perceived value and price – decathlon games
DESCRIPTION
All data are fictitious. Just for acedmic proposeTRANSCRIPT
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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
![Page 2: Perceived value and price – DECATHLON GAMES](https://reader035.vdocument.in/reader035/viewer/2022081419/5554879bb4c90548358b50cb/html5/thumbnails/2.jpg)
PERCEIVED VALUE AND PRICEPrincipe and Formula
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GAMES CAMPAIGNFastrun vs Addidas
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GAMES CAMPAIGNFastrun vs Addidas
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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
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17
17
17€cost
22.67€price
25% Marg.
21€cost
35€price
40% Marg.Value @ decathlon
Value @ decathlon
DECATHLONRound 1
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1717€cost
22.67€price
25% Marg.
Value @ decathlon
Value @ decathlon
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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
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THANK YOUPrepared by Charlotte
December 2012
It is the simulation situation in the commercialAll the data are fictitious. Just for academic propose
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APPENDIX