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iAgua Mart Water Refilling StationIn Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in AccountancyNurjay Hassan Leah Anne Franco Kristel Ordonio Graciel Ramos Ludy Ann Torreda2021INTRODUCTIONAccording to the World Health Organization (WHO), about 3 million people die a...

Description

Agua Mart Water Refilling Station

In Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in Accountancy

Nurjay Hassan Leah Anne Franco Kristel Ordonio Graciel Ramos Ludy Ann Torreda

2021

i

INTRODUCTION

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 disease like amoebiasis, cryptosporidiosis and cholera. These problems are accredited to the poor water system in the Philippines. In Subic, safe water is an issue that’s why water refilling stations are like mushrooms in the vicinity of the center of the municipality, because a lot of people prefer to get their drinking water from these water stations, its simple clean and safe to drink. While conforming to the national sanitation standards, these water refilling stations often provide cheaper sources of clean, potable water than traditional sources such as bottled mineral water bought at supermarkets. In addition, most of the families are looking for clean water sources if they are to avoid cholera, epidemics, and other health problems spawned by the foul and contaminated water. Shortage in water supply and safe water to drink is the main problem of the residents of Subic. So, we decided to put up the Agua Mart water refilling station business in remote area of Subic−Nagyantok, Cawag. Nowadays, people are more health conscious than usual and this does not exempt the most essential part of our everyday life, water. Mr. Louie A. Danuya, 46, resident of Baranggay West Bajac Bajac, Olongapo city. A repair technician in telecommunication industry and the owner of Agua mart Refilling Station. He used to have a computer shop in olongapo for 3 years, went bankrupt on May 2020 due to pandemic. Afterwards he then sold his business property and gained P300,000.

On September 2020, he starts a Water refilling station in Olongapo city and earn up to P40,000 monthly income. Due to increasing demand, to expand his business and earn more profit. He decided to build another branch in rural area where there was no competitor nearby. Also, if Agua Mart will be established, the community will no longer buy their drinking water in remote areas because this will be the first water refilling station to operate in Nagyantok, Cawag.

PART I. SUMMARY OF THE PROJECT

1.1 Name of firm: The name of business to be established is Agua Mart.

Figure 1.1 Logo and Name of the Business 1.2 Location: Agua Mart Water Refilling Station will be established in Nagyantok Village, Cawag, Subic, Zambales .

Figure 1.2 Proposed location of Agua Mart

1.3 Brief Description of the Project: Our project proposal is setting up a water refilling station whereby the station will provide a purified water for the community. Nowadays, because of the convenience on the part of the consumers, the station will offer to deliver directly at the consumer’s home and other certain industries. Water refilling station is a manufacturing business which process a raw water into purified water through the use of reverse osmosis system.

Organizational Chart:

Position

Job Description

Job Qualification -With at least 2 years managerial

Manager

Bookkeeper

-Direct in-charge in overall store

experience on retail industry.

operations.

-Graduate of Bachelor’s Degree

-Maintains staff by orienting and

in Business Administration or

training employees.

equivalent.

-Establishes strategic goals by

-A strong understanding of

gathering pertinent business,

customer and market dynamics.

financial, service, and operations

-Good communication skill.

information.

-Honest, trustworthy and

-8 hours of work.

hardworking

-Maintaining the financial

-Bookkeeping NC3 passer

records.

-Knowledgeable in BIR

-Calculating taxes and

transactions

preparation of financial

-Must be computer literate.

statements.

-Good communication skill.

-Preparing of payroll.

-Honest, trustworthy and

-Reconciling invoices and

hardworking

identifying discrepancies. -8 hours of work.

Cashier

-Processing sales transactions.

-At least high school graduate

-Collects payments on sales

- Experience in cashiering is a

transactions and ensures that the

plus

collected payments are correct.

-Must be willing to learn and be

-Maintaining adequate change

trained

denominations in the cash drawer. -Able to handle transactions -Reports customer complaints to

accurately and responsibly

manager.

- Honest, trustworthy and

-8 hours of work.

hardworking

-Operates and maintains the water -At least high school graduate

Machine Operator

refilling machine

-Knowledge in operating water

-Performs basic water refilling

refilling machine is an advantage.

machine repair.

-Knowledge in repairing water

-8 hours of work.

refilling machine is an advantage. -Honest, trustworthy and hardworking

Assistant Operator

-Washes and secure the

-At least high school graduate

cleanliness of water containers.

-Fast learner and can work with

-Assigned in packaging products.

minimum supervision

-8 hours of work.

-Honest, trustworthy and hardworking

-Collects customer order and

-Knows how to drive motor

empty containers.

vehicle and light vehicle with

-Loading, transporting, and

valid professional Driver’s

delivering items to clients in a

License

safe and timely manner.

