A Lean Business Plan

for

SDMT Hydra Company

AQUA CHILLED

Submitted by:

SANDER DEMDAM
2021104058

CHRISTIAN BLUE D. MONTOYA

2021104106

JOHN ARBIE T. SALUNAT

2021102864

KYLE ADRIANE A. TIMON

2019138195

NATHANEAL TRINIDAD
2021104730

in partial fulfillment of the requirements

for

IE103-1 / B72
TECHNOPRENEURSHIP
101
2nd Quarter, SY 2023 – 2024
PROJECT BRIEF

Background Information (Overview of the problem or issue that your product can solve or
address)

The Philippines has a tropical climate and is near the equator causing the country's
heat index to be warm. However, during summer, the heat index of the country increases. On
March 1, 2023, the place of Butuan City in Agusan del Norte recorded a heat index of 48
Celsius, which is near the temperature for proneness of heat stroke (Philstar, 2023).

This high index has led many people to experience heat strokes. The city of
Valenzuela has recorded thirty-three high school students in four different schools
experiencing heat stroke on March 1, 2023. Also, eighty-five students faced heat stroke in
Cabuyao, Laguna on March 4, 2023 (Sarao, 2023). Student-athletes playing for Palarong
Pambansa in 2015 took place in Tagum City in Davao del Norte. During this event, the heat
index of the city has an average of 37 Celsius (Baguio, 2015). From this, it caused dozens of
athletes to show symptoms of heat exhaustion, and some fainted during training.

The Metropolitan Manila Development Authority also known as the MMDA has given
a statement that their employees will have a thirty-minute "heat stroke break" starting on April
1 to May 31, 2023. This memorandum of the MMDA aims to protect their field workers, such
as traffic enforcers and street sweepers, from heat stroke or heat cramps due to the high heat
index of the country (TheStar, 2023).

The Aqua Chilled is a product that is an insulated water bottle with a mist spraying and
a fan. It aims to provide a cooling feature to the users and tries to keep them hydrated. The
Aqua Chilled's benefits try to solve heat stroke by mitigating people having a high body
temperature and maintaining them hydrated throughout the day.

Project Objectives and Success Metrics (Your company’s mission, target objectives, and
success metrics)

The company wants the product to be marketable, efficient, and useful to the
customers. We know that there are a lot of competitors when it comes to water bottles, that’s
why the company made Aqua Chilled unique with its different purpose that will surely benefit
the customers. A product that can be made that won’t cost a lot for the materials for its
production and won’t be expensive when it’s released on the market. A product that won’t
only benefit the company for its success but also benefit the customers due to the different
functions of Aqua Chilled.

The selling of Aqua Chilled isn’t all about gaining money for its success but it’s created
to mitigate or prevent the cases of heat stroke incidents and dehydration. The company cares
about the health of its customers. It is noticeable that there are days that it’s very hot due to
global warming, so people need to be hydrated and to be freshened up. According to the
Department of Science and Technology-Food and Nutrition Research Institute (DOST-FNRI),
8 out of 10 Filipinos are experiencing dehydration. The number one objective of this product
is to prevent dehydration that might also result in heat stroke.

To ensure the company that the product is successful, the company will review the
selling rate of Aqua Chilled to know if there are a lot of customers that are buying this product.
Second, the company will look and ask for feedback and reviews from the customers about
the product to know if it was efficient for the consumers and to have solutions on how to
improve the product.

Target Audience (Description of your target market/costumer)

Taking note of our project’s background information as well as its objectives and
success metrics, Aqua Chilled will be meticulously designed for fitness enthusiasts and sports
enthusiasts who lead dynamic and on-the-go lifestyles. Tailored as an indispensable
companion for those prioritizing hydration and coolness during their physical activities, the
water bottle caters specifically for those with intense workout routines or simply an active
lifestyle.

