WATER REFILLING

STATION
FEASIBILITY
STUDY

By: Henry Garganta

Alicos
 TABLE OF CONTENTS

A. CHAPTER 1- C. CHAPTER 3- FINANCIAL

INTRODUCTION
I. Rationale of the Study REQUIREMENTS
I. Capitalization Aspects
II. Company History II. Company Budget
III. Statement of the III. Statement of Income &
Problem Expenditures (3 Years Study)
IV. Statement of Objectives
V. Vision / Mission D. CHAPTER 4- MARKETING
VI. Definition of Terms MIX
I. Product Nature
B. CHAPTER 2- COMPANY II. Pricing Scheme
PROFILE III. Place of Distribution
I. Name of the Company IV. Promotion Strategy
II. Nature of Business V. SWOT ANALYSIS
III. Location of Business
IV. Target Markets E. CHAPTER 5- APPENDICES
V. The Company Owner & I. Survey Questionnaire
Management II. Survey Analysis
VI. Permits and Licenses III. Bibliography
IV. Acknowledgement
CHAPTER 1

Introduction
RATIONALE OF THE STUDY

According to the World Health Organization (WHO), about 3.4 million people die annually from water-related
diseases. About a million Filipinos get sick with water-borne diseases yearly. And these are diarrhea cases alone. They
don’t include other water-borne disease like amoebiasis, cryptosporidiosis and cholera. These problems are accredited
to the poor water system in the Philippines. Even in the capital Manila, only about three fourths of the population
receives piped water from the municipal authority. Outside Manila far fewer people have access to clean water
distribution. In both locations, these families must find alternate water sources if they are to avoid cholera epidemics and
other health problems spawned by the foul, contaminated water available in their neighborhoods. In the provinces, the
scenario is worse. Some people rely on wells or even on rivers for their supply of water for their daily consumption.
Amidst this uncertainty, a solution has appeared in the thousands of water refilling stations that now dot the Philippine
landscape. These shops began as privately-run community sources, where consumers would bring containers and fill
them for a per-gallon fee that is a small fraction of commercially bottled water’s cost. Demand is high that most stores
now offer home delivery for regular customers. Most shops produce between 3,000 and 12,000 liters of water per day.
Typically, the supply comes from the pipes of municipal concessionaires. Entrepreneurs invest in treatment equipment
and further purify their product before sale. Nowadays, bottled water has established a major foothold in the Philippines.
With such an intense competition, how do businesses cope up with the pressure? This is what the researches of this
study would like to unveil. In the course of this study, the researches aim to discover and compare marketing strategies
employed by these water refilling stations. And this study also tackles the safeties of processes used by water refilling
stations in the Philippines, specifically on the National Capital Region, on the purified water it sells to its customers. The
study focuses on the processes the water refilling stations implements to purify the water from its concessionaires not in
the working place of water refilling stations. The group chose to research on this topic since nowadays, 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. 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 produce by traditional water supply systems in terms of
removed impurities.
 COMPANY HISTORY

One of the fast expanding businesses in many cities nationwide is the water refilling station. It's 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.
TOO-BIG Water Refilling Station will be established on January 2018. This business is owned and personally
managed by Mr. Henry Garganto Alicos. It will be located in the central part of Cabanatuan City. The vicinity is
surrounded by residential and commercial areas. The store will be air conditioned to maintain cleanliness and so with
the personnel. It also will provide parking space for those who are picking up bulk orders. The location of the store is
very accessible to the neighbors. The refilling operations start at 7:00 AM and ends at 5:00 PM.
STATEMENT OF THE
PROBLEM
Here are some questions which aim to support the topic:

1. Where to get the capital for the business?

2. Where to find the location to set-up business?
3. Where to get the permits for the business?
4. Where to get the materials and equipments? And the cost of it?
5. What are the different marketing strategies used for the promotion of the business?
6. What are the qualifications for human resourcing?
 STATEMENT OF OBJECTIVES

The Objectives of Too-Big Water Refilling Station are:

• To create a service-based company whose primary goal is to exceed customers' expectations.
• The utilization of The Water Station products by at least 10% of the local population.
• To increase the number of sellers by 20% each year.
• To develop a sustainable home-based business, surviving off of its own cash flow.

