel’s Lips Brgy.1, FZO Subdivision, Kabankalan City

Hydro J.Y Perez Highway, Kabankalan City

Crystal clear Brgy.3, Tan Lorenzo St.,Kabankalan City

Sterilite Brgy.1, Mohon, Purok 3, Kabankalan City

Aquatech Brgy.1,J.Y Perez Highway, Kabankalan City

Ozone pure Brgy.1, Mohon, D.E,Kabankalan City

Orliz Brgy. Talubangi, Purok 1, Kabankalan City

CGO Brgy.4, Kabankalan City

Aquaritz Brgy. Camingawan, Kabankalan City

Macua Brgy. Binicuil, Kabankalan City

Tubigni Kwan Brgy.2, Repullo St., Kabankalan City

Based on the survey conducted, some of the major competitors of KCC H 2O wa-

ter refilling station are Pana, Gelo’s world, CGO, Aquaritz and Aquatech. But they only

sell water in refillable containers. Figure 4 shows the result of KCC H2O competitors.
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What water refilling station is currenttly supplying your water?

Pana
Gelo's World
2.80% Angel's Lips
1.20% 5.60% 2.80% Hydro
3.20% 31.20% Crystal Clear
2.00% Justin Refiiling station
0.80% Sterilite
6.00% Aquatech
Ozone Pure
5.20%
Orliz
CGO
3.60%
Aquaritz
7.20%
Macua
4.80%
Tubig ni Kwan
5.20% 3.20%
4.80% Kisha
2.40% 2.80% 5.20% Padoy's refilling station
Kitempco
Watoy
Meet & Greet

Figure 4.KCC H2O Competitors

SWOT Analysis

S.W.O.T. (Strengths, Weaknesses, Opportunities and Threats) provide a brief over-

view of KCC H2O purified drinking water station internal and external factors. The anal-

ysis is meant to show the current corporate environment identifying area in need of im-

provement. Table 2 shows the SWOT analysis of KCC H 2O purified water refilling sta-

tion.

Table 2. SWOT Analysis


Strengths
 High-end and new
technology
Internal En-  Better Packaging
 Better management
vironment
 Strong brand name
 High quality product
 Produces pure drinking
water at low price
 Knowledgeable and friendly
staff
Opportunities
 Many people are getting
health conscious and they
External En- want to ensure the safety of
their family with clean
vironment water.
 Purified drinking water
station has become very
essential due to cases of
contamination in the tap
water.
Marketing and Sales Strategy.The KCC H2O water station will market the product
through personal and telephone contacts, and door-to-door delivery of orders that will
somehow result to a good relationship to the customers.
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Weaknesses
 New in the market
 As the machine with brand
and quality is expensive,
maintenance will be quite
expensive as well.
Threats
 Due to global warming and
increasing population size,
water/raw water supply are
getting scarce.
 Water refilling station is
easy to put up, it could be
expected that new
competitors may rise every
now and then.
 There are already many
water refilling stations
businesses in the City of
Kabankalan.
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KCC H2O water station has also different marketing strategies that will capture

and gain the loyalty of the customers. The following marketing and sales strategies are:

Place strategy, Product Strategy, Promotion strategy, Pricing strategy and Packaging and

labeling strategy.

The source of water is from the KCWD (Kabankalan City Water District) as re-

quired by law for water stations.

Product Strategy

The design of this product is actually based on its container since water has an indefi-

nite shape. KCC H2O water station sells for any kind of volume of purified bottled water

and accepts all kinds of containers such as those commonly used water containers, small

or large water containers or bottles and others. Figure 5 shows the product design of KCC

H2O.

Figure 5: Product Design

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Place Strategy

KCC H2O water station will be located behind the building of the KCC High

School Department, Brgy.1, Adela St., Kabankalan City. The location of the business is

very good one since it has access to the students in the KCC main campus. This is the

perfect place for this kind of business because there are schools, carenderias, apartments

and boarding houses along Adela St., and it is accessible enough to meet the needs of the

target market.

