2

I e u m Northwesern l nversty institute of iraduate and 'rofessuonal Studies page

Price Study

Pricing is truly one of the most important aspects of your business.

The business price range gives your company competitive advantage in the

industry. Businesses usually lower their prices to attract customers and

eventually gain market share from his competitors.

There are three (3) C's that influences the setting of prices of

different products/ services. They are Customers, Competitors and Costs.

Customers influence price through their demand for products/ services

based on factors such as quality and product features

Competitors influence price through their pricing scheme, product/
services features and production volume.

Costs influence price because it directly affects the supply (the lower the

cost, the greater the quantity a firm is willing to supply)

As for the pricing strategies, like any other firm, Lomibao's Water
Refilling Station, gathered information through surveying 100 people from
the area where the business will be located at. The survey was about the

type of water people in the area 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.. The researcher

carefully analyzed the pricing method and decided to offer a price according
to their affordability which based on the results of the survey they are
 Lvceum Northwestern University
Institute of Graduale and Professional Studies page 13

willing to spend P25.00 for their drinking needs. The

proponents consider
also the cost of the
product as a basis of pricing plus 40% mark up, and the

price of the competitors.

Table 2.2
Forecasted Sales of Products
Products Unit Price Average Daily Average
Demand Daily Sales
Mineralized Water (350 ml) 12 40 480
Mineralized Water (500 ml) 18 50 990
Mineralized Water (650 ml) 20 30 600
Mineralized Water (1.5 liter) 25 30 750
Purified Water (1 ja9) 25 100 3,500
Alkaline Water (1 jag) 50 50 3,250
Cubed Ice (per kilo) 10 35 450
Tubed Ice (per kilo) 10 35 450
Total
8,430

Sales Forecast

Sales forecast is the process of predicting the total sales with the

purpose of determining the business growth form the profit that is earned

ANNUALLY. Sales are computed based on the average daily demand of the

products being sold.

Total average sales per day 8,430

No. days in a month 30
Total no. of sales in a month 252,900
No. of month in a year X 12
Total sales in a year 3,034,800
Lceum Northwestern
University Institute page
14
of Ciraduate and Professional Studies

Demand and Supply Analysis

Information about the demand and

supply analysis will determine the

feasibility of proposed business.

Demand

Demand refers to the

willingness and ability of consumers to
purchase on a given quantity of good or service ata given point in time. As
the population in Dagupan City increases, the demand of cleaner water also
increases, hence the proponent decided to put up water refilling station
business that will provide their
drinking necessities to everyone.
According to 2015 Population Census, Dagupan City is one of the
most populated cities in Region 1, having more than 170,000 people who
reside therein. With this, the
proponent carefully analyze based on the
surveys conducted to 100 respondents residing in Dagupan City, particularly
in Bonuan Boquig where the business is located.

Based on the study conducted a minimum of 15,000 jags average

demand of drinking water per day are being produce and consume. The
results of the survey unveils that 94% of the
prospective customers have
their own suppliers of drinking water from various water
refilling stations.
1% from deep wells, and 5% from
bagupan City Water District
Furthermore, based on the sunvey, out of 100
respondents, 98% wanted to
have free delivery service in their community, /8% wanted to
have 24/7
Lyceum Northweste rn niversity Institute of (iraduate and
Professional Stuuies page

Promotional Strategies

Marketing is the bridge between the product and the customers.

Marketing managers uses the 4P's: Product, Price, Place and Promotion, to

communicate with their consumers. Promotion is a combination of the

forms of communication to the customers including advertising and public

relations. Marketing managers must learn to choose which form of

promotion is the best for their target consumers.

