Steinway & Sons: Buying a Legend
8th Nov. 2011
1) Historically, why has Steinway been successful?
• For 140 years, Steinway & Son has been recognized as a leader in the market for high-quality grand pianos. In 1854, it introduced the cross-stringing technique in a piano with a cast-iron frame, an innovation that is now universal in all grand pianos. Based on these technical advances, order grew rapidly. • Steinway also emphasis on brand visibility by opening the Steinway Hall in 1866, and had engaged in artist management. • Strong back up support could be another issue; Steinway Village had developed in 1871. The develop of this village is not only put the whole production line together, but also provide a convenient living and working environment, so that the staffs can concentrate on their work. • When Steinway start to produce high-quality pianos with consistent volume, the worldwide piano markets seem not mature around 1871-1900. Less competition also consider as an issue. • Succeeding generations of guided the company by following the advice of its founder to “build the best piano possible and sell it at the lowest price consistent with quality”. Identify its Marketing mix: “product,” “pricing” “promotion,” and “distribution/place”. • Product:
1. Technical excellence
2. Cross-stringing technique in a piano with a cast-iron frame 3. Assembled by craft methods, with limited use of assembly-line techniques. 4. High quality of raw materials: Steinway relied on its own wood technologists to aid in the purchase of million of dollars worth of wood annually. 5. Unique – no two Steinway grand pianos sounded the same. This attention to detail contributed to the legendary sound and durability of a Steinway. • Pricing
Exclusive niche market
Selling only a top-of-the-line prestige piano
1. Served as NY city’s major concert facility for many years 2. Steinway’s Concert and...