Aqua Vita Purified Drinking Water Station
A Feasibility Study
Presented to
The Faculty of the Institute of Business and Public Affairs
Davao Oriental State College of Science and Technology
Dahican, 8200 Mati, Davao Oriental, Philippines
In Partial Fulfillment of the Requirements for the Degree
Bachelor of Science in Hospitality Management
FRANZ JULIUS ADRIANE DAMAYO
January 2021
Chapter I
SUMMARY OF THE PROJECT
Name of the Firm
The name of the business is Aqua Vita Purified Drinking Water
Station. The name Aqua Vita consists of two words “Aqua” which means
water and “Vita” which is derived from the name of the barangay,
Bitaogan. The water refilling station, therefore, provides safe and pure
water to the residents of the place and nearby barangays.
Location
The location of the said drinking water station is at Barangay
Bitaogan, San Isidro, Davao Oriental. It is strategically placed opposite to
the barangay’s only grocery store.
Head Office
Since this water refilling station is not a franchise of water refilling
companies, the head office is still in Bitaogan, San Isidro, Davao
Oriental.
Business Site/Location
The water refilling station is placed opposite of the barangay’s only
grocery store, the Suazo’s store.
Brief Description of the Business Site
The water refilling station is strategically placed opposite of the
barangay’s only grocery store so that customers can easily find the water
refilling station and they can have the ease of access to it.
Summary of the Study
In the course of this study, the research aims to discover the
marketing strategies employed by this water refilling station. And this
study also tackles the safeties of processes used by the water refilling
station. Water refilling stations managed by private entrepreneurs offer a
cheaper and more convenient solution to the public’s drinking water
needs than water came from the well, faucet, or the use of household
filters. The demand at the water refilling stations – water stores that sell
purified water is now increasing. The quality of purified water conforms
to the national standards for drinking water and is even better than the
quality of water produces by traditional water supply systems in terms of
removed impurities.
Background of the Study
One of the fast-expanding businesses in many cities nationwide is
the water refilling station. It is mushrooming on every street corner,
because a lot of people in urban areas prefer to get their drinking water
from these water stations, it's simply clean and safe to drink. Over the
years, as the demand for cleaner water becomes higher, the price of
household water purifiers and bottled water has become prohibitive.
Water refilling stations managed by private entrepreneurs offer a cheaper
and more convenient solution to the public's drinking water needs than
bottled water or the use of household filters.
In addition, the demand for purified water offered by water refilling
stations become higher. At present, about 3,000 water refilling stations
have proliferated nationwide. They sell purified water of comparable
quality with bottled water at a lower price. Moreover, according to the
results of the 2017 APIS, 94 percent of the 24 million Filipino families
have improved source of drinking water . Nowadays, because of
convenience on the part of the consumers, purified water in 5-gallon
containers is delivered by the station directly to the people’s home.
Over t he y ea r s, as t he dem a nd for clea ner wa t er
becom e s hig her , t he pr ice of household water purifiers and
bottled water has become prohibitive. Water refilling stations
managed by private entrepreneurs offer a cheaper and more
convenient solution to the public’s drinking water needs than bottled
water or the use of household filters.
At present, about 7 water refilling stations have proliferated in
the municipality of San Isidro. They sell purified water of
comparable quality with bottled water at a lower price. For
example, the current price per gallon of refilled purified water
in San Isidro ranges from P20 to P25 per 5-gallon container.
Operational Definition of Terms
Deep Well- is an excavation or structure created in the ground by
digging, boring or drilling to access groundwater in
underground aquifers.
Purified water- is water that has been mechanically filtered or
processed to remove impurities and make it suitable for use.
Water refilling stations- stores that offer/provide improved
drinking water such as purified, mineral or alkaline water.
Water purification- is the process of removing undesirable
chemicals, biological contaminants, suspended solids and
gases from contaminated water
Scope and Limitation of the Study
This study focuses on the strategies employed by a water refilling
station in the municipality of San Isidro, specifically in Barangay
Bitaogan. This study does not include water refilling stations in the
entire municipality.
