I.

Summary of the Project

A. Name of the Business: Blue H2O

Name is one of the most essential things to be prepared in starting a business.
Ideally, the first thing that attracts the customer is the name of the business. To be able
to penetrate in an industry, it has to have an own identity that is unique, simple and easy
to remember. I came up with Blue H2O as the name of my business. Blue, the name of
my dog and H2O which means water.

B. Location of the Head Office and Plant Site.

Blue H2O’s head office and plant site will be both located at Brookside, Pilar,
Abra. It will be the first ever refiling station in that area. Location is one of the major
factors to be considered in starting a business. It must be assured that it is accessible to
the target market.
Brookside is considered to be a strategic location for business because there are
many people who are situated in that area that do not have access to mineral water.
And also, the residents of nearby towns may also be able to come since the towns are
not far away from each other.

C. Brief description of the project

Water is very essential for our daily life routine. People need to drink water in
order to live. However, because of human introduction, directly or indirectly, of
substances into the marine environment, our waters become polluted and undrinkable.
Because of the high demand for cleaner water, starting a water refilling station business
becomes one of the most promising and profitable business today.
The water refilling station, Blue H2O is a purified water distribution business that
is going to provide clean and purified drinking water to the people of Pilar. The water
station will be located at Brookside, Pilar, Abra. Our target markets are the resident of
Pilar.
The water station will offer safe, and clean water within a reasonable price. Our
business wants to emphasize that everyone can drink clean water and that personal
trust and interaction with our customers are the most important parameters for
assessing water safety as well as meeting our customer’s needs and wants.
D. Major Assumptions

Market Projections
On the average, a family of four members consumes two 5-gallon purified water every
week or 12 containers a month. Using this data the projected demand for water refilling
station in the specified area is:

Estimated
Estimated Weekly
Monthly
Population(number Consumption (in
Target Market Consumption (in
of families) 5 gallon
5 gallon
containers)
containers)
800
Brookside 100 200

Residents in 4,000
500 1,000
nearby barangays
600 1,200 4,800
TOTAL

Demand in 6,000 24,000

Gallons
Market Share
It is assumed that since the water station will be the first ever in Pilar, 80% of the
families will opt to buy from “Blue H2O”.
Estimated Estimated
Weekly Monthly
Market
Target Market Consumptio Market Consumption
Share
n (in 2 gallon Share (in 5 gallon
containers) containers)
Brookside 200 160 800 640

Residents in
800 4,000 3,200
nearby 1,000
barangays
1,200 960 4,800 3.840
TOTAL
6,000 4,800 24,000 19,200
in Gallons(x5)

Proposed Marketing Strategy

Product Strategy – Refilling Station will be constructed with transparent glass

and according to prescribed standards so that the customers will be able to see
how carefully and cleanly the products are being processed. Excellent quality will
be maintained by giving the workers training and guidance on good
manufacturing practices.

Distribution Strategy – A delivery vehicle will be purchased to shorten waiting

time of customers. Customers can order thru phone call or text and 20 minutes
waiting time will be observed. It will also be assured that products will be handled
properly and will maintain its quality during delivery.

Promotion Strategy – Information dissemination will be done so that target

market will be aware of the existence of the water refilling station. Families will be
informed of the benefits and importance of drinking clean water.

Pricing Strategy – Being a new entrant, “Aqua Kabayan” will offer an affordable
price of 35.00 per container.
 SALES PROJECTIONS

YEAR 1 YEAR 2 YEAR 3

in units of 5 gal containers 46,080 50688 55757

Selling Price 35 35 35

Total Sales 1,612,800.00 1,774,080.00 1,951,495.00

Investment Costs
 Water refilling and purification machine

This machine will be the most important thing in this business. Ensuring a good
machine will make sure that the business will run smoothly. Estimated cost of
machine is PHP 100,000.

 Delivery Vehicle

There is a need to purchase a delivery vehicle to ensure the fast and timely
delivery of products. Consumers prefer to buy products that are readily available
and with minimal waiting time. Water is a basic need and there should be no
delays in the delivery. Estimated cost of a delivery vehicle is at PHP 40,000.00.
Estimated Useful Life is five (5) years.

Fuel Consumption in the delivery of goods is estimated at 500.00 per day.

 Information Dissemination
 The awareness campaign will entail costs of printing flyers (for distribution) and
tarpaulins (to be placed at strategic locations). Cost of these materials is
estimated at PHP 10,000.00.

 Packaging and Labeling

Initially, 200 units of containers (5 gal) will be purchased. Since most of the
consumers already have containers, the said containers will be replaced every
delivery. Empty containers will be refilled and delivered to other customers so
that consumers will only have to pay for the contents and not the containers.

All containers should have labels, bearing the name of Blue H2O and all
containers should all be sealed to ensure that the product reaches the end
consumer with utmost quality. Fifteen thousand pieces of labels and seals will be
printed on a quarterly basis. Estimated cost is PHP 3.00 per container.

 Manpower

There will be 2 persons handling the delivery, both of which should know how to
drive the delivery vehicle so that they can work alternately on the tasks to be
assigned to them. They are going to receive salaries of PHP 5,000.00 a month or
PHP 166.67 daily.
Account Title Amount in Pesos

Water refilling machine ₱ 100,000.00

Delivery Vehicle 40,000.00

Fuel and Lubricants 15,000.00

Promotions 10,000.00

Packaging (containers) 20,000.00

Materials and Supplies (stickers) and

45,000.00
seals (quarterly)

Salaries and Wages 9,000.00

TOTAL 169,000.00