Case Narrative

Quarter 1 Mike Kruvalis

Quarter one decisions started out with name and logo choice for the company. The team knew
that they wanted to create a name and logo that could stand out amongst the competitors. After
collaborating, and brain storming various ideas the team came up with an efficient brand. The
company would be named Rejuvenate with a logo of arrows pointing upward. The image
displayed below is the company logo. The meaning behind the logo is that when drinking
Rejuvenate energy levels will increase, keeping you active for hours. The Rejuvenate teams
consists of five members: Lindsay Pegoraro, Matt Conforti, Tom Johlie, Nick DiNardo and Mike
Kruvalis. In addition to these five members is McKennah Lloyd who was added in later as a part
of the simulation. Nick and McKennah are both independent students which means that they are
not enrolled in the class, but they are part in the decision making process.
Rejuvenate has five primary competitors: Fear Fuel, Fit Fuel, On it, Zing and Zeus. These five
competitors offer very similar products as our own, but what makes Rejuvenate different from
the rest is out dedication to our customers, and our ability to provide a quality drink, both taste
and health.
When the quarter started the team did not understand how the simulation worked, this was our
first experience working with something like this, thus it was a learning process. Quarter one was
the longest, we were given extra time to understand how the simulation was run. Our team had to
establish goals, long term and short.
Quarter one was a period of trial and error for our team at Rejuvenate. This marked the
beginning of out production, where we were only left with speculation to make out decisions.
Nonetheless, we were very confident in our teams ability to work well together in each of our
own functions as a whole. In doing so we first defined the strategy we would be focusing on to
best fit our company. Primarily, Rejuvenate wanted to act as a socially responsible business,
using ethics first to solve our problems.
We used the teams strategy journal to work together in defining the key aspects of what our
company wishes to offer to the marker, how we can facilitate our goals, and what market we will
be attempting to attract to, focusing on generating sales. The strategy journal was the teams
method of keeping in communication with one another, making sure that everyone was on the
same page as one another. Our overall objective for the first quarter of business was to quickly
create a sense of brand equity in the market. We felt that because of our care for our customers
and sense of social responsibility, we should model our product around the concept of care and
trust. These qualities are commonly found in many other well-known brands. Because we will
always strive to act ethically, we also understand that the company will incur more expenses.
Therefore, we chose to define our pricing standards as above average Rejuvenate is a premium
product, that is attracted to a buyers market between raining anywhere between 13- 45. With
these added expenses, we know we will have to price our items at least a little higher than our
competitors in order to recover our funds. Again, for this reason we chose to stress the concept of
brand equity in our business model in hopes that it would reach the public and they would gain

confidence in the Rejuvenate name. We stress the importance of both health and taste quality.
Due to no previous sales history, we left to media research and confiding in our market research
team to give us an estimate of consumer demand for a new product entering the market. We
know that energy drinks a quite popular, especially in city environment. However, our pricing
was also taking into consideration when determining the amount, we should produce. Because of
this, our team decided to define our desired production numbers to be at average. In effort to give
our customer base a reason to instill brand equity in our product and justify paying a higher
price, the Rejuvenate team decided to place a heavy emphasis on the taste and health research
and development. Our goal is to be able to offer what we can confidently say is the best product
for our customer. Rejuvenate created three different flavors to meet the demands of the growing
consume market. Citrus, Fruit Punch and Blueberry are offered to the customers, to give them
variety. Therefore, we must make the investment into our product to establish a high quality
product. As stated previously, we wanted to make out overall focus on creating a strong sense of
brand equity in the market. Therefore, we also decided to place an emphasis on proper
advertising and marketing. Rejuvenate advertises in four different ways: television, radio,
sponsorship and internet. In order for our product to gain a solid name in the market, it must first
be successfully presented to consumers.
With all of these standards and ideas in place we then began to identify our target audience. We
would like to introduce our product to a population that believes price is not everything, but is
still fairly important. We believe that quality is more important than quantity. In our first month
of production we cannot change our pricing very much so we would still like to catch the
attention of those who might be on the fence about buying our product in later periods when we
are able to increase our prices and maximize a cash inflow that will help improve our product.
Next, we defined that we would like to cater to consumers who are very aware of brand. We want
to appreciate the consumers that we have, while attract new customers each day. We believe that
these people can act as the foundation in creating the premiere name in the market that we would
like to establish. These individuals will be able to recognize a superior brand and will mostly like
act in some way that will encourage other to try Rejuvenate. Word of mouth is the best method of
transferring news quickly between different communities. We also want to cater to a group of
consumers that places an importance on taste. The first thing that all consumers will experience
for any new beverage will be the taste of it. We believe that catering to these people with what
we believe will be the best tasting product on market will be the quickest way to shift the
attention of the market towards our product. From this we will be able to expand these
consumers appreciation for our product by informing them of the health benefits they receive
when selecting our product over others in the market. And here we reach the final focus we have
in our target audience, and that is the importance of health. Similar to taste, we believe that
capturing these people will work to build a sense of brand equity in the market because
consumers will be able to recognize the social responsibility felt by all of the Rejuvenate team.
This recognize will hopefully incite a sense of appreciation and trust in our brand.
Our manufacturing was eventually set at 50,000 units after many different attempts at forecasting
our sales for the quarter. Each unit was fairly cheap to manufacture, costing a total of 30 cents
per unit, 25 cents to manufacture the product, and five cents to transport the product to our
various distributors. Since each unit cost 30 cents to produce, manufacturing costs were 15,000
dollars. These units would be sold at a price of $4.00 per unit, available at local retails like