Chapter II
MARKET STUDY
Service Description
Aqua Vita Purified Drinking Water Station will provide its
customers with clean and safe drinking water.
Target Market
Aqua Vita Purified Drinking Water Station offers clean and safe
purified drinking water not just to the residents of Barangay Bitaogan
but also to neighboring barangays. The location brings walk-in
customers from schools and houses around the area. The water refilling
station also offers free delivery to homes, schools, and retailers. Aqua
Vita also gives convenience and comfort to walk-in customers by having
benches in front of the store and a clean place to buy water.
Area Coverage
Aqua Vita purified drinking water station offers purified drinking
water not just to the residents of Barangay Bitaogan but also to
neighboring barangays of the Municipality of San Isidro.
Below is a map site of the water refilling station. The circle in the
middle of the figure represents the coverage for the water distribution.
Demand Analysis
Table 1. Demand Analysis Table
Year Per Day Per Month Per Year
2014 40 1, 240 14, 600
2015 50 1, 550 18, 250
2016 70 2, 170 25, 550
2017 80 2, 480 29, 200
2018 100 3, 100 36, 500
2019 140 4, 340 43, 800
2020 160 4, 960 51, 100
Gap Analysis
Table 2. Gap Analysis Table
WHAT SHOULD BE? WHAT IS ACTUAL? WHAT IS THE GAP?
250 gallons of purified 200 gallons of purified 50 gallons of purified
water must be water are produced water are not
produced and and delivered to produced and
delivered per day. homes and retailers delivered.
per day.
4 laborers (2 delivery 3 laborers (2 deliver
men and 2 front men and 1 front liner) 1 laborer is not able to
liners) must be are present at the attend to work.
present at the workplace.
workplace every day.
Supply Analysis
Table 3. Supply Analysis Table
Year Per Day Per Month Per Year
2014 40 1, 240 14, 600
2015 48 1, 488 18, 250
2016 65 2, 015 25, 550
2017 80 2, 480 29, 200
2018 95 2, 945 36, 500
2019 145 4, 495 43, 800
2020 170 5, 270 51, 100
Competitors Analysis
Table 4. Competitors Analysis Table
Competitors
Aqua Royale Aqua Star
The business location is The business location is
near commercial and near commercial and
residential areas. residential areas.
Strengths Customers can order Customers can order online
online but have to pick but have to pick them up at
them up at the store. the store.
It doesn’t have house-to- It doesn’t have house-to-
Weaknesses house deliveries. house deliveries.
The store does not offer It has higher pricing for a
discounts to retailers. gallon of water.
Pricing Structure
Here is the list of products with prices of Aqua Vita Purified
Drinking Water Station:
● Purified Water (1 liter) – P 3.00
● Purified Water (2 liters) – P 5.00
● Purified Water (22 liters or 1 gallon) – P 25.00
Marketing Program
The following promotional tactics for generating buzz and awareness
about Aqua Vita Purified Drinking Water Station will be implemented:
● Personal selling and word of mouth via networks of friends, stylists and
customers. The business will be promoted through the attitude,
appearance and knowledge of the sales representative. This aims to
inform and encourage the clients to participate in the business.
● Discount vouchers and bi-annual raffle. Clients may receive coupons
that will enable them to buy a certain product on their next visit at a
reduced price. The business will also conduct raffle promotions once
every year within the store and in the business’ Facebook page, where
lucky clients can win a special prize.
● ‘Aqua Vita Purified Drinking Water Station’ Facebook page. Facebook
allows you to create custom pages, have conversations with the clients,
and easily post photos and videos. It is also very user-friendly, and
reaches a wide variety of audiences. By using a Facebook page, the
business can reach out to Facebook users in the targeted audience for
free.
Place of Distribution
The gallons of water refilled in the water refilling station will be
distributed/delivered to residences within and the nearby barangays
through a delivery vehicle.
Promotion/Advertising
As for the advertising of the water of the firm, Aqua Vita Purified
Water Refilling Station focuses on personal contacts. The people nearby
the location of the firm will technically talk about the new water refilling
station established. Through personal communication, the number of
customers will increase manually. But Aqua Vita Purified Water Refilling
Station doesn’t completely depend on personal contacts only. The water
refilling station will have advertisements on a local radio station.
