Should Steinway Discontinue the Boston and Vertical Line of Pianos?
Should Steinway discontinue the Boston and Vertical Line of Pianos?
Steinway & Son’s musical instrument line of Boston grand pianos, along with vertical pianos, represent the mid market segment for consumer pianos. Although the mid-market product line is a departure from Steinway’s core tradition of producing only high end pianos, the product line does represent a brand name that is consistent with well made pianos. Steinway should maintain both the Boston product line and the vertical product line based on demand of these models, having an available product for entry level customers and utilizing the brand name of the product to attract additional customers.
Vertical piano sales account for more than double that of a grand piano. The volume variance is primarily due to both the footprint and the cost of the units. If Steinway was to cut this product line and focus on strictly grand pianos, they would potentially lose a market with a higher demand. Vertical pianos are constructed in a fashion that makes them easy to fit in a variety of locations. Grand pianos are large, and require an open area to properly house the units. Given the space requirements of vertical pianos, most families will opt in for this type of unit. For example, when I was seven years old, my parents enrolled me into piano lessons during the winter months to bridge the time between the soccer and baseball season. In order to practice, my parents purchased a used vertical piano since it took up almost no space in our house. Purchasing a grand piano was not an option because we did not live in a concert hall or orchestra room. Therefore, to take advantage of the larger demand for vertical pianos, Steinway should keep the product line.
Having a product that reaches all levels of the consumer market is an important aspect of customer retention. The Boston line represents a product that meets the consumer’s needs at the entry to mid level. Yamaha targeted this market initially by mass producing mid-level units and used the recognition to grow their high end line of pianos. Another important factor is that entry level consumers tend to maintain loyalty to a product manufacturer as their needs and spending ability increase and change. An example of this is with car ownership. Most consumers who buy a base model car will upgrade to a higher model of the same brand. Toyota initially focused on creating a basic car at reasonable price. As the company matured along with their customers, demand for additional options and “trims” increased. Now it is almost impossible to find a base model Toyota in the lot! Discontinuing the Boston line will potentially affect obtaining new customers looking for an entry-level product who will also potentially purchase a higher end model in the future.
Finally, the Steinway & Son’s brand name