Perceived value and price – DECATHLON GAMES

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All data are fictitious. Just for acedmic propose

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Perceived value and price – DECATHLON GAMES

  1. 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. 2. PERCEIVED VALUE AND PRICE Principe and Formula
  3. 3. GAMES CAMPAIGN Fastrun vs Addidas
  4. 4. GAMES CAMPAIGN Fastrun vs Addidas
  5. 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. 6. DECATHLON Round 1 Value @ decathlon 40% Marg. 21€17 cost 35€ price Value @ decathlon 25% Marg. 17€ 17 cost 22.67€ price
  7. 7. Value @ decathlon Value @ decathlon 25% Marg. 1 177€ cost 22.67€ price
  8. 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. 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. 10. APPENDIX

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