Walmart, Walgreens, and other local drug stores. For Quarter one there was no discount applied
to the product.

Quarter 2- Mike Kruvalis

Quarter two started off again by addressing our strategy journal and discussing all of the
particulars. Our previous concept of creating brand equity in the market was not as successful as
we planned to be. We decided that we should continue to set this as our goal for quarter two as
well though. Some areas we examined due to failure was the effectiveness of our advertising and
our investments into promotion. With the market still very new, we believe that creating a strong
sense of brand equity will be the best way to ensure long-run success in Cincinnati. With more
freedom in our ability to play with pricing, further discussion was possible. In junction with our
ethical ideals and wish of a premier product name, the group chose to set our pricing standards
above the rest of the market. Our product will strive to be the most quality energy drink and to
offset the research and development costs we must sell at a higher price. When viewing our
standards for manufacturing quantity we followed the previous model. We know that the market
is still new and we are selling an item that is a bit pricier than its competitors. Therefore, we
chose to focus on planning for average manufacturing quantities. Our focus into research and
development strategies for this quarter would also remain consistent with the previous. Due to
our goal of a premier product, our product management team set investment standards for taste at
above average and for health at high. Going along with this quarters objective of establishing
brand equity in Cincinnati, our marketing team set their standards for marketing and brand equity
investments at high. A company-wide agreement for a high level of ethics was also stressed in
strategizing for this quarter. We believe quite confidently that this will be a decision made for
every quarter in Rejuvenates future. Our Director of Product Management, Lindsay Pegoraro,
and Director of Marketing and Communications, McKennah Lloyd, worked together to define
the best strategy of product development and to what target audience Rejuvenate will be aiming
to reach out to. Firstly, the pricing preferences were set at fairly important. Although we
recognize that Rejuvenate will be sold at a higher price than most if not all competitors, we
strongly believe that our prices will not be unreasonable. Next, brand preferences for a target
audience were set at very high. Rejuvenate will rely heavily on a strong and consistent group of
customers, especially in early stages of company development. In order to progress into a
substantial name in the Cincinnati market, our customers will need to want to buy our product
because they are buying into the Rejuvenate name. In somewhat of a joint effort for this business
model, our team also decided to market our product to a target audience that would consider the
healthiness of an energy drink to be very important. These standards for taste and health