VISION

“To be the leading Water Refilling Station in Cabanatuan City giving the extra amount of water to
consumer for the next 5 years beginning year of 2018”

MISSION

1. Provide customers with the finest quality purified water.

2. We exist to attract and maintain customers.
3. When we adhere to this maxim, everything else will fall in to place as we will care also like family our staff and
suppliers.
4. Our services will exceed the expectations of our customers through extra amount of 100ml of water per galloon.
 DEFINITION OF TERMS

Water refill station business - refers to the selling for profit either wholesale or retail of water placed in refillable water
containers or in customer’s containers in refilling stations.

Water Supply System - infrastructure for the collection, transmission, treatment, storage, and distribution of water for
homes, commercial establishments, industry and irrigation, as well as for such public needs as firefighting and street
flushing. Of all municipal services, provision of potable water is perhaps the most vital. People depend on water for
drinking, cooking, washing, carrying away wastes, and other domestic needs. Water supply system must also meet
requirements for public, commercial, and industrial activities.

Water quality - refers to chemical, physical, biological, and radiological characteristics of water. It is a measure of
the condition of water relative to the requirements of one or more biotic species and or to any human need or purpose.

Water purification - is the process of removing undesirable chemicals, biological contaminants, suspended solids and
gases from contaminated water.

Bottled water - refers to water that is intended for human consumption and that is sealed in bottles or other containers
with no added ingredients except that it may optionally contain safe and suitable anti-microbial agents and may
optionally contain minerals such as, but not limited to fluorides, chlorides, carbonates and sulfates, including flavoring
within limitations established by the bottler's country.

Deep well - is an excavation or structure created in the ground by digging, driving, boring, or drilling to access
groundwater in underground aquifers.
CHAPTER 2

Company
Profile
 NAME OF THE COMPANY

TOO-BIG is derived from the “Tagalog” term of water which is “TUBIG” and the english term “Too Big” signifies in Tagalog as
“Sobrang Laki.” The company is named then “TOO BIG” for the intention of immediate brand recall in the minds of our customers.
We aim also to give extra amount of water per container taking it as our selling tool to our target market. By giving the extra
amount, we at the same time giving extra care to our customers. Thus, our brand spiel was born “Extra Water, Extra Care.”
Water as a basic need will not be hard to market to end users but knowing the massive competition, we need to have a key point to
sell the expected number of containers per day. We just need to calculate thoroughly to derive as well the desired income we need.

NATURE OF BUSINESS

Our business proposal is setting up a water refilling station whereby the station will cater the reproduction of water through selling
large and small amounts of volume. The station will provide a combination of 4 varieties of water with excellence in water
processing – includes filtration and necessary processes - value pricing, and atmosphere.

LOCATION OF BUSINESS

The water refilling station is situated in the heart of Cabanatuan City where there are few water refilling stations. Thus, giving us
competitive advantage for there is no other water refilling stations catering the 4 varieties of water.
 TARGET MARKETS
Our target customers are everyone in the society. Nevertheless despite the fact that there are also water refilling stations
nearby, we intend to target majority of the people as the water offered will be well purified and it will cater 4 varieties of water which
will indeed cater people’s needs such as to what type of water they prefer to drink.

In addition, the water refilling station – TOO-BIG Water Refilling Station – will be targeting personal contacts as the
prospective customers. This is an ideal market segment because a positive relationship already exists with the personal contacts,
making the water refilling station’s job of selling the products significantly easier.

If this segment will continue to progress, the number of customer count in the refilling station would progress largely. For
example, the refilling station originally or has 5 customers in their first day, if those customers will be satisfied with the service and
the product, they will spread the news about the firm. Let’s just say “the power of communication”. If they communicate with a large
clique of people, that clique will then be curious and would try the refilling station, if they will also be satisfied, the same procedure
would then occur. This is being practical.

THE COMPANY OWNER &

MANAGEMENT
TOO-BIG Water Refilling Station is solely owned and managed by Mr. Henry G. Ilacos.