Lomibao's Water Refilling Satation will be employing various forms of

advertisements as promotional strategy to introduce their business and

ultimately contribute to the

increase the sales of the business that will

Advertisement is a method of marketing

maximization of income.

for many methods. The following are

communication which is the umbrella

that the company will be employing:

the forms of advertisement
fliers and streamers in
Outdoor Ads by distributing and displaying

local areas.
by having web pages in Facebook,
.Social Media Advertisements

also be used in online

orders.
where it can
Twitter and Instagram

.NewspaperAds
stations dont usually have discounts,
since water refilling
In addition,
5+1" water discount. To ensure
the Buy
owners
come up with
the business
customer will be given a
or so, the
water that day
customer bought
that the
the card will be
marked
inside
water, the boxes
they buy
Card. Every time
 lyceum Northwestern University
nstitute of iraduate and Professional Studies page 17

or signed by the Manager or Front Liner depends on which of the wo or

them is available. When all of

the 5 boxes were fully signed, it is the
customer's choice whether to claim his/her free 1 container of water. After
claiming the free item, the box intended for the free item will be marked to

avoid using it for another free item.

This advertising strategy however is

only applicable to regular customers and on special occasions declared by

the firm.

Sample lyers

Promo Alkaline

5+1 eral

Buy 5GetTTree fhed

Frve Delvery/Opens 24/7 (Monday Sunday)
Conlact Wumber:
09222563093/09366081989
128Gonnales St.. Bonuan Boquig Pnina
21eme Evccllonf ater ttration

Figure 2.3
Refilling Station Sample Flyers
Lomibao's Water
Lyceum Northwestern University
nstiute of iraduate and Professional Studies page

Screen shot of Official

Facebook Page of Lomibao's Water Refilling
Station

QSearch

Overview Ads Notifications

EDIT
Lomibac's
ate RttnaStobe

Lomibao's Water Refilling

Station

ADD A BUTTON

Post Photo Promote View as

No rating yet Business service in

Dagupan,
Pangasinan

Important next steps

Figure 2.4
Lomibao's Water Refilling Station Facebook Page
 Lvceum Northweslern
University Institute of Graduate and 19
Professiondl Su page

Company Logo

The fundamental idea and core concept behind of havinga compay

logo is that
everything a
company does, it owns and
produces should reriect
the values and aims of the
business as a whole.

Alkaline
eral

Pified

ater Kpling Stato

Figure 2.55
Lomibao's Water Refiling Station Company Logo
Ieeum Northwestern l iniversity
Institute of iraduate and page 20
P'rofessonal >tuales
swOT Analysis

SWO Stands for Strengths, Weaknesses, Opportunities and

Threats. The
primary reason to perform this analysis is to help businesses
to be able to
develop a strong business strategy. A good business sudtegy
depends on knowing what the business strengths happen to be, what the

weaknesses of the business are and how those weaknesses can be turned

into a natural advantage.

Strengths Weaknesses
Very good location Uncontrollable increase of the
Customer friendly/ friendly cost of maintenance for
employees machineries
Good quality products and . The business is new entrant/s
services with affordable price .Uncontrollable change in
.Trustworthy management as technological advancement on
well as the employees machineries to be used in
purification.
Opportunities Threats
Possibilities of a good profit Fortuitous events
Create job opportunities Entry of competitors
Provide additional dhoices of Sudden decrease of income due
drinking water services industry to competitive market.

Table 2.1

SWOT Analysis
 Lvceum Northwestern iniversity page 21
nstitute of (iradhuate and Professional Studies

CHAPTER III

TECHNICAL ASPECT

The technical aspect discusses the basic operation flow of the project
and the regular activities of the company. This
stage deals with the allocation
of resources that will be needed in order to satisfy the market. This includes

providing estimates of total project cost and enumerating major items that

Comprises capital costs. The technical soundness will be analyzed to ensure

that all pertinent technical aspect of the project have been well considered and

taken into account to conform with the accepted standards and best practices.

This chapter responds to technicalities and basic structure of the

proposed study. This includes the list of machineries and equipment, office

supplies and materials and also structural plan of the business

 Lyceum Northweslern University Institute page 22
of Grauate and P'rofessunal Sulles

Process/ Service Flow

Lomibao's Water Refilling Station will be ahead than other water

refilling station for it will offer a safe, high quality and healthy drinking
water that will quench the thirst and satisfy the basic human needs of tne

Customers.

