Business Plan plus Feasibility Study Sale of Online Best Water Filters In Bahrain
This business plan will target the concept of online marketing for water treatment products in Bahrain. The vision for this business is to provide one-window services with the help of online utility. The primary objective is making an online presence of water purification filters and RO systems which are used on a residential scale at first stage. The location of the business will in Bahrain. The products will include filters, tanks and membranes for purifying water. The quality of the product will be related to higher standards of a competitor.
The business is named as the best water filters. Water treatment is an important industry which has attracted the interest of principal investors. In Bahrain, there is a huge demand present for this service. This business is related to the online sale of water filtration system and parts which can help the consumer to have a better experience of purified water without any hassle from commercial vendors.
The vision of this business to become a trusted source for providing single window services to the customers. The business also stresses on the technological trends and developments which are essential to provide a high quality of water filtration system. The vision looks for the development of the company (Abbaspour, et al., 2015). This business will provide an online platform to the customers where the water treatment system can be easily advertised to people.
Providing a complete range of certified & high-quality water filtrations system. These include spare parts as well as the variety of RO plants.
- To develop a one stop online hob for all residential need in regard of the water treatment industry, systems, filters & all required spare parts
- To introduce the online business of water treatment certified & high-quality filters and spare parts.
- To market products to top channels of Bahrain.
- To increase the amount of finance for finance department.
- An objective is to initiate business operations in Bahrain.
- This business will also look to gather human resource for marketing the business product.
- The primary objective is to sell water treatment filters and system online in the Bahrain market.
- The business will focus on the online existence as an off-line presence will not be targeted.
- The water treatment filters and spare parts are the most important part of the filtration system.
- The customer requires these services for updating and changing the filters and spare parts for treatment plants on regular and weekly intervals.
- The major strength for this business is the demand for water treatment in Bahrain. This business includes the sale of water filters and spare parts (Gude, 2016). What available in the market is very low quality not tested, not certified, made from plastic and recycled material. The market has filter system and RO plants which are of low quality and do not specify the ISO standards. They are made from plastic and recycled material.
- Our core competencies are: – Very high-quality supplier
– More than 20 years experienced team which can handle the customers and promote the business products to all of the targets places in Bahrain online market.
- The main challenge is to change the client’s habit of regular procedures to buy filters from low quality suppliers and to direct him to but online, and to have the client change this filter on his own if possible.
- Water management is the basic challenge for the business. In order to make an impact on the online market, traffic is also a challenge for the business (Zeng & Glaister, 2016).
- The amount of finance required for this business also corresponds towards a challenge for the business.
The long-term focus for the business will be to make a strong online marketplace where all of the customer needs can be easily satisfied. This business will look to provide all kind of filters and spare parts for the water filtration system. The main goal for the long-term planning is to increase the reputation of the business in the market (Chen, 2017). The quality and nature of the services will also be a long-term focus because in this condition the idea of online presence will be a good innovation to the water treatment industry.
The services which are being introduced for the water filtration system are new and there is no present example of introducing the online platform for the advertising and promotion of water treatment products as well as spare parts. The proposition also included NSF certified filters & spare parts for most of the items which is not available in our local market & the free courier service to the customer. In this way, the time can be reduced for the customer as well as the seller.
The business is an idea of advertising water treatment filters and spare parts with the help of internet media. The main focus of the chain is to create an online reputation for the company. This will not only act as a medium between customers but also save time for useless discussion. The potential users and aspirants which required trusted water treatment filters or spare parts of the RO system can use the website to view and buy their required product.
The company main location will remain in Bahrain. The company provides convenience to its customers in terms of the required product. The product is water filters and spare parts. The market in Bahrain has no new concept of online marketing. If a new facility is given to customers then it will provide door service for the water treatment system. One of the most attracting facility is the courier service which can allow the easy delivery of company products to all of the customers in Bahrain.