Owner/Manag
er Mr. Henry
Ilacos

Admin &
Technical
Assistant

Frontliner Delivery Man

Bookkeeper
Person 1 Person 2
 MANAGEMENT JOB
DESCRIPTION

 Manager - Oversee store operations at least 4 hours a day

 Bookkeeper / Accountant- Makes financial statement of business operations (on call as needed)
 Administrative & Technical Assistant- Logs and handles cash sales and purchases and monitors the business. Also maintains
and runs the machine.
 Front Liner (Person # 1)- Accepts and refills containers of customers
 Delivery Man (Person # 2)- Transport refilled containers to customer’s home

PERMITS AND LICENSES

 DTI
 Business Permit
 Barangay Permit
 Sanitary Permit
CHAPTER 3

Financial
Requirements
 CAPITALIZATION ASPECTS

COMPANY BUDGET

TOO-BIG Water Refilling Station has allocated Seven Hundred Thousand Pesos (Php700,000.00) as initial Company Budget
coming from the personal savings of the owner allocated as mentioned in the Capital Investment with a Contingency Fund amounting
to One hundred seventy five pesos (Php 175,000).
 STATEMENT OF INCOME &
EXPENDITURES
1st Year of Operation

TOTAL
TARGET NO OF SELLING PRICE
YEAR MONTH OPERATING DAYS PROJECTED
CONTAINER PER DAY (in Pesos)
SALES
JAN & FEB 51 60 20.00 61,200.00
2018 MAR-DEC 262 120 20.00 628,800.00
TOTAL GROSS SALES 690,000.00

2nd Year of Operation

TOTAL
TARGET NO OF SELLING PRICE
YEAR MONTH OPERATING DAYS PROJECTED
CONTAINER PER DAY (in Pesos)
SALES
JAN-DEC 313 150 20.00 939,000.00
2019
TOTAL GROSS SALES 939,000.00

3rd Year of Operation

TOTAL
TARGET NO OF SELLING PRICE
YEAR MONTH OPERATING DAYS PROJECTED
CONTAINER PER DAY (in Pesos)
SALES
JAN-DEC 313 160 20.00 1,001,600.00
2020
TOTAL GROSS SALES 1,001,600.00

NOTE: COMPUTED BASED ON MINERAL WATER SOLD ONLY

 STATEMENT OF INCOME &
EXPENDITURES

SALARIES & BENEFITS

POSITION BASIC SALARY BENEFITS INCENTIVES

50/hour x 4 hrs x 26 days=
Manager SSS, Philhealth, Pag-ibig Fund None
5,200 / mon
Bookkeeper 3,000 / mon (8 hrs/mon) None None
Service Incentive Leave
250 / Day x 26
Admin & Technical Assistant SSS, Philhealth, Pag-ibig Fund Meal & Rest Period
days=6,500 /month
Holiday / Christmas Bunos
200 / Day x 26 days= 5,200 Cost of Living Allowances
Front Liner Overtime Pay / Rest Day Pay
per month Midyear Bunos
200 / Day x 26 days= 5,200
Delivery Man Night Shift Differential Paid Holiday and Vacation Leave
per month
TOTAL PER MONTH P 25,100 3,650 1,500
OVERALL TOTAL SALARIES & BENEFITS PER
MONTH 30,250
   

TOTAL PROJECTED 363,000    

SALARIES / YR
 STATEMENT OF INCOME &
EXPENDITURES
YEAR
OPERATING EXPENSES
2018 2019 2020
1. Manpower / Salaries P 363,000 P 363,000 P 363,000
2. Electric Bill 18,000 24,000 30,000
3. Phone Bill 6,000 7,000 8,000
4. Transportation / Gas Allowance 18,000 25,000 25,000
5. Consumables and Others 12,000 12,000 12,000
TOTAL EXPENSES P 417,000 P 431,000 P 438,000

3-Year Projected Sales & Expenses Chart

1,200,000
60% 46%
1,000,000 44%
800,000
600,000
400,000
200,000
0
2018
2019
2020
STATEMENT OF INCOME & EXPENDITURES
PARTICULARS 2018 2019 2020
GROSS SALES 690,000.00 939,000.00 1,001,600.00
PRODUCT COST 170,775.00 232,402.50 247,896.00
NET GROSS SALES 519,225.00 706,597.50 753,704.00
OPERATING EXPENSES 417,000.00 431,000.00 438,000.00
Depreciation Expenses 50,000.00 50,000.00 50,000.00
TOTAL PROJECTED INCOME 52,225.00 225,597.50 265,704.00

