CBS's Marketing Strategy Shift

The decision within the CBS years (1972-1985) to increase production levels and choice of other methods of marketing through competitor sales distribution outlets opens an opportunity for customers to question Steinway’s piano quality, uniqueness and perceived brand image. This resulted in declining sales and frequent order cancellations. The used pianos also pose an issue of how Steinway would hold well of its value creation at the customer end1.

Relatively, Boston’s piano introduction also further eroded Steinway’s piano; a middle-range product an advance from the traditional offerings.

Strong competition stem from Yamaha and other Asian brand of piano2. These new designs were built on highly automated systems and had quick assembly time than Steinways with a two year manufacturing time.

The competitors are better at rendering a highly valued after sales checks and feedback from their customers than Steinway. There is a track record of begrudged customers who have made official complaints about Steinway’s service level; an example in the case study is famous

The frequent acquisitions and ownership change is a great challenge and pproduct quality has become a concern.

This would possibly give rise to the problem of continuance of corporate mission. Therefore, it’s necessary for Steinway to retain its leadership position to fully understand and make attempt to maintain the core competences and brand image for customer retention and loyalty3

What have been the recent challenges to Steinway’s Value Creation?