Furthermore, the mist spray and detachable mini-fan offer a revitalizing experience,
motivating them to push through physical challenges. Ideal for athletes engaged in running,
jogging, or team sports, Aqua Chilled plays a crucial role in maintaining optimal hydration
levels, with the added advantage of the mist spray and detachable fan enhancing their overall
training or physical activities.

In essence, Aqua Chilled caters exclusively to the needs of fitness and sports
enthusiasts. It blends functionality and innovation by offering a refreshing and technologically
enhanced solution to addressing hydration and heat stroke concerns.

PROOF OF CONCEPT

Suggested Prototype/Product Design (Illustration of your product design and parts)

The illustration on the left, is the proposed product’s design, this is

essentially the container of Aqua Chilled which is bulky so that it could store
a lot of water, made of stainless-steel so that the water inside can remain
cool/cold despite the hot weather.

The figure on the right is the mini fan of

Aqua Chilled, one of the cooling devices our
product has quite like any portable fan, which is
convenient and keeps the customer from sweating. We will try to
incorporate the cool water inside the container so that it blows cold
air, based on research and life hacks on “how to make your fan blow cool air.”

Lastly, we have mist spray of Aqua Chilled. Visualize that you

are jogging or working out and you experience sudden fatigue or
dizziness, this mist spray uses the chilled water inside to spray cold
mist water on yourself for quick refresh. Studies have shown that there
are many benefits of mist spray including; workout recovery, cooling
effect, revitalization, and anti-bacterial properties.

List of Functions (The functions/capabilities of your product)

The following are the different function that Aqua Chilled can do:

• Aqua Chilled stands out for its durability, crafted to resist damage and withstand the
demands of everyday use. Engineered with robust materials, it maintains structural
integrity, making it a reliable companion for various activities.
• Incorporating double-wall insulation, the bottle ensures an effective temperature
maintenance for the liquids it contains. The double-wall insulation provides a reliable
solution for temperature control, enhancing the overall functionality and versatility of
the bottle.
• Aqua Chilled prioritizes portability in its design, offering users the convenience of
staying hydrated while on the go. Crafted with a focus on mobility, the product ensures
that users can easily carry and access refreshing hydration wherever their activities
take them.
• The mist spray feature of the bottle delivers a revitalizing burst of moisture to the skin,
particularly beneficial in warm weather conditions. This innovative aspect enhances
the bottle's functionality by offering a dual-purpose solution, providing hydration for
both internal consumption and external comfort.
• The mini fan proves invaluable in scenarios requiring extra cooling, including power
outages, outdoor events, or when conventional cooling alternatives are unavailable.
Its compact and portable design makes it a versatile solution, ensuring users can stay
comfortable in various settings and situations. The convenience of the mini fan shines
in providing a quick and efficient cooling option during unexpected or challenging
circumstances.
LEAN BUSINESS PLAN

IDENTITY (Who are you and what do you do?)

