Luxury brand management, food and wine Cl3
1. Historically, why has Steinway been successful?
Steinway & Sons is one of the leader in the market for high-quality grand pianos. It was established in New York City in 1853 by a German immigrant Henry Engelhard Steinway and prospered with its techincal excellence.
Marketing Mix of Steinway & Sons
Steinway & Sons keeps in working on its high quality. All Steinways are still assembled by craft methods, with two years to mnufacture ( one year for the piano a lumber to dry and one year to physically make ans assemble the piano components) and contained over 12000 individual parts. And Steinways employ skilled labor throughout the production process. In addition, Steinway uses the highest grade of over seven species of lumber and nine exotic veneers. They rely on its own wood technologists to aid in the purchase of million of dollars worth of wood annually.
* Product line
a. The Boston Piano
The first new product introduction of Steinway & Sons which is a mid-priced piano under the brand name “Boston”. It’s a significant break with tradition for Sweinway & Sons. It is designed by Steinway & Sons but manufactured by Kawai in Japan. This product line helps to get high margin in the mid-priced market and compete with YAMAHA.
b. Steinway Limited Editions
The second new product introduction of Steinway & Sons. Fisrt designed to celebrate the 140th year of piano making, then with a big success, they decided to introduce a limited edition every 2 years.
c. Crown Jewel Collection
The third new product introduction of Steinway & Sons. In order to change to proportion of piano saling, Steinway lanched the collection which used exotic woods. By 1995, the Crown Jewel Collection represented almost 30% of Steinway unit sales.
Steinway always has a limite...