Promotion Strategy

KCC H2O water station has promotional strategies to be used in order to attract many

customers. The following promotional strategies are: radio advertisement, Facebook ad-

vertisement and flyers. KCC H2O will also give discounts for the loyal customers and for

big volume purchases. As for the advertising and promotion, KCC H 2O water station has

the following plans:

Flyers

Flyers will be distributed before and after the opening of the station so that the

market will be able to be informed when it will be available for services that will be open

soon. Flyers can convey wide range of possible buyers for it can be brought to other

places. The store will produce flyers for advertising purpose. Flyers will contain the fol-

lowing information:

 Business Name
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 Business Logo

 Business Address

 Contact number

 Business hours

Figure 6. Flyers

Tarpaulin

The tarpaulin is three by five ft in size and it will be placed in the front of the

store as well as to the nearby places in order to signal that the KCC H 2O water station

is about to open at Kabankalan Catholic College Compound, Adela Street, Ka-

bankalan City. Tarpaulin will contain the following information:

 Business name
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 Business Logo

 Address and contact number

 Business hours

Membership offering that will give customers discount

KCC H2O will offer membership and in order to avail of the discount there should

be a corresponding number of boxes/containers of water discount purchased. This will be

a win-win situation both for the customer and the business. The customer will avail the

discount at the same time. The business maintains the loyalty of the customer. Table 3

shows the KCC H2O discount.

Table 3. KCC H2O Discount

TO AVAIL THE DISCOUNT NUMBER OF BOXES/CONTAINER

Purchasing order requirements 10 boxes 15 boxes 20 boxes

or or or
10 containers 15 containers 20 containers
Discounts 3% 4% 5%

Pricing Strategy
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The KCC H2O water station gathered information from surveying two hundred

fifty participants from the City of Kabankalan area. The survey was about the source of

drinking water for the family, the water refilling stations that supply them and the pur-

chase price of the other refilling stations. Based on the survey the proponents conducted

prices that are not that high so that it competes with the other water station. Figure 7

shows the pricing of the competitors.

How much is the cost of water per 5-gallon container that

you are buying?

42.40%

28.80%
24.80%

4.00%

Php 20/Container Php 25/container Php 30/container Others

Figure 7. Competitors Price for refill

The result indicates that 24.80% of the participants spend twenty pesos per con-

tainer; 42.40% of the participants spend twenty-five pesos, 28.80% of the participants

spend thirty pesos and 4% participants spend fifteen pesos. The results imply that most of

the customers pay twenty-five pesos container per refill.

Price List
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KCC H20 water station will offer an affordable price and free delivery service.

Table 4 shows the prices of each product.

Table 4.KCC H2O Price List

PRODUCT PRICE

5-gallon round/container
Price: ₱18.00/Refill
20.00/Delivery

Buy water with gallon

Price: ₱160.00

350 ml
Regular Price: ₱8.00

350 ml x 40 pcs/box
Price: ₱320.00
500 ml
Regular Price: ₱10.00

500 ml x 35 pcs/box
Price: ₱350.00

1000 ml
Regular Price: ₱16.00

1000 ml x 35 pcs/box
Price: ₱560.00
1.5 liter
Regular Price: ₱25.00

1.5 liter x 12 pcs/box

Price: ₱300.00
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Packaging and Labeling/sticker

Product packaging is one of the main dynamics which control the flow of target

customers towards the product. Packaging should be in line with the industrial norms.

Packaging may also vary with the understanding of the target market. Bottles and con-

tainers should be clear and hygienic and completely clean. It should be packed in hermet-

ically sealed bottled containers. The bottles should give a reflection of light sky blue

color which is considered a natural symbol of the water.

KCC H2O has a label sticker that has a unique color and design. The color and

design will create a positive perception for the new brand. All containers will have labels

bearing the name of KCC H2O and all containers and bottled water should be sealed to

ensure the product reaches the end customer with utmost quality. Stickers and seals will

be printed on a monthly basis. KCC H 2O purified water refilling station also has a busi-

ness logo in order to easily catch the attention of the customers.

Figure 8. Label of Stickers Figure 9. Bottled Water

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Figure 10. 5-gallon round container Figure 11. Slim container with faucet

Figure 12. Carton Box