concerns in our target customer profile are also quite similar to the standards put in place for
taste and health by our research and development specialists. With a firm stance on the
companys strategy for quarter two in place, we were then able to put plan into action through
our investments.
Using our strategy guide and the performance reporting from quarter one, the first area of
interest was product manufacturing. This effort was headed by the Director of Operations, Mike
Kruvalis, and the Director of Product Management, Lindsay Pegoraro. It is also duly noted that
Nick DiNardo, our Director of Finance, was consulted with at many times while allocating funds
for product manufacturing, as well as all other areas of interest. Focus for units to manufacture
for this quarter relied heavily on examining the results of last semester for ourselves and the
competition. In quarter one we unfortunately missed out on a predicted 4,900 units sold despite
having produced 50,000 units. Our Director of Sales, Matt Conforti, was brought in to elaborate
on the missed sales prediction and how this quarters sales can be forecasted more effectively.
According to Matts evaluation, missed sales for quarter one may have been a low estimate, and
surely did not help to instill brand equity in the Rejuvenate product. To avoid any further lost
sales and possible discouraged customers, production numbers were pushed up 75,000 units. The
leading company for units sold at the end of quarter one was Zeus with 57,300 units sold.
However FitFuel, the leader in advertising, sold 55,000 units and also missed an estimated
22,700 sales due to lack of production. Using this data and the objectives in our strategy journal,
we were able to agree up 75,000 units to produce. This amount would be able to cover the sales
and missed sales from last quarter with 15,600 units left. These remaining units are forecasted to
be sold with marketing investment increases that will be explained in a further section in the
quarter one analysis. However, in the event that our forecasting team is incorrect, a remainder of
inventory is a risk we are more than willing to take. Expiration is not a concern because our
energy drinks have a long lifespan. Additionally, each unit was only $0.30 to produce and
transport. Therefore, we would only have at most $4,680 tied up in inventory that would surely
be sold by the end of quarter three. At the end of quarter two our sales almost mirrored the
previous quarter. 59,284 units were sold in Cincinnati, thus leaving 15,716 units in remaining
inventory. Rejuvenate was ranked third in units sold for quarter two, but we were not content
with our sales.
For product research and development we consulted mainly with Tom Johlie, our
Director of Research and Development. Other input was included by Lindsay Pegoraro and Mike
Kruvalis. We wished to continue our previous success with product development, however, we
also recognized other areas that would be more beneficial to invest in. With this is mind, our
investment into the taste of our product was reduced from $30,000 to $10,000 and investments
into product health remained at $20,000. By doing so the team was able to free up $20,000 to be
invested in other departments. Furthermore, they were able to keep the investments into product
research and development even at a total of $40,000 spent on both taste and health. At the end of
the quarter Rejuvenates market ratings for taste dropped from 100% to 0% and health market
ratings remained at a respected 100%. Despite this decrease for taste, we believe that our team
has very effectively invested into our energy drink. Health is a central element for Rejuvenate
products and our team has achieved the top name in the market at this point. Although taste
decreased, we still stand strong because we believe that competitors saw our products firm
stance in the market from quarter one and reacted by greatly increasing their investments into
research and development.

Finally, our sales and marketing efforts were headed by Matt Conforti, the Director of Sales, and
McKennah Lloyd, the Director of Marketing and Communications. Included in various efforts
was the help of Mike Kruvalis and also Nick DiNardo. Due to last quarters unimpressive
numbers, the team decided to place more emphasis on properly marketing Rejuvenate so we can
boost sales and acquire more capital to invest. Using the $20,000 saved in research and
development, the sales and marketing team was able to help build a stronger sense of brand
equity in Cincinnati. Advertising the Rejuvenate brand in Cincinnati was greatly increased from
$3,500 in quarter one to $20,000 in quarter two. Here is a very demonstrative point of our focus
on increasing our brand equity in the market. We believe that doing so will not only create a
market of customers, but more importantly, a loyal and consistent group of customers. Sales
promotion investments also increased from $6,000 in quarter one to $12,500 in quarter two. By
doing so the sales team hoped to boost sales and brand equity by showcasing the Rejuvenate
product and name. The efforts also were intended to help reach out to customers that may be on
the fence about their favorite energy drink or even customers who had not yet heard of
Rejuvenate. Our brands market rating increased from 17% to 27% with these steep increases in
sales and marketing. Although our team was hoping for a much higher increase, we remained
positive and looked towards the leader at 100%, FitFuel, for improvement.

Quarter 3 Lindsay Pegoraro

Quarter three was not a time for trial and error like quarters one and two, located in the center of
the simulation it was important that decisions were thoroughly thought out before being
finalized. All decisions made would affect the following quarters, and the overall business. Just
like the previous quarters all members of the team were involved in the evaluation process of the
business.
During quarter three Rejuvenate was overall ranked third out of six, with an overall score of
70%, and an ethical average. Quarter one Rejuvenate did not place a large importance on ethics,
but we quickly changed that for the following quarters, especially quarter three where are ethics
were at 100%. Our ethical average is 82% out of 100%. Our profit ranking was third, and
revenue ranking was fourth, placing Rejuvenate in the center. Giving us room for improvement.
In regard to our profit dollars Rejuvenate was bringing in $156,00 and our revenue dollars were
$445,000. These number represent a running total.
The retail selling price for month three was $3.30, with a resell discount of 30%. With the
discount we had goals to increase our sales. The revenue made per unit was $2.31. These prices
did not include an additional discount price. But our team planned on implementing a discount
the following quarter, the previous quarter we had an additional discount of 20%.
For quarter three alone Rejuvenate generated a total of $47,400 in terms of profit dollars.
Revenue dollars were at $156,000 for quarter three only. During quarter three Rejuvenate sold
67,363 units. And as stated before our ethics were at 100% to ensure we made up for quarter one,
but also to improve our companys progress.
During quarter three Rejuvenate choice four different methods to advertise the brand, those four
methods being: internet, television, sponsorship and radio. These were choice because they will

