HomeResearch & Knowledgeback to Homeback to Research & KnowledgeThomas & Betts: The value-based pricing decisionback to

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

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series

Thomas & Betts: Becoming partner of choice via customer centricity
Thomas & Betts: The value-based pricing decision

This case study is part of a series

Thomas & Betts: Becoming partner of choice via customer centricity
Thomas & Betts: The value-based pricing decision

Keep reading

Article

Optimizing omnichannel assortments and inventory provisions under the multichannel attraction model

Assortment optimization presents a complex challenge for retailers, as it depends on numerous decision factors. Changes in assortment can result in demand redistribution with multi-layered consequences. This complexity is even more pronounced for ...

General Management

By Andrey Vasilyev, Sebastian Maier and Ralf W. Seifert

in European Journal of Operational Research

August 2025, vol. 324, no. 3, pp. 799-813, https://doi.org/10.1016/j.ejor.2025.01.035

Article

Trump and Musk Have Parted Ways - Government Efficiency

Was Trump wrong to get Elon on board? Not necessarily: private sector executives should contribute more to policy, argues Arturo Bris

The story of the ‘like’ button - Innovation Book Club

BCG’s Martin Reeves traces the messy human journey behind one of tech’s most contagious features – and what it reveals about innovation, behavior, and unintended consequences.

Communication Innovation Technology Management

By Knut Haanaes and Martin Reeves

in I by IMD

Article

Trump-era policies - Tariffs - Supply Chain

As Trump-era policies return with sharper edges, companies must rethink supply chains not for speed, but for resilience.

Ref rules: How to make good decisions under pressure

Leaders regularly need to make decisions under intense pressure. Pierluigi Collina, one of the world’s most respected football referees, reveals how to make the best choices possible in the heat of the moment.

By Pierluigi Collina

in I by IMD

Video

Carvajal - Family Foundation - Philanthropy

The Carvajal family on why the family’s foundation is the largest shareholder of their 121-year-old family business and how it’s the key to sustaining social, human, and reputational capital.

Family Business

By Peter Vogel, Ana Maria Guerrero Carvajal and Isabel Carvajal Sardi

in I by IMD

Article

How to thrive in a fractious world - Strategic playbook

How to thrive in a fractious world means embracing new strategies for global success as multipolar dynamics reshape the future of globalization.

Politics

By David Bach, Richard Baldwin and Simon J. Evenett

in I by IMD

Article

Five transitions to accelerate your career - Leadership

Master the five transitions to accelerate your career by reframing challenges, redefining relationships, and aligning your courage, identity, and energy.

Out of the question #1: How to respond when you can’t say “I don’t know”

When confronted with difficult questions, we immediately think about what we should say, rather than how we say it – but non-verbal signals often carry more weight than words, greatly increasing the credibility of our answers. Try these soft skill...

By Francesca Giulia Mereu

in I by IMD

Optimizing omnichannel assortments and inventory provisions under the multichannel attraction model

By Andrey Vasilyev Sebastian Maier and Ralf W. Seifert
in European Journal of Operational Research August 2025, vol. 324, no. 3, pp. 799-813, https://doi.org/10.1016/j.ejor.2025.01.035

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Communication

Innovation

Technology Management

Browse all topics

Reviewing strategy-execution capabilities

By Xavier Gilbert
Case reference: IMD-3-2428 ©2025

Summary

A "radar chart" is proposed to visualize where the company needs to improve. It can also be used to support the discussion of any group of executives on the reasons for failure of most strategic initiatives; they may do that by assessing their own company against the six proposed required capabilities and by comparing notes with each other. The six required capabilities are: 1) Companies need to have a clear and well-communicated strategy, with clear and well-communicated strategic priorities, to which strategic initiatives contribute in a clear and well-communicated way. 2) Companies need to have a cadre of executives at different levels selected for their entrepreneurial and action-learning capabilities. 3) Companies need to understand and encourage action-learning and know how to plan execution accordingly. 4) Companies need to have an inclusive approach to execution. 5) Companies need to be serious about follow-through and see it as an essential part of action-learning. 6) Companies need to realize that, in the end, lack of respect for people, is a sure cause for execution failure. These capabilities are described at length in the book Smarter Execution, published by IMD (also available from Amazon UK). Learning objectives: This note is very effective to support a group discussion on the execution capabilities of a company. It can be used by a senior management team before they decide to launch strategic initiatives; it can be used as part of a kick-off workshop when launching a strategic initiative; or it can be used along the way during execution to identify and correct execution frustrations.

Reference IMD-3-2428

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications