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
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