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Case
-
Reference no. IMD-7-1856
Subject category: Marketing
Published by:
Institute for Management Development (IMD) (2017)
Version:
05.07.2017
Revision date:
02-Oct-2017
Length:
16 pages
Data source:
Field research

Abstract

This case follows a multidisciplinary team at Kalmar, a business unit of Cargotec, to develop a new product based on telematics and then the challenge of how to price the product/service for value in the context of customers who would not typically pay for such a thing. The Kalmar team had been thrown a somewhat ambiguous challenge with a tight timeframe of a mere ten weeks. Through customer-site visits including observation and discussions, the team had come up with a unique digital offering for cargo handling port terminals that could potentially deliver real value for customers and help Kalmar differentiate itself from competitors. As the team formulated plans for a pilot, some key questions remained, in particular, how to structure a price for the service? Kalmar Insight could help customers improve operational efficiency and profitability but how could Kalmar put a price tag on this value? The case looks at the different options open to Kalmar.

Topics

Value-based Pricing; Pricing; Model; Innovation; Customer insight; Digital transformation; Digitalization
Location:
Industry:
Size:
Revenues of EUR1.6 billion (Kalmar), revenues of EUR3.5 billion (Cargotec)
Other setting(s):
2016

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