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."