STEINWAY AND SONS

Bahniman Rynjah Bala Meenakshi R Chhavi Gupta Karthik V Nitin Narsaria

•Also CAGR for piano market – negative.CASE ANALYSIS: POINTS AGAINST LAUNCHING: •Increase in revenue after launching K model calculated. • loss of brand value • This may result in losing out on customers of its flagship product – the Steinway Grand •The excess capacity in the production space of uprights is being used to manufacture Model-K . •Hence recommend to continue with existing line of products. •This also comes at an increased cost. •So starting this new line of product would seem to customers like catching up something its customers are not used to. (after making allowance for reduction in quantity of other uprights) •The increase is minimal. • Steinway – pioneer in piano industry.

• Also might not meet market demand for Verticals • Unlike Yamaha and Kawai.•Competitor’s use assembly line production to meet demand.Backlogs. using the excess capacity and current production techniques. 10% use as just furniture. Why buy something more expensive for a piano that focuses only on good sound quality when cheaper alternatives are available (yamaha alternative available at 5000$) •Unable to meet current requirements for Grand Piano. further increases the backlogs for Grand Pianos. Steinway did not have well established dealership . -Cheaper -Faster • People unable to perceive difference between good and bad music in 1980s.

RECOMMENDATIONS: Do not launch K model  If launch – change production techniques and make it assembly line based – to compete with competitor costs – also to make production independent of skill labor attrition  Use artificial drying to reduce backlog – as anyways general customers can’t perceive difference in sounds  Increase dealer base  .

THANK YOU! .

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