SDMT Hydra Company is selling a product called Aqua Chilled. SMDT stands for the
surnames of the company leaders (Salunat Demdam Montoya Timon/Trinidad). The
company wants to sell a product that will solve the customer’s problem which is dehydration
and heat stroke. The company ensures that the product is affordable and will make the
product worth buying.
PROBLEM WORTH SOLVING (What OUR SOLUTION (How are you solving the
problem are you solving for your problem you’ve identified?)
customers?)
AQUA CHILLED from SDMT Hydra
Due to its tropical environment and proximity Company aims to shield consumers against
to the equator, the Philippines has a warm heat stroke by maintaining constant
heat index. That causes heat stroke in our hydration in light of the aforementioned
target market. Particularly athletes who problems. A cool mist spray is another
engage in outdoor activities as they are feature of the product. Keeping their body
more susceptible to solar heat waves. They temperature low as a result.
could have heat cramps or fatigue as a
result. Furthermore, the previously indicated
circumstances can apply to students and
other commuters.
TARGET MARKET (Who is your target THE COMPETITION (Who is your
customer? Are you targeting multiple market competition and how are you different?)
segments?)
Insulated water bottles from brands such as
Aqua Chilled water bottle is specifically Hydro Flask, O2COOL, and are some of the
crafted for fitness and sports enthusiasts existing competition for our product. But
who lead active and dynamic lifestyles. Aqua Chilled stands out by innovatively
Made as an ideal hydration solution, the combining a mini-fan and mist spray in a
water bottle caters to individuals engaged in single water bottle product, offering a unique
gym workouts and various sports, such as 2-in-1 cooling solution. This dual-
running and team sports. The mist spray and functionality sets it apart from competitors
detachable mini-fan can provide cool relief who typically provide either mist spray or a
after intense exercises and activities. With fan, but not both. While competitors focus on
Aqua Chilled, the needs of those pursuing a single-feature designs, Aqua Chilled caters
diverse range of active lifestyles can be met. to the comprehensive cooling needs of
active individuals by seamlessly integrating
both a mist spray and a detachable mini-fan
into its design, providing an enhanced
cooling experience during workouts, and
sports activities.
SALES CHANNELS (How will you sell your MARKETING ACTIVITIES (What are the
products?)
Online Retail Platforms:
Utilize popular e-commerce platforms such
as Amazon, eBay, or dedicated company
websites to reach a wide online audience.
Leverage social media advertising and
influencer marketing to drive online sale
Specialized Outdoor and Sports
Retailers:
Distribute Aqua Chilled through retailers
catering to outdoor enthusiasts, hikers,
campers, and sports enthusiasts. Position
the product in stores that specialize in
fitness and wellness equipment.
Health and Wellness Stores:
key marketing activities that you’ll be using
to drive customers to your door?)
• One of the ways to attract customers
is by using the power of social media.
We’ll post in any social media
platforms that have a lot of users for
the product to have exposure.
• Create a site about the product with
a unique design that will catch the
attention of the customers.
• Have promos/discounts to
encourage the customers to buy the
product.
• Have a partnership with other
businesses to gain more customers
that will benefit both parties.
• Promote your product by joining in
any community events.

Target health and wellness stores,

emphasizing the benefits of Aqua Chilled for
hydration during warm weather. Explore
partnerships with stores focusing on eco-
friendly and sustainable products.

Promotional Events and Pop-Up Shops:

Attend outdoor events, festivals, or trade

shows to showcase Aqua Chilled and allow
potential customers to experience its
features firsthand. Set up pop-up shops in
strategic locations to create brand
awareness and engage with the target
audience directly.
TEAM (Who are your key team members PARTNERS AND RESOURCES (Who are
and what are their roles?) your business’ critical partners?)

Kyle Timon (Chief Executive Officer) - A critical partner(s) may be a reputable

Making important corporate decisions, sports and fitness brand whose
managing general operations and endorsement and partnership could
resources, and acting as the primary link considerably boost our product's reputation
and visibility. Collaboration with athletic
between the board of directors and the rest events or sports organizations could result
of the organization. in product placements and sponsorship
opportunities for our company, allowing the
Sander Demdam (Chief Operating Aqua Chilled brand to reach its target
Officer) - oversees manufacturing, audience directly. Furthermore, creating
marketing, and other essential areas, collaborations with fitness influencers and
ensuring that corporate operations are professional athletes could be effective
efficient and aligned with the company's marketing channels, as they can use their
goal. influence to promote the brand among their
fans. Collaboration with gyms, fitness
John Salunat (Chief Human Resources centers, and nutritionists could create
Officer) - In charge of human resource distribution channels, guaranteeing that
management. They supervise hiring, Aqua Chilled is easily accessible to athletes
training, employee relations, and the whole in their training environments.
staff.

Nathaneal Trinidad (Chief Financial

Officer) - They oversee financial planning,
record-keeping, financial reporting, strategic
planning, and decision-making.

Christian Montoyo (Chief Strategy

Officer) - In charge of creating and carrying
out the company's strategic ambitions.
Identify expansion prospects and secure the
company's long-term success.
REVENUE (What are the sources of your EXPENSES (What are the expenses that
income?) you will incur to produce the product?)

