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Bottled Water Distribution Business Plan [Sample Template]

Are you about starting a water distribution company? If YES, here is a complete sample water distribution business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a water distribution business. We also took it further by analyzing and drafting a sample water distribution business marketing plan template backed up by actionable guerrilla marketing ideas for water distribution businesses. So let’s proceed to the business planning section.

A bottled water distribution business is one business that can cause an innovative entrepreneur to become very wealthy as it is one sure business that is very lucrative.

The demand for bottled water by consumers in the united states of America rose from the distrust of tap water due to the belief that chemical pollution even though in minute quantities from industrial and agricultural sources, has found its way to the water table.

Starting this kind of business will require the entrepreneur to decide if he wants to run the business like a franchise or as a fresh start-up and then have either one location or a series of locations.

Starting this kind of business would require the services of someone who is an expert and has adequate knowledge as regards the business, its industry and the environment you intend operating from. Such a person is usually a business consultant, who looks through your business concept and decides if the bottled water distribution business you intend going into is worth the efforts you intend putting into it – financially and otherwise.

Another important aspect that would need to be looked into is having a comprehensive business plan. The bottled water distribution business is one that is very competitive and as such would require great planning especially if you do not want the business to fail even before it has started.

While it might not however be easy to write a business plan, there are several options available such as hiring a business plan writer to write out a comprehensive business plan for you or going online to get free bottled water business plan templates to use as an aid in writing yours. Below is a sample bottled water distribution business plan template for you.

A Sample Bottled Water Distribution Business Plan Template

1. Industry Overview

Consumption of bottled water has risen tremendously globally over the last decade and is bound to continue to rise according to research.

Bottled water have been known to be packaged in plastic or glass bottles and further categorization shows that bottled water that are sold are either regarded as still or sparkling. The sales volume of bottled water globally in liters is 181,608ml, with the value for U.S products standing at $6.61 billion.

The bottled water industry is growing at a very fast pace of between 8 and 10 percent annually, twice faster than that of other beverages.

As at 2003, the bottled water industry in the United States of America became the second largest commercial beverage in volume, surprisingly surpassing milk, coffee and beer. Bottled water is closely following behind carbonated soft drinks.

Even though there has been a rise in the consumption of bottled water globally, the slowest growth has been in Europe, while other continents like Asia and South America have seen a faster growth.

North America however stands ahead of the pack in bottled water consumption, with more Americans taking more bottled water than they would take milk or beer as 9 billion gallons of water was consumed as at 2008, making it an average of 30 gallons of water per person.

In certain parts of the United States of America, such as in California, a gallon of tap water costs 560 times more than a gallon of bottled water.

This is part of the strategy for bottled water manufacturers, who through advertising made bottled water more preferable for customers, thereby increasing its demand. This is however ironic as 48% of the bottled water manufactured in 2009 according to a report by Food and Water Watch, came from tap water.

The reason why there has been a surge for bottled water by consumers is due to the fact that most fear tap water even though on a state and federal level, tap water has been deemed 90 percent safe, a level higher than that accorded bottled water. Also, the bottled water industry although passes through regulations has more lenient rules than that of tap water.

Only 12 percent of the 30 billion bottled waters sold in the United States as at 2005 were recycled, which left close to 25 billion bottles to litter, landfill or be incinerated. The major reason is that recycled plastics can only be re-used in non-food products. This is worrisome especially as producing bottles for water yearly requires 17 million barrels of oil.

Even though the North Americans are leading the pack as regards bottled water global consumption, China has become number two, closely following behind. According to Zenith International, China which drank nearly eight billion liters of water in 2000; drank close to twenty one billion liters in 2009.

As at 2011, the global forecast in profits for the bottled water industry stood at $86 billion. This included waters such as sparkling unflavored water, sparkling flavored water, still unflavored water and still flavored water.

2. Executive Summary

Clear Gush Bottled Water Inc is a standard bottled water distribution business that is located in San Diego – California here in the United States of America in order to cater to all our various customers – domestically and business wise.