The main products for the business are Water treatment filters set which are specified with the category of PP, UDF and GAC (Grace, Clifford, & Healy, 2016). The Poly Propylene and Granular Activated Carbon filters are mostly employed in the domestic water cleaning and purifying seems. The Reverse Osmosis system is basically the second products which are optimized for the industry. This is because the requirement varies from the size of the organization. The membrane and pressure tanks are also important products for the business.
There are installed in RO plan to remove any foreign particle from the water. The online service will promote all these products on one platform. This is an application which would be launched in Bahrain for the business purpose.
The feature of water treatment filters is related to the process of water purification. The Poly Propylene has better results but the granular activated carbon enhances the modes of purification. The UDF feature is also ahead of the remaining two services (Manda, Worrell, & Patel, 2014). The three different types of reverse osmosis system are classified on the base of their requirement for the industry and commercial use. The membrane, pressure tanks & other spare parts are featured with all sizes and they can be a suitable fit for all domestic and commercial customers.
Quality concerns will be present for the business. Water filters will be bought from the trusted suppliers whose products are fit for the business most of the products are NSF approved. The reverse osmosis plants will be regulated for the standards because they are difficult to replace from vendor to customer. The Membranes will be selected for the top quality. The filters & pressure tank will be regulated by the best brand in the world. The quality concerns can affect the products and their competitive advantage in the online market of water treatment industry.
The technology which will be used for the business products will be based on the conventional water filtration system. The online marketing will be made with the help of an internet source. The products feature and quality will be monitored with the help of quality assurance. The water test will be accounted for the use of technology. The latest available technology for water filtration in Bahrain will be the most selected source under this business category.
Considering the online retail market in the whole world, one can assume that ecommerce and online sales are a big opportunity for the growth and upgradation of the business. There are certain aspects that have to be considered before putting all the thought of buying or investing anything for the online business.
Considering the situation of Bahrain and its surrounding countries, it has been estimated that more than a quarter (29 percent) of Middle East consumers including the countries like Bahrain, KSA, Turkey and Iran now shop online every month. Some more statistics indicate that 36% of those Middle East shoppers surveyed between ages 18 and 24 shops online monthly compared to 13% of those aged 55 years and above. The trends for the shopping of household appliances have been on a rise. 31% of the ecommerce shopping is composed of household appliances.
Best Water Filters in Bahrain is one of the first companies who are aiming to sell the water filters and spare parts through a website. Online market in Bahrain is booming as more and more people are adapting for online shopping. Online consumer sales, according to some reports have exceeded BD66.15 million ($175 million) in Bahrain since last year. It was succeeded by a good 800 percent increase in the number of internet users since 2000. Detailing the numbers, 55 out of every 100 Bahrainis are now online. Bahrain has the highest internet usage levels and penetration of mobile internet expected, this figure is set to double in the next three years, it added.
Having a high internet penetration will allow Bests Water Filters to access the consumers easily. Marketing tools such a social media apps and digital marketing strategies will be beneficial to access the consumers. The market is feasible and allows startups to penetrate at a much faster rate than any other countries in the Gulf area. The rate of inflation has increased in the past 20 years in Bahrain. So the online tools of shopping are a healthy approach to get the best product (ISTIZADA).
Best water filters in Bahrain are aiming to make their online sale by the website which they will be launching soon. As far as the market is concerned, Bahrain has been a part of the MENA market which has provided a lot more exposure to the industry in the Gulf estates as well as the Middle East area. Bahrain expects to See Nearly Four Times their 2015 Level of Online Sales in 2020 which is a great boost up. Bahrain has shown a positive change in terms of the rate at which the online sales have increased (Vaast, 2017).
