V.

MARKETING PLAN

4.1 Market Research

The group decided to gather their own data and conduct a door-to-door
interview and survey of their target market in Barangay Tibungco, which includes
Kabayan Relocation Area, Cal Village, and surrounding establishments in order
for them to obtain the actual information needed from the people in that locale.
The group distributed 150 surveys to 140 households and 10 nearby
establishments. After they disseminated and tallied all the survey questionnaires,
the results showed that there is a big chance that there is a market for a water
refilling station business in that area. Based on the group’s interview, there is
really a need for other sources of clean drinking water in their community due to
their growing population, rising of new subdivisions in the area, and the probable
relocation of the households in Boulevard area to Tibungco.
Majority of the respondents are adults from ages 20 years old and above
followed by the kids then the teens. Also, most of them belong to the working
class (employed & self-employed) with a monthly income ranging from
Php10,000 to Php20,000. The survey also showed that they have two major
sources of drinking water namely the Dumoy Fresh Water from the delivery tanks
and Purified Water from water refilling stations. Most of the respondents buy
twice a week from their sources with a quantity of two containers. They pay as
much as Php12 for the Dumoy Fresh Water and Php25 for the Purified Water for
each container (1 cylinder). The respondents rated the water quality as their top
determining factor in buying their drinking water, followed by the availability,
price, cleanliness of equipment, and service, and most of them are already
satisfied with their current source. But some of them also have complaints
regarding their drinking water in the past such as lack of supply as their major
concern, followed by stomach ache, LBM, etc. Many of them also agreed that
there is a threat on their current sources of drinking water. That is why when we
brought up the idea of opening a new Water Refilling Station near their
subdivision, with extensive services, and loyalty incentives they were positive
about it.

Promotional Budget

Proposed Location
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. To operate
the water store, about five employees are needed.
 VI. OPERATIONAL PLAN

Location
The location of a business is one important factor to be considered before
starting up a company. It is important that your location is convenient to
transportation and customers. That is why BEACAP Pure Water Refilling Station
is located at Purok 4 Km18 Eliong Road, Tibungco, Davao City along the main
road near the group’s target market which includes Kabayan Relocation, Cal
Village and nearby establishments. The building will cover 80 square meters
with enough space for vehicle loading and parking. Within the plant, a number of
workstation areas will feature the principal aspects of this venture; water
purification, bottling, delivery and quality control. It is a one story building with its
own toilet with a monthly rental amounting to Php13,000 pesos, with separate
meter and billing for water and electricity.

Inventory

Credit Policies

BEACAP Pure Water Refilling Station will sell on credit but exclusive for
business/commercial establishments only. In order to make this possible, Pure
Water will institute an exclusive contract between them and the company who will
apply for credit. The agreement will contain the terms and conditions, payment
options and the extent of the contract. The companies who will apply for credit
must order at least 20 containers per month or 5 containers per week and they
will have a discounted rate of Php 25.00 per cylinder container. BEACAP PWRS
will also provide a hot & cold water dispenser for companies who will establish a
tie up with Pure Water for at least one (1) year, and the minimum tie up term will
be six (6) months. This means that they shall not be allowed to get other
products from other competitors or else they will be subject to applicable fines
and penalties for breach of contract. There will also be a Pre-Termination Fee
should the customer opt not to continue doing business with BEACAP PWRS
before maturity. The statement of account will be given to them every fifteen (15)
days and payments will be collected five (5) days after the statement was
received by the client. If the company fails to pay on time, BEACAP PWRS
reserves the right to give the first collection letter on the sixth day after the SOA
was given and the second collection letter will be duly given on the tenth (10)
day. Finally, if the company still has not settled their payment after receiving the
two collection letters, BEACAP PWRS will send a demand letter to the client
stating that the company will refer them to the company lawyer for legal action.
In general, providing credit can give a competitive advantage for BEACAP
Pure Water Refilling Station since not all competitors extend credit to their
clients. They will feel that BEACAP PWRS is treating them with so much trust
and respect, and as they pay their outstanding balances, they will be more likely
to return because the company has already established a relationship with them.
In addition, offering credit means that clients will have payment options and more
customers will be able to buy from the business. Providing credit also entails
more sales and revenue for the business given that payments are also on time.
In addition, this can also make the entity appear more legitimate and established,
since a new unproven business usually doesn’t have the financial stability to offer
credit.