Steinway 3

What have we learned this week supports the casethat Steinway should phase out the Boston brand.

Reasons why phasing out is the best option:

1. The brand portfolio2. Competitive Landscape3. Better opportunities for growth elsewhere

1. Create a strong, clear brand positioning.

Words used to describe Steinway:

LegendaryInstitutionIllustrious

For the world’s most accomplished pianistsPre-eminent

The Boston does not fit this brand

Words used to describe Steinway:

LegendaryInstitutionIllustrious

For the world’s most accomplished pianistsPre-eminent

2. V specific brand meaning = hard to extend

3. Stretching a brand too much doesn’t work

Resale implicationsConfusion

4. Avoid being the equivalent of a Mercedes for 26 year olds.

Resale implications

5. Know what to compete with the competition on, and what to avoid.

Stay with Boston? Expand high end?

• Baldwin, Yamaha and Kawai - high volume, lower price.• Large share of mid-market• Produced by a competitor• Electronic keyboards

• Growing demand for Limited Edition and Crown Jewels• New potentially large markets in Japan, China and S Korea

Conclusion - Boston should be phased out

1. It risks damaging the Steinway brand2. Mid-market is not a good area to be competing in.3. Global high end is a better strategy.