BUYING A LEGEND:STEINWAY

AND SONS

Backdrop…Established by Henry Engelhard

SteinwayNew York City in 1853

“Build the best piano possible”Known for its Quality and Elite Status

TRADITION

-Unique to the musician-Handcrafted and Assembled

-Masterpiece and Durable

WE INNOVATE Unique Cross-Stringing Technique

-120 PATENTS-TECHNICALLY BRILLANT

HOW IT’S MADE….

-Two years of manufacturing-Over 12000 parts into grand piano

-Highest Grade Lumber

jnjnThe Industry

-Downturn for Piano Sales-Increasing demand for

Electronic Keyboard

HORIZONTAL GRAND PIANO

VERTICAL GRAND PIANO

“Steinway is the only piano on which the pianist can do

everything he wants and everything he dreams.”-

Vladimir ASHKENAZY

”If I am to play my best , there is no way but

Steinway”-LANG LANG

-Worth $122 million-Manufactured Grand

Piano

-100 year old , reputed-Highly Automated assembly line

-High Quality Piano-Focused on Automation

PROBLEMS

-Financial Problems-Family Disputes

-Unwillingness to Investments

-Reputed-Durable

-High Quality-Used by famous musicians

STRENGTHS

WEAKNESS…

-Saturated Markets-Affected by Used Pianos

OPPORTUNITIES

-Expand its customer base in Asian Markets

-Promote the Brand with popular artists

-Launch New segment with lower prices

THREATS

-Rise Of Technology-Growth of Asian Manufacturers

-Takes it over for $21 Million

-Increased the dealer Network

-Focused on increasing

production without compromising on

quality

BACKLOGS…

-Focus shifted on broadcasting-Quality was questioned-Bad Customer Relations

BIRMINGHAM BROTHERS

-Paid $50 million-Tried to regain quality-Personally assured the dealers of the products.

NEW STRATEGY

-Modernized Manufacturing-Limited Edition Piano

-Low priced piano segmentBOSTON PIANO

The Heartbreak

-Limited Financial

Resources-Heavy Debts

The Selmer Company

-Bought by Messina and KirklandFor $100 million

-Selmer was a leading manufacture of musical instruments

-

CHALLENGES

What Roles Kirkland and Messina should

play?

Should Steinway only cater to high-end

niche?

How to increase revenues for the

company? Next Step for the Boston Piano?

Growing Asian Markets

Boston Piano Strategy

-Promotes mid-priced pianos-Ensure high quality

-Introduction in Asian markets

Advertising

-Boast about quality , as many musicians

used Steinway-Dealer Network

should monitored.

EVOLVE….

-Focus on high demand-Maintain the quality

-Take advantage of institutions

-About Steinway-SWOT Analysis

-CBS Takes over-Birmingham Brothers

-Selmer Company

RECAP

DISCLAIMER

Presentation by:-Asimanshu Das

NIT,Rourkela

MARKETING INTERNSHIPPROF. SAMEER MATHUR

IIM,LUCKNOW