Cadillac User Experience CUE

Ch.7 - Business Marketing

  Cadillac sells not only luxury cars to the general public for personal use, but they also sell their vehicles to various businesses that need a luxury fleet car, such as taxis and trasnporters.  But I think the most impressive business sales Cadillac makes is the Cadillac One.  The Cadillac One is the Cadillac limo made for the President of the US.  The Cadillac One currently being used was put into action on January 20, 2009 on the inauguration day for Obama.  The presidential state car has been most often produced by Cadillac in the past.  Perhaps due to all the features that Cadillac provides for a car of this magnitude.  There is at least 5 inches of armor plating, windows so thick its almost dark inside the car and artificial lighting is required, internal speakers are requried to hear anything outside, tear gas can be sprayed from two holes in the front bumper, and the car is equipped with run-flat tires so they can continue to drive if they are punctured.  With all these features and dozens of others it's no wonder Cadillac is the most chose manafacturer for the Presidential State Car.

2009 Cadillac One - Presidential State Car

Ch.8 - Segmenting and Targeting Markets

  Cadillac uses a variety of methods to figure out who their ideal customer is, and how to advertise/market toward that target group directly.  Cadillac focuses more on advertising toward potential customers who can afford their cars, instead of advertising equally to all economic classes.  Their advertising campaigns are also especially aggressive in wealthy areas such as NYC or LA, where there is a large percentage of wealthy potential customers together in a cluster.  Cadillac offers a wider selection of certain cars in different regions as well.  For example, with a good percentage of their fleet sales made in metropolitan NYC, they put more emphasis on those vehicles in their dealerships compared to other states where the amount of fleet sales are small.  It is neccessary for Cadillac to target certain markets as they currently do, in order to maintain effecient marketing plans and provide good advertisement.

Cadillac Holiday Event

Ch.11 - Developing and Managing Products

  Cadillac has always been known as "the standard of the world", and for good reason.  In the past, Cadillac was a pioneer in the auto industry, oftentimes being the first to incorporate features such as enclosed cabs and electric systems for the ignition.  With the reduction of fleet sales from Cadillac, they are now focusing more on retail sales.  They are slowly but surely gaining ground against Lexus (Currently the best selling luxury car in the US) year after year, gaining 2.8% of the luxury auto market from mid 2010 to mid 2011.  This increase in sales has been led primarily by the CTS sedan and coupes, which are currently Cadillacs best selling vehicle.
  Recently, Cadillac has been very innovative by using artful design and advanced technology in all of the cars it produces.  Cadillac is sure to continue innovating and is on the road to overtaking Lexus and leading luxury auto sales in the US.

Ch.16 - Integrated Marketing Communications

  Within the past decade, Cadillac has been implementing different marketing strategies to increase in popularity within the US and overseas.  In 2002 when the Escalade started production again, it was particularly popular among the fashion and music crowd, and helped portray Cadillac's image as hip and cool.  With the Escalade sales dwindling now to half of what they were in 2006, Cadillac is turning to its current CTS model, and its future XTS model to be released next year.  The CTS is hailed by car magazines as being powerful, luxurious, and the fastest in its class, which helps Cadillacs image, and helps sales as well.  And the XTS has built much hype withing the auto crowd and is expected to overtake the CTS in sales once it's in full production. 
 
  Cadillac uses not only your typical promotion processes such as advertising and public relations, but it also relies heavily on it's age old reputation as the primary American luxury brand.  This gives Cadillac a competitive advantage over other luxury car makers within the US, as domestic buyers will be more enticed to purchase a American luxury car over a German or Japanese luxury vehicle.

Ch.10 - Product Concepts

  Cadillac has been around for over a century, and it is always quick to adapt to changes in the auto industry.  Whether its the hybrid Escalade model I discussed in previous chapters, or the new CUE (Cadillac User Experience) interface they are installing in all new Cadillacs.  As far as their products go, Cadillac has a myriad of options for anyone who wants a Cadillac.  You can choose between sedans, coupes, crossovers or SUVs.  You can choose between multiple models for each car type, and different features and colors for the vehicle of your choice. 

