Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Not so Good
Questions on Quality It was not the same co. what it used to be Repairing Business boom Original Steinway pianos were repaired and sold Management Turnover Presidents changed one after the other
Dealear Network Efforts were focused on distribution Reduced over extended and unfocussed dealer network Development of partnership program Within dealers retail space, steinways product was showcased in a separate quality environment
Product Line Mid priced piano - Boston Piano line was introduced in 1992 Diversion from the old philosophy of staying in the exclusive niche top of the line prestige piano Designed by Stainway, manufactured in Japan by Kawai Half the price of a stainway, to be sold through steinway dealers, competing with Yamha for high margin product in mid market price range
Limited Edition Sold 140 units @ 25 % premium Every 2 years new limited edition models were sold with engraved names of Steinway artist Crown Jewel Collection Quality of wood was upgraded and sold @ 20%-30% premium Financial constraints Extensive investment in inventory management (over $75 Mio) Focus shifted from selling Pianos to negotiating with banks for funds and survival In 1994, for personal reasons they decided to sell off stainway.
Recommendations
Steinway should continue with its high end niche strategy because technical excellence is its brand DNA build the best piano possible Steinway entry into mid segment may initially boost its sales but would eventually lead to brand dilution damage Steinway reputation for exclusivity and quality
Boston Pianos could be marketed as a separate brand not mentioning much about the mother brand. This would not much affect Steinway brand image and would still add to bottom-line. Steinway need to take care of prominent Artist remaining involved and loyal to Steinway Artist concert. Defection of prominent Steinway Artist to competitors could prove deterring for Steinway brand.