Chapter III
MANAGEMENT STUDY
Form of Ownership
The business’ form of ownership is sole proprietorship since it is
an unincorporated business that has just one owner who pays personal
income tax on profits earned from the business. Many businesses under
sole proprietorship do businesses under their own names because
creating a separate business or trade name isn’t necessary.
Organizational Structure
Manager
Bookkeeper Administrative
Assistant
Driver/ Delivery Technical
Man Assistant
Front Liner
Manpower Requirement
1 – Manager/Owner – Overseas store operations at least 4 hours a
day
1– Accountant/Bookkeeper – Makes financial statement of business
operations
1– Administrative assistant – Logs and handles cash sales and
purchases
1– Front Liner – Accepts and refills containers of customers
1– Technical Asst. – Maintains and runs the machine
2– Driver/Delivery Man – Transport refilled containers to
customer’s home
Compensation Structure
Table 5. Compensation Table
Salary Benefits Incentives
Technical P 250.00/day ● SSS ● Service
Assistant Incentive Leave
● Overtime Pay
Front Liner P 250.00/day and Holiday ● Meal and Rest
Rest Period
Driver/ P 300.00/day
Delivery Man ●13th Month ●Holiday/Christm
Pay as Bonus
TOTAL P 24, 800.00
Government Requirement
The following permits will be secured upon opening the business:
1. DTI
2. Business Permit
The following permits will be secured at the start of each year:
1. Mayor’s Permit
2. Barangay Permit
3. Sanitary Permit from Municipal Health Office
Chapter IV
TECHNICAL STUDY
Service Description
Aqua Vita Purified Drinking Water Station will provide its
customers with clean and safe drinking water.
Facilities
A parking space will be available for vehicles of walk-in customers.
The store has a comfort room for personal use of customers and
employees. The front liner and the delivery men are required to always
smile and wear their uniforms and be approachable at all times. In case
of emergency, it also has a back-door fire exit.
Machineries/Equipment
Table 6. Machineries/ Equipment Table
Materials Quantity Unit Unit Price
Water Refilling Machine 1 Piece P 250, 000.00
Heat Gun 1 Piece P 2, 500.00
Water Dispenser 2 Piece P 4, 000.00
Calculator 1 Piece P 150.00
Scissors 1 Piece P 50.00
Furniture/Fixtures
Table 7. Furniture/Fixtures Table
Wall Clock 1 Piece P 180.00
Brooms 2 Piece P 50.00
Ceiling Fan 1 Piece P 2, 000.00
Plastic Table 1 Piece P 600.00
Plastic Chairs 2 Piece P 150.00
Rugs 4 Piece P 30.00
Utilities Expense
Table 8. Utilities Expense Table
Monthly 2020 2021
Electricity P 7, 500.00 P 90, 000.00 P 91, 800.00
Water P 4, 000.00 P 48, 000.00 P 48, 960.00
Telephone/Internet P 1, 000.00 P 12, 000.00 P 12, 240.00
Connection
Annual Increase 2%
TOTAL P 12, 500.00 P 150, 000.00 P 153, 000.00
Services Process
The store process starts with welcoming and greeting of the
customers. After that, they need to assist the customers and ask how
many gallons of water they are going to buy. After payment, a receipt
should be given and the product. Staffs are also to thank the customer
for buying/refilling at the store and smile.
General Rules and Regulations
Policies are rules and regulation that provides the responsibility of
developing the behavior of the employees to prevent the possible
problems that might possibly occur in every aspect. Its implementation
will help the employees to mold in to the most effective and efficient way
of performance that will also help the business well to bring out its
maximum potential.
Employees must be guided by these policies regarding the operational
activities of the business:
● Come in to work completely dressed in a clean and pressed uniform
(shirt, pants, and nametag). Employees are responsible in cleaning and
maintaining their uniform.
● Arrive at the workplace early or on time for his official work hours or
shift schedule. Arrival after 10 minutes of the start of his official work
hours or shift schedule shall be considered late.
● Always respect every individual, including clients and co-workers.
