Steinway & Sons, also known as Steinway, is an American-German piano company, founded in 1853 in Manhattan, New York City, by German immigrant Heinrich Engelhard Steinweg (later known as Henry E. Steinway). The company's growth led to the opening of a factory in Queens, New York City, and a factory in Hamburg, Germany. The factory in Queens supplies the Americas and the factory in Hamburg supplies the rest of the world.Steinway has been described as a prominent piano company known for making pianos of high quality and for inventions within the area of piano development. Steinway has been granted 126 patents in piano making; the first in 1857.The company's share of the high-end grand piano market consistently exceeds 80 percent. The company's dominant position in the high-end piano market has been criticized, with some musicians and writers arguing that it has blocked innovation and led to a homogenization of the sound favored by pianists.

3. Founded by Henry Engelhard
Steinway in 1853
Purchased by CBS and owned from
1972-
1985
Owned by Birmingham brothers
from
1985-1995
Bought by Selmer company in
1995

4. In April 1995 STEINWAY&SONS
was brought
By
DAN MESSINA and KYLE
KIRKLAND
For
$100MILLION!!
How was this purchase for
$100million justified???....

5. TYPES OF PIANOS
VERTICALPIANO GRANDPIANO

6. 90%
10%
Vertical Piano Market
Home/Priv
ate Market
Institutiona
l Market
80%
20%
Grand PianoMarket
Home/Priva
te Market
Institutional
Market
5,40,000 were sold in
1994
60,000 were sold in
1994

7. 4major trends
1 Downturn in the Piano industry, with global
sales dropping by 40%since 1980
In the U.S., sales plummeted, from 2,33,000
units in 1980 to less than 1,00,000 units in
1994
Affected by the growing popularity of
computers and increasingly sophisticated,
low-pricedelectronic keyboards
Affected terribly by the global recession
of the early 1990s

8. 4major trends
2 Consolidation of the Piano
manufacturing industries
in the U.S. and Europe
In the U.S., where
there were several hundred piano
makers initially, there
were only 8 Piano makers
by 1992

9. 4major trends
3
Emergence of several strong Asian
manufacturers such as
Yamaha, Kawai, Young Chang and Samick
The 4 Asian piano powerhouses combined
for
75% of global sales by the 1990s
From a near zero share in 1950, Asian
imports achieved a 35% unit share of the
U.S. vertical piano market by 1994
From a near zero share in 1950, Asian
imports achieved a 80% unit share of the
U.S. grand piano market by 1994

10. 4major trends
4
Emergence of new and
potentially large markets with
promising prospects
Countries like Japan, South
Koreaand China now represented
huge opportunities for the piano
makers

11. COMPETITORS
YAMAHA, BALDWIN
KAWAI ,FAZIOLI

12. USED TRADITIONAL CRAFT
METHOD
KEPT A CLOSE WATCH OF
STEINWAY AND COPIES SOME OF
ITS POLICIES

13. Baldwin was the only other
manufacturer of high-quality
grand pianos in USA.
was manufactured in highly
automated production facilities
Were very well respected by
trained musicians and official piano
of many organisations

14.  Kawai were manufactured on highly
automatedassembly lines
 has a nice, resonant base, and the
instrument sounds fine at low volumes

15.  Fazioli produced very small volumes of top-
quality grand pianos.
It seems Italian piano industry has finally
been able to produce a concert instrument
with its own individual personality and worldwidemarketability.

16. Used piano markets
For every 1 piano sold 10 pianos changed
hands
A USED STEINWAY posed a serious threat to a
NEW STEINWAY
 a well maintained 20-year old Steinway
grand could be expected to sell for 75% of
the price of a new Steinway grand of the same
type

18. •EXPAND AND MAINTAIN THE BOSTON PIANO LINE
•TARGET THE ASIAN MARKETS
•GAIN MARKET SHARES IN MID-PRICED PIANO MARKET
WHAT TO DO ??

19. DEALER NETWORK
MAINTAIN A HIGH QUALITY AND
FOCUSSED DEALER NETWORK
FREQUENT VISITS TO DEALERS ENSURES
SENSE OF RESPONSIVENESS TOWARDS
THEM
CHOOSE DEALERS WHOSE PRIME
PRODUCT LINE WOULD BE STEINWAY
DEVELOP PARTNERSHIP PROGRAMMES

20. WHAT TO DO??
•DELIVER HIGH QUALITY
PRODUCTS
•INVEST IN R&D DECREASE
COST OF MANUFACTURE AND
INCREASE QUALITY
THE POLICY OF INTRODUCING EVERY
TWO YEARS WORKED WELL
WHICH SHOULD BE CONTINUED
THE NAMES OF THE IMMORTAL
ARTISTS WERE ENGRAVED WHICH WERE
SOLD WITHIN HOURS

21. NOW IT ALL DEPENDS ON THE TWO
OWNERS
TO CARRY FORWARD THE
COMPANY TAKING INTO COUNT THE
PAST EXPERIENCES AND
APPLYING THE RIGHT
STRATEGIES
THANK YOU

22. DISCLAIMER
Created by G.Ranjith, SVNIT Surat ,
during a marketing internship by Prof.
Sameer Mathur, IIM Lucknow.