We intend to distribute a variety of bottled water – still flavored and unflavored bottled water, sparkling flavored and unflavored bottled water, mint flavored bottled water and fruit flavored bottled water. We however intend to offer other services in addition such as selling our franchise and consultancy services.

Our intention of starting Clear Gush Bottled Water Inc is to not only generate revenue and maximize profit but to also compete favorably against other leading bottled water businesses here in San Diego and the industry at large. In order to achieve this, we have laid down strategies and goals that will allow us always be ahead of our competitors.

Our bottled water distribution business is one that is strategically located and as such is very convenient for our customers and employees to get to. We have in place the best equipment and software that will allow us give the best service to our various customers, as we intend to ensure that we retain a high percentage of our customers.

We have purchased two bottled water distribution trucks that will deliver our products to all the varying customers that we have acquired. Our trucks are always in the best of conditions as we carry out maintenance checks before and after each trip. This is to ensure that there is no delay whatsoever for our various customers wherever they might be.

We understand the importance of a solid business structure and as such we are willing to go the extra mile to ensure that we get the finest professionals to work with us here at Clear Gush Bottled Water Inc. We are also going for professionals who are not only competent but understand our values and objectives as a company and are willing to ensure that they help us attain these goals.

We have gathered the best management team to help us build our company. We are proud to say that the various experiences that each member of the management team brings will ensure that our business becomes a force to be reckoned with not only here in San Diego but all over the industry here in the United States of America and even globally.

Our employees are important to us and we will ensure that they work in an environment that is conducive and easily accessible.

We will also ensure that we pay our employees very well and offer them other welfare and incentive packages that is better than what they are likely to get working for start-up competitors such as ours here in California. The reason we are paying our employees better is so as to keep them motivated and productive, thereby bringing immense benefits to the company.

Finally, Clear Gush Bottled Water is established and run by our Chief Executive Officer, Mr. Ralia Odinga, who has a degree in Food Science Technology and several other certifications that are peculiar to the bottled water industry. Mr. Odinga has had several management stints in this industry and in various other companies and therefore will be bringing his experience to bear in order to ensure that the company attains its goals and objectives.

3. Our Products and Services

Gush Clear Bottled Water Inc intends to deal in the most popular varieties of bottled water for all our various customers either domestic or businesses from our permanent location here in San Diego – California.

However, because we intend to boost our revenue base and make our bottom line more solid, we will be engaging in activities that will generate more sources of income for us. Our intention is purely to make as much profit as we can to sustain our business as is within our ambition and permissible under the laws of the United States of America.

Below therefore are some of the products and services that we intend offering;

  • Different varieties of bottled water (still flavored and unflavored bottled water, sparkling flavored and unflavored bottled water, mint flavored bottled water and fruit flavored bottled water)
  • Franchise
  • Consultancy and Advisory Services

4. Our Mission and Vision Statement

  • Our vision as a business is to ensure that we adhere to international best practices in our bottled water distribution business. We intend to be known nationally for our quality products and to become the top 5 leading bottled water distribution business all over the United States of America by our 5th year in business.
  • To enable us achieve our vision, we have laid down plans, structures and processes in place that will allow us not only compete favorably against our competitors but allow us stand out in the industry, therefore becoming a force to be reckoned with.

Our Business Structure

Building the right business structure is very important to us and we intend to make sure that we get it right from the beginning by doing all we can to employ the best hands that are not only capable but have relevant experience to handle the various positions in our company and the  responsibilities that would come with these positions.

Our management team has the best brains in the industry who not only understand the business thoroughly but have workable ideas on how best to ensure that we attain the intended heights we want for our business. Our management team is also one that believes fully in our objectives and will ensure that not only are our philosophies communicated to the lower end staff but that they are implemented as well.

Because we intend to offer other services in addition to our core service, we will not be hiring the same number of employees as those companies just into bottled water distribution alone. The various employees that we intend to employ are those that will handle all the various tasks and responsibilities with as little supervision as is necessary here at Clear Gush Bottled Water Inc.