The friendly environment for the online business will be the pivotal thing to consider in terms of startups like Best water filters in Bahrain. The consumer as well as investor friendly market allows the both parties to put their money at stake confidently which is a huge plus point for Best water filters in Bahrain. Prices as well as the market completion are the secondary factors in this case as they are largely dependent upon the competition which is quite low to minimal for Best water filters in Bahrain as no companied have made their business online. Another important factor is the sales of the online stores in Bahrain. The following graph is a huge boost up for the company:
The major companies which are offering the water dispensers in Bahrain are mostly international brands like Kenwood and Nestle. As far as the local brands are concerned, most of them are selling their products on platforms like Wal-Mart, Amazon Inc., Lulu Group, Carrefour, Spinneys, Choithram, Al Othaim, Al Raya, Al Sadhan, Fu-Com, and Balsharaf etc. Companies that are working on the local scale like Jalal Sons Ionics, IWS Bahrain, Nikai, Zenet, Meenumix, Midea, and Aftron have been offering their products on platform discussed above at variable process. Although, it is a great strategy but they don’t have their own websites for the clients which is a hurdle since consumers cannot approach them directly. The process pf the water dispenses of these companies range in the price range of 40-80 BHD (EXTRA, 2018) which is higher as compared to the package that Best Water filters In Bahrain will be offering. Best Water filters In Bahrain has the price range of 40-50 BHD which is feasible. The company will be making sure that the online purchase comes with the option of installation of the dispensers as well along with the delivery of the package. The boosting of the sales will have a huge impact on the consumers due to this factor.
Best Water filters in Bahrain have a high chance of getting the success that they are aiming to achieve in the market of ecommerce and retail in Bahrain. The major reason is the need of filtered water in Bahrain. The need is increasing so that there is no way that the company is going to get into any loss. The quality of the dispensers has to be premium in order to get the competitors on the ground in the market.
Another factor to consider is the fact the raw material prices of the plastic and resins in the region is considerable cheap as compared to the markets in the Africa and the USA. So it is a better option to stay in Bahrain add get the raw material for the manufacturing at standard process. Besides that, the consumption and demand of the raw plastic in the world had increased in the past few decades.
Online sale of residential water treatment filters , systems, & spare parts is a feasible idea considering the market penetration and the exposure that ecommerce has in the area. The chances of getting a high sale are very evident. The competition of the international brands is a factor but quality can be used to overcome such factors.
The market in Bahrain has been divided into a different segment. One segment is the use of a water filtration systems which is used in houses and domestic applications. This area can be targeted with the help of online promotion of the company product (Abdelbaki, 2016). The second area is the commercial use where industries and chemical plants required water cleaning and wastewater management. This area also serves as an important part of the market was the services of the company can portray the Osmosis plant for the commercial customers.
The customers are from Bahrain. The required water treatment solution. The demographics of Bahrain suggest that there is less purified water present. The most of the raw water is available with the salination source. This water is not fit for the commercial as well as domestic use. The lifestyles and water use also predict that there is a scope of online marketing for the company.
In order to target the Bahrain market with the help of online presence, the segments will be divided for the nature of products (Alalwan, Mandeel, Al-Laith, & Alkhuzai, 2017). For the domestic and household purpose, a group where most of the Bahrain citizen rely on will be targeted with an open introduction of the products with some exciting features and offers. This would hook the customers and allow the products to be sold to Bahrain market. In order to target the commercial segment, the links with vendors and suppliers will be made and the company products will be displayed in the spotlight.
The Bahrain market needs are related to the water treatment systems which can take the load for an industry or commercial unit. It requires that efficient and reliable water systems should be introduced in the market for the customer (Maddigpu, et al., 2018). The needs of Bahrain citizen are affordable water filtration system which higher access to the spare parts and water filters. The analysis of customers shows that a higher percentage has installed the water filtration system in houses and offices. This gives a solid justification that need of water filters and spare parts in this market is increasing with the increase in population.
The Bahrain industry is small. Most of the reverse osmosis plants are imported from Dubai. There are no competitors present in the industry which are providing solutions for the water purification system. The demand is higher but the industry needs more players to develop new machinery and spare parts.
The Bahrain economics have raised the market growth rate, in the preceding years, the market is increasing at the rate of ten percent (El Khanji & Hudson, 2016). This market has created room for the water purifier systems. The main idea of increasing the market size is to allow more advancement for the water filtration. This will also control the economy of the country.
