Steinway and sons case analyis (shubham goswami)
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This presentation is based on a Harvard Business School Case and explores the managerial challenges faced by two young investment bankers who have bought one of the greatest names in all of music.
Steinway and sons case analyis (shubham goswami)
- 1. Steinway & Sons: Buying a Legend (A) A Harvard Business School Case Analysis Shubham Goswami Jadavpur University
- 2. The Case Protagonists Dana Messina & Kyle Kirkland
- 3. Who are they ?
- 16. Selmer generated $100m in revenue and $3m in profits in the previous year
- 17. Steinway too had sales of $100m in the previous year
- 18. Steinway derived these $100m dollars from the sale of 2698 Steinway grand pianos, 600 Steinway verticals and 2300 Boston Pianos
- 24. Verticals Grands
- 28. What are the major trends in the Piano Industry ?
- 31. Probable reasons for downturn:
- 35. South Korea and China are lucrative Piano markets
- 46. To make the best piano possible and sell it at the lowest price consistent with quality
- 49. Steinway History
- 52. 1. What is the Best Strategy for Steinway and Sons ?
- 53. 1. What is the Best Strategy for Steinway and Sons ?
- 54. 1. What is the Best Strategy for Steinway and Sons ?
- 56. But the decline in unit sales of Steinway Grands points towards an increasing skepticism regarding Steinways quality
- 59. Steinway should continue its high end niche strategy and position itself as the worlds pre-eminent maker of high quality pianos
- 60. Any aggressive move to improve profitability by increasing production may dilute quality and reduce brand equity
- 61. 2. What should be done with the Boston Pianos ?
- 62. 2. What should be done with the Boston Pianos ?
- 63. 2. What should be done with the Boston Pianos ?
- 64. Steinway Steinway Limited Editions Crown Jewel Collection The Boston Piano
- 65. Steinway Consumer The 45 plus, affluent music lover Boston Consumer The slightly younger, not so affluent music lover
- 66. Boston : Steinways mid-priced product line
- 67. Hence, Steinway is justified in introducing a mid-priced line of pianos under the brand name Boston.
- 68. It results in market expansion and generates additional revenue without affecting the market for Steinway Pianos
- 69. Addressing the issue of the used piano market
- 70. Steinway should keep innovating in the design and technology of its pianos.
- 71. This will keep consumers interested in new Steinway products. A new product should offer features and advantages that make it preferable to a 40-year old used piano.
- 72. 3. What role should be played by Messina and Kirkland in running Steinway ?
- 73. Role of Messina and Kirkland
- 74. 1. They must make sure that Steinway does not shift from its core brand value of making the worlds finest pianos
- 75. Even the mid-priced line of pianos, which is manufactured by Kawai on contract, should not fall short on quality.
- 76. 2. They should improve customer service and focus on customer retention through relationship marketing.
- 77. Maintaining a good relationship with Steinway Artists is also integral to the brands promotion
- 78. 3. They should be selective while forming their dealer network. An over-extended distribution network will lead to loss of control and poor service.
- 79. 4. They should closely monitor the performance of the competitors and try to retain dominance in their core markets
- 80. 5. Finally, they should explore new market opportunities in Asian countries like South Korea and China which have great growth potential
- 82. Disclaimer Created by Shubham Goswami, Jadavpur University, during a marketing internship under the guidance of Prof. Sameer Mathur, IIM Lucknow (See www.IIMInternship.com)