There are multiple possible sources of
income in making this business. First, we
have savings since we have our own jobs
and salary. Secondly, we could make
income by reaching out to possible
investments. Lastly, we can also gain
income by doing side hustles or gig
economy income where we have small
business like “sari-sari store”, online seller,
grab driver, etc.
Manufacturing Costs - Costs related to the
manufacturing process, including labor,
equipment, and facility expenses. Quality
Control: Investments in quality assurance
measures to ensure each Aqua Chilled unit
meets the desired standards.
Packaging - Expenses for creating visually
appealing and informative packaging that
aligns with the brand image. Costs for the
actual materials used in packaging,
considering sustainability and protection
during transportation.
 Marketing and Advertising - Budget for
online marketing efforts, including social
media advertising, influencer partnerships,
and online promotions. Budget for
organizing or participating in events, trade
shows, or pop-up shops to promote Aqua
Chilled.

Distribution and Logistics - Costs

associated with transporting Aqua Chilled
products from the manufacturer to
distribution centers and retailers. Expenses
for storing inventory in warehouses or
fulfillment centers. Potential fees for
partnering with distribution companies or
logistics services.

Retailer Partnerships - Costs associated

with establishing partnerships with brick-
and-mortar and online retailers. Budget for
cooperative marketing initiatives with
retailers to increase product visibility.
MILESTONES (What will be your business activities and its timeline?)

Initial months (July 2023 – September 2023) – we will be focusing on market research,
identifying trends and branding efforts. Creating awareness for the upcoming launch of our
product, possibly creating a website for order fulfillment and shipping.

Start up (September 2023 – February 2024) - We are working on a complete business

plan and a prototype. Fundraising efforts are then launched to secure the venture's required
capital. Following that, we go to beta testing to ensure that the product or service fulfils
market expectations. Finally, the startup is formally launched, and the following actions are
focused on increasing operations, refining the offering, and ongoing development.

Supplier Identification and Negotiation (February 2024 – April 2024) - Suppliers for the
production of materials are selected at this stage, and negotiations begin. Factors such as
pricing, production capacity, and material sourcing are considered to build dependable and
cost-effective manufacturing partnerships.

Launch and Distribution (April 2024 – June 2024) - With a product ready for market, the
company officially launches. Distribution channels, including retail partnerships and online
sales platforms, are established. Marketing efforts intensify to create awareness and
generate initial sales.
 Launch and Distribution (June 2024 – September 2024) - Our company actively seeks
customer feedback to find improvement areas. This feedback loop is critical for product
improvements, fixing faults, and increasing customer happiness.

Reference:

Baguio, N. (2015, May 2). Severe heat a challenge for Palaro athletes. Rappler. Retrieved
December 14, 2023, from https://www.rappler.com/sports/palarong-pambansa/91852-
severe-heat-challenge-palaro-athletes/

philstar Global. (2023, April 22). Butuan heat index hits 48°C, “hottest” since the start of 2023
hot dry season. Philstar Global. Retrieved December 14, 2023, from
https://www.philstar.com/nation/2023/04/22/2260854/butuan-heat-index-hits-48c-hottest-
start-2023-hot-dry-season

Sarao, Z. (2023, April 4). DOH records 118 cases of heat exhaustion of students in March Read
more: https://newsinfo.inquirer.net/1752307/doh-records-118-cases-of-heat-exhaustion-
in-march#ixzz8M1wSnddK Follow us: @inquirerdotnet on Twitter | inquirerdotnet on
Facebook. INQUIRER.NET. Retrieved December 14, 2023, from
https://newsinfo.inquirer.net/1752307/doh-records-118-cases-of-heat-exhaustion-in-
march

TheStar. (2023, March 29). Philippine field personnel get 30-minute ‘heat stroke break.’ Retrieved
December 14, 2023, from https://www.thestar.com.my/aseanplus/aseanplus-
news/2023/03/29/philippine-field-personnel-get-30-minute-heat-stroke-break