Avoid showing any grossly indecent behavior or using profane language
in addressing another person, regardless of his age, race or religion.
● Smoking cigarettes, vaping, or drinking alcoholic beverages on the
business premises and within the building whether during working time
or not, or reporting for work under the influence of alcohol are not
allowed. ● Cheating customers or clients including but not limited to
charging of excessive fees is not allowed.
● Use of mobile phone while on duty is not prohibited. It should not be
abused and should be kept to a minimum. Mobile phones should be
used during break and off-peak periods.
● Maintain a work environment and a business free from sexual
harassment and all forms of sexual intimidation and exploitation of or by
the employees.
Plant Lay-out
Structurally, water refilling station can be operated with a
minimum area of at least 20-25 square meters. It comprises the following
sections: refilling and selling room, enclosed water purification room,
container washing and sanitizing room, storage room for empty and
refilled containers, source water storage facility, toilet and an office.
Business Site/Location
The water refilling station is placed opposite of the barangay’s only
grocery store, the Suazo’s store.
Waste Disposal
Aside from plastic wastes from container seals and stickers and
the unusable water containers, water is one of the main wastes of a
water refilling station. For the solid wastes, sacks will be prepared as
trash receptacles while a water tub will hold the water waste.
Direct Labor Requirements
Chapter V
FINANCIAL STUDY
Projected Cost Summary
Table 9. Projected Cost Table
1. Water Refilling Machine P 250, 000.00
2. New Building/Store (at least 20 sqm) P 100, 000.00
3. Delivery Vehicle P 230, 000.00
a. Side-car – P 30, 000. 00
b. Small Truck (Bonggo) – P 200, 000. 00
4. Business Permit and other Legal Documents P 10, 000.00
5. Deep Well P 100, 000.00
6. Initial Supplies/ Miscellaneous P 36, 500.00
a. 200 bottles round - P 21, 000.00
b. heat gun - P 2, 500.00
c. stickers and seals - P 5, 000.00
d. water dispensers - P 8, 000.00
7. Others P 10, 000.00
TOTAL P 529, 500.00
Source of Financing
The source of financing for the water refilling station will be a
commercial loan from a bank.
Financial Assumptions
Table 10. Financial Assumptions Table
Build Out 0-6 mos. 6-12 mos. 12-18 mos. 18-24 mos.
1. Water Refilling P 250, 000 P 0.00 P 0.00 P 0.00
Machine
2. Store P 100,00 P 0.00 P 0.00 P 0.00
3. Delivery P 230, 000 P 0.00 P 0.00 P 0.00
Vehicle
4. Business P 10, 000 P 0.00 P 0.00 P 0.00
Permit and Other
Legal Documents
5. Deep Well P 100,00 P 0.00 P 0.00 P 0.00
6. Round Bottles P 21, 000 P 21, 000 P21, 000 P 21, 000
7. Heat Gun P 2, 500 P0.00 P 2, 500 P 0.00
8. Stickers and P 15, 000 P 15,000 P 15,000 P 15,000
Seals
9. Water P 8, 000 P 0.00 P 0.00 P 0.00
Dispensers
Operations 0-6 mos. 6-12 mos. 12-18 mos. 18-24 mos.