influence the greatest population. Rejuvenate was reward was an achievement for advertising
leader in both quarters two and three.
As of quarter three Rejuvenate sold 176,647 units, with zero units expiring. We did not produce
enough products through, because our missed unit sales were at 4,999. After debriefing we
decided that it would be important to produce more, and have a larger inventory than missing
sales, thus missing out on profit.
Rejuvenate is a premium product that places a large emphasis on both taste and health. We want
to provide our consumers with a quality drink that tastes great, and provide health benefits. Our
goal being to create a healthy alternative to the typical energy drink that consists of artificial
products to increase energy levels. We believed that this marketing strategy was a good method
to attract different to various consumer groups. Our company ranked at 90% in regards to price,
meaning that are product might be on the more expensive side, because of the type of ingredients
that are used to create the drink. Ranking in with 75% dedication to taste and 89 to health, the
highest combined average amongst out competitors. In regards to taste only Zeus ranked in
higher than Rejuvenate, and Fit Fuel ranked in higher on taste by 11%. Out branding in
Cincinnati was not all that great, only having 33% out of 100, we worked to improve that in the
following quarter by lowering the price, and applying a discount to the product, hoping to
encourage more sales.
Ethics was a point in our business that we did not have worked out during quarter one, we
neglected the importance, thus lowering our overall average. We have an ethical average of 82%,
with an individual for quarter three at 100%. Our lowest ethical percentage was 47% during
quarter one, and then quarter two and three we more than doubled that.
In quarter three we held a total of 18% of the market share, missing sales only during quarter
one. We ranked fourth for revenue earned, and third for profit inquired. During quarter one he
held the largest amount of the market share being 21%, but as month passed we improved in
some sections more than others.
As of quarter three Rejuvenate did not owe anything, meaning that we still had money remaining
in our budget, thus there was no need to take out a loan. If we were to need a loan, there would
be a seven percent interest charge. Our assets, meaning everything we own came in at $506,
192. Our equity, meaning the value that was created for the brand was valued in at $506, 192.
Our total assets have increased from quarter one and two. At the end of quarter one our assets
were at $404,000. At the end of quarter two our assets were at $459,00. This shows improvement
in the business, and a better use a planning, and developing ideas before they were implemented.
The money that we received, or the revenue was valued at $445,006. The amount of money to
paid, or the cogs and expense came in to be $288,814. If these two numbers were subtracted
from one another it would calculate our profit, the money that we made. That amount being
$156,192.
As of quarter three the only company that has taken out a loan was Fit Fuel, for $70,000. Our
companies plan on taking out a loan is to not take one out until it was absolutely necessary. With

interests so high we do not believe it would be a good business move. If we were to take out a
loan we believe it would set our company back more than anything. There was also no stock that
would be bought.
For quarter three we made one entry into our strategy journal. The journal was a great
way to keep the company connected to one another. We used the journal as a way of
communication, and also it was a way for our team to remember exactly what we did that month.
During quarter three we produced a lower amount units, because during the previous quarter
35,700 units were not sold, thus they are not collecting in our inventory. Because we had such a
large amount of units in inventory we decided to apply a discount to the product, hoping to
increase our number of sales. Our objective in quarter three was to focus on brand equity. We
decided to lower our importance on cost, rather than ranking it as above average we placed it as
average. We hoped that this move would attract more customer, and increase our number of
sales. Our method to target customers was to rank bran, taste and health at very high importance,
with price being lower on that spectrum. Being that health and taste are both very important to
our brand we value them both equally.

