PERCEIVED VALUE AND PRICE – DECATHLON GAMES

Prepared by CharlotteDecember 2012

It is the simulation situation in the commercialAll the data are fictitious. Just for academic propose

PERCEIVED VALUE AND PRICEPrincipe and Formula

GAMES CAMPAIGNFastrun vs Addidas

GAMES CAMPAIGNFastrun vs Addidas

Adidas Fastrun

At Decathlon Product Value: € 40

Original Price: € 35Original Margin: 40%Cost : €21 Incremental value : € 5

New Price : € 30New Margin : 30%Cost : €21 Value gain : € 10 (€ 40 - €30)

At Decathlon Product Value: € 30

Price: € 22.67Margin: 25%Cost : € 17 Value gain : € 7.33 (€30 – €22.67)

DECATHLONAdidas vs Fastrun

17

17

17€cost

22.67€price

25% Marg.

21€cost

35€price

40% Marg.Value @ decathlon

Value @ decathlon

DECATHLONRound 1

1717€cost

22.67€price

25% Marg.

Value @ decathlon

Value @ decathlon

Cost and Price at Fastrun Value for Decathlon

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

Increase ValueTarget Value: € 34

Action Plan:- Supply Chain Management- CIF instead FOB- Sponsor on store flyer- Gift – bag for shoes- long credit period offer

THANK YOUPrepared by Charlotte

December 2012

It is the simulation situation in the commercialAll the data are fictitious. Just for academic propose

APPENDIX