  While their product mix width may not be as wide as other companies such as Ford or Honda, their porduct line depth is just as deep if not deeper.  For example, in the sedan category, Cadillac offers the CTS, the DTS and the STS.  And each model has numerous secandary models such as the CTS-V.  This allows the consumer to have a wide selection of choices when interested in buying a Cadillac.  With Cadillac introducing the new XTS model for 2012 they will discontinue the STS and DTS models.  Which in turn will shrink the product line depth of the company.  I don't believe this will have a negative impact on Cadillac as the XTS will combine the best features of both models and will have new features of its own.

  I belive Cadillac has great products now, and will always use their own unique innovation to create new products that will always compete with others.

Ch. 18 - Sales and Personal Selling

  Cadillac isn't known for it's outstanding sales promotions that allow just about anyone to own a Cadillac and that's because Cadillac doesn't offer such promotions.  Cadillac will typically hold three sales events a year, usually offering only a few thousand dollars off the MSRP price.  However recently Cadillac has been running aggressive sales promotion campaigns for its pre-owned vehicles.  Every dealership develops and maintains their own pre-owned vehicle selection.  The dealers seen an opportunity to make profit by exploiting this market, and so they now offer incentives for customers to trade in recent used cars for a new Cadillac.  One particular incentive ran at a local dealership was cheaper financing, an extended warranty, and a extended 30 day return policy. 

  At any Cadillac dealership, you can expect to be aggressively approached by salesmen willing to do practically anything to sell you a Cadillac.  While the same can be said about any car dealership, whether it be Ford or a luxury brand, it's especially true for Cadillac.  The salesmen at the dealerships tend to be highly trained and very knowledgeable on Cadillac and the cars of the competitors as well. 

  Overall, Cadillac uses both sales and personal selling in their marketing plan, and I believe that it has definitely paid off so far.

Ch. 17 - Advertising & Public Relations

  Cadillac has always advertised their brand as "luxurious", "American", and "innovative".  And the advertising marketers want the consumer to recognize the brand as such.  The methods and techniques used for advertising luxury automobiles is most certainly different than most other types of cars.  You're not only selling the physical car, you're selling the status that comes along with it, the experiences that the vehicle will bring to the consumer, and you're building a relationship between the purchaser and the vehicle.  Some advertising for other companies such as Ford and Nissan tend to showcase the particular vehicles price, and how affordable it is.

  In the 1950s and 60s Cadillac started advertising their vehicles more aggressively, partly in response to increased competition from other car brands, such as Chevrolet and Plymouth.  Ads in the 1960s sold the "driving experience" of owning a Cadillac.  In particular, a 1966 Cadillac ad stated:

   "''There is no other driving experience to match that provided by a Cadillac...The car is so smooth and so elegantly quiet, its conveniences so complete, and its safety features so reassuring that Cadillac owners are the most satisfied motorists in the luxury car field..."

  This 1966 ad isn't just selling the vehicle, as I stated before, it's selling all the perks that come along with owning that particular vehicle.  They made a bold statement by saying "Cadillac owners are the most satisfied", but they were confident doing so because of their brand appeal and long history.  

  Cadillac's advertising techniques changed along with the whole auto industry through the 80s and 90s and into the 2000s.  In more recent advertising, Cadillac chooses to use clever wordplay when selling their vehicles.  A recent video ad by Cadillac dubbed "Red Blooded Luxury" has become rather popular on sites such as YouTube.  The ad sells the Cadillac brand as "Red Blooded... classic luxury... top of the line..."  The ad depicts a old, unexciting, boring couple celebrating their anniversary while continually cutting to a scene of a speeding Cadillac.  I think this advertising technique is much more effective on modern consumers, as it relates to how many people perceive luxury, and what owning such a luxurious car would be like.

Ch. 15 - Retailing

Cadillac operates hundreds of dealerships across America, and hundreds more around the globe.  Some are stand alone Cadillac dealers, while other are GM dealers, often mixed with other GM models (i.e: Buick, Hummer).  They tend to be located within close proximity to large population centers, we have around a dozen or so within a short distance of NYC.  Cadillac dealerships often have very luxurious exteriors and interiors, to match the vehicles they sell.  Some Cadillac dealerships are enclosed in glass and chrome, while others may be constructed out of modern designs of sculpted metal and wood.  Cadillac wants their dealerships to be welcoming, comforting and state-of-the-art in design.  It's necessary for Cadillac to have dealerships that compare in luxury to their vehicles they will be selling there, it shows potential customers what they'll be purchasing before they do so.

Old Cadillac Dealership

I recently visited the GM Potamkin car dealership in Harlem.  It's one of NYC's largest car dealerships, selling Hummer, Buick, Chevrolet, and Cadillac.  The Cadillac section of the dealership is very sleek, constructed out of mainly see-through glass and polished metal/chrome.  It's very state-of-the-art in design, and has luxurious furnishings on the inside, such as leather couches, and solid carpeted floors.  The employees were dressed professionaly and were ready to help at any moment.  The sales floor was positioned through the whole dealership, so they could allow a maximum amount of cars to be shown at once.  They had all of Cadillac's models out for show, and some in different colors and with different specifications, such as sporty interiors, and special navigation systems.  Cadillac did a great job displaying what American luxury is within this dealership.

All over the country, Cadillac dealerships are set up in the same way.  State-of-the-art design, luxurious furnishings, etc.  It's important for Cadillac to maintain its image in any way it can, and by providing luxurious dealerships where potential customers can come and buy their automobiles, they're doing just that.

Ch. 6 - Consumer Decision Making

  For any company selling something for profit, it is important to know what the consumer wants, when they want it, and why they want it.  Cadillac, being targeted toward potential luxury car purchasers markets specifically for that target group.  But it would also make sense to produce vehicles that can be targeted at different groups other than the luxury car buyers.  Doing this would allow Cadillac to be marketed toward more consumers, increasing sales for the company by producing more vehicles that can be sold.

  Cadillac is most known for its high-end luxury cars, this puts Cadillac off the radar for most car buyers who can't afford a luxury vehicle.  In recent years Cadillac has produced models such as the CTS which are substantially cheaper than some of their other models.  While the CTS is still considered a luxury car, it is more affordable, and allows more models to be sold because of its price.  Cadillac has increased its sales year after year now that they produce different priced models.

Cadillac Ciel Concept at the Frankfurt Auto Show (Sept. 2011)

  Another example of Cadillac using consumer behavior to market to those groups better is the Cadillac Ciel concept car unveiled last week at the Frankfurt Auto Show.  The Cadillac Ciel is a powerful luxury car at 425 hp.  It has all the tweaks and perks of other Cadillac models, allowing it to be marketed toward all the current Cadillac consumers.  While this vehicle keeps all the classic features expected out of a Cadillac, including a powerful v6 engine, and a luxury interior, it was designed with a specific target group in mind.  It is a hybrid car, capable of driving fully off electricity for short distances, and then switching over to its v6 engine once the electricity runs out.  Currently, consumers have a very high interest in saving the environment, and the electric vehicle is one of the most convenient ways of doing so.  The Cadillac Ciel will be targeted toward this specific market, a market that previously couldn't be marketed to by Cadillac, due to its lack of environmentally friendly vehicle (other than the Cadillac Escalade Hybrid).

  Any company that wants to maintain profitability has to constantly be aware of consumer behavior in all of its aspects.  The marketers need to be aware of what the consumers want now, and what they will want in the future.  If a company fails to understand and heed consumer behavior it will be difficult to remain profitable for long.

Ch. 5 - Developing a Global Vision

 Cadillac is well known around the world as a classic American luxury car.  Although GM (General Motors) tries to market the brand in other countries across the globe, it hasn't done as well as in the US.  But the new GM CEO Dan Akerson who took over in September, has emphasized his desire to increase Cadillac sales worldwide and make it a truly global nameplate.

Dan Akerson wants to begin producing Cadillacs in other countries, to help them better manage their supply chain, and to allow easier penetration into those foreign markets.  Currently, Cadillac is only produced in North America, and this makes it difficult to sell abroad efficiently.  This new business plan will allow Cadillac to compete more directly with European luxury brands such as Mercedes-Benz and BMW.

                                                        “We're going to try to define a slightly different brand and product strategy by having a global premium brand, Cadillac"       -   Dan Akerson

While some longtime Cadillac enthusiasts might be upset with the fact that Cadillac will begin production outside of North America, I believe it is a necessary move in order to increase sales.  This new production process for Cadillac shouldn't affect sales within the US negatively, Cadillac has already created separate marketing plans to boost sales within the country, this will boost sales outside of the country.  Cadillac needs to implement new strategies to drive their popularity and presence in other countries, and I strongly believe this will achieve both of those goals.

Ch. 4 - The Marketing Environment

Cadillac has done a lot since the recession started in late 2007 to adapt to the fast changing marketing environment.   These adaptations were necessary for the company to remain successful, without them they would be targeting a market that no longer existed.

Cadillac had long targeted wealthy middle class to upper class citizens to purchase their automobiles.  Since this group of middle-upper class typically had extra cash saved up, Cadillacs were always being sold.  But once the recession hit, the same middle-upper class no longer continued their spend-spend-spend buying habits.  Instead they became more frugal by not spending on unnecessary things such as luxury cars.  During this period the economy pretty much froze up, so not much could be done by Cadillacs marketers.

-Cadillac Aera Concept

But starting in late 2008 still in the heat of the recession, Cadillac released the Cadillac Escalade Hybrid.  They released this model not so much as to help the environment and seem socially responsible (as we discussed in class), but to allow for a previously unattainable demographic to be targeted by marketers.  In 2009 Cadillac expressed their new design philosophy geared for the 21st century:


"incorporates sharp, sheer forms and crisp edges – a form vocabulary that expresses bold, high-technology design and invokes the technology used to design it."
                                                                                     - Cadillacs design team.

This announcement allowed Cadillac to attain a new image while keeping its previous, by maintaining production of its classic models.  With this new image, Cadillac hoped to reach yet another demographic that had previously not been targeted.  The companies latest adaptation to the marketing environment came when Cadillac announced it will be introducing a new 24-month lease, previously only a 36 or 48-month lease was available.  This allowed for potential customers who were deterred by Cadillacs high prices, to reconsider if they could afford it.  A 24-month commitment seemed much less enticing than signing on for 3 years.

Through these marketing adaptations Cadillac increased sales by 50% over the last 3 years, by implementing marketing plans that allured new demographics, whether it be the eco-friendly consumer who made their first Cadillac purchase only when they introduced the Escalade hybrid, or the less wealthy customer who signed for a 24-month lease due to its weaker financial strain.  The marketing environment can be a tough place to navigate and be successful, but Cadillac made the right adjustments, and added the right components to their marketing plan to increase their sales.

Ch. 3 - Ethics & Social Responsibility

Cadillac has long been known for its gas-guzzling cars, and the harmful effects they have on the environment.  Not until the early 2000s did the protection of the environment become a major problem.  Throughout the 1980s and 90s, Cadillac produced automobiles that had terrible MPG(Miles Per Gallon).  And the company did little as far as recycling or re-using metals.  Once the Global Warming scare came into play, Cadillac, along with all the other car manufacturers were forced to produce cars that were better for the environment.

Cadillac was slow to develop ways to make their automobiles more eco-friendly.  In 2008 they introduced the Cadillac Escalade Hybrid.  This hybrid model produced better gas mileage, and had less of an effect on the environment.  While this is currently the only Hybrid model they offer, their new XTS model (discussed in Ch.2) will have a minimal impact on the environment, and will have decent gas-mileage. 


