Steinway & Sons faced declining piano sales and competition from Asian manufacturers. Two investment bankers bought Steinway in 1995. Shortly before, Steinway launched the lower-quality Boston piano line. The new owners must decide whether to focus on high-end or expand markets. It is recommended that Steinway scrap the Boston line and reinvest in quality mid-range pianos, while marketing to institutions and consumers to reinforce their brand of legendary quality.

1. Steinway & Sons
CASE STUDY

2. Statement of the Problem:
Steinway & Sons faced a
declining piano market
and increased competition
from Asia piano
manufacturers.

3. Background:
In 1995 two investment bankers buy legendary piano
manufacturers, Steinway & Sons for 100 million
dollars.

4. 2698
600
2300
0 500 1000 1500 2000 2500 3000
Steinway grand pianos
Steinway vertical
Boston pianos
Sales

5. Background (Contd.)
In 1995 two investment bankers buy legendary piano
manufacturers, Steinway & Sons for 100 million
dollars.

6. Background (Contd.)
Shortly before the company changed hands Steinway
& Sons began to market an introductory line of pianos
under the Boston brand name

8. Discussion:
The new owners of Steinway & Sons will face a
worldwide market that is in decline due to the
prevalence of electronic keyboards and other more
modern forms of entertainment.

9. Discussion (Contd.)
Steinway & Sons will also have to deal with increased
competition from Japanese manufacturers, especially
Yamaha.

11. Discussion (Contd.)
The Boston brand pianos were manufactured under
contract by a Japanese firm and in no way reflected
high standards associated with Steinway & Sons.

12. Discussion (Contd.)
The new ownership of Steinway & Sons will have to
decide whether to focus on the high-end piano market
or continue to try to tap other markets as they have
began to do with the Boston line.

13. Recommendation:
Scrap the Boston line and start another midline effort
that focuses on the quality that customers expect from
Steinway & Sons

14. Recommendation (Contd.)
In order to counteract Yamaha’s entrance to the high-
end market, begin a marketing campaign focusing on
institutions and private consumers reinforcing the ideas
that a Steinway & Sons grand piano is the piano of
legends.

15. SWOT ANALYSIS

16. STRENGTHS
• The brand name has been recognizable with music for 100
years
• Different model pianos for different kinds of people and
places
• Highest quality in the piano market
• Stores in North and South America, Europe, Asia and Africa

17. WEAKNESSES
• Saturated market
• Major Competitor is their own used pianos
• Other strong music names moving in on declining market share

18. OPPORTUNITES
• Use name to push other music products
• Lower prices and cut in on competitors
• Have new famous composers represent Steinway

19. THREATS
• Japanese made pianos
• Technology, rise of the electric piano
• Decline in demand

20. CONCLUSION
In conclusion Steinway & Sons is the best known name in
high-end pianos. Steinway & Sons just need to take another
look at their marketing campaign. They need to take advantage
of the fact that fine artists such as Duke Ellington, Vladimir
Horowitz, Cole Porter, Arthur Rubinstein and many more use
their products. When you connect a superior product with a
well known name the product is going to sell.

21. CONCLUSION (Contd.)
As for the Boston line Steinway & Son should eliminate
the product all together. They need to get their team
together and start from scratch to develop the highest
quality product with their most limited resources. If they
do not cut any corners and really develop the product
to last they can begin a medium budgeted piano line.

22. DISCLAIMER
Created by Aparana Gupta, during a marketing
internship under the guidance of
Prof. Sameer Mathur, IIM Lucknow

23. THANK YOU