PROJECTED INCOME FOR 3 YEARS

2018; 10%

TOTAL PROJECTED
2020; 49%
INCOME FOR 3 YEARS 543,527
2019; 42% (Return of Investment-ROI)
 CHAPTER 4

Marketing Mix
 PRODUCT NATURE
TOO-BIG Water Refilling Station variety of Products:

 Mineral Water- water from a mineral spring that contains various minerals, such as salts and sulfur compounds. Mineral water may be
effervescent (i.e., "sparkling") due to contained gases.
 Purified Water- water that is mechanically filtered or processed to be cleaned for consumption. Distilled water and deionized (DI) water
have been the most common forms of purified water, but water can also be purified by other processes including reverse osmosis,
carbon filtration, microfiltration, ultra filtration, ultraviolet oxidation, or electro dialysis.
 Alkaline Water- also known as ionized water, is a beverage that is neither acidic nor neutral on the pH scale, having a level above 7.
 Pi Water- water that is very similar to your body water (Living Energy). Living energy means “the energy to live.” Pi Water has the same
function (energy) that your body water has.

In addition, each of this type of water has different characteristics. Yes, water has also characteristics. It is said that our immune system
works accordingly to what type of water we will intake. The TOO-BIG Water Refilling Station caters all this 4 products to ensure that they
will provide whatever type of water the customers would prefer. Also, this will give them the advantage in terms of competition because 1 of
this product – which is the “Pi Water” – is not available in its nearby competitors.

DESIGN Each design will be refilled with extra amount of water which is
10% more of the regular size.

The design of this product is actually based on its container since

water (liquid) has only one face and has an indefinite shape.

TOO-BIG Water Refilling Station also accepts all kinds of

containers such as those commonly used water containers, small /
large water bottles and etc. As for the pricing, TOO-BIG Water
Refilling Station priced the product according to its volume.

(For more details, please refer to our Pricing Scheme ).

 PRICING SCHEME

COST PRICE per TOTAL COST PRICE PER SELLING PRICE PER PROFIT PER
PRODUCT EXTRA WATER PRICE
Container UNIT UNIT UNIT

Mineral Water 4.50 0.45 4.95 25.00 20.05

Purified Water 6.50 0.65 7.15 30.00 22.85
Alkaline Water 9.00 0.90 9.90 35.00 25.10
Pi Water 65.00 6.50 71.50 150.00 78.50

NOTE: Pi Water has the highest price since Pi Water is a type of water which is done through thorough experimentation to satisfy
customers.

PRICING STRATEGY

As for the pricing strategies, like any other firm, TOO-BIG Water Refilling Station, gathered information through surveying people. The
survey was about the type of water people most likely used in drinking, nearby refilling stations, and the pricing scheme of the nearby
refilling stations. Based from the survey, the researchers concluded prices that are not that high so that it can compete with the nearby
stations. In addition, the survey also included comments and suggestions so that the outcome of the refilling station will attract more
customers and that it can reassure the owners that the customers are satisfied with the service.

PAYMENT SCHEME
All are Cash on Delivery or Cash upon Pick-up.
 PLACE OF DISTRIBUTION
> Located in the central part of Cabanatuan City as the only refilling station with 4 types of water available and up to 20% lower than
the regular price offered by competitors nearby.

CHANNELS OF DISTRIBUTION

 Personal Family & Friends

 Families living in Subdivisions
 Neighbors
 School / Office Canteens / Cafeterias
 Food Outlets and the likes
 Boarding Houses / Apartments
 Other institutional establishments that needs water supply like Coffee Shops, Bars, etc.

COVERAGE

> We will cover the whole city of Cabanatuan within 25km away from the main water station.
 PROMOTION
Water as basic need normally has lesser effort when it comes to promotion. However, we give extra value to our customers’ money
that’s why we are giving away extra 10% amount per container which is included in the computation of our product cost.

Always the nature of us Filipinos is we want something “FREE” or “EXTRA’ from the commodities or services we availed.

