College of Graduate Studies

M.T. Villanueva Avenue, Naga City

PROPOSED PURIFIED WATER STATION BUSINESS PLAN

Submitted to:
Dr. Gladys G. Rosales MA ELT
Professor

In partial fulfillment of the requirements in:

MPA 207: Financial Management
2nd Semester 2019 - 2020

Submitted by:
Glenda Caguco
Liza Romano
Danilyn Honey M. Moral
Nympha Vallejos
Edgardo Ayao
Arturo M. Marco
Noel Martinez, Jr.
Students

April 25, 2020

 I. BUSINESS OVERVIEW

Water is an essential commodity. As such the Department of Health (DOH) ensures that
all water drinking stations meet certain health and safety standards. It Is important to
note that if the water in a community is contaminated, it can result to epidemic in that
community.

A water drinking station must enforce strict hygiene standards and the environment must
be clean at all times if they want to continue to be in business. A breech of these
measures might result in the Public Health Department shutting down the business.

Establishments in the water drinking station line of business sell water as a public utility
to households, businesses and public entities throughout the Philippines. Water station
business has performed well over the decade. Population growth, as well as occurrence
of El Niño phenomenon and other hostile weather conditions, have indeed increased
demand for water supplied by industry operators.

Over and above, purified water station business is a profitable industry and it is open for
any aspiring entrepreneur to come in and establish their business. Our group choose to
start on a small scale servicing a community and plan to expand later with several outlets
within the city and the neighboring municipalities.

II. EXECUTIVE SUMMARY

Bulos Tulos Purified Water Station is a licensed and standard water purifying company
that will be located in a residential area in Naga City. We have been able to secure a
long-term lease for a facility in a strategic location on a major road with an option of a
long-term renewal on an agreed terms and conditions that is favorable to us.

The facility has government approval for the kind of business we want to run and it is
easily accessible and we are deliberate about that. We are in the water business to
engage in the sale and supply of treated and purified water to residential apartment,
offices and subdivisions.

We are also in business to make profits at the same to give our customers value for their
money. We want to give people and businesses who patronize our product the
opportunity to be part of the success story of Bulos Tulos Purified Water Company.

We are aware that there are several big scale and small scale water stations scattered
all around the city, that is why we have spent our time and resources to conduct a
feasibility studies and market survey so as to enable us choose the business location in
an area that will support the growth of our business and also to enable us to offer much
more than our competitors will be offering.

We ensured that our facility is easy to locate and we have mapped out plans to develop
a wide supply network for offices and residential areas all around city including
neighboring municipalities.

Our group members have various experienced that working hand in hand surely gives
more advantage in managing compared to other existing water stations. We will
collaborate to build the business and grow it to enviably height.
III. MISSION / VISION STATEMENT

• Our vision is to establish standard water purifying station in Naga City and in other
neighboring Municipalities that will become the number one choice for households
and offices.
• Our mission is to establish a standard and world class water purifying station that
in our own capacity will favorably compete with other existing company.
• We want to build a water purifying station business that will be listed amongst the
top 20 water purifying station brands in the Philippines.

IV. PRODUCT

We are in the water purifying station line of business to sale and supply treated water to
households and offices via of hygienic water tankers and we are going to do all that is
permitted by the law in the Philippines to achieve our business goals and objectives.

Purified water – made by removing all impurities or “hardness” of the water through
reverse osmosis. Drinking this helps reduce your chances of developing gallstones. It also
absorbs toxins from your body and flushes them out through your urinary system.

V. ORGANIZATIONAL STRUCTURE

CHIEF
EXECUTIVE
OFFICER

WATER SALES / BUDGET / HUMAN FIELD MAINTENA

STATION MARKETING FINANCE RESOURCE OPERATION -NCE
MANAGER MANAGER MANAGER MANAGER MANAGER MANAGER

OPERATOR SECRETARY DELIVERY CLEANER

ROLES AND RESPONSIBILITIES

• Chief Executive Officer:

- Increases management’s effectiveness by communicating values, strategies, and
objectives; assigning accountabilities; planning, monitoring, and appraising job
results; developing incentives; developing a climate for offering information and
opinions
- Responsible signing business deals; Responsible for signing checks and
documents on behalf of the company; Responsible for providing direction for the
business
- Creating, communicating, and implementing the organization’s vision, mission,
and overall direction (i.e. leading the development and implementation of the
overall organization’s strategy); Evaluates the success of the organization

• Water Station Manager:

- Responsible for overseeing the smooth running of the water refill station
- Responsible for training, evaluation and assessment of workers
 - Ensures that the water refill station meets the expected safety, hygiene and
health standard at all times.
- Updates job knowledge by participating in educational opportunities; reading
professional publications; maintaining personal networks; participating in
professional organizations.

