CH'TI LAND : Determine the Pricing Policy of a New Amusement Park

Bouda plc has decided to launch a new concept of amusement parks based on games and traditions from the North of France, which will be located in the former football stadium Grimonprez-Joris, not f ...

Author(s):

Véronique Boulocher

EDHEC Business School

Valérie Dailly

EDHEC Business School

Peter Daly

EDHEC Business School

Bouda plc has decided to launch a new concept of amusement parks based on games and traditions from the North of France, which will be located in the former football stadium Grimonprez-Joris, not far from Lille city centre. Bouda plc will also manage the park. They will be helped by two local investors (Two investment funds in the North of France: Investir+ en Nord/Pas de Calais and Nord Invest), who will be owners of the park and who will also ensure the construction, investment in the games and the maintenance of the site (for a fee of €1 for each ticket sold) as well as the local authorities (the town hall will hand over the site for a symbolic sum of €1 and the region will develop access and parking). This theme park will be baptized Ch'tiland. It will open its doors in April 2012. Ch'tiland will target the inhabitants of North/Pas de Calais region, more specifically families with children aged 3 to 12. Teenagers and young adults (15 - 25 year old) will be the secondary target.
Bouda plc needs your help in order to fix their prices. They will provide you with all their costs (cf. Appendix 5). The usual operating margin in the sector is 20%. The VAT rate applied to amusement parks and under certain conditions is 5.5%. As Ch'tiland does not meet these conditions, the park will have a rate of 19.6%, which to facilitate calculation will be rounded up to 20%. Bouda plc will also provide you with information it has gathered on the competitors (cf. Appendix 6) and the results of a study on acceptable pricing which was carried out on 1,000 people (cf. Appendix 7) as well as a study on sales projection.

Type: Case Study
Date: le 01/02/2011

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