Therefore the business structure that we intend to build at Clear Gush Bottled Water Inc;

  • Chief Executive Officer
  • Facility Manager
  • Human Resources and Admin Manager
  • Logistics Manager
  • Accountant/Cashier
  • Marketing and Sales Team
  • Customer Service Executives
  • Security Guard
  • Cleaner
  • Truck Driver

5. Job Roles and Responsibilities

Chief Executive Officer

  • Makes strategic decisions and policies that will affect the direction and growth of the company
  • Recruits, selects and employs the management team and delegates responsibilities to them
  • Ensures that the organizational vision is not only clearly communicated but also implemented as well

Facility Manager

  • Manages the facility on behalf of the company
  • Carries out inspection on the facility and effects maintenance and repairs when and where necessary
  • Ensures that the facility remains conducive at all times for employees

Human Resources and Admin Manager

  • In charge of ensuring that all the administrative functions of the company flow smoothly
  • Sources for, interviews and recruits the right employees that will further enhance the goals and objectives of the company
  • Conducts periodic employee performance appraisals in order to determine those employees who are working hard to further the goals of the company and reward them via promotion and incentives

Logistics Manager

  • In charge of determining the right routes that will be used by drivers in getting to customers
  • Takes orders from customer service executives and determine how best to ensure that they are duly delivered
  • Ensures the smooth functioning of the delivery of products


  • Prepares financial information, budgets, statements and reports on behalf of the company
  • In charge of internal auditing as well as employee payroll
  • Prepares tax documents and ensures that they are submitted to the right authorities

Marketing and Sales Team

  • Conducts market research in order to determine new target markets for the company
  • Drafts effective marketing strategies to be used in generating revenue for the company
  • Meets and negotiates with clients in order to meet up with the corporate sales goals of the company

Customer Service Executives

  • Answers inquiries, gives information and takes orders from customers on behalf of the company
  • Remains updated about company policies as well as industry trends in order to be able to give accurate information to customers
  • Keeps an updated but accurate customer database on behalf of the company

Security Guard

  • Ensures that the premises remains free of trespassers by carrying at patrols around the premises at certain appointed times
  • Monitors incoming and outgoing products and personnel and reports any suspicious activities
  • Carries out any other duties as might be assigned by the management


  • Ensures that the premises remains clean at all times for clients and employees
  • Ensures that cleaning supplies are always in stock
  • Carries out any other duties as assigned by the management

Truck Driver

  • Ensures that the correct number of bottled water are loaded and offloaded in line with documentation
  • Uses the best routes that is reliable as well as fast while obeying traffic rules and regulations to ensure that customers get their products on time
  • Carries out light maintenance on the truck and report major faults to the management

6. SWOT Analysis

Due to our desire to run a business that is not only of high standard but that will remain sustained for as long as we want, we engaged the services of a reputable business consultant here in San Diego – California who has a thorough knowledge of the business we intend going into to look through our business concept and determine if this is the business we are likely to succeed or fail at.

The business consultant having looked through our business concept carried out an analysis that identified our strengths and weaknesses, looked at what opportunities are available to us and also what threats we were likely to face when starting this business here in San Diego – California.

Therefore, below is a of the SWOT analysis that was conducted to show how Clear Gush Bottled Water Inc was likely to fare when starting this business;

  • Strengths

The strengths that we possess going forward is the fact that we are offering our various customers exactly the kind of bottled water they would prefer. The accuracy in anticipating the needs of our customers came from the market research that we conducted that allowed us have a clear picture of what our customers want.

Our employees are those that are very competent and capable; they understand the business and know what needs to be done to ensure that we attain all our goals and objectives. Also, our customers receive excellent care from us thereby not only allowing us to have a valuable relationship with them but also allow us retain a large percentage of our customers.

Finally our Chief Executive Officer, Mr. Ralia Odinga is one with more than 15 years experience in the bottled water industry having worked in managerial capacities in several companies. He therefore knows what it takes to ensure that we attain all our intended goals and objectives.

  • Weaknesses

As a new business, we have several weaknesses. We do not have the financial strength as an already established bottled water distribution company, neither do we have the staff strength that will see us quickly attaining all our goals and objectives. We have however put plans in place that will work on our weaknesses and allow them become our strength.