The proponent will be employing six (7) employees and three (3)

managers /partners. This business is a partnership in form, composed of (4)

owners/partners. Three of the partners are a combinationof

capitalist/industrial partner who contributes money and service of the
business operation. Being industrial partner each of them has assigned

specific task/duty necessary in the operation of the water refilling station.

Rowell C. Lomibao and Kim C. Merin will become a Manager that overseas

store operations. The other partner Reden C. Lomibao will take in charge in

the night shift as a Bookkeeper/Administrative Assistant who logs and

records cash sales. All recorded sales during his term wll be reported to the

official bookkeeper/administrative assistant of the business for

consolidation. Every shift day/night will be requiring three (3) employees in

charge inside the station. One will be the operator (technical assistant) off

the water purifying equipment, the other will refill and seal the containers

(front liner), and the last one will be the official bookkeeper/administrative

consolidate reports and make financial

assistant who will records cash sales,

the store at seven (7) A.M. to four (4) P.M. The

statements, they will open
Lyceum Northwestern Uiversity nstitute of Graduate and Professional Studies page
23

business Will be having also two (2) delivery/service men which are

assigned to deliver the product.

Every employee is entitled to have one (1) hour break-time and one
day-off. The business will operate seven days a week with eight (8) hours a

day.

START
10 micron filter on exchange carbon filtration

OZOnation reverseosmosis untraviolet disinfection

storage&recircalation
to bottle friller

Figure 3.1
Purification
Flow Chart in Water
 Lyceum Northwesem linnversity nstitute of iraduate and P'rofessional Studes page
24

Raw Water Source

Dagupan City Water District

Deep Well/Well Water

7 Steps of Water Purification Processs

1. ION EXCHANGE AND COAGULATION

This is the first step of the purification process. The water from the city
councils is contaminated with unwanted minerals and this step aids in removing
the minerals that form hard water. Some
heavy metals like iron are also

separated through this procedure. Alum and other chemicals are added to the
water and flocs are formed. The dirt particles are then attracted to the flocs
which then compel them to go down and settle at the bottom of the tank.

2. SEDIMENTATION

After the first step, the floc and the water go through the sedimentation

process. When the water settles, floc moves to the bottom and settles there.

There are also sediment flters that trap dirt particles. This helps to prevent the

equipment from being polluted.

3. FILTRATION AND GRANULAR ACTIVATED CARBON

Here, water is filtered and passed through layers of sand, charcoal, and

the
ne rest. The particles that were left after sedimentation are then removed. A
 I weum Norihwesern l
niversity Instutute of iraudle and P'rofessuonal page 25
s
carbon filtration process is also involved, and
herbicides, chlorine, and ouer
pollutants are eliminated.

4. DISINFECTION

In this step, water is moved into a closed tank that has ultraviolet lignts
that is a sterilizing agent. If it is underground water, this step is enough to

sufficiently clean the water because all the microorganisms will be killed. After

disinfecting the water, it flows through the pipes where it is processed using

reverse osmosis.

5. CARBON FILTERS

The filter captures the impurities in the water. The RO machine is also

thus only clean water goes up

contaminants are eliminated
protected because

in the system.

6. REVERSE OSMOSIS

the homes, it haS to undergo another

the water reaches
When
membrane
Here, à semi-permeable
osmosis.
reverse
called
purification process
water. All the dissolved
in the
impurities present
any
S used to remove
are removed
previous stages
missed in the
have been
Contaminants that might
to the water
in this stage.
taste is added
a sweet
ere. In addition to this,
iNeun Northwestern nvers1 Instiule of iraduale page 26
and 'rofessional Siulie

7. STORE PURIFIED WATER

Clean water is finally stored in the clean containers and bottles after the

above processes.