Figure 1 the desalinate share of Bahrain with world market
Figure 2 The share of water purification industry of Bahrain in GDP
This is the share of economic sector in Bahrain for the water purification industry. This shows that how much amount is spent for the water purification for the country.
SWOT analysis is a business tool which is used to assess the internal as well as the external environment of the business (Grant, 2016). The SWOT analysis for this business concept is done in the light of Bahrain as the primary target market
|The main strength of this business is market size. As there are fewer competitors present in the market the business has a vital chance to make a strong impact on the customers. Can we add the only source with NSF certified parts?? Yes||The quality compromise will be a weakness for the company because water purification products always focus on the quality.|
|The new system can be brought into the market. There is room for innovation. The business can also create a strong online presence which can be used for the long-term planning, we can transfer the idea to other countries in GCC||The major threat is the competitors from outside the Bahrain Industry. The supply of spare parts and filter system can be affected with the global activities and crisis The biggest threat is how to change the customer habit to change to online buyer|
This analysis is also linked with a business environment. It targets the country demographics and social and political conditions for the feasibility of the business.
|Political Factors||Economic factors|
|The political factors of Bahrain in relation with the GCC countries won’t affect the long-term planning of the business. This concept will remain an idea in Bahrain.||The economic conditions of Bahrain in terms of water purification industry is good. It is feasible for this business. It will also provide more revenues for the current investment. As long as there are no sweet water sources|
|Technological Factors||Legal Factors|
|The technological factors are related to the RO plants and the type of mechanism which are used for the water filtration system. This would be a perfect idea for promoting the spare parts and membranes to customers And there is no technology in the world other than the RO yet can provide sweet water for residential clients||The legal factors will be related to the standard policies and business rules. As the market is offering space for the water filtration system and its online promotion then the legal factors will be resolved.|
|Social Factors||Environmental Factors|
|The society favors the facilities for reverse osmosis technology. Moreover, the online concept will be accepted in the demographics of Bahrain.||The environment is in full accordance with the business. The idea is to make an online presence. The place and demographics ass towards the business decision.|
Porter five forces model will be an excellent approach in this business context because it highlights some of the main elements which prove important for long-term planning (Almansoori, Al-Khalifa, & Mohamed, 2015).
|Threats of New Entrant’s|
|New entrants will decrease the profitability of the business. Yet there is no competitor present for the business, therefore, the threat is minimized at an absolute level.|
|Threats of Substitutes||Bargaining power of the customer|
|A substitute product for the RO plant or water purification filters can become a threat for this launched business. This can resolve by switching policies and monitor the number of substitutions||This business provides a high degree of bargaining power for the customer. This is because, in the present business concept, the use of online sale and purchase will give an instrumental priority to the customers.|
|Bargaining Power of Suppliers||Industry Rivalry|
|The bargaining power of suppliers in Bahrain will be kept to a minimum level because in this way the business value and revenues will remain feasible||This is a very key point for the business in Bahrain. As the market and industry is small then the company have a competitive advantage over the business rivalry.|
There are five to six different products for the business. Their analysis shows that domestic as well as commercial users will benefit from the products (Dubaifilter.com, 2018). The water treatment filters set and reverse osmosis plant present in three different volumes (50gallon.75 gallon,100gallon) is the strong justification for the customer. Their services are related to providing spare parts and system with the help of online marketing. This is a new concept and it’s proposed to attract more customers.
The target of the business is all the customers which use the purification system. This will include people which rely on water purification system for drinking water, this will also rely on the community which has needed to desalinate water and treat the wastewater from industries.