  • Opportunities

More people understand the convenience of taking bottled water and as such there are several opportunities open to us especially in third world countries where there are several countries where their citizens cannot get access to clean drinking water.

  • Threats

Just like any other business, there are several threats that we face as a business and these threats are; having to deal with a strong competitor offering same services as our company.

Also, more people are turning to tap water as a substitute, because of the knowledge that tap water isn’t as bad as previously claimed. Another threat we would face is stringent governmental policies for players in the bottled water industry.


  • Market Trends

The bottled water industry in the United States of America is one that has seen great innovation, high profit margins, fierce competitions and marketing promotions that are wide-spread.

The bottled water industry has continued to meet high consumer demands with different niches springing up and offering different varieties of bottled water such as still and sparkling, flavored and unflavored. This has seen the industry as at 2005 in the United States of America, have revenues that have reached $14.9 billion.

The various trends in the bottled water industry have included factors such as new product development, innovative and wide spread marketing efforts, packaging efforts and the emergence of new industries making forays into bottled water.

A cause for industry decline is likely to come from more customers increasing their knowledge about the origins of tap and bottled water.

Even though there are different arrays of bottled water products such as; bottled mineral water, purified water, spring water, distilled water, sparkling water, calcium enhanced water, artesian well water, fluoridated water, protein enhanced water, hyper-caffeinated water, mint flavored water, hydrating water, vitamin infused water, fruit flavored water, super  oxygenated water and cosmeceutical water; the leading source of revenue in the industry has always been the  unflavored water, which generates more than 88 percent of the total market share.

8. Our Target Market

Even though it is apparent that more than half of all Americans drink bottled water, it is not a given that we should base our target market on that without carrying out our own market research.

The market research we intend to conduct on our likely target customers will allow us understand those we intend to focus on and how best to draft the right marketing strategies that would allow us have a huge share of the overall market.

According to our market research, those that earned an income of $60,000 and above annually are more likely to be regular purchasers of bottled water. According to our demographics, women drink more bottled water especially the Millenials.

We therefore are in business here in San Diego – California to engage in wholesale and retail distribution of our bottled water to the following groups of people;

  • Women
  • Men
  • Corporate Executives
  • Households
  • Restaurants
  • Hotels
  • Grocery stores
  • Supermarkets
  • Hospitals
  • Financial institutions

Our competitive advantage

Asides from the fact that we have established a business that is intended to make profit, another reason is that we intend to ensure that our bottled water company is recognized nationally and is one of the preferred brands for our various customers, thereby allowing us to stand out and compete favorably against our competitors, not only here in San Diego – California or even all over the United States of America but also globally as well.

With this in mind therefore, we have deliberately chosen several competitive strategies that will allow us compete favorably against our competitors.

First off, we are strategically located in the city of San Diego – California, which makes it very easy for our customers to get to us, allowing us therefore generate more sales than our competitors in other nearby locations. Also, our facility is one that is very conducive for our employees.

We have in our management team people with vast experience and who have the understanding of how best to ensure that our business becomes one that is a force to reckon with.  Everyone in our company sees themselves as  stakeholders and therefore takes all our customers very seriously by imbibing an excellent customer service culture that will see us retaining a large percentage of our customers.

Finally, our employees are well paid and have the best welfare and incentive packages which beat what other start-ups similar to ours are offering their employees. We understand that ensuring that our employees work in a conducive environment and also that they are well paid will allow them work hard and remain committed to ensuring that our corporate goals and objectives are attained.


  • Sources of Income

Clear Gush Bottled Water Inc is a bottled water distribution company that has been established with the intentions of generating revenue and maximizing profit in the bottled water industry here in the United States of America by distributing bottled water to all its various customers both domestic and businesses.

We therefore intend to generate income for Clear Gush Bottled Water Inc by engaging in the following services;

  • Different varieties of bottled water (still flavored and unflavored bottled water, sparkling flavored and unflavored bottled water, mint flavored bottled water and fruit flavored bottled water)
  • Franchise
  • Consultancy and Advisory Services

10. Sales Forecast

Bottled water has come to be very popular and taken by almost everyone in the United States of America due to various reasons, which means that there will always be a high demand for bottled water.

According to research, San Diego is the city that has the highest number of people who purchase bottled water. This makes our location to be one that is very strategic and we are quite optimistic that we will not only generate enough revenue here at our location but that we will make enough profit within the first year of business.

In order for us to be able to arrive at the right forecast for our business, we carried out a market analysis of the bottled water industry so as to analyze our chances of making the intended profit within the first year of business. The sales forecast we came up with is dependent on several assumptions and data that was gathered from similar businesses such as ours here in San Diego – California.

Below therefore are the sales projections that was conducted on behalf of Clear Gush Bottled Water Inc based on certain assumptions and data;

  • First Fiscal Year-: $700,000
  • Second Fiscal Year-: $1,300,000
  • Third Fiscal Year-: $2,500,000

N.B: It should be noted that the above sales projections were carried out based on what is obtainable in the bottled water industry and on the assumptions that more people won’t turn to alternatives (tap water) and that also there won’t be an arrival of a competitor within the stated period by which we have laid out our projections. The above amount might be lower or higher should there be any change in the assumptions used.

  • Marketing Strategy and Sales Strategy

Marketing is a very important part of any business because it is an avenue for not only generating money but also raising the needed awareness for the business. Any serious entrepreneur usually sets aside an amount separately for marketing so that there won’t be any hindrances regarding the marketing campaigns for the business.

In view of this, we have endeavored to conduct a market research that will allow us understand who our target market is and how best to penetrate the market so that we can position our business to become leaders in the industry. Our market research made use of vital information and data that we garnered from similar businesses such as ours especially those already established and seemingly successful.

In order for us to craft strategies that will not only allow us gain a huge share of the market but also be able to compete favorably against our competitors, we hired the services of a reputable marketing consultant who not only understands the market but have had a fair share of success in helping companies such as ours be able to reach their corporate goals.

We have also empowered our sales and marketing team to ensure that the marketing strategies drafted for our business are very effective and will ensure that we are able to achieve our corporate sales goals. In summary, Clear Gush Bottled Water Inc intends to adopt the following strategies to sell its bottled water;

  • Open our bottled water distribution company with a unique party that will generate interest and raise the right awareness for our business.
  • Introduce our bottled water distribution business to various industry stakeholders not only here in San Diego – California but also all over the United States of America.
  • Place adverts in local and national newspapers as well as on radio and television stations.
  • Ensure that our business is listed in online directories and in yellow pages.
  • Empower our sales and marketing team to engage in direct marketing and sales.
  • Place adverts in popular websites and blogs in order to generate more sales for our business.

11. Publicity and Advertising Strategy

Having the right publicity and advertising strategies is very important for any business that wants to exist and sustain itself in whatever industry it starts in; and so, we intend to go all out to ensure that we publicize our bottled water distribution business to all those in our target market.

To this aim, we have hired the services of a reputable brand consultant based here in San Diego, who has a thorough understanding of the industry to help draft publicity and advertising strategies that will ensure that we gain a large share of the target market.

The platforms that we therefore intend to use in publicizing our bottled water distribution business are;

  • Use our website and social media platforms such as Facebook, Twitter and Linkedin to vigorously promote our bottled water distribution business.
  • Engage in and sponsor relevant community programs.
  • Ensure that we place adverts in newspapers and magazines as well as on radio and television stations.
  • Place bill boards in strategic locations all around California.
  • Distribute handbills and fliers in various strategic locations.
  • Ensure that we use colours and a logo that stand out for our distribution trucks.

12. Our Pricing Strategy

There are several factors that come into play when deciding what price to set for your products, and ours is no different. We will take several factors into consideration in determining what prices we will set for our products. The factors we would consider are; overhead costs, running costs, utility costs and what our competitors are offering.

In order however to attract more customers to our business, we intend to offer our customers a discount in the first three months of starting our business. After a thorough evaluation of this method, we are convinced that even though we might be making less profits, we would not be running totally at a loss.