ALKALINE

Figure 3.2
Treatment
Water
Alkalinized
in
Flow Chart
 Lyceum Norihwestern
University Institule of iraduate 27
and P'rofessIonal S1es page

6 Steps of Alkalinized Water

Treatment Process
1. Sediment

Removes undissolved particles from feed water and protecS JF

Membrane and Pre-Carbon Filter from being clogged.
2. Pre-Carbon

Removes chlorine to
prevent hydrolysis of TFC Membrane and absorbs
harmful organic chemicals from feed
water.

3. UF Membrane

Removes water contaminants such as waterborne bacteria and harmful

organic chemicals.

4. Post-Carbon

Improves the taste of water and absorbs harmful organic chemicals.

5. Alkaline Filter

Neutralizes the acidity of feed water to produce alkaline rich water.

6. STORE PURIFIED WATER

Alkaline water is finally stored in the dlean containers or bottles after the

above processes.
 page
Lceum Northwestern nversity Institute of Grauate and Professtonal >tudles

Plant Size

ne dusiness plant size is 4.715 meters long and 3.070 meters wide

or 14.48 sq. meters.

Business Location

A business location can greatly contribute to the success of the

good

location for business is one of the important

business. Choosing a a new

Great
decision business owners make during their business planning stage.

which can result to

more customers
location mostly gives the company

higher income.

Station will be located along the barangay

Lomibao's Water Refilling
Pangasinan where all Bonuan Boquig
road of Bonuan Boquig, Dagupan City,
vehicles going to Bonuan Boquig, Longos and
Public Utility Jeep and private
convenient for the
Thus, make it visible and
Mangaldan were passes by.
station.
water refilling
residents feasible to put up a
Lceum Northwestern inIVersity Instiute of Graduate and
Professuonal Smde

Figure 3.3
Location of the Business
 30
eeum Northwestern niversin Insutute of Grahuan amd I'rofessionul Stulies page

Vicinity Map

Tondaliga
APark
an Blue Beach
TheOrigina
Matutina's Seafood

Puregold J

tePigarPigar

Figure 3.4
Vicinity Map
Lvceum Northwestern Universiy
nsitute
- of Graduate and Professiuonal Studies page 31
Layout

3070

PJRS EH 02

RRFER D
10/0

SERVICE COUNTER

NATE
00 SOURE

LAYOUT
A WATER REFILLING STATION 00
SCALE

Figure 3.5
Plant Layout
 page
32
Lceum1 Nurihw'estern l nvers1/
"lifute f irudute md l'rofessiomal Stules

Building Perspective

ALKALINE&MINERAL
842256aGR g036a8198

Figure 3.6
Building Perspective
yeeum Northwestern niversity Insiitute of Graduate and P'rofessional Studies page

Fixed Capital

Capital is a key requirement for successful businesses, representny

the commitment of money and/or property that the partners agreed to

contribute for the establishment of the proposed business.

The establishment of Lomibao's Water Refilling Station will require a

total initial capital of P700,000.00. Partners' capital contribution is shown in

the table below. Profit/ loss will be divided based on the agreement of the

partners.

Table 3.1
Partnership Capital Contribution
Name of Partners Capital Contribution Partners share in
(Money and Property) Profit/ loss
Ralph C. Lomibao P 400,000.00 25%
Rowell C. Lomibao 100,000.00 25%
Reden C. Lomibao 100,000.00 25%
Kim C. Merin 100,000.00 25%
Total P 700,000.00 100%

Table 3.2.1
Machineries and Equipment

Items No. pecification Unit Cost Qty Amount

5
Desktop Computer (Inter core
2.8qhz quad core 760 package) 10,999.00 1 10,999.00
Cakuator (Casio) 699.00 1
699.00
Water Refling Machine 195,000.00 195,000.00
Freezer (Condura 7.1 CU.FT.)
13,599.000 13,599.00o|
EPSON (L120 Prnter) 4,650.00| 4,650.00D
Heat Gun 699.00 1.00 699.00
6 Semter Sink- Akaine Water
Purifer 10,500.00 2.00 21,000.00
246,646.00
Total Cost
Lyceum Northwestern Uinversity page
34
nstitute of Graduale and Professional Studies

Table 3.2.2
Motor Vehicle

Items No. Specification Unit Cost Qty Amount

Devery Vehice (motorcyce
1 with carer)_ 5,000.00 1 75,000.00
Total Cost 75,000.00

Table 3.2.3
Furniture and Fixtures

Items Specification/ Description Unit Cost Qty Total Cost

1 HP Samsung- Spit Type Aircon Inverter 19,995.00| 19,995.00
Uratex Monobbck Chairs 400.00 1,600.00
Wal cbck Quartz 450.00 450.00
Standard SEF-8A Exhaust Fan 729.00 729.00
Sanyo Monoblock Tables 550.00 1,100.000
Tigronyx Fire Exinguisher 10bs ABC Dry
5 Chemical Reflable 1,250.00 1,250.00
Total Cost 25,124.00

Table 3.2.4
Containers and Bottles

Items No. Description Unit Cost Qty Total Cost

Slim Container (5 gal) 140.00 150 pcs 21,000.00
Round Container (5 gal) 110.00 150 pcs 16,500.00
3 Plastic Bottles 7.00 200 pcs 1,400.00
Total Cost 38,900.00
Lvceum Northwestern Uinvers1ty 35
Institute of irauate and Professional Studies
-
page

Table 3.2.5
Cleaning Supplies
Items No.
Description
Anti sp Doormat
Unit Cost Qty Amounnt
990.000
99 10
360 Easy Magic Foor
Spin
Mop Microfiber Rotatngg 310 620.00
Haimet 12.5 2 150.00
Apron 25 300.00
Rag 10 30 300.00
6 Broom stick 25.00
25
Broom 75 150.00
8 Dust pan 90.00
45 2
9
Dishwasher soap 60 15 900.00
10 Hand wash 35 15 525.00
11 Garbage bag 12 20 paks| 240.00
12 Trash can 145 3 435.00
Total Cost 4,725.00

Table 3.2.6
Marketing and Advertising Expenses

Items No. Description Unit Cost Qty Total Cost

Tarpaulin (4mx4m) 500 3 1,500.00
Streamers (5'x5) 250 10 2,500.00
10 50 500.00
Leafets (3 x 6 4,500.00
Total Cost
Table 3.2.7
Office Supplies Expenses

Description Unit Cost Qty Total Cost

Items No. 350 4 cobur 1,400.00
Ink
115 2 reams 230.00
2 Coupon 1 box 48.00
Bal Pen 48
14 3 112.00
Recejpts
4 | 1,790.00
Total Cost
Lyceum

Table 3.2.8
Taxes and Licenses

Amount
Regulatory Fees and Chargess 500.0D0
Mayor's Permt and Fee 50.00
Garbage Charges 150.0Do
Santary Inspecton Fee
300.0Do
Signboard/Blboard Permit Fee 100.0O
Registration Fee
Others: 800.0O
Medical and Lab 100/person 1,120.00
Zoning Fee 320.00
Annual Inspection Fee
700.0o
water Testing Fee 4,040.00
Total Cost

Table 3.2.9
Fuel and Lubricant Expenses

Amount
Weeklyy 500
Monthly 2,000
Yeary 24,000O

Table 3.2.10
Water Expenses

Amount
Installation Charges 820.00
Monthy Fee 800.0O
Total Cost 1,620.00

Table 3.2.11
Electricity Expenses
Amount
Installation Charges| 15,000
Monthy Fee 4,800O
Total Cost 19,8OO
Lyceum Northwestern UUniversity
Institute of Giraduate and Professional Studies page

Waste Disposal

Ihe company strongly upholds that proper waste management

critical for the environment and us humans as well. The business maintain
the cleanliness inside and outside of
the store, the Barangay garbage
collector collects the garbage 2 times a week to make that waste is
sure

handled and disposed properly. Trashcan will be separated to non-

biodegradable, biodegradable and recyclable materials. When waste

materials are properly disposed, we are able to lessen if not totally

eliminate pollution thus, helping save our planet.