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Case Study

Thomas & Betts: The value-based pricing decision

By Winter Nie, Goutam Challagalla and David Gray

7 pages

June 2016

Reference: IMD-7-1798

The case examines the decision facing T&B product managers in pricing an innovative new product. The product, a medium-voltage ‘spiking aid,’ reduces the need for utilities to cut power cables prior to performing repair and maintenance work on underground electrical distribution systems, leading to significant labor cost and material savings and other benefits. The case enables readers to estimate the economic value to customers of the new product relative to existing options and supports a discussion of other factors involved in pricing decisions. It also provides context on T&B’s efforts to build a strategic capability around value-pricing and pricing discipline.

Learning Objective

Explore strategic issues in pricing an innovative new product and calculate the economic value to the customer of the new offering relative to competitive reference products.

Keywords

Marketing, Innovation, Electrical Components, Electrical Equipment, Manufacturing, Product Management, Value-based Pricing, Pricing Strategy

Settings

Northern America, United States of America
Thomas and Betts, Manufacturing, Electric and Electronic Equipment
2010-2016

Type

Field Research

Available Languages

English

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Case reference: IMD-7-2648 ©2025

Summary

In late 2021, Puneet Chhatwal, CEO of Indian Hotels Company Limited IHCL, found himself grappling with a new challenge beyond the impressive growth numbers the company had achieved since his tenure began in 2017 sustainability. Having led IHCL, the hospitality arm of the Tata Group, through one of its most transformative periods, including a turnaround from losses to profitability and the addition of over 100 hotels, Puneet now faced rising stakeholder and regulatory demand for measurable ESG impacts. The case explores IHCL's journey to embed sustainability in all its hotels including those under development through Paathya, its comprehensive ESG framework. Paathya, derived from Sanskrit meaning 'path,' symbolizes IHCL's commitment to structured sustainability by setting ambitious goals, including eliminating single-use plastics, adopting renewable energy and certifying all hotels under global sustainability standards by 2030. The case explores the organizational challenges IHCL faced and examines how the company formalized sustainability in every aspect of its business from financial decisions and design to engineering and daily operations. A key focus is placed on the cultural shift that Paathya required, ensuring buy-in from employees at all levels, including general managers of individual hotels, who were pivotal in driving green initiatives. IHCL's rapid growth and vision of expanding to 300 hotels under an asset-light model, raises crucial questions: Can the company balance its aggressive expansion with its sustainability commitments? Will Paathya continue to resonate with the core of the company's operations amid changing global standards and leadership? The case concludes by examining Paathya's early successes and the challenges ahead. How can IHCL sustain its hospitality leadership while leading the charge on sustainability?

Reference IMD-7-2648

Organization Indian Hotels Company Limited

Industry Travel and Leisure, Hospitality

Available Languages English

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