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.