Quarter 4 Matt Conforti

Going into the fourth quarter Rejuvenate was in good position sitting in the middle of the pack.
However, unsatisfied, we wanted to try to grab more of the market so they could see just how
great our product is. The rejuvenate energy drink was intended to be a good tasting, but also
healthy option as a sports drink. Continually able to lead in multiple categories, especially in
advertisement, we were able to market our product to a wide range of consumers. Throughout the
time period we obtained a good portion of the market share, but because we invested such high
amounts to ensure we have sufficient inventory on hand, as well as a high quality taste and health
aspect, we had a vastly higher expense amount than in comparison to are two competitors above
us in Zeus and FitFuel. Because our goal for this month was to gain a larger portion of the
market share (since we lacked in total unit sales in comparison to Zeus and FitFul) and to
increase sales, we lowered the price with hopes of gaining a larger market. With this
implementation we were able to increase our market share by one percent but we still lacked in
total profit due to our high expense amount. Since many other companies did not focus on
having such a high health as well as taste together, they were able to have a lower break-even
point with their sales. Our price also needed to be higher than the majority of our competitors
due to the fact that we had a higher expense ratio. In return this could have potentially turned
away some consumers and limited the total amount that may have been sellable if we potentially
rebranded and focused me on one sole point rather than multiple points in taste and health. Our
overall price was slightly lower on average to our competitors at this point, and that is one factor
that we should have tackled. As stated earlier, since our overall expense amount was
considerably higher we needed to either sell a higher amount (because we would have a higher
break-even unit sales) or we would need to increase our price (so that our break-even point in
unit sales would decrease). We choose to try to sell more and by doing this it could have
potentially lowered our potential overall profit for this quarter. It seems that total unit sales were
a big reason why the market was dominated and there was potential for Rejuvenate to take over
that market. Furthermore, since the Rejuvenate market share by revenue was one of our weakest
points, ranking us in fourth, throughout the simulation, it is obvious that we were unfortunately

not able to sell as high amount of our product in the context of unit sales as anticipated. Our
hopes during this fourth quarter were to, as stated earlier, increase units sold and focus on brand
equity because it was one of our weakest points consistently throughout the previous quarters.
We also continually were not able to sell through all of our products, but we wanted to ensure no
sales were missed. To do so we kept producing, but that may have led to some overproduction
and increased our total expenses too high, which is the reason that our overall profit could never
take the first or second spot. One high positive factor of Rejuvenate is that we were able to
continually dominate the simulation alongside FitFuel in ethics. One of our main goals set from
the beginning was to establish our brand as a high ethical company and partially through creating
a brand that had a high health importance helped establish that. Because of our high health and
ethics, one thing we discussed frequently during quarter 4 was to get an FDA approval. With this
and a potential market expansion we had the potential to greatly expand our company to obtain
additional total sales, which in return would have vastly increased our total revenue and income.
By gaining this approval, it would have positioned our brand as a trusted brand and could have
expanded our brand equity and loyalty by a large margin. However, without the FDA approval
and only being able to market Rejuvenate inside of Cincinnati left us with a minimal market to
attack. If there was a larger market of consumers, in the long run per sale of unit, Rejuvenate
may have been able to gain a higher edge in overall profit in comparison to the top tier
competitors in Zeus and FitFuel.
Moving towards a focus on more of our products, Rejuvenate fortunately, thanks to our Director
of Product Management Lindsay and our sales team, never had an expired product up to this
point. For this fourth quarter there were also no missed unit sales. Able to satisfy demand, we
were satisfied that our unit sales were able to increase since that was our main intention of focus
for this quarter. By doing this we were also able to sustain and expand our brand. Unfortunately,
we did end up with excess inventory, which increased our overall expense amount. Our goal was
however, to be able to supply customers with all desired amount of product and to not miss any
unit sales, and we would have rather developed too many units than too little. As stated earlier,
some of the left over assets for this quarter are from over production, but also not selling enough.
We did increase our overall revenue and kept our market share constant, and with this
information we should have known that our price needed to increase higher. Part of our idea for
this quarter was to plan for future quarters but gaining additional market share and hoping to
create a brand loyalty with these consumers so as we increased our price, consumers would
continue to purchase our product. We had a great month of overall sales, selling a total of 76,023.
Even with almost 13,000 more unit sales than the leader Zeus (and more money invested into
overall taste and health together) we only lead Zeus by one percent of their overall revenue for
the month. The overspending in Rejuvenates expense column showed when we had such a
competitive amount in overall revenue, but we were down by 68,000 dollars in comparison to the
leader at the time Zeus. To continue, no companies at this point had merged. Still only half way
through the simulation it was to be determined if one of the higher profitable companies would
use their resources to merge or potentially purchase a smaller company. Rejuvenate also had,
with this fourth quarter included, an achievement badge in units sold leader, advertising leader,
market share by units sold leader and ethics leader. At this point and time only 4,900 total unit
sales were missed and a total of 252,670 units were sold. With a rank at 73 percent in
competitiveness, we positioned ourselves in a good spot to battle for the number one position in
months to come.