• Sales and Marketing Manager:

- Enhances department and organization reputation by accepting ownership for
accomplishing new and different requests; exploring opportunities to add value
to job accomplishments.
- Manage external research and coordinate all the internal sources of information
to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data
generated by customer purchases
- Responsible for supervising implementation, advocate for the customer’s needs,
and communicate with clients
- Document all customer contact and information
- Help increase sales and growth for the company

• Budget and Finance Manager:

- Responsible for preparing financial reports, budgets, and financial statements for
the organization
- Responsible for financial forecasting and risks analysis
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization

• Human Resource Manager:

- Responsible for overseeing the smooth running of HR and administrative tasks
for the organization
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees

• Field Operation Manager:

- Ensures that the steady flow of both raw materials to the plant and easy flow of
finished products through wholesale distributors to the market
- Responsible for selling and refilling water for customers as requested
- Assist in loading and unloading treated water.
- Maintain a logbook of their driving activities to ensure compliance with Land and
Transportation Office
- Planning their route according to a delivery schedule.
- Local-delivery drivers may be required to sell products to households and
businesses on their route, obtain signatures from recipients and collect cash.
- Comply with water tanker / truck driving rules and regulations (size, weight, route
designations, parking, break periods etc.) as well as with company policies and
procedures
- Collect and verify delivery instructions
- Report defects, accidents or violations

• Maintenance Manager:
- Ensures operation of equipment by completing preventive maintenance
requirements; calling for repairs.
 - Keep a record of vehicle inspections and make sure the water tanker / truck is
equipped with safety equipment
- Inspect vehicles for mechanical items and safety issues and perform preventative
maintenance
- Responsible for handling core services that revolve around tanks, water
containers and reservoirs cleaning, parking lot sweeping, snowplowing, drain,
duct and gutter cleaning, parking lot and driveway washing, equipment cleaning
and maintenance, chemical adjustments and other related cleaning services

VI. SWOT ANALYSIS

We are quite aware that there are several water stations both large and small in the city
which is why we are following the due process of establishing a business so as to compete
favorable with them.

We know that if a proper SWOT analysis is conducted for our business, we will be able
to position our business to maximize our strength, leverage on the opportunities that will
be available to us, mitigate our risks and be welled equipped to confront our threats.

• Strength:
The vast experience of our management team, we have people on board who are
highly experienced and understands how to grow business from the scratch to
becoming a national phenomenon.

The location of our purified water station (centrally located in major road prone to
both human and vehicular traffic), our large distribution network and of course our
excellent customer service culture will definitely count as a strong strength for the
business.

• Weakness:
We are a new water purifying station in the city and we don’t have the financial
capacity to engage in the kind of publicity that we intend giving the business
especially when other existing water refilling stations are already determining the
direction of the market all across the city and the nearby municipalities.

• Opportunities:
The opportunities for our purified water stations are enormous. This is due to the fact
that water is an essential commodity that we use on a daily basis for different
purposes.

As a result of that, we were able to conduct a thorough market survey and feasibility
studies so as to position our purified water station in the right location to be able to
take advantage of the existing market for treated and purified water and also to
create our own new market. We know that it is going to requires hard work, and we
are determined to achieve it.

• Threat:
We are quite aware that just like any other business, one of the major threats that
we are likely going to face is economic downturn and unfavorable government
policies. It is a fact that economic downturn affects purchasing power.

Another threat that may likely confront us is the arrival of a new water station in
same location where ours is located.
VII. MARKET ANALYSIS

Our group is conversant with other water station business, we have agreed that we would
not necessarily need aggressive marketing skills to be able to market our business. People
who need water will most likely look for ways to get to our purified water station. The
reason why we need to market our water station is to let people know the uniqueness of
our purified water station and to create general awareness.

