Purified water is water from any source that is physically processed to remove its impurities. Distilled water and de-ionized water has been the most common forms of purified water. Water can also be purified by other processes like reverse osmosis, carbon filtration, microfiltration, ultra filtration, ultraviolet oxidation, electro dialysis and/or etc. Mineral water is water containing minerals or other dissolved substances that alter its taste or give it therapeutic value, generally obtained from a naturally occurring mineral spring or source.
Dissolved substances in the water may include various salts and sulfur compounds. The more minerals in drinking water, the harder it is said to be; water with few minerals is described as being soft. Distilled water is water that has many of its impurities removed through distillation. Distillation involves boiling the water and then condensing the steam into a clean container. A few years ago, there were only a few water refilling plants here in Cagayan De Oro City. Those are of which are still famous to the public like Nature Spring and Wilkins.
Wilkins was one of those who didn’t do a good job on capitalizing on their market superiority. Unlike Nature Spring who seems like un-formidable in the market today holding big investments in large companies. The Cagay-anons realized the need for this necessity, entrepreneurs invested on it seeking to get a modest share of the market and looking for different kinds of cracks and niches in the market. This was the start of a very competitive and very aggressive marketing and business war, which one could relate to it as a never ending dog battle.
As more people entered the market, the more competitive it has begun. Currently, according to the only jug supplier here in Cagayan De Oro, there are already more than 100 water refilling companies here in Cagayan De Oro alone. One of the early people who ventures in this great opportunity was Escanner, Inc. which established Cooldrops. It started out when one of the members of Escanner, Inc. noticed or discovered the opportunity here in Cagayan De Oro City. He then soon recruited more investors for the undertaking of Cooldrops. He then went to Cebu to buy water refilling equipment.
He then transported it here in Cagayan De Oro City to a place (building) he canvassed and liked beforehand. As it penetrated it grew and grew the first year. It experienced a boom so big that it had a lot of dealers and customers making the production work overtime and jugs that reached even the Cooldrops parking lot. As many competitors rose and took some customers and dealers from different water refilling stations, Cooldrops became less busy as it was before. And now as we see it, it is still growing, always fighting for a bigger fraction of the market.
The Problem General Problem: The Cool Drops business has a low rate of increase of its customers. Specific Problem: 1. They lack in marketing communication. 2. They only have 2 branches located in Patag and Bugo which can affect the distribution process. 3. The competitors have cheaper price. Objectives: 1. To be able to have and choose an effective marketing communication. 2. To be able to create a strategy that can improve the distribution process. 3. To be able to lessen the competition by identifying incentives that is attractive to the consumers.
Significance of the study The conceptualization of this marketing research was borne out of a need to determine the causes why a consumer prefers a certain brand over hundreds of products in the market. This study also explains how a consumer becomes aware of a product given the promotional mix which is product, price, promotion and place to choose from. The data to be provided in this study will be useful to Cool Drops and other similar business in positioning their product and to gain competitive advantage in the market.
Also, data presented will be useful to a company particularly its product manager wherein it gives insights and advices for new ventures. Scope and Limitations The scope of this study includes the respondents’ awareness of the existence of Cool Drops in the Water industry; brand of water used, promotional medium and included herein are the factors affecting consumer’s buying decisions and creating interest for the product. The coverage of the research done was limited to residents of subdivisions near Cool Drops stations particularly Apovel, Patag and Reyes, Bugo respectively.
Specifically, fifty percent ( 50%) of the respondents are exclusively consumers and dealers of Cool Drops and the other fifty percent (50 % )are consumers of other products living near the two outlets. We used the 50 – 50 ratio for fair tabulation. We’ve got two variables, first is the Cool Drops respondents and the other is the respondents from the other brand these two variables are basically the group’s basis for comparison. Research Methodology Research Environment
Patag and Bugo were just the two distribution outlets of Cool Drops water refilling stations. We used random sampling for the remaining 50% for the consumers using other brands. It is best applied to closely related houses and a pretty much big population. The Apovel subdivision and Reyes subdivision was actually a good location or community for the survey. It is important for the group to have variations on the respondents regarding the purified water they are using for the comparison of the answers which would be a basis for the group’s recommendations.
