Reed - The Inquisitor

Lemons Ville California

Descriptive report on the Demand forecast for sale of Lemonade. (Prices are in CENTS)

Day 1 – The day started with $2 in hand. We decided to go for 20 glasses as the day was sunny. So,
anyhow people will come to extinguish their thirst hence no ad required. Price per glass kept at 4
based on the current asset we have so got a profit of $.40.

Day 2 – As the day passed, we just increased the price/glass to 5. As a demand forecasted all the
glasses produced were sold. Therefore, earned a profit of $.60.

Day 3 – As due the less traffic on the route the production was cut down by 14 i.e. to 6. As there was
no traffic so no one will see the ad. Hence, no ad showed. Thus, it was a calculated risk so the
demand was successful giving a profit of $.12.

Day 4 – Since the profit on day 3 increased we decided to increase the production to 8. Also,
decreased the price/glass to 5. Thus, again the decision was right giving a complete full-house selling
and luring us with profit of $.08.

Day 5 & 6 – Again the day was sunny and the route will be busy so increased the production to 20
and 30 respectively (Initial production). Due to the busy route no ad is required as anyhow the
people will stop to quench their thirst. This in turn gave us the profit of $.8 and $1.2 respectively.

Day 7 – As at the end of the week again the traffic would have been predicted as less over the route
so we forecasted to produce no ads and also to cut down the production to 8. Thus, the sales were
100% fetching us a profit $.40.

Day 8 – Week started with a Sunshine and we knew as per our PRIOR EXPERINCES we produced 35
glasses and priced them at 10 as the production cost was 5. Even then we were able to sell only 30
since observed a 14.2 % decline in sales to production. But still managed to pull out a profit of 1.25.

Day 9 – Again the traffic was predicted to be low on the route. So, with current assets of 6.85
decided to put a 1 ad to attract more people and hence the strategy worked well to pull out $.25.

Day 10 – It was a sunny day so decided not to put an ad as pull marketing strategy to draw more
customers for the Californian Lemonade.

Day 11 – Since the whole city was struck with the heat wave and most people will be indoors. So, we
had no ad signs and also the production was kept low and 100% sales were done.

Day 12 – It was overcast of a rainy day so putting an ad will be foolish. But, we were still able to
manage out the sales due to less price of 8 when it costed us 5 which in turn fetching us a profit of
$.45.

Day 13 – It was Sunny day again and our sales were 100% as our demand forecasted.

Day 14 – On a consecutive sunny day we thought to increase our sales more but still wanted to play
safe so produced same no. of 30 glasses. Also, as we were in surplus of current assets we decided to
give 1 ad sign. Resulting in a decline of 3.3% of sales yet the profits were $1.83.

Day 15 – It was a forecast of 60% precipitation. So, reduced the production to 8 which in turn gave
us only $.07 profits as the cost of production was 5 per glass and that of sales were 7.
Day 16 & 17 – As of now we are running with high assets we decided to use Push strategy for the
market to pull out more demand through more Ads. Thus resulting us a profit of 3.48 in total.

Day 18 – On this day we were able to pull out the profit of $1.59 because of spending on ad.

Day 19 & 20 - Being the sunshine we were able to pull out profit of 1.7 and 1.95 respectivley as
people were now known about us.

Day 21 – It was a rainy day so our profit went down to $.7.I think we should not have spent on Ad
that much our prediction gone a bit down.

Day 22 - Again due to sunny day the history repeated itself for 100% sales. Thus, generating the total
current assets worth $23.31.

Summary

From the above pattern it is evident that sales were low on extreme weather conditions such as
rainy day and heat wave and sunny day fetched us the main proportion of profits. Thus sharp
increase in our profit to $23.31.