The market competitors in the form of online utility are not present in the Bahrain Market. Pura Pro is a main competitor for the proposed business. The business will have to face competition from Dubai market players which have been providing RO systems and membranes to Bahrain at a discounted price. Puri Pro is the main competitor for our business. This is the main competitor which is providing reverse osmosis machines on the E- platform.
|FACTOR||My Business||Strength||Weakness||Competitor A||Importance to Customer|
|Products||RO systems, Filters||It is economical||Variation in supply||Puri Pro||Selection of system|
|Price||our price for end user 120-130$||Much better, NSF certified||Can change||2199.00AED||Variety in selection|
|Quality||Good A+ Quality||It follows standards||Specification||Good Not certified||Satisfies there need.|
|Selection||On brand||On users||On user||Comparable||Can justify each requirement|
|Service||NON, can be done with third party||New||No||Not free||No hassle|
|Reliability||Yes||YES||NO weakness||It is reliable||Focus on use of the product|
|Stability||Yes||Yes||It can have after-sales issues||Not given||It is required|
|Expertise||Yes||Yes||No weakness||Yes||It is required|
|Company Reputation||Good||Good||Good||Good||It is required|
|Location||Bahrain||More customers||No||Bahrain||Bahrain to be suitable|
|Appearance||Attractive||Noticeable||Good||It is required|
|Sales Method||Online||Proposed method||Offline|
|Credit Policies||Allow credits||Yes||Yes||Do not||It is required|
|Advertising||Electronic Tools||Yes||Yes||Open source||It is required|
|Image||Good Image||Good||Good||Good||It is required|
The product strategy is an online presence. The product would be sold through the online media tools. There will no connection for the offline marketing. This product is important for water filtration systems.
The pricing strategy will be based on the discounted rate. The competitors are offering 237 $ dollars for the RO systems (Abbaspour, et al., 2015). This product will offer a range between 598 to 600 dollars including installation. Our price 120 – 130, BUT , main product will be the set of filters pp, gac, udf, our price with delivery might be 4.49BD where the big volume should be along with real comparison in previous sectors
The product will be promoted with the groups and channels which have the most connection with the potential customers. In this regard, the spare parts and filters will be displayed in filtration industry groups and markets where buyers meet the customer. And will distribute some brochures and use billboards to advertise, we set a budget of 4000 – 5000$ for the first year to all.
The distribution will be made from the warehouse of the company. When an online order is a place for the spare part of the water filter, then it will be posted to the specific customer.
The sales strategy will be on the online method. The customer will have the preference to save time and select the most appropriate product for their use. The industrial, as well as the domestic customers, will be given the same preference.
The sales forecast will be made in three years. The long-term planning will include the five years planning (Abbaspour, et al., 2015). In this forecast, the estimate for the products and RO systems will be recorded from the present condition of the business. Target is to reach a minimum of 3000-4000 set of filters on yearly basis on third year, and a minimum of 7000-8000 on fifth
The sales programs will be single and there will be no change adopted in this channel. The distinction for the business is due to its online innovation. This will be the key purpose behind the sale program.
Strategic alliances will be made with the retailers which wish to advertise business products to the specific customers. Online sale platforms like Souq.com, noon.com. Amazon and E- bay will the company for strategic alliance
The business wants to reach a top position like Puri (Royal) Company of Dubai. Our business will increase the water filtration plants and system. This business will establish a separate online utility for all the filtration technologies.
This will be a unique strategy for raising the attention of customer towards the business. Emails about price and subscription will be sent to the electronic portals.
This business will make flyers and brochures for the filter and spare parts of water treatment plant. The complete information and discounts will be advertised on social media pages and communicated to Facebook groups (Abdelbaki, 2016). Newspaper ads will also be used for the social media marketing.
The linking strategy for business will be targeting all the modes of marketing and opening up chances for the sale of business products.
Advertising will be carried out to increase the sales. The long and short ads will be directly transferred to electronic media groups. This will increase the rating of products.
The online marketing strategies are enlisted as
- Personal Branding: Personal branding which includes branding the water filtration and RO plants to the market.
- Affiliate and Associate Programs Strategy: This will improve the marketing of your business. It will answer towards the requirement of the product.