Overall, there were some negatives that happened up to and in this quarter, but what our goals
and intentions were for the quarter were met. We wanted to sell more as a company and vastly
increase our overall market share and units sold. We were successful in doing so. At this point,
we had hopes for the future to develop a strong brand equity and loyalty with this increased
amount in total unit sales. Also, during the process of deciding for this fourth quarter we had
some ideas of gradually increasing our price as time would pass and with this we would have a
large increase not just in overall revenue, but in overall profit as well. With these ideas we would
hope to compete and shortly take over the number one spot out of our six competitors in Zing,
On It, Fit Fuel, Rejuvenate, FearFuel, and Zeus.

Quarter 5 Tom Johlie

At the start of quarter five we were in third place and had been in that position since the
start of the simulation. We thought that it would be a good idea to start making a push for one of
the top two spots. We could see we were starting to plateau as a group and needed a change.
During quarter four we were the leaders in ethics, units sold, revenue and even advertising. So,
one of the question we were trying to answer as a group was, do we want to take out a loan to
invest even more in our advertising and try to take the lead in market share by units sold and
revenue. The loan we were looking to take out would be a maximum of $70,000 with a 10%
interest rate and two pay periods and amount paid at $80,667. Since we made $54,000 last
quarter and the payments would be $40,000 we thought we could afford it. Are thought process
was that it would pay for itself rather quickly because we would be investing more into our
advertising, which would generate more sales. Our big concern with taking out the loan was that
interest rates would go up and the loan would be more expensive the next quarter. We knew that
this would push back are progression slightly but in the long run it could turn huge dividends.
We were thinking that if we could advertise correctly then we would be able to make up for the
losses during quarter five. We also thought about offering a discount to offset the loan. We
ultimately decided not to take the loan and concentrate our efforts on advertising and increasing
our sales without the help of a loan. Because this was our big dilemma/decision going into the
quarter I wanted to briefly discuss the situation and why we made the decision to decline taking
the loan. In later quarters this discussion would come up again in the group talks.
Now, lets move on to some of our numbers during quarter five. We had the second highest price
at $3.75 during this quarter. We have a high quality product that is healthy while helping you stay
energized, because of this, we think the high price is justified. We had our taste at 67%, health at
85%, and brand equity at 43%. As you can see our health and taste numbers are relatively high,
allowing us to charge more for our product. Rejuvenate spent $10 on taste and $20 on health
during this quarter as well, showing that made these two aspects of our business a priority.
During month five we had a retail-selling price of $3.75. We paired that price with a 30%
discount that we used throughout all the quarters. This gave us revenue per units sold of $2.63.
That was the third highest revenue per units sold total that we had, the only months that were
higher were the first ($2.80) and last months ($2.98). Those months also happened to be the
months where we sold our drink at the highest prices. There is a definite trend between the retail-

