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How Steinway grew without losing its Ferrari imageA source of inspiration for companies with ambition| www.howwinnersmakechoices.com

Welcome to one of the webinars of the book How Winners Make Choices. In this webinar we will discuss how Steinway & Sons managed to grow outside her original niche without losing its premium brand image.1

HOW WINNERS MAKE CHOICES: A SOURCE OF INSPIRATION FOR COMPANIES WITH AMBITIONSteinway: The Ferrari Of Pianos

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In 1853, Henry Engelhard Steinway founded Steinway & Sons, together with his five sons, in Manhattan, New York. It became the Ferrari of pianos.

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HOW WINNERS MAKE CHOICES: A SOURCE OF INSPIRATION FOR COMPANIES WITH AMBITIONWhy Is Steinway The Ferrari Of Pianos?

Handmade12.000 componentsEvery instrument is uniqueTraining of 7-10 jaar

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Why do people call Steinway the Ferrari of pianos? They produce all pianos by hand from as many as twelve thousand components over a period of one year. Each instrument is unique. Connoisseurs even distinguish and have a preference for pianos made by Steinway in his workshop in New York or Hamburg. Steinway craftsmen are traditionally trained for seven to ten years before they have the skills to build a Steinway piano.3

HOW WINNERS MAKE CHOICES: A SOURCE OF INSPIRATION FOR COMPANIES WITH AMBITIONSteinway Chooses For A Niche

Top musicians

Wealthy individuals4

Steinway is focused on a niche, consisting of top musicians and wealthy individuals.

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Foto Links: Leif Ove Andsnes

Leif Ove Andsnes says about Steinway:Steinway pianos offer the richest vocabulary of sounds a pianist could wish for.4

HOW WINNERS MAKE CHOICES: A SOURCE OF INSPIRATION FOR COMPANIES WITH AMBITIONFor Wealthy Individuals Steinway Now Offers The Spirio

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With the introduction of the Spirio, Steinway recently embraced the digital revolution. The Steinway Spirio, aimed at wealthy individuals, Steinway & Sons brings the most accurate method of recording keystrokes of musicians (with thousands of speed gradations), allowing you to hear their performances on your own Steinway via your iPad library. Without being able to play yourself you can thus enjoy the music from top musicians in your own living room.

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HOW WINNERS MAKE CHOICES: A SOURCE OF INSPIRATION FOR COMPANIES WITH AMBITION

Steinway Experienced The Limits Of Its Niche6Number of grand pianos sold in 2007 vs. 2009 2007 2009

However, such a premium business will soon experience the limits of its own niche. Moreover, a Steinway is very expensive therefore its acquisition is postponed easily in an economic crisis, as the recent crisis illustrates clearly. For example in 2007 Steinway & Sons 2,994 grand pianos in the US, they only sold 1,752 in 2009.6

HOW WINNERS MAKE CHOICES: A SOURCE OF INSPIRATION FOR COMPANIES WITH AMBITIONHow Do You Then Grow Without Damaging Your Brand Image?7

Yet Steinway managed to increase its valuation from $ 100 million in 1995 to 512 million in 2013, in comparison to the average American company on the stock exchange, Steinway did twice as well. Steinway also managed to become less sensitive to global economic shocks. How did Steinway manage to grow without damaging its brand image?7

HOW WINNERS MAKE CHOICES: A SOURCE OF INSPIRATION FOR COMPANIES WITH AMBITIONGrowth In Other Segments With The Boston & Essex

8Starting prices:$ 13.500$ 21.100

It did so by utilizing a clear flagship strategy, with entailed further strengthening its strong position in the premium niche under the brand Steinway & Sons and targeting other (less premium) niches with new brands such as Boston (launched in 2006) and Essex (launched in 1992).

The three brands are strictly separated from each other, in order to avoid brand confusion.

Essex is the entry level model aimed at beginning players, designed and manufactured by Steinway worldwide. Each Essex is inspected by a team of highly experienced experts from Steinway and Sons before it leaves the factory. The cheapest Essex upright pianos cost 5,490, while the grand models, prices vary between 13,500 and 20,200.Boston, designed by Steinway & Sons since 1992, offers top quality instruments for the medium expensive price segment. As with Essex also Boston pianos are produced worldwide by other piano builders, the quality is guaranteed by specialized Steinway experts . The cheapest Boston-upright piano costs 7,600, while the Grand model prices vary between 21,100 and 51,400.Steinway is focused on the premium segment and is completely handmade by Steinway. The cheapest Steinway upright piano costs about 30,000 euros, while prices for the Grands are situated between 60,000 and 250,000 euros. Steinways are therefore usually bought for life.

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Prijzen gebaseerd op:http://www.pianobuyer.com/publication.html#2058

How Steinway grew without losing its Ferrari imageA source of inspiration for companies with ambition| www.howwinnersmakechoices.com

Thank you for your attention. We hope that this webinar will help you make to start making choices like a winner.

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