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.