MARKETING / SELLING STRATEGY

As we care for our customer with extra amount of water, we will ensure to deliver on time or as expected. We will build rapport and
smooth relationship to all customers (bulk or non-bulk) so we can expect repeat purchases all the time. After delivery, we will give this
simple notes to customers:

     
     
     
     
     
     
THANK YOU FOR YOUR PURCHASE
Drink More water everyday and Take good
care because we truly care with extra
water!
Contact No. 09185551111
 SWOT ANALYSIS

STRENGTHS WEAKNESSES
> Very affordable price > No Media advertisement
> Lowest price compared to others > Regularly Closed at night time and Sundays.
> Very accessible to target market  > Lack of delivery facilities for the start of operation
> Extra water per purchase of container  
> Very first water station that offers 4 Water Types  
> No loan generated from other source  
OPPORTUNITIES THREATS
> Increase in Population within the area > Massive multimedia promotion of big water
> Increase number of establishments and other companies
offices and housing developers > Other competitors are open 24/7 including delivery
> Promotion of Department of Health (DOH) to  
drink more water everyday  
> Increase awareness on proper water type each  
must take.  

COMPETITIVE STRATEGY

COST STRATEGY MARKETING ADVANTAGE FOCUS

Focus on the target number of
Emphasize to consumer the value
Create Social Media for free in container to be sold by tracking
of extra water they get immediately
Facebook, Twitter & Instagram orders, deliveries and walk-in refill
upon purchase
needs.
CHAPTER 5

Appendices
APPENDIX 1- SURVEY QUESTIONNAIRE
DATE: __________________________

1. Name:
2. Birthday: ________________ Age: ____________
3. Address: __________________________________________
4. Contact No. _______________________
5. No of Years in Current Address: _________
6. Civil Status: _____________
7. Work/ Occupation: _____________
8. Income Monthly: ___ 0-5000 ____5,001-10,000 __10,001-above
9. Sources of Income: ____ Work ____Business __Others (Specify)______
10. How many glasses of water you consume daily?______________________
11. Where did you get your water for drinking?______________________________
12. How much are you willing to spend for your drinking water daily? _________
13. Do you have a particular brand of a mineral water or any drinking water?
__YES __NO
If yes, please state the brand____________
14. Which do you prefer, buy water from Supermarkets or water stations or have it delivered to your place?
________________
15. Are you interested to receive freebies when you buy mineral waters? _______
If yes, please rate the following from 1 as your most preferred freebies and 4 as the least preferred freebies.
____ extra amount of water per purchase
____ premium items / free items for a minimum purchase
____ free delivery service for a minimum number of container required
____ 10+1 product offer

16. Please share as you like:

a. Facebook account _______________
b. Twitter account _______________
c. Instagram account _______________
d. Other social media account:
i. ___________________
ii. ___________________
iii. ___________________
APPENDIX 2- SURVEY ANALYSIS

No. of Correspondents: 20 people

Age Range: 25-40 Years old

Location: Riyadh

Nationality: Filipinos

Source of Income: Work / Employment

Income Range: Majority More than 10,000 pesos

Water Daily Intake Average 6 glasses of water daily

Drinking Water Preference Mineral / Bottled water

Source of Water: Purchase from Water Stations

Water Cost 60 pesos per week per person (2 containers/week)

Specific Brand of Water No particular brand as long as it is purified / safe

Purchase Preference Delivered to Home

Freebies of Interest All kinds of Free as long as it is for Free out of purchase

Social Media Commonly Used Facebook

 APPENDIX 3- BIBLIOGRAPHY

• http://en.wikipedia.org/wiki/Alkali
• http://www.pi-water.com/new/en_water_DrPi_WhatIsPi.html
• http://en.wikipedia.org/wiki/Purified_water
• http://en.wikipedia.org/wiki/Mineral_water
• http://bizfil.com/starting-a-water-refilling-station-business/
 APPENDIX 4- ACKNOWLEDGEMENT

I would like to thank first and foremost the Lord God Almighty for His never
ending grace; Our Facilitator Dr. Joy Villahermosa and his assistant for giving us
the knowledge and advice to finish this project with ease and also to my loving wife
and children who are always there to support me and the ones who showered me
with encouragement in order for me to really do my best on this project. Without
these people, this project wouldn’t be successful or possible. That’s why I would like
to say, “Thank you and May God Almighty bless us all”.