As far as social responsibilities go, Cadillac has kept a positive public image for almost its entire history.  The company handles all ethical problems out of the public eye, so to avoid scrutiny.  Cadillac employs dozens of ethics workers to settle all problems within the company before they are blown out of proportion.  Recently a problem arose due to the Escalade models high theft rate.  GM's global lead, Bill Biondo quickly released the following statement to reassure customers that the problem will be handled:


  “We are currently implementing four new pieces of ‘armor’ on Escalade intended to reduce vehicle thefts, particularly those called push away. We are committed to beating the thieves and expect these new theft deterrent systems to greatly reduce the Escalade’s rate of theft and lower its position on the HDLI’s list.”


With Cadillac accepting all responsibilities for their products, they continue to demonstrate their social and corporate responsibilities.

Ch. 2 - Strategic Planning

Since Cadillac was created in 1902 it has always used strategic planning to gain an edge over competitors. Early on, Cadillac used "quality craftsmanship" to ensure potential buyers that they were purchasing only the best when buying a Cadillac.  While their beliefs and motto hasn't changed much since then, their marketing plan has.

A great example of Cadillacs strategic planning is their new XTS model.  Cadillac is planning on releasing the XTS model sometime in 2012.  It is designed to be Cadillacs flagship vehicle, and they want it to compete directly with their competitors, such as BMW, Acura, Mercedes-Benz.  The XTS comes at a time where Cadillac showrooms are only showing three main car models, the Escalade, CTS, and the SRX crossover.  This limited amount of automobiles by Cadillac is due to them canceling production of the STS and DTS models.  These two models were discontinued with plans to be replaced by the new XTS.

Cadillac has begun marketing aggressively their new XTS model.  They emphasize on the performance qualities of the XTS.  Such as the new Ultra-V8 engine with 350hp, or the newly designed exterior and interiors of the car.  Cadillac has a strong foothold in the American luxury vehicle niche, which has helped their sales over the years.  The new XTS model is designed to fit in that niche while luring other buyers as well.

The prototypes they've shown at Auto Shows have gathered a lot of attention and hype.  People are excited to see a new Cadillac flagship vehicle.  And with Cadillacs unique marketing plan they are beginning to compete more aggressively with their rivals.

A brief history of Cadillac

Cadillac is a classic American luxury car brand and one of the biggest automobile companies in the world.  It was founded in 1902, and considers itself "the standard of the world".  In 1909 General Motors purchased Cadillac and soon after it quickly climbed to the top of the automobile industry to become the most desirable luxury car in America.  The company has kept it's image as a premier luxury car brand for decades by being innovative, and masterfully marketing it's product.  These innovations included being the first car manufacturer to include V8 engines, electric starting, lighting, steel roofs, and a seemingly endless list of other car luxuries.


Cadillac continued as the premier luxury car in America for over 20 years until the Great Depression.  In 1932, right in the heat of the Great depression, sales dipped sharply.  The owners of the company debated ending the Cadillac line, due to these lackluster sales.  Luckily, the company survived, and seen exponential growth throughout the 1940s and 50s.  Throughout the 1950s and into the 60s sales were growing every year as Cadillac added new features to its automobiles, such as tailfins and chrome detailing both on the interior and exterior.  These features reached their peak around 1960 and were fully diminished by 1965.


During the 1970s and 80s, Cadillac was having trouble complying with demanding emissions requirements set by the American Auto Industry.  These requirements along with rising gas prices caused Cadillac's sales to decline.  Throughout the 1990s Cadillac was being surpassed in the US as the top luxury car by companies such as BMW, Mercedes-Benz, and Lexus.


Today, the luxury automobile industry in the US is split between many companies, not so much dominated by a single manafactuer.  Although Cadillac is still behing companies Lexus, BMW, Mercedes-Benz, and Acura, it's sales have been rising steadily year after year.  They're still including innovative features in their vehicles, and their sales are sure to continue rising.

Cadillac's Mission Statement

 "Cadillac will lead the luxury segment by offering must-have product that are professionaly marketed, and delivered through a premium retail channel obsessed with customer satisfaction and sales/service."