selling price and the revenue per units sold. As the retail-selling price goes up so does the
revenue per units sold.
In quarter five our team had 16% of the market share. Our market share by revenue was
$138,000 and our market share by units sold was 52,659. That placed us in fourth out of the six
teams in both of those categories.
During this quarter our opening balance was $510,000. The money in for the quarter stood at
$138,000 while the money out was $98,800. That comes out to a closing balance of $552,000.
We did not have any missed sales in quarter five. After the first quarter we learned from our
mistakes and hit a groove down the stretch, not missing any orders. We did this while holding
50,000 in inventory in the quarter. We set this number at many different attempts at forecasting.
We had this number the previous quarter and did not feel the need to make any drastic changes.
Rejuvenate had a $15,000 manufacturing cost for the quarter.
As a company we wanted to hang our hat on being ethical. We wanted to stay competitive while
holding good company ethics and morals. On average we had a 92% ethics rate throughout all
the quarters. Rejuvenate became a company that consumers can trust for a good quality product
from a quality company.
A big event in quarter five was the economic crisis was about to unfold. We were told that
consumer behavior will be affected and that we should expect major losses. When we heard this
information we were rattled at first. We started scrambling for answers. We decided that it would
be a good idea to have excess inventory going into the crisis so we dont have any missed sales
because of a shortage of the product. This also deterred us from taking a loan because we didnt
know if we were going to get the profits we normally got in the previous quarters. This crisis
forced us to be more conservative with our approach.
As a company we earned a few award during this quarter as well. The first one was the market
share by units sold achievement. The next was the advertising achievement. Then finally, we also
earned the units sold achievement. As a business youre always looking for good recognition that
you can tell your customers, getting these awards is something tangible that you can advertise to
your customers about your company.
Finally, quarter five was a solid quarter for us. We stayed steady throughout the quarter and
handled the economic crisis admirably. Rejuvenate came out unscathed in the process and kept
pace with the rest of the teams. Heading into quarter six we thought we were in a good place as a
team and were within striking distance of the top spot. Going forward we need to be more
aggressive to reach the top spot use the What If button more often. A couple of our advisors in
the simulation were encouraging us to use that button more to forecast future quarters better. Our
vice president of operations really pushed us to use this button more during the quarter. Although
we finished fourth in profit and revenue we felt like we could climb back and we did end up
doing that.

Quarter 6 Nick DiNardo

Overview
As a company Rejuvenate entered quarter 6 as the fourth overall ranked competitor with a 73%
as well as the fourth place in overall profit and revenue. In the sixth quarter we maintained the
same position in all categories well moving up one percent to a 74. In the quarter we brought in
131 thousand dollars in revenue, 54.89 thousand dollars of which were profit. This was made
through selling 44,072 units. This brought our total revenue and profit up to 307 and 872
thousand dollars respectively.
Changes in the market
There were a few environmental changes in year 6 that affected not only Rejuvenate but all
companies in the market. All transportation costs increased by five percent during the quarter
because of increased costs in oil production, while manufacturing costs were increased by eight
percent because of inflation and new government regulations. On top of all of the additional
costs market demand decreased by five percent due to the consumers fear of a financial crisis.
Despite all of the environmental changes in the market Rejuvenate was able to thrive and
managed to increase its profits after they took a slight drop during the fifth quarter off the
simulation.
Strategy
In the 6th quarter we kept the same strategy that we had through the entire game. We maintained a
high spending in research and development to make sure our product was not only great tasting
but was also very health conscious for our consumers sake. This is not cheap to do and is
reflected in our relatively high product price. However, this did not keep us from making revenue
as we were one of the leaders in revenue that period. We won awards for being Brand,
Advertising and Ethics leaders during quarter 6. This was the highest amount of awards that
Rejuvenate won during any singular period. It was also the only quarter in which we were brand
leaders. This helped us increase our market share over time as well as gain positive brand
recognition. Seeing as our company highly valued ethics and brand recognition struggled to earn
more profit from our large revenue because of all of the money that was being put back into the
brand and product.
Pricing
In the 6th quarter we increased our prices fifty cents from the previous quarters three dollars and
seventy-five cents. With the boost in price to four dollars and twenty-five cents we were able to
increase our revenue and profits on sale per unit. After the thirty percent resell discount we were
bringing in revenue of two dollars and ninety-eight cents. This gave us about seventy percent of
each sale as revenue. We decided against giving a discount in this period since this would only
cut into our profit which was already an issue.
Decisions Made

During the 6th quarter we had many tough decisions to make some decisions benefited us while
others may have not been so beneficial. Other decisions were nixed and we can only speculate as
to how they may have affected the overall simulation. One important decision that we were
contemplating during this period was whether or not to take out a loan. With a loan we would be
able to increase our market share and even possibly move to a different market which brings us
to our next decision. We wanted to expand to additional countries and try to gain entry into an
untapped market this brought with it a lot of uncertainties and ultimately kept us from expanding
and from taking the loan that would allow us to do so. As mentioned earlier the decision to
increase our prices over this quarter seemed to have played to our advantage. With the decrease
in demand for this period it was important for us to squeeze every penny of profit possible out of
each sale. Other groups kept prices lower and spending high and lost out on their profit because
of this. One group brought in almost a half million dollars in revenue and ended with a negative
profit of over four thousand dollars over the 6 quarters. Our downfall over this period was that
we did not sell enough units we sold the second least units but were far from the last place group
who almost lost as much in profit as they made in revenue.
Outcome
Well this 6th quarter did not really help us gain much on our competitors it did prove to us that we
were a stable company. Even after all of the crisiss we held our ground even inching our way
closer to that third place spot. This year was key in the fact that we kept our strategy that we had
created at the beginning implemented it and set ourselves up to make one final leap in the 7th and
final quarter. The sixth quarter was important for us to learn more about what was really
important to our company when faced with difficult issues we had to decide on whether or not
we were going to keep the same values that we started with and if we were going to change our
minds on our business strategy. Well we may not have been the most profitable company we had
high standards for our products and provided our customers with a product that we proud to
create and honored to put our names on. If we were to start from the beginning I believe we
would make many of the same decisions however we would change several things that would
allow us to become more profitable while still maintaining a strong and ethical brand

