Perceived value and price – DECATHLON GAMES
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Perceived value and price – DECATHLON GAMES

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All data are fictitious. Just for acedmic propose

All data are fictitious. Just for acedmic propose

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  • 1. PERCEIVED VALUE AND PRICE – DECATHLON GAMES It is the simulation situation in the commercial All the data are fictitious. Just for academic propose Prepared by Charlotte December 2012
  • 2. PERCEIVED VALUE AND PRICE Principe and Formula
  • 3. GAMES CAMPAIGN Fastrun vs Addidas
  • 4. GAMES CAMPAIGN Fastrun vs Addidas
  • 5. DECATHLON Adidas vs Fastrun Adidas Fastrun At Decathlon Product Value: € 40 At Decathlon Product Value: € 30 Original Price: € 35 Original Margin: 40% Cost : €21 Incremental value : € 5 Price: € 22.67 Margin: 25% Cost : € 17 Value gain : € 7.33 (€30 – €22.67) New Price : € 30 New Margin : 30% Cost : €21 Value gain : € 10 (€ 40 - €30)
  • 6. DECATHLON Round 1 Value @ decathlon 40% Marg. 21€17 cost 35€ price Value @ decathlon 25% Marg. 17€ 17 cost 22.67€ price
  • 7. Value @ decathlon Value @ decathlon 25% Marg. 1 177€ cost 22.67€ price
  • 8. Cost and Price at Fastrun Reduce Cost Target Cost: € 15 (production) Extra Cost : € 2 (caused by value-add) Target Price : € 22.67 Action Plan: - Material cost cut down - Economic of scale (tack on existing style with slightly change) - Cost Agreement with logistic Value for Decathlon Increase Value Target Value: € 34 Action Plan: - Supply Chain Management - CIF instead FOB - Sponsor on store flyer - Gift – bag for shoes - long credit period offer
  • 9. THANK YOU It is the simulation situation in the commercial All the data are fictitious. Just for academic propose Prepared by Charlotte December 2012
  • 10. APPENDIX