Michael Leclercq established Decathlon in France in 1976. Decathlon was the first mass producer of sports equipment and caters to all a sportsman's needs whether he is an athlete or just a sports enthusiast. Decathlon is the leading innovator, producer and retailer of a broad range of sports equipment. It started out in Anglos near Lille but today has 320 stores in 12 countries.
The company saw a major turnover of 3.1 billion Euros in 2003 and was ranked number one in Europe and number two worldwide. In 1986 Decathlon Production was born and its motto is to ensure the best designs and quality manufacturing. Decathlon began to go international starting with Spain, Germany,USA, Great Britain, Netherlands, Portugal and Asia.
In 1996, it began creating and launching brands like Quechua for mountain sports and Starboard for water sports. Today, Decathlon is the owner of seven huge sporting brands and provides all kinds of sporting accessories. Decathlon's ambition is embodied in two core concepts: The creation of sporting goods at retail prices.
The main figures of 2004:
-Decathlon represents half sporting goods market in France with over 50% of the market share.
- 331 stores including 218 in France
-29,000 employees
- 3.4 billion euros in sales, an increase of 10.3% over 2003.
-33% Internationally
The cycling market can be segmented into 3: the "Expert", the "Fun and extreme " and the "Family". This segment consists of athletes who prefer an intensive sports regimen, they enter the realm of competition and research performance. Their requirements for equipment necessitates a high level of product information. Their purchases are essentially dictated by the technical nature of a product and its influence on performance.
The brand also plays an important role in through its ability to ensure the technicality of the product.
Young athletes fall into this category. These athletes focus more on the thrill and pleasure of the sport. Their purchases are motivated primarily by the image created by the product. They look for performance products.
These athletes play a friendly game. They give a lot of importance to the concept of playing (tennis, football etc) and recreation (biking, rollerskating etc) and the values games promotes( teamwork, discipline etc).Purchases are motivated primarily by the functionality of products. Thus, multi-purpose equipment is extremely popular.
Society
-The locals are seeking a new quality of life that includes good health and good sports in a good environment.
-The number of people who cycle in this region is 4 % higher than in any other region in France
- In a period of 10 years, 297,000 new immigrants settled in Seine and Marne.The majority of these families consisted of young children. The people of the age group 25-39 are 36% of the population and 29% are from the 0-14 age group.
-Economics
-In 10 years, the population grew by 10.4% which, in turn, affected the number of both potential and current customers of Decathlon.
-By 2015, an increase of 350,000 new residents are expected. 7000 new residents are expected in Bussy Saint Georges by 2010.
- Ecological
-Local councils and local communities are trying to get approval to extend the bicycle network in Paris and the regions around Paris.
-There are a number of cycle paths in the catchment area of the Decathlon in Pontault-Combault.
- Many forests and green spaces are present in the vicinity of the catchment this area. (The forest of Fontainebleau and Nemours example).
-Infrastructure
-The Decathlon in Pontault-Combault is easy to access as many major routes intersect here (Highway A4, Francilienne and Highway 4).
-The store is located in a highly developed commercial area, consisting of a hypermarket, sports, toys and clothing stores. This is useful as it provides a large base of potential customers.
-The store is well connected, however, for customers who shop in the shopping area, Decathlon is difficult to access. These customers must return the car in order to get to Decathlon. In addition, one cannot see Decathlon from the mall. Go Sport is located near Carrefour and is more accessible so, many people go there instead.
Tags: Decathlon, potential customers, enfrastructure, economics, society, Michael Leclercq
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[...] Toys ‘R' Us is a serious competitor to Decathlon, both in the area of supply (of product) and in the area of available accessories If a customer buys a bicycle for his child here, he will also find all the accessories necessary (helmets, knee pads etc) and will not have to go to another store to find the missing pieces. The VAS is well established: the frame of the bike is guaranteed for 5 years and all the parts (except the wear parts) are guaranteed for 1 year. [...]
[...] Part Two INTERNAL ANALYSIS To get an objective view of customer satisfaction with respect to the products, services, prices offered and the communication policy of the Decathlon in Pontault-Combault, we have put together the following questionnaire: It was given to a sample of 50 clients of the Radius range of cycles. Target customers were women who were between 25 to 45 years and adolescents. Three-quarters of clients are members of a sports association and practice cycling as a hobby (the questionnaire is attached). [...]
[...] The rest of the products are for a those athletes who are use sports equipment for intensive training and this corresponds to a regular clientele. θ Presentation Material used: All bikes are placed on the floor and none suspended from the ceiling or mounted on the walls. Women's bicycles have a simple presentation, they are aligned in order of size. There is an asymmetrical presentation of the level road bikes and mountain bikes for men. θ Advertising at point of sale: No CMP is used in Bouticyles. [...]
[...] The form to be filled up for a loyalty card includes special fields that are dedicated to information about the spouse, children and the sports the customer is partial to. We must therefore seek, among cardholders, customers with children under 12 years (the age criterion has to be precise), that is to say, this year, children born after Thus, this database provides us with a large base of potential customers. Some children may already be equipped with a bike, but all customers who received this offer are potentially influenced. [...]
[...] In 2004, the global sales for cycles was while the roller cycle equipment cycle parts and bicycle accessories (12 share the remaining 48% to form the total turnover. The number of customers who buy cycles more than doubled in a year, the radius cycles identified 8,252 clients in 2004 against 5,448 in 2003, representing an increase of 2,804 people.The clients who bought cycle equipment from from the Decathlon in Pontault- Combault were more numerous in 2004 than in 2003. The margin that is the result of a bike sale was the only positive margin on the global scale in 2004. [...]
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