  • Payment Options

Due to the fact that we intend to offer various services to our different customers, we have rolled out various payment options that would suit their preferences and tastes. Therefore, below are the payment options that we intend to make available to all our various customers here at Clear Gush Bottled Water Inc;

  • Payment by cash
  • Payment via Point of Sale (POS) Machine
  • Payment via check
  • Payment via Credit Card
  • Payment via online payment portal
  • Payment via bank draft

The above payment options were carefully chosen by us because we know that not only will it be convenient for our customers but for our business as well. The payment options that we have chosen will work smoothly to help us further attain our corporate goals.

13. Startup Expenditure (Budget)

The bottled water distribution business is one that is a bit capital intensive especially if one expects to run a standard business.

The start-up capital for our business will be spent on procuring delivery trucks, paying the salaries of employees for at least 6 months and also leasing and renovating a facility for use. Therefore the key areas where we intend to spend our start-up capital on are;

  • Total fee for registering the business in the United States of America – $750
  • Obtaining of licenses and permits, obtaining of accounting and customer database software as well as other legal expenses – $3,250
  • Cost of hiring a business consultant – $3,000
  • Insurance coverage (general liability, workers’ compensation and property liability) – $3,000
  • Marketing promotion expenses for the grand opening of Clear Gush Bottled Water Inc as well as for general marketing activities – $4,000
  • Cost of leasing a facility for at least 4 years and carrying out renovations – $150,000
  • Operational expenses for the first 6 months (salaries of employees and payment of utility bills) – $150,000
  • Cost of start-up inventory (raw materials, bottles and packaging labels) – $90,000
  • Administrative expenses (stationeries, computers, printers, phones) – $10,000
  • Storage hardware (racks and shelves) – $3,000
  • Cost of purchasing at least two delivery trucks – $100,000
  • Cost of launching a website – $500
  • Cost of throwing a grand opening party – $5,000
  • Miscellaneous – $7,500

N.B: From the above analysis, we would require an amount of $530,000 in order to successfully start and run our bottled water distribution business here in San Diego – California. The above capital will be used in procuring two delivery trucks, leasing a facility for a period of 4 years as well as paying the salaries of employees for at least 6 months.

Generating Funding/Startup Capital for Clear Gush Bottled Water Business

Clear Gush Bottled Water Inc is a business that is fully owned by and run by Mr. Ralia Odinga, a prominent business man and entrepreneur. Mr. Odinga is not looking for any external partner and as such has decided to limit the sourcing of his capital.

The major areas where we therefore intend to source for capital for our business is;

  • Generate 40% of the start-up capital from sale of stocks and personal property
  • Generate 60% from the commercial bank

N.B: We were able to generate the sum of $212,000 from the sale of Mr. Odinga’s stocks and personal property. We are at the final stages of obtaining the sum of $318,000 from the bank, to be repaid in 10 years at the rate of 4%. All documents and approving documents have been signed and we have been told that the amount will be credited to our business account by the end of the month.

14. Sustainability and Expansion Strategy

In order for a business to survive and expand, there are certain factors that it would need to take into consideration. Such factors are the business structure, its publicity strategies as well as its re-investment strategies.

Because we understand that a solid business structure allows for a smooth running of the business, we have endeavored to go the extra mile in ensuring that we get the right employees to handle the various positions in our business.

Our employees are not only capable and competent; they have the experience to ensure that our business becomes a force to be reckoned with nationally.

We know how vital publicity is to our business and due to this, we intend to draft the right publicity strategies that would communicate our brand positively to our customers and stakeholders. We have hired the services of a reputable brand consultant to help us draft effective publicity strategies that will allow us to favorably compete against our competitors.

So that we will not continually source for funds externally, we have set forth plans and processes that will ensure that we retain a percentage of our earnings right back into the business. This way we would be able to boost our bottom line and even repay our loans within the set period.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting feasibility studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party/launching party planning: In Progress
  • Establishing business relationship with vendors – wholesale suppliers/merchants: In Progress
  • Purchase of trucks: Completed