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PERCEIVED VALUE AND PRICE –
DECATHLON GAMES
It is the simulation situation in the commercial
All the data are fictitious.
...
PERCEIVED VALUE AND PRICE
Principe and Formula
GAMES CAMPAIGN
Fastrun vs Addidas
GAMES CAMPAIGN
Fastrun vs Addidas
DECATHLON
Adidas vs Fastrun
Adidas

Fastrun

At Decathlon
Product Value: € 40

At Decathlon
Product Value: € 30

Original ...
DECATHLON
Round 1

Value @ decathlon
40% Marg.

21€17
cost

35€
price

Value @ decathlon
25% Marg.

17€
17
cost

22.67€
pr...
Value @ decathlon

Value @ decathlon
25% Marg.

1
177€
cost

22.67€
price
Cost and Price at Fastrun
Reduce Cost
Target Cost: € 15 (production)
Extra Cost : € 2 (caused by value-add)
Target Price :...
THANK YOU
It is the simulation situation in the commercial
All the data are fictitious.
Just for academic propose

Prepare...
APPENDIX
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Perceived value and price – DECATHLON GAMES

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All data are fictitious. Just for acedmic propose

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Transcript of "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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