We visit companies that are into cleaning services and laundry services to inform them
that we are new in town, because they are always in need of water and we might become
their repeat water supplier. Schools, public or private facilities, homes and even
companies are other sources where our water might be needed. This is especially when
their water supply system fails or is under repairs or general maintenance.

Lastly, another trend in purified water stations is the adoption of eco – friendly approach
towards the treatment and supply of water. As a matter of fact, the industry’s adoption
of eco-friendly practices will likely persuade environmentally conscious consumers to buy
its products, while increasing operators’ efficiency.

• TARGET MARKET
- Households
- Laundries
- Hotels
- Restaurants / Canteens / Cafeterias
- Event Planners / Parties / Corporate Functions
- Government Officials
- Business People
- Students

• COMPETITIVE ADVANTAGE
We are aware of the stiffer competition and we are well prepared to compete
favorably with other water stations within the city and nearby municipalities where
we intend opening outlets of our purified water stations.

Part of what is going to count as competitive advantage for our purified water station
is the vast experience of our management team, we are highly experienced and
understands how to grow business from the scratch to becoming a national
phenomenon.

Our employees will be well taken care of, and their welfare package will be among
the best within our category in the industry, meaning that they will be more than
willing to build the business with us and help deliver our set goals and achieve all our
aims and objectives. We will also give good working conditions and commissions to
freelance sales agents that we will recruit from time to time.

VIII. SALES AND MARKETING STRATEGY

Our purified water station is established with the aim of maximizing profits in the water
station line of business in Naga City and we are going to go all the way to ensure that
we do all it takes to sell and supply our purified water to a wide range of customers. In
essence, we will generate income by selling and supplying purified water.
 Below are the sales projection for our company, given a right location, good marketing
and other factors as it relates to small scale and medium scale water stations or company
start – ups in the Philippines.

• First Fiscal Year-: ₱ 100 000.00

• Second Fiscal Year-: ₱ 250 000.00
• Third Fiscal Year-: ₱ 350 000.00

This projection is done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown and there won’t be any
major competitor offering same products and customer care services as we do within
same location.

In order to continue to be in business and grow, we must continue to sell our purified
water to the available market which is why we will go all out to empower our sales and
marketing manager to deliver our business goals. In summary, our company will adopt
the following sales and marketing approach to sell our purified water

• Introduce our purified water station by sending flyers to residence, offices, laundries,
event planners and other stakeholders within the city and other nearby municipalities.
• Open our water station with a party so as to capture the attention of residence who
are our first targets
• Engage in road show or parades in targeted communities from time to time to sell
our brand
• Advertise our purified water station in local based newspapers, local TV and radio
stations
• advertised on the internet to promote our water station
• Engage in direct marketing and sales
• Encourage the use of word of mouth marketing (referrals)
• Position our Banners at strategic location where we intend getting customers to start
patronizing our purified water
• Ensure that all members wear our customized clothes, and all our vehicles and water
storage facilities are customized and well branded.

IX. PRICING STRATEGY

When it comes to pricing for products such as purified water, there are two sides to the
coin. We are aware of the pricing trend in the water purifying station line of business
which is why we have decided to have various sizes of bottles, gallons and water tankers.

In view of that, our prices will conform to what is obtainable in the industry and we will
ensure that within the first 6 to 12 months our purified water are sold a little bit below
the average prices of various water stations in the Philippines. We have put in place
business strategies that will help us run on low profits for a period of 6 months; it is a
way of encouraging people to buy into our purified water station.

X. SUSTAINABILITY AND EXPANSION STRATEGY

The future of a business lies in the numbers of loyal customers that they have, the
capacity and competence of the employees, their investment strategy and the business
structure. If all of these factors are missing from a business (company), then it won’t be
too long before the business close shop.
We know that one of the ways of gaining approval and winning customers over is to
retail our well – treated water a little bit cheaper than what is obtainable in the market
and we are well prepared to survive on lower profit margin for a while.

As a matter of fact, profit-sharing arrangement will be made available to all our

management staff and it will be based on their performance for a period of three years
or more. We know that if that is put in place, we will be able to successfully hire and
retain the best hands we can get in the industry; they will be more committed to help us
build the business of our dreams