1. Front Liner P 250/day P 250/day P 250/day P 250/day
2. Driver/
Delivery Man P 300/ day P 300/ day P 300/ day P 300/ day
3. Utilities P 5, 000 P 5, 000 P 5, 000 P 5, 000
4. Health P 2, 000 P 2, 000 P 2, 000 P 2, 000
Insurance
Projected Income Statement
Expected Income for One (1) to Two (2) Years:
A. First Year of Service
a. First 2 months (January- 27 days and February- 24 days)
140 containers/day X P 25.00 selling price X 51 days
= P 178, 500.00
b. Remaining months (March – December- 262 days)
140 containers/day X P 25.00 selling price X 262 days
= P 917, 000.00
GROSS SALES = P 1, 095, 500.00
B. Second Year of Service
a. January- December (313 working days)
160 containers/day P 25.00 selling price X 313 days
GROSS SALES = P 1, 252, 000.00
Projected Financial Position
Table 11. Projected Financial Position Table
2020 2021
Assets
Current Assets
Cash P 1, 252, 000 P 1, 330, 250
TOTAL CURRENT ASSETS P 1, 252, 000 P 1, 330, 250
Non-Current Assets
Machineries/ Equipment P 260, 700.00 P 260, 700.00
Furnitures/Fixtures P 3, 300.00 P 3, 300.00
Vehicles P 250, 000.00 P 250, 000.00
TOTAL NON-CURRENT ASSETS P 514, 000.00 P 514, 000.00
TOTAL ASSETS P 1, 766,000.00 P 1, 844, 250.00
Liabilities
Utilities Expenses P 150, 000.00 P 153, 000.00
Wages P 297, 600.00 P 303, 552.00
Income Tax Payable P 10, 000.00 P 10, 200.00
Materials P 72, 000.00 P 73, 440.00
TOTAL LIABILITIES P 529, 600.00 P 540, 192.00
Projected Cash Flow
Table 12: Projected Cash Flow for 2020-2021
2020 2021
Cash In
Sales P 1, 252, 000.00 P 1, 330, 250.00
TOTAL P 1, 252, 000.00 P 1, 330, 250.00
Cash Out
Materials P 72, 000.00 P 73, 440.00
Marketing P 2, 000.00 P 2, 040.00
Wages P 297, 600.00 P 303, 552.00
Utilities P 150, 000.00 P 153, 000.00
TOTAL P 521, 600.00 P 532, 032.00
Cash Flow P 730, 400.00 P 798, 218.00
Financial Analysis
Income Statement Year 1 Year 2
Financial Ratios
Payback Period
Schedules
Store Hours: 7:00 a.m. to 6:00 p.m.
Shift 1: 7:00 a.m. to 6:00 p.m.
Table 13: Schedule
Position Mon Tues Wed Thurs Fri Sat
Administrative Shift Shift Shift Shift Shift Shift 1
Assistant 1 1 1 1 1
Technical Assistant On On On On On On call
call call call call call
Front Liner Shift Shift Shift Shift Shift Shift 1
1 1 1 1 1
Driver/Deliver Men Shift Shift Shift Shift Shift Shift 1
1 1 1 1 1
Chapter VI
SOCIO-ECONOMIC STUDY
The socio-economic feasibility is defined as the factors between
society and economy that may affect the business. Its importance is that
it defines how the business helps in creating a good relationship with the
society, and what are responsibilities of the business to the growth and
development of the economy. This chapter enumerates the benefits
contributed by this business to the employees, the government, the local
people, the municipality, the environment, and the country.
Employment
The importance of the employees to the business is that they are
the ones who manage and operate the business to ensure that it will
earn enough to sustain the business. In the business world, the primary
asset of a company or any business institution are the employees. They
are the main contributors in the different functions of the business.
Without them, the business would be fragmented that will cause a huge
problem to the company. The business will simply provide jobs to
qualified individuals, giving them a stable income for them and their
families. The business can also help motivate and value the employee by
developing their skills and knowledge.
Community
The business will contribute to the economy by bringing growth
and innovation to the community in which the business is established.
This gives the place have a huge potential for a profitable market. This
will encourage more investors and entrepreneurs to establish more
businesses within the area. Aqua Vita Purified Drinking Water Station
can also provide a quality service that will create a good relationship and
satisfaction to its clients and customers.
Environment
The business will help the environment through reducing through
minimizing waste. The business will minimize the waste through
recycling which could cut waste disposal costs. It also lessens the
business’s expenses in supplies. Preventing environmental damage from
flooding will reduce the risk of incurring costs and having to carry out
potentially expensive remedial work in the event of an environmental
incident. The business will also encourage other business and
establishments to lessen their environmental impact by joining
campaigns by the local and national government. The business will also
raise environmental awareness to its customers and employees.
Government
With this business, it will provide employment opportunities for
unemployed people within the area. The government of Cainta will also
benefit the business from the collection of income, business and
corporate taxes, licenses, and local fees. These can increase the revenue
of the government which can be utilized for local and national
government projects. The business can also participate in different
projects of the local government.