-Able to perform basic

-Reviewing orders when loading

mechanical maintenance vehicle

and unloading of items to ensure

repair

that orders are complete.

-Customer service oriented

-Accepting payments for

-Physically fit

delivered items.

-Honest, trustworthy and

-8 hours of work.

hardworking

Driver/Delivery Man

-At least high school graduate -Secures premises and personnel

- At least 2 years of working

by patrolling property, monitoring experience in the related field is surveillance equipment and

required.

inspecting building.

-Flexible to be assigned to work

Security Guard schedules. -Informing violators of policy and -Physically fit procedures and restraining -Honest, trustworthy and trespassers. hardworking -8 hours of work.

-Physically fit. -Maintains the cleanliness inside -Honest, trustworthy and Janitor

and outside of the establishment. hardworking -8 hours of work.

PART II. ECONOMIC ASPECTS 2.1 Market Description A. Area’s Geographical Coverage Nagyantok, Cawag is located in Subic, province of Zambales in Region III central Luzon. It is seated about 10.6 kl. North East

of Subic market.

The geographical area covered by Agua Mart water refilling station and the potential market are just exclusive – Nagyantok village which serves as the proposed location of the project. B. Means of Transportation and Existing Rate of Transportation Various means of public transportation are available to go to Nagyantok, Village, Cawag, Subic, Zambales. Transportation is provided by a combination of private or owned vehicle, jeepneys, and tricycles. Existing rates of transportation as mandated by the Land Transportation and Franchising Regulatory Bord (LTFRB) are above minimum (P32/person) from Subic Market, since the Agua mart will be located within the village with a steep road.

C. Channels of Distribution and General Trade Practices Agua Mart Water Refilling Station will launch the product solely and directly sell or distribute its product to the consumers. It is expected to offer purified drinking water with at least 560 household to be served in the area of delivery in Nagyantok, Cawag, Subic, Zambales which will enable the entrepreneur to earn return on investment. To make sure the production of safe water and to avoid waterborne diseases, Agua Mart will be complied with all sanitation requirements

of Presidential Decree 856 as well as the sanitation standard for retail water system of refilling station of the Department of Health. However, to assess the procedures such as washing and sanitizing of containers, refilling and capping of the product water into the containers, protection and transportation of drinking water from the refilling stations to the household of the consumers, the handling practices will be closely monitored. Complete and accurate water testing and analysis through the help of local health office, proper operation and maintenance of water purification equipment, sanitary surveys, water quality monitoring and training on how to keep delivered water safe at home will be also considered by Agua Mart to ensure a continuous production of quality and safe drinking water. From the main source of water of Agua Mart which is deep well, the water will be treated through water purifying machine. After the treatment, the product water will be filled to the empty containers collected from the consumers. Afterwards, containers with refilled purified water will be distributed free of charges by authorized staff through motorcycle with multi-cab. The payment system is through cash on deliver where payment is made at the time of delivery rather than in advance. To know if the refilled water is consumed, the customer will be texted through SMS or will be personally visited by the staff. Agua Mart will satisfy a need in the market for a basis of low-cost high purified water from a business that the customer can trust. The target market of the business in the residential area are health-conscious people of all ages, especially people who already purchase bottled water, senior citizens, and families caring for their children.

2.2 Demand The current study consisted of one primary method in evaluating the need and demand for the establishment of Agua Mart water refilling station in Nagyantok, Village, Cawag, Subic, Zambales. This method of survey consisted of sampling and surveying of relevant populations (selected residents of Nagyantok Village) and their perceptions and opinions regarding the proposed business. The target market of Agua Mart water refiling stations would be those families residing within Nagyantok Village. Based on the data provided by the local official of barangay Cawag, as of year 2020, there are 900 families residing at Nagyantok Village, Cawag, Subic, Zambales. On the average, a family of four members and above consumes 5 containers purified water every week or 20 containers a month. Using this data, the projected demand for water refilling station in the area is

Target Market

Population

Estimated Weekly Consumption (in 5-gallon container)

Estimated Monthly Consumption (in 5-gallon container)

900

4,500

18,000

Local Family Residents

2.2.1 Market Share Considering the accessibility factor. 85% of the target market, which is based on the survey conducted are going to consider getting their purified water supply from the store.

Target Market

Estimated Weekly Consumption (in 5-gallon container)

Market Share

4,500

3825

Estimated Monthly Consumption (in 5-gallon container)

Market Share

Local Residents

18,000

15,300

2.2.2 Projected consumption for the next five years The Projected consumption is based on the statistic of the population gathered during the survey. There are 800 families in 2019, and 900 in 2020 residing at Nagyantok Village, Cawag, Subic, Zambales. Based on the data provided, the annual population growth rate will be 1.75%. The percentage growth rate is calculated from the formula:

In

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR5

183,600

206,652

232,560

261,732

294,372

5-gallon

container

2.3 Competitive Position

2.3.1 Selling Price Strategy The pricing of 5-gallon container is based on the existing price of the competitors’ product gathered from the survey, and will be increased to a reasonable price which is 30pesos.

2.3.2 Product Strategy Agua Mart Water Refiling Station will be constructed with transparent glass and according to prescribed standards so that the customers will be able to see how carefully the products are being processed. Excellent quality will be maintained by giving the workers training and guidance on good manufacturing practices. 2.3.3 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. 2.3.4 Promotion Strategy Information dissemination will be done so that target market will be aware of the existence of the water refilling station. Through the use of social media such as Facebook, customers will be informed of the benefits and importance of drinking clean water.

2.3.5 Supply (Packaging) This supplies are used to seal 5-gallon containers to ensure that the delivery is well packaged, to avoid leakage and to prevent purified water from contaminated. Item

Quantity

Unit Price

Amount

Containers 

Round

100

₱160

₱16,000



Slim

150

130

19,500

1

520

520

Heat gun Stickers 

Round

100

10

1,000



Slim

150

5

750

105

2,625

140

3,500

140

3,500

135

3,375

135

3,375

20 x 30 Plastic 25 (1,000pcs/pack) Big

Cap

Seal 25

(1,000pcs/pack) Round Cap Seal 25 (1,000pcs/pack) Faucet

Seal 25

(1,000pcs/pack) Small

Cap

seal 25

(1,000pcs/pack) TOTAL (monthly)

₱54,145

Base on the projected yearly consumption in 5-gallon container, the projected packaging supply for the next five years is as follows. Description

Year 1

Year 2

Year 3

Year 4

Year 5

Heat Gun

₱520

₱520

₱520

₱520

₱520

Plastic

19,278

21,699

24,419

27,482

30,909

Big Cap Seal 25,704

28,931

32,558

36,642

41,212

28,931

32,558

36,642

41,212

27,898

31,396

35,334

39,740

27,898

31,396

35,334

39,740

135,877

152,847

171,954

193,333

(1,000pcs/pack)

(1,000pcs/pack) Round

Cap 25,704

Seal (1,000pcs/pack) Faucet

Seal 24,786

(1,000pcs/pack) Small Cap seal 24,786 (1,000pcs/pack) Total

120,778

Machine Supplies All reverse osmosis system require maintenance to ensure water quality remains high. The most important maintenance for a reverse osmosis system is on time filter changes. Failure to replace reverse osmosis filters on schedule can result in a clogged and damage system. The cost of filter maintenance is as follows:

Description

Quantity

Unit Price

Amount

Sediment filter cartridge 20 micron

12 (1pc. per month)

₱100

₱1,200

Sediment filter cartridge 10 micron

12 (1pc. per month)

100

1,200

Sediment filter cartridge 5 micron

12 (1pc. per month)

100

1,200

Brine Solution

4 (1 sack every 3 months)

450

1,800

Sediment filter cartridge 1 micron

6 (1pc every 2 months)

100

600

Coconut shell Activated-carbon block

6(1pc every 2 months)

700

4,200

Total Supplies (yearly)

₱10,200

2.4 Sales Projection The Projected Sales is based on the projected consumption. Based on the data, from 2020 to 2025 Agua mart water refilling station had an average annual sales growth rate of 1.74%. The average annual sales rate is calculated from the formula:

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR5

container

183,600

206,652

232,560

261,732

294,372

Selling price

₱30

30

30

30

30

Gross Sales

₱ 5,508,000

₱ 6,199,560

₱ 6,976,800

₱ 7,851,960

₱ 8,831,160

In

5-gallon

2.5 Contributions to Philippine Economy 

Employment. The business will provide job opportunities to many individuals most especially to those people who have great concern in safe and healthy drinking water. Every society wants all its qualified members to be gainfully employed. When individuals are employed, they will be able to raise their children support them through school, provide them with decent homes, acquire medical services whenever needed and contribute to government income through the payment of income taxes. Agua Mart Water refilling Station will help to lessen rate of unemployment and number of poor people. The eradication of poverty will help to solve social problems like crimes, juvenile delinquency, and malnutrition.



Taxes. Every business establishment will be of great help for the growth and development of the Philippine economy. These will only be possible if every firm will be responsible enough to perform their duties and obligations to their customers, community and of course to the government. Agua Mart Water Refilling Station will definitely contribute additional earnings to our government by means of paying right taxes. Through this, the government can able to perform its function well including continuous support and assistance to the business industry, providing projects for the community, such as building infrastructures, public schools and hospitals, strengthening arm forces for security and protection of the countrymen and other indispe...