- Contest and Giveaways strategy: This strategy will keep the customer interest for the product.
- Super remarketing strategy: This will help you reach towards many potential customers in Bahrain.
The production will be carried out in the separate divisions. These divisions were not located in Bahrain. The advertisement will be made for the business products.
The business location will be Bahrain.
The legal environment is regulated for the foreign entry. This area will be sorted out from the Bahrain water treatment industry (Alalwan, Mandeel, Al-Laith, & Alkhuzai, 2017).
Business suppliers will be the only factory that has certified filters & trusted spare parts in Taiwan , . They can also provide a primary asset to this business.
There will be two employers present in the company. One will post and follow orders for the business products. The second will have a duty of storekeeper in the company.
The organization structure is proposed at the beginning. This will remain as the first the first priority. It will be a one-man role and will progress.
The start-up investment for the business is 25000-30000$. It would be more than the required cost. The sales will be forecasted in Bahrain.
The projected profit will be money accounted from the initial investment. The business should make about 20 to 25 percent profit from the sales of products. The business profit and loss are assumed from the profit and loss analysis. The initial investment is planned to be in the range of 30000 dollars. The cost for the spare parts will rise as the projected cost will increase up to the factor of ten percent. The profit and loss are accounted as the earning for the business will be estimated as two million for the one significant year. The annual contribution will be also in good amount. The operating expense will be higher for the business. There is a profit present for about thirty to forty thousand US dollars.
We couldn’t base the all below numbers on any solid source, can you clarify? Please try to send me excel sheet that I can fill to show real figures please?
|Projected Cash Flow|
|Cash Inflows||Year 1||Year 2||Year 3|
|Cash from operations||40000||70000||100000|
|cash from receivable||27752||52768||87820|
|Operating Cash Inflow||67,752||122,768||187,820|
|Other Cash Inflows|
|Sales of Business Assets||5000||6000||10000|
|Increases of A/P||2000||3000||5000|
|Total Other Cash Inflows||16000||21000||29000|
|Total Cash inflows from operations and others||83,752||143,768||216,820|
|Sales and Marketing and other Expenses||5000||3500||3000|
|Web site development and management||5000||500||500|
|Total Cash Outflows||22250||26250||28170|
|Net Cash flow||61,502||117,518||188,650|
|Projected Income Statement|
|Periods||Year1||Year 2||Year 3|
|Sales and Marketing and other Expenses||5000||3500||3500|
|Web site development and management||5000||500||500|
|Projected Income Statement|
|Periods||Year1||Year 2||Year 3|
|Sales and Marketing and other Expenses||5000||3500||3500|
|Web site development and management||5000||500||500|
|Projected Balance Sheet|
|Years||Year 1||Year 2||Year3|
|Current Assets Others||2000||3000||4000|
|Total Current Assets||43000||69000||75000|
|Long Run Assets||4000||6000||6000|
|Total Long Run Assets||3000||5000||5000|
|Liabilities & Capital||14000||29000||15000|
|Total Current Liabilities||22000||9000||25000|
|Long Term Liabilities||5000||7000||9000|
|Paid In Capital||10000||10000||10000|
|Total Liabilities and Capital||46000||74000||80000|
Cash flows will be regarded as employee figures. This figure is accounted towards 10000$. The startup expense for the filters and little parts of the water filtration will cost more. The delivery charges would also be an additional cost to the business (Dubaifilter.com, 2018). Therefore, the cash flows will be higher than the initial investment. If must be in between 40 to 50 thousand US dollars.
The projected amount is closer to approximation for the real budgeted figures. First is the initial amount of the project. Second is the area where expense will account. First of the expense will the employee which will count as 10000 dollars. The expenses for the transport and spare parts will also will be a liability for the project. The project has 1.9 factor for liquidity. The supply will account for 1500 Us dollars.
This will be based on the data of sales
It would be made with the help of a team of experts for quality assurance
This would be made from the analysis of risky area for the business
Bahrain environment will be studied for any changes in the business plan.