Quarter 7 McKennah Lloyd

In Quarter 7 as shown on our graph, that our profit was higher than the average Industry profit
and as well as our revenue. This goes to show that we slowly but surely improved in everything
that we have been working hard on.
This quarter we wanted to try a different strategy and sell everything for cheaper. In which we
did and we did get the result we wanted in the end. We were left with zero liability. Although we
did end up ranking 3rd out of six, we still met the goals that we were trying to achieve.
We sold a total of 70,599 units in our 7th quarter, which lead us to a total of $144 in revenue and
$54.12 dollars. Our team did what we thought was best to keep us in the top three in which we
ended up accomplishing. Even through crises that may have happened our investments would

have still kept strong. Our advertisements, discount prices, and brand prices were still the same
and helped us in our favor.
Moving onto our achievements that we earned this quarter, we received an achievement in
Advertising Leader and Ethics Leader. My team and I wanted to receive an achievement in
the Brand Leader as well because that was also our goal. Still, getting 2 out of the 3
achievements we were trying to get is still good.
Looking back at our overall 1-7 results we sold a total of 420,000 units, even though we missed
12,383 because we didnt invest in certain areas that we needed to, we are still proud of our end
result.
Being the Director of Marketing and Communications meant that I had to take charge of our
Marketing Share that we had in Cincinnati. Our end results for our distributor were 18% in
revenue, which equals out to be $ 1,017. As for our units sold in Cincinnati we sold roughly
about 19% of our inventory.
As mentioned before we tried using different tactics this last quarter to help us rank high.
Therefore we didnt invest in our taste or health this quarter for competitiveness. We did this
because throughout the entire 7 quarters we made sure that our taste and health was high
quality because we were striving for quality not quantity. Which brings me to where we used
different tactics, we went for quantity over quality. Our numbers didnt go down too much but
we just simply didnt invest more into these two parts that we already grew a good reputation for.
Rejuvenate cares about the benefit of our consumers that was why kept our ratings high all
throughout the first 6 quarters.
Going back to what I mentioned before about how we strived for quantity over quality, another
one of our exit strategies was lowering the price in our product immensely. In the 6th quarter our
product price was $4.25, as we all came to a conclusion that we wanted to sell as much as
possible we decided to lower our price to $2.80. By doing so we sold 70,599 units total for
quarter 7. Which comparing to quarter 6 we sold 44,072, therefore this strategy did work in our
favor.
Lastly, moving onto our balance sheet, we owned a total of $710,000 and owed nothing. As
mentioned before that was our absolute goal was to owe nothing. As for our equity we created a
value $710,885. That being said our total profit that we made this quarter alone was $360,885
and our total revenue was $1,016,705. Although we did spend over $100,000 more than the last
quarter in our expenses, it still worked out in everything that we had planned. Our numbers
everywhere on the board went up, which we couldnt be happier about because doing so we
didnt have to take out any loans. After seeing our results, we see that our strategies did work out
in our favor. Maybe not as much as we had hoped but ranking a 3rd was still okay with us for
changing a lot of plans last minute to see how our company would pull in the end.

All in all, we did as much as we could to improve our company in the last quarter. Even in this
last quarter we communicated more as a team and helped each other excel in their titles by
giving each other tips. Teamwork is key when working in a tight knit company therefore
discussing and agreeing is necessary for our company to excel in this competition. We stayed
organized as well throughout this whole 7 quarters to maintain staying on top because if we
werent I believe our strategies wouldnt have worked in our favor. Since we did strategize more
this quarter; teamwork, communication, and organization were a necessity for us to maintain or
strengthen this last quarter.