We used the subdivisions which are near the Cool Drops outlet so that we can identify the problem why they do not prefer their product despite the accessibility of their outlet. Research Respondents The marketing research that the group has conducted is regarding to the Cool Drops business which is a purified water refilling station so basically the respondents would be consumers of purified water. The group also targeted residences, since the said product can be seen mostly at residences. Research Instruments The group is to conduct survey from the selected respondents and so the aterials to be used for the gathering of data are questionnaires. Data Treatment Sample Plan Random sampling was the sample plan that the group had chose for the survey since it shows no bias. In order to use the random sampling we will take a sample from the population basically the group has 2 populations 1st is the population of chosen 48 respondents which are Cool Drops users and another are the chosen 48 respondents which are consumers from the other brand. The group is to collect data on each of the sampled unit and uses these information to extract the pulse of the entire population in general.
The group divided to two the total number of respondents which is 96 for a fair tabulation. Sample Size n= ¬ ¬_1. 96? (53×47)_ 10? n= ¬ ¬_1. 96? (2491)__ 10? n= ¬ ¬_¬¬¬___9569. 4___ 100 n= ¬ ¬95. 6 or 96 respondents Data Gathering Procedure It was mentioned from the previous paragraphs that the materials to be used for the research is a survey questionnaire. The group would distribute the 50% of the questionnaire to the residents within the Apovel and Reyes subdivision regardless of the brand of water they are using.
A total of 100 entries would be recorded and interpreted. From those 100 respondents it is subdivided into classifications of water brands, the group would then make an analysis on the different answer and finally to come up into a conclusion which is to be recommended to the Cool Drops. Definition of Terms Brand. The brand becomes the consumer’s simplifier of choice compatibility. Cool Drops. The brand of purified water refilling station that is been used in this study. Promotional Mix.
Specific combination of promotional methods such as print or broadcast advertising, direct marketing, personal selling, point of sale display, merchandising, etc, which are used for one product or a family of products. Purified Water. Water that has been sterilized and it is safe for drinking. Refilling Water Station. An alternative source of drinking water supply in the Philippines where consumers refill their kind of brand of bottled water. CHAPTER II Presentation and Analysis of Data Table 1 Profile of Respondents Category Frequency Percentage (%) Age 15 – 19 20 – 24 25 – 29 30 – 34 5 – 39 40 – 44 45 – 49 50 Above 15 23 15 11 8 4 10 10 16 % 24 % 16 % 11% 8% 4% 10% 10% Sex Female Male 51 45 53% 47% The majority age of the respondents are having the ages of 20 – 24 years old with a 24 % and the majority sex of the respondents are females with a 53 %. It only shows that the ages of 20 – 24 years old has the highest percentage of respondents because when we gave the questionnaires they are the ones that been asked by their parents to answer the questionnaire and the majority of answering the questionnaires are the female. Figure 1 Consumer’s Awareness about Cool Drops
On Figure 1, 61or 64% of the 96 respondents know about the Cool Drop’s water while the remaining 35 respondents does not know the product Cool Drops. Also 13 out of 48 respondents of the other brand know about the product but are not patronizing the product. It only shows that most of the respondents know about what the product Cool Drops is, having the total of 64 %. Figure 2 Usage of Cool Drops 48 or 50% of the 96 respondents are using Cool Drops and a same percent of 50% from the respondents who do not use Cool Drops. We used the 50 – 50 ratio so that we will be able to compare the other brands from Cool Drops.
Figure 3 Different Brands of Commercial Water Different brands of water from the 48 respondents are shown on Figure 3. Most of the respondents are using the Aquasoft with a percentage of 16% followed by Aquabest and Nature Spring both having the percentage of 8%,while 10 out of the 48 respondents did not indicate the name of brand that they are using. It shows here that among the respondents who did not use the Cool Drops brand are majority using the Aquasoft brand who is one of the leading brand of purified water here in Cagayan de Oro City.
Figure 4 Brand Recognition Based from the graph above Cool Drops’ consumers were able to know more about the product from referrals with a percentage of 55% followed by the flyers 32% and lastly the media with a 26%, while the other brands were able to know more about the product from the media with a percentage of 74% followed by flyers with 68% and lastly the referrals which is 45%. It shows here that the other brands used media since it has the highest percentage and since most of the people are fond of watching TV, listening to radios nd other means of media while Cool Drops only depends on referrals as shown in the figure above. Figure 5 Best Way to Know the Product Based on the results the respondents chose the media as the best tool to know about a product, followed by referrals and lastly flyers. For them it is best for a business firm to advertise their product through radios, televisions or other mediums of media. Figure 6 Type of Consumers For Cool Drops most of its consumers belong to the dealer with a 67% of the total result. They’ve got less of walk-ins and home deliveries since their location is not that accessible.
While the other brand has a 71% of their walk-in consumers since some of the other brands indicated have many branches or the location of their branches are accessible to the consumers. Figure 7. 1 Delivery Time of Cool Drops Figure 7. 2 Delivery Time of the Other Brands Most of the Cool Drops users have a delivery time of 1hr and above which is less advantage compared to the other brand that got a 30min-1hr of delivery. It is also to be considered how accessible the outlet would be that dealers could be able to deliver it on time or much early.
Since Cool Drops does not have enough man power for deliveries and a few outlets for distribution more or less they would really consume hour/s before they could actually deliver the water. Figure 8 Water Consumption in a Week Based from the graph, most Cool Drops’ consumers usually pay P500 and above since most of their customers are dealers which usually order a huge quantity of gallons of water, while most of the customers of the other brand are walk-ins which usually spend P200 below in a week. Figure 9 Brand Usage in Months or Year/s 4% of the Cool Drops’ customers are using the product more than a year and 83% of the customers of the other brands are using the product for less than a month. Figure 10 Services Offered As shown on Figure 10 most of the services performed by the Cool Drops is a door-to door delivery which has 49% of the total result. While most of the other brand gives incentives to their customers as their form of service. Also 3 out of the 96 respondents were not able to give specifications on the kind of service they received from the business. Figure 11. Ratings of the Services Offered by Cool Drops Figure 11. 2 Ratings of the Services Offered by Other Brands Most of the respondents from other brands rated 7 and 8 for the services while the Cool Drops’ customers, rated on 9 and 8 which are a bit higher compared to the ratings from the other brand. The Cool Drops has more numbers of loyal costumers based from the interview that’s why the business got big ratings from them. Another thing was that most of these respondents that gave a high rating are probably located near the outlet that is why it ould just took a little time for them to receive the water. Figure 12 Consumers who received and who haven’t received incentives As shown on Figure 12 above, Cool Drops does not give much incentive to their customers because they focuses mainly on the quality of their product which is the only thing that they have to attract consumers. Also Cool Drops give out discounts to those who ask for it. While compared to the other brand they’ve got a big percentage of giving out incentives. Figure 13
Incentives Received As observed from the graph Cool Drops incentives are more from the giving of discounts while the other brands are on giving of water dispenser. Specifically most of the Cool Drops consumers are dealers so having incentives such as discounts is applicable in that kind of consumer. Now for the other brands most of their consumers are walk-ins and home delivered that’s why a water dispenser would be a good incentive for them. Figure 14 Accessibility and Inaccessibility of Outlets
Many respondents answered “NO” for the accessibility of the Cool Drops’ outlet which is a big different from the answers of the other brands users. It has been mentioned that Cool Drops only got 2 outlets all over the city so the accessibility of an outlet also depends on how many are the outlets, the lesser the outlet the harder for the consumers to have an easy access towards the station. Figure 15 Buyer’s Motivation towards the product Based on the data on Figure 15, most of the respondents in general answered quality followed by price then the services.
Thus, they prefer quality when it comes to their water than price and services because they are into their safety specially those families who have children. CHAPTER III Conclusion and Recommendation Water refilling stations are becoming popular nowadays. Some are at the top of their game and some are just starting out. Cool Drops, which has been in the market for roughly 7 years still has a difficulty in connecting to other consumers aside from those who are already patronizing their brand. So, we conducted surveys in areas that are near their stations.
The main purpose for the survey is to identify what Cool Drop needs to do in order to gain more customers. After doing the surveys, we were able to differentiate the techniques of Cool Drops and other brands on how they would market their own product to new consumers. Base on the survey results many consumers answered that a product would be best advertised by using media (TV, Radio, and etc. ). We recommend that Cool Drops needs to advertise their brand by using the media (TV, Radio, and etc. so that their product will be more expose in the market. According to our survey, we found out that majority of their customers are dealers and home delivery and their deliveries always comes after 1 hour and 30 minutes. We recommend that they should deliver all their water with a less time as possible to prevent the costumers from waiting in a long time through efficient use of their manpower thus creating a strategy that would improve their delivery